Top tyre supplier
April 1st 2008

Watts Tyre Group is one of the largest suppliers of industrial tyres in Europe. CEO Jean-Paul Mindermann spoke to H&SS about the latest issues to effect the industrial tyre market and its product users

How is the company structured? Watts Tyre Group is structured into Business Units, each country we operate in directly constitutes a Business Unit on top of which we have a Rest of World unit which covers our export/direct containers business. Further to that we have our Wheels division and Watts Zarya which provides fitted tyre and wheel solutions to the OEM market.

Overall it is a pretty flat organisation with each business unit supported by our central functions of Finance, Marketing and Technology. Each business unit has its own P&L responsibility.

Where does Watts currently operate? Do you anticipate any notable changes in this in the future? We have our own operating companies in UK, France, Germany, Mexico and the USA, we have partners and distributors in a further 60 countries globally, most of whom will cover neighbouring countries. You can find Watts tyres in most countries around the world.

In terms of change we have stated that we wish to be the leading supplier of tyres and wheels to the global materials handling industry; that means we have to have a strong global presence and so yes we do anticipate changes. Over the last 12 months we have made acquisitions in Mexico, the USA and the UK to strengthen our positions in those markets and we expect this pattern to continue in other territories as well as us continuing to find credible distribution partners around the world.

What effects have rising rubber prices had on business for Watts? How is the company working to overcome any potential difficulties arising from this? As we have highlighted, rising rubber prices will continue to have a huge impact on the industry for the foreseeable future. Rubber has dramatically risen over the last 18 months fuelled by demand from China and India, particularly in their automotive sectors. This, coupled with a shortfall from the rubber producers in Asia, puts the industry in an interesting position. Largely these factors are not going to go away which means that rubber prices will continue to rise.

For tyre producers and distributors such as ourselves the onus is firmly on continuing to provide a clear value in our products. In addition to having a comprehensive product and service range we have to add value through customer service, product quality and sound advice.

Equally we must help tyre users understand that there is a false economy in buying cheaper cord filled tyres and that quality products when deployed correctly will be of far better value.

To do this we have to talk to customers and understand how they are using their forklift applications; what environments, what loads, what hours of operation and from there determine what the right tyre for them actually is. There is more technology in industrial tyres than many people appreciate and we must help people to select the best combination of tyre and tread for their needs.

How is Watts addressing environmental issues faced by the tyre industry? There are a wide range of environmental issues affecting the industry at different levels; business, manufacturing, distribution, product and service.

At business and manufacturing levels we hold ISO 14001, the environmental standard required of many suppliers by the OEM market. At a product level we have long sought to make our tyres last longer and aid engine efficiency through low rolling resistance; by definition tyres that last longer will require a longer replacement interval, which addresses the issue along the entire supply chain.

Staying with products we also produce the Quantum tyre which is a 100% retreaded used tyre. Part of our service offering has always been the disposal of used tyres; a further Watts subsidiary, Terrasofta takes these tyres and after shredding, cleaning and a whole host of other processes turns them into safety flooring and matting for children's play areas.

Environmental issues will in all likelihood be with us for the future and we have a responsibility to address them.

How important is R&D within the company? For us as a manufacturer it is very important that we continue to work at an R&D level with the OEMs as by doing so we ensure that our products are always in line with the applications to which they are fitted. We have been in manufacturing for 50 years and in that time have always invested in R&D to keep our portfolio at the forefront of the market. It has never been enough to say to the market "this is what we do" we have to work in partnership to respond to changing demands from the market and to anticipate those demands.

Overall we continue to invest in R&D to ensure that our portfolio offers the best possible range of products to meet customer needs and expectations. Pressures in the market mean that we have to make our offering better and more attractive.

In some sectors there remains a trend for people to view tyres as being something black and round that go on machinery; the reality is that tyres and wheels are a vital part of any application and should be properly specified. There is a great deal of technology and knowledge behind our products, which when applied correctly makes a huge difference both to performance and to overall running costs.

What are the latest technological developments in the market? Probably the biggest developments are in rubber compounding; we are always seeking to either make our products better or to introduce new products into specialist areas of the industry.

For instance our work in tread compounds and designs has meant that we are able to offer a solid tyre that lasts longer than most of its counterparts, but which doesn't affect the overall ride of an application.

Elsewhere we have been able to introduce more and better special compound tyres for use in differing environments; Wet Grip for dockyards and Heat Resistant for foundries, for example.

Away from rubber we are seeing some interesting developments in Polyurethane as the demand for tyre and wheel solutions that can operate in the high load/high racking warehouse environment increases.

How can end users ensure they get the most from their tyres? Is there a single measure operators could take to ensure better tyre wear? The key measure for users is truck downtime, the more frequently and longer a truck is out of action for the greater the operating cost. The best defence against downtime caused by tyre failure is simple enough – to specify the correct tyres and to schedule replacement. If you know how long a truck will operate for in a day and what kind of loads it will routinely carry, you can specify correctly what tyres it will need and when it will need replacing. Leading manufacturers should be able to provide field test data that will give a good indication as to how long tyres will last under those conditions to help with scheduling.

It is also important to separate visible tread wear from internal wear caused by heat build up from long use, which is what causes solid tyres to fail, usually with spectacular consequences. Heat build up causes the bonds between layers of rubber compound to break – it's not as obvious to spot as tread wear but invariably more serious.

Good quality products combined with proper fleet management will always help end users get the most both from their tyres and from their applications.

What is a typical tyre life? How often should they be inspected for damage? Sadly there is no such thing as a typical tyre life, there are too many variables; the key factors are operating time, loads carried and operating environment. Tyres on applications that are used for a few hours a day carrying moderate loads in a standard yard or warehouse environment will last a lot longer than those carrying heavy loads for extended periods of time in a high racking warehouse, dockyard or foundry.

What is crucial though is that the right tyres are fitted based on the knowledge of the working conditions an application is likely to be put through. Part of the reason that there is such a wide choice in the market is that tyre producers recognise how important this is.

In terms of inspecting for damage, best practice amongst operators and fleet managers is to regularly check applications to ensure that they are functioning properly.

Apart from the obvious safety implications there is a sound economic case for doing so as application downtime is very costly and remains the one area which all users/owners would like to see eliminated.

Are there any prominent health and safety issues to consider in relation to the use of industrial tyres? Aside from issues around special compound tyres such as electrically conducting tyres and wet grip tyres, the main H&S considerations relate to the proper choice of tyre for the working environment and correct use of the application itself. We will always see accidents relating to forklifts as there are inherent hazards in the work they do and environments in which they operate, but these can be minimised through training and fitting the right tyres as well as routine maintenance and checks.

Approximately how many sets of tyres will a forklift get through in its lifetime? What proportion of its operating costs does this represent? A difficult question to answer as much will depend on the workload and environment of the truck to which tyres are fitted. Much will also depend on the type of tyre and tread compounds used and how the application itself is driven. In rough terms two compound cord filled tyres will last around 40% less than three compound solid rubber tyres on applications under the same conditions.

What is certainly true is that tyres are the most expensive attachment to a forklift over its life span. What is equally true is that the life of a forklift has been extended considerably in recent times as is borne out by the strength of the market for used applications, particularly into the emerging economies.

Do users in different market sectors make different demands on the tyres they use? They most certainly do! In the established economies we are increasingly seeing applications that are in use for up to 24 hours a day as well as the growth of heavy load/high racking warehouse environments that require applications to be fitted with Polyurethane tyres and wheels. There has long been a requirement for special compound products such as non marking tyres for use in the food and pharmaceutical industries where cleanliness is paramount.

Equally there is a requirement for electrically conducting tyres for use in environments where flammable or explosive materials are present and also a requirement for heat resistant and wet grip compound tyres for foundries and dock yard areas, respectively.

In different geographical markets there are differing demands; pneumatic tyres remain popular in a number of emerging economies, press-on band tyres have always been more popular in the USA and the market for solid tyres is growing steadily particularly in the BRIC economies.

As recent winner of the FLTA supplier of the year award, how does Watts ensure it constantly meets customer expectations? Naturally we were delighted to have been awarded Supplier of the Year by the industry; it is fantastic to be recognised in such a way by our peers and customers.

Meeting customer expectations is crucial to what we do, we set our stall out as a leading supplier to the industry and that is what we wish to be measured against.

To meet customer expectations we have to first fully understand what those expectations are; what are our customers trying to achieve, how can we help them achieve those aims? Quality is a given across equivalent products in the market and so we have to offer more. Clearly we have to communicate with our customers and do all we can to ensure that they continue to see us as a genuine partner within their supply chain.

Are there any other issues you would like to highlight for Handling & Storage Solutions readers? 2008 looks to be a very challenging year for the tyre industry, as already mentioned rising rubber prices will continue to have an effect on pricing.

For this year and the foreseeable future we will all have to demonstrate clear value in our products and services. By themselves products and services are not enough anymore, customers will continue to demand more and those expectations will have to be met. Rising fuel prices will continue to drive transportation costs up and like everyone else we will be keeping an eye on how the US Presidential elections impact upon the global economy.

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