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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Mercado 2010: mantener el rumbo en la tormenta
Bet Trelleborg to expand its offer and maintain its strategy of service to the client

Market 2010: stay the course in the storm

July 27, 2010

Since the end of the year 2008 we are living in a global crisis that has also affected the agricultural sector, in addition, her so expected or "promised" market recovery expected in 2010, so far not yet realized. In particular, the demand for product in 2010 has continued to decline, but at a slower rate than in 2009 and mainly in the first part of the year due to heavy rainfall that we experienced between January and March. So the market will probably recover volumes in the second half of the year closing more or less to a - 4 or - 5% over the previous year.
This maintenance of demand can be explained considering that the stock of many distributors has been adapted to the real needs of the market and that the market continues to demand agricultural tires. However, this demand for product has changed: on the one hand, is selling second mark and on the other hand, the improvement of the mix, due to the modernization of the Park of tractors in recent years, requires quality products capable of ensuring the highest performance.

In addition to the improvement of the mix, another opportunity to gain for the workshops of tyre is in the services and repairs, increased product Budget and the fact that farmers are making the most of tires before changing them. This will increase this activity.

New Holland tractor tyres Trelleborg TM900
New Holland tractor tyres Trelleborg TM900.
Another important factor to take into account is the increase in raw material, the change of the currency with the sharp rise in the dollar and the price of oil, that surely will affect negatively the profitability of the sector. In addition, the agricultural and livestock products remain with prices very moderate or no growth. For all this, and until it doesn't a clear sign of recovery of the market it better is learning to "sail" in this situation using a good "control system" able to get us out of the storm.

It is important to bear in mind that the market is not in the position to respond with an increase in volumes to aggressive campaigns would that, in this situation, only they affect negatively the overall result of the company.

We have to take under control our costs and profitability, not squander opportunities offering only marks Budget. With economic brands there is always the risk that there is a cheaper, also can not offer guarantees and due to a problem not attended it may lose the client.

With economic brands there is always the risk that there is a cheaper, also can not provide guarantee and due to a problem not attended it may lose the client
Today more than ever the end user for investing in agricultural tires calls for professionalism, quality and responsibility, that is why we must know loyalty to our customers with product news and quality of service. Trelleborg we continue betting on innovation, launching 13 new measures, many TM900Hp for high horsepower tractors and Twin Radial for agricultural trailers always with the highest rates of load and speed of the market and a new range of Marshland to the market, for wet ground crops.

In conclusion, there are opportunities also in this situation on the market and, if we are able to find them and seize them with professionalism, insurance will be able to stay the course to get out of the storm.

Trelleborg has just launched new measures 13, many in TM900Hp for high-power tractors
Trelleborg has just launched new measures 13, many in TM900Hp for high-power tractors.

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Trelleborg Wheel Systems España, S.A.

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