Strategic decisions for the future of the tire industry

Management stream addresses key issues

Last February, the team at Tire Technology Expo asked me to develop a conference that addresses some of the most important strategic issues facing the global tire industry.

I’ve done that, and it appears as the ‘Strategy and Management’ stream at the forthcoming Tire Tech event in Hanover from 25-27 February 2020.

So far as I am aware, there is no other event, anywhere in the world, that addresses a range of strategic issues facing tire makers. In fact, that was the basis of my proposal to the Tire Tech team.

We wanted to develop something unique that would attract key personnel seeking to refine their understanding of the huge issues facing senior leadership teams.

How I put the event together

At TireTech 2019, the team asked me to add a new dimension to the existing conference. We have been playing around with the concept of ‘Strategy and Management’ for a couple of years, but this time, there was a greater commitment to deliver a world-beating event.

I am fortunate in travelling around the world attending many events and private meetings with people who are deeply involved in the tire industry at the most senior levels.

Because these things are sensitive: both commercially and in terms of strategic direction, very few of them want to speak about the challenges of strategic planning. So we had to get a bit creative.

I looked out people who I thought had some outstanding ideas about the future of this industry, and are actively engaged in transforming the business.

Not all of them hold the most senior positions; not all of them work directly for tire makers; but all are directly involved in the process of transforming this industry in preparation for the mobility revolution and a more sustainable future.

One of the recurring themes of my discussions with potential speakers was to reassure them that the tire industry really does want to hear a message that change is not only necessary, but a prerequisite for survival.

Most were reluctant to stand up with that message, for fear of not finding an audience, or worse, of finding a hostile audience. I was able to persuade many of them, but there are still voices in the industry who are thinking ahead and looking beyond the status quo, who are concerned that their message – change is here and those who resist will fail – is not welcome among tire makers.

Panel discussions

Each session comprises three hand-picked speakers as well as an hour-long interactive panel discussion. The speakers will give their views on the future. These are often personal opinions, albeit well-informed opinions. But no-one in this industry has full information. We want to start a dialogue about the future. We want the audience – all specialists in tires and rubber – to engage with some of the most creative thinkers in this industry to discuss how to prepare for a future that will – without any doubt – be very different from the past.

How can we persuade a vertically-segmented industry to become more inclusive and horizontal: how can we get the sales people and engineers to have productive dialogue; how can engineers – who know who tires should be made – to accept that maybe the consumers want something different and even vehicle makers; priorities are changing.

Above all, how do we plan for multiple possible futures, when the guidance from customers is no longer there.

Session 1: change in the tire industry

This takes place on the Tuesday afternoon (25 Feb). We have a warm-up session just before lunch in the plenary session, at which I will be chairing a discussion about change in the industry, with some excellent speakers.

The main Strategy and Management stream starts in the afternoon, with presentations by Guy Heywood of Hankook (and previously Michelin), who is one of the team tasked with transforming Hankook’s tire business.

Guy is energetic, ambitious and has some great ideas. Hankook management in Korea is putting together a team that will address organisational change ahead of changes in this industry and I am really looking forward to that presentation.

I also asked Kai Hauvala of Black Donuts to speak about future tire factories and how the industry makes its tires. Kai is a tire engineer, and has worked in this industry for decades, but unlike,many other engineers, he has an excellent grasp of how the industry is changing, and the developing requirements of different players, from the new entrants, to the premium brands.

The third speaker is a consultant, Paul Frobisher, who has worked with car makers and tire companies to help them transform the organisation.

I have asked Eduardo Minardi, who began the process of change at Bridgestone Americas and Bridgestone Europe to join the panel, as he has direct experience of the challenges of transforming a business and empowering individuals to make the necessary changes in the organisation.

Session 2: Digitisation in retail and wholesale

This takes place on the Wednesday morning (26 Feb). Personally, I think digitisation is the biggest management issue facing tire makers.

If tire makers want to make money, they need to increase the emphasis on the warehouse and how it serves the customers. To address this critical subject, I have put together speakers from the leading tire wholesalers. TBC, a joint venture between Michelin and Sumitomo is set to disrupt the business with radical change to meet new demands. We have Theo de Vries, who is charged with that task within TBC. Like may of the people in the tire logistics segment, he is smart and far-sighted. Theo, like others in that segment, has had to be creative and work hard to find processes and people who are able ot overcome the weaknesses of the manufacturing chain, in order to deliver tires to customers when they are needed.

Next up is an excellent consultant with Oracle. Luisella Giani has been helping Pirelli and others to transform into a B2C company and is developing solutions to help them do that. One of the main challenges for tire makers is that their customers – the vehicle makers, fleets and tire wholesalers – are much closer to the end consumer than tire makers.

Our final speaker in that session is Tim Eisenmann, the data analytics expert and V-P at American Tire Dealer (ATD). He is going to show the value of data and how it can be used to transform business models. ATD has restructured since it lost the business of Goodyear and other major customers a couple of years ago. The new management has understood the needs of the industry much better than before te restructuring. And those needs focus on data.

Session 3: Sustainability and tire-road wear particles

This takes place on the Wednesday afternoon (26 Feb). I think this is the biggest technical and communications issue facing the tire industry.

First up is Anne-Cécile Remont, head of the World Business Council on Sustainable development (WBCSD)’s Tire Industry Project. Her task is to manage the tire industry CEOs to develop an agenda on sustainability. She will address the main issues facing the industry, and introduce the topic of tire-road wear particles.

She will introduce Julie Panko, a researcher from ToxStrategies who will outline the state of research into this topic and offer strategies for how the tire industry might use tools of communication, evidence and lobbying to improve public perception of this key issue.

Changing gear a little, one of the other main strands of sustainability is de-risking from hevea natural rubber. The top researcher in this area anywhere in the world is Katrina Cornish. She will present an overview of the state of the art in developing alternatives and outline who tire companies can manage the risks through seeking alternatives.

Session 4: China in a state of change

This takes place on the Thursday morning (27 Feb). In the global economic scene, the emergence of China as a power in the global tire industry is the biggest change in the last decade. Nevertheless, understanding of China remains at a low level among most Westerners

Our session on China starts with a Chinese national, Jackie Yang, strategy development V-P at Xingda, the steelcord supplier. Jackie regularly meets with the chairmen of China’s top tire makers and has a wide overview of the development of that sector. He will offer his views on the development of China’s tire industry.

Next up is Matt Wood, now in charge of Cabot’s strategy team for carbon black. Until late 2019, he was based in Shanghai for many years, and speaks the language well. He also has spent the last years speaking with, learning about and trying to understand how China’s tire industry is developing.

Finally, I will give my views on the same subject. I have been tracking the Chinese tire industry and its impact on the wider tire industry around the world for many years, and people tell me that I have something to contribute in this area. I am also publisher and editor of the world’s only English-language publication dedicated to reporting on the development of China’s tire industry

Tire Tech takes place 25-27 Feb in Hanover, Germany

https://www.tiretechnology-expo.com/en/conference-programme.php