Focused Bandag Dealer Network Requests Equipment in Record Numbers
11 February 2000
Focused Bandag Dealer Network Requests Equipment in Record Numbers
MUSCATINE, Iowa, Feb. 10 -- The Bandag Alliance Business
Conference, in early February, served as the forum for the largest Bandag
retread technology launch in the last 20 years, touching off record setting
demand for new equipment, according to officials from
Bandag, Incorporated (NYSE: BDG and BDGA).
Bandag Chairman and CEO Martin Carver was quick to point out that the
story is much bigger than the potential for record equipment sales. He said,
"While all the noise about the churning in the distribution channel was
attracting a lot of attention, Bandag was steadily building a stronger, more
focused dealer network. Today the Alliance is streamlined, solidified and
highly capable of providing trucking fleets with the best possible programs,
information, products and tire related services available."
Carver continued, "Throughout the churning process we were attempting to
convey that message. Though the message often failed to make the headlines,
the Dealer Alliance was listening and the success of our most recent Bandag
Alliance Business Conference is a clear indication Alliance members got the
message. They clearly share our vision and have indicated their intention to
strengthen their capabilities with what we believe to be the most
sophisticated production equipment ever introduced."
At the Business Conference, Bandag unveiled three new pieces of equipment,
including the Model 5400 OSM(TM) (Optimum Splice Match) Tire Builder; the 7400
INSIGHT(TM) Casing Analyzer, using shearographic technology; and the Model
6400 Extruder. The Company also launched its new tire information management
technology, SystemBandag(TM).
Bandag dealers showed their overwhelming enthusiasm for the new equipment
that was on display during the three-day conference. By the end of the
conference, nearly 40 percent of the dealers in attendance had indicated an
intention to purchase at least one of the new machines (approximately 170
units) to boost productivity and enhance the quality and appearance of the
tires they produce. Many other dealers indicated their orders would be
submitted in the near future.
Features of the 7400 INSIGHT Casing Analyzer include pre-buff casing
inspection; a bead-to-bead scan in less than three minutes, fastest in the
industry; animated video display and instant display playback. The 7400 also
has the ability to store information from the previous scan, has a roll on/off
tire lift table and features effortless calibration confirmation. Designed to
be integrated in the Bandag Process, the 7400 can analyze every medium truck
tire in a production shop.
The Model 5400 OSM Tire Builder features precision tread length splice
matching, semi-automatic cushion application, lower material content and high
production capabilities. The 5400 is also an ideal builder for the cementless
process, and the Company believes it sets new industry standards for pre-cure
builder speed and accuracy.
With a two-minute cycle, the Model 6400 Extruder delivers consistent
cushion thickness while filling all normal skives and eliminates the need for
multiple sizes of cushion. The 6400 is a variable speed extruder with a
variable tire drive speed. Other features include integrated temperature
control and ergonomic height and width design.
Bandag already manufactures the most highly regarded buffer and chamber in
the retread industry and company officials were optimistic that the
introduction of these three new pieces of equipment would clearly give the
Bandag Dealer Alliance a distinctive competitive advantage. The dealers
ratified that optimism by voting overwhelmingly with their pocketbooks. This
was the largest amount of equipment ever specified by Bandag dealers in three
days.
SystemBandag also received an enthusiastic endorsement from the dealers
during the conference. Following packed-to-capacity workshops on
SystemBandag, dealers had an opportunity to walk through a working model of
the tire information tracking system in a typical retread plant. At the end
of the tour they again voted for the new technology with their pocketbooks.
While it is not known exactly how many dealer manufacturing facilities will
have SystemBandag installed by the end of 2000, based on the requests for site
surveys taken at the conference, the installation teams will clearly have
their calendars full through the entire year.
The Company believes that the launch of SystemBandag makes Bandag first to
market with a completely new business system which goes far beyond managing
tire information, allowing Alliance members to operate in an integrated manner
to serve customers.
In addition to SystemBandag and the new equipment, Bandag rolled out
several other programs that add further capability to the Alliance's
distribution strength. More new franchise support programs, including an
all-new College of Sales for dealer commercial sales representatives and
service management seminars for dealer principals were introduced at the
conference. An Alliance Excellence Program will start up this year, enabling
Alliance Dealers to compare the relative strengths of their businesses with
other dealerships, and plan strategies for improvement.
Bandag, Incorporated manufactures retreading materials and equipment for
its worldwide network of nearly 1,300 franchised dealerships that produce and
market retread tires and provide tire management services. Bandag's wholly
owned subsidiary, Tire Management Solutions, Inc. (TMS) provides tire
management systems outsourcing for commercial truck fleets. Tire Distribution
Systems, Inc. (TDS), also a wholly owned subsidiary, sells and services new
and retread tires.