STOCK CRITICA
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EXISTING national stocks of tyres for use on commercial vehicles are at a very low level, Peter Taylor, market research manager of Firestone revealed this week.
He claimed that stocks of all types and sizes of tyre have continued to decline to a point where units for heavy and light trucks number only about two thirds of what they were in July 1975.
The position has arisen due to retailers' reluctance to tie up more capital than they need in stock, as a high return can be obtained from investment elsewhere.
It is only because of the low requirement for original equipment that stocks are as high as they are.
The industry is concerned that when the demand in this sector takes an upswing it will create a shortage, in particular for the replacement market, with less than one month's supply in reserve.