HOUSTON – Mining companies are complaining about a shortfall in the supply of large tires that fit on large dump trucks and other heavy equipment, according to the New York Times. These oversized tires, which stand as tall as 12 feet and can spread 4 feet wide, are used from the Canadian tar sands to open-air coal mines in the United States and China. However, prices have quadrupled for some of them in the past year to more than $40,000 a tire. The tire shortage is a result of increased demand — specifically by the U.S. military and construction firms rebuilding the hurricane-ravaged Gulf Coast — as well as the rapid industrialization of China, India, and other developing countries, the report said. Even though tire manufacturers are expanding their tire factories, the tire shortage won’t end for at least several more years, industry sources said.

Originally posted on Fleet Financials