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Replacement tires are the third-largest expense category for fleets. In the past three years, this expense category has grown as a result of multiple price increases from all major tire OEMs. In 2008, year-to-date tire replacement costs have increased 4-10 percent. This follows a 3-4 percent price increase in 2007 and an 8-10 percent price increase in 2006. The consensus is replacement tire prices will increase again in 2009.
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The No. 1 factor is the ongoing high cost of fuel, in particular diesel, which is driving management demands to lower operating costs. Another huge factor that will influence fleets will be the 2010 diesel emission standards.
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While tires are depreciating equipment, fleet managers can control how fast tire value drops. The best way is to write, communicate, and enforce a tire management and maintenance program.
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