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Check out what’s new with light-, medium-, and heavy-duty commercial truck tires and what fleet trends are driving these tire-related trends.
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TyreServe, a one-stop tyre replacement service to the contract hire and leasing industry from epyx, reports that it has seen tire costs rise by 33% during the last two years.
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Average tire costs are expected to continue rising - at double digit percentage rates - due to a combination of increases from the tire makers and the more complex portfolio mix required by fleets.
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Many tire OEMs have increased prices in CY-2021, ranging from 3-10% depending on type of tire and size. Higher commodity prices and increased ocean freight rates are being passed on to end users as OE profit margins compress.
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Many tire OEMs have increased prices in CY-2021, ranging from 3-10% depending on type of tire and size. Higher commodity prices and increased ocean freight rates are being passed on to end users as OE profit margins compress.
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The ultimate outcome of the pandemic and the strength of the economic recovery are driving many predictions on future pricing.
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A perennial factor exerting upward pressure on replacement tire costs is the adoption of larger diameter tires and unique tire sizes. The increase in OEM automobile wheel diameters has driven up the price of fleet replacement tires, primarily because the larger the tire, the greater the manufacturing expense.
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Reduced tire demand and a decrease in overall miles driven have caused tire manufacturing volume to decline in 2020, creating a downstream ripple effect softening commodity prices for natural rubber, but this may change in 2021.
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Although prices for replacement tires increased 3% per unit per month in calendar-year 2019 compared to CY-2018, the per transaction tire costs were up less than 1% for fleets buying at pre-negotiated national account prices.
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Most of the subject matter experts that we spoke to expect an increase in tire prices, although predicting future tire costs is difficult due to variables that influence tire pricing.
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