THE CAR AND TRUCK FLEET AND LEASING MANAGEMENT MAGAZINE
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Replacement Tires

Forecasting Tire Price Trends in 2020

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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Upward Pricing Pressuring Fixed and Operating Costs

Fleets are being impacted by a variety of inflationary pressures ranging from higher acquisition prices due to the proliferation of onboard safety equipment, to increased material costs pushing up pricing on parts, upfits, and replacement tires.

Replacement Tire Prices Moderate to Rate of Inflation

Replacement tire prices are driven by raw material costs, which in CY-2019 were less volatile, but higher nonetheless. Tire prices increased slightly higher than the rate of inflation, which was partially offset by improvements in tread wear longevity.

Cost Variables Influencing the Commercial Fleet Market

Overall improved business conditions opened pent up demand for replacement units, especially in the oil sector and construction, which in the prior several years had scaled back new-vehicle acquisitions due to stagnant growth.

Replacement Tire Costs Increased 8% in 2018

Upward cost pressures on replacement tires have emerged in 2018, due to higher cost for the commodities used to manufacture tires and the trend to larger diameter 17- to 18-inch wheels, which are more expensive to replace.

Top Commercial Truck Tire Sizes Identified

The U.S. Tire Manufacturers Association has identified the top original-equipment manufacturer and aftermarket tire sizes in its latest fact book that covers the 2018 calendar year.

Tire Prices Increase Due to Higher Commodity Costs

Higher commodity prices are putting upward pressure on fleet prices for replacement tires. National accounts are no longer as willing to absorb the majority of price increases, which are between 3%-8% on select tire lines.

Les Schwab Recalls Retread Truck Tires

Les Schwab is recalling 41,336 steel-belted radial retread truck tires because the vulcanizing compound used during the process may not have been completely cured, which can lead to incomplete adhesion of the tread to the tire casing.

Replacement Tire Costs Increase 5-10%

For the past four years, tire costs have been stable. But, new cost pressures have emerged in 2017, due to higher prices for the commodities used to manufacture tires and the trend to larger diameter, more expensive tires.