Are retreads under siege?
Despite nearly 5% growth in retread tire production, retreaders are expecting a pretty flat 2015.
“I don’t think anyone is forecasting much in the way of growth,” said David Stevens, managing director of the Tire Retread and Repair Information Bureau, in a story in our sister publication, Modern Tire Dealer. “The hope is that with some of the continued investment in trucks, you get more trucks out there, so there’s more replacement demand that will go to the retread business. But putting constraints on that is competition with low-cost import tires,” he says.
Retreaders themselves say competition with imports is hurting retread production, and it is affecting casing supply.
Tom Bowman, vice president of the commercial division of Belle Tire in Allen Park, Mich., says as more carriers turn to imported tires, the supply of major-brand casings is tightening.
“With all the Tier 3 and Tier 4 imports flooding our North America market, the quality is getting tougher to find in the Tier 1 and Tier 2 casings,” he says.
Casing quality is vital in retreading. A well-maintained top or good quality casing can be retreaded multiple times, which really improves the lifecycle cost of a new tire. But in some instances, casing quality just isn’t there.
Customers choose a lower cost tire because they don’t understand cost per mile, according to Rick Majewski, vice president of Wilson County Tire and Retreading in Lebanon, Tenn. “If everyone retreads a premium product, the retread will outrun the [imported] tire in mileage. But people don’t look at long-term cost, they look at acquisition cost. That’s the problem.”
Whether or not cheap imports are a “problem” for trucking is debatable. Certainly cheaper tires help keep costs down in the short term. But as Majewski points out, a top-tier tire has many more retreading opportunities, and the casing quality, and likely the tread quality and its rolling resistance, aren’t likely to be as good as Tier 1 or even Tier 2 tires. The best tire for the money isn’t necessarily the cheapest to acquire, but it will provide a better payback over time.
Of course, not all imported tires are inferior. Do the research and you’ll easily find good value in that group of tires, including many that can be retreaded more than once.