Since its beginnings in the early 1900s, the retread tires industry growth has experienced many ebbs and flows. The current industry landscape reflects significant gains, indicating a resurgence in retread tire popularity and quality overall. New reports show developments in the retreading market which have the industry slated to continue its growth in the future.
According to the 2018 Tire Retreading & Recapping Industry U.S. Market Research Report, retreaders brought in approximately $2 billion in revenue in 2018 alone. Much of the industry’s recent success is attributable to the lower cost of retread tires when compared to newly manufactured counterparts. Despite reduced commodity prices in the production of new tires, retreads remain the more-affordable option of the two, leading to increased industry growth.
Another contributing factor to the recent retreading success is the ongoing trade war between China. In February of 2019, countervailing duties of between 20.98% and 63.34% were levied by the ITC on Chinese bus and truck tires, as well as antidumping duties from 9% to 22.57%. As tariffs are placed on Chinese tires, the cost of these historically less-expensive new tire options has increased dramatically. This has left many fleet managers to opt for retreads to avoid the growing cost of new tires from Chinese manufacturers.
Despite the overall industry growth, the number of retread businesses has dropped by 375. The total number has decreased due to increasing consolidation within the industry. The quality of retreads across the industry has been increasing dramatically and the high quality demands capital-heavy machine upgrades and investments. Retreaders are increasingly consolidating and increasing production on a per company basis due to these capital constraints. There are less companies, but output remains at historic highs.
Fleet managers have made it clear that they still prefer retreads over newly manufactured tires to better accommodate their commercial truck budgets. With retreading businesses dropping off, it can be harder than ever to find the right retreading partner that’s skilled enough to handle your fleet’s needs. Luckily, fleet managers can rely on STTC for all their retreading products and services.
Since 1955, our team has worked to perfect our retreading practices to provide fleets with high-quality, dependable products that will safely take their commercial vehicles from point A to point B. Our specialized retreading process results in the industry’s top-rated products, leaving your fleet with safe, reliable tires you can trust.
By partnering with STTC for your retread tire needs, you can cut tire costs for your fleet even further. Find out how partnering with STTC for your commercial tire retreading can benefit your fleet by contacting us today!