Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/244093
Facts section: Commercial Retreading revitalized More casings and higher prices complemented new tires T he number of retreaded truck tires in the United States grew in 2013 compared to 2012. In contrast, replacement truck tire shipments decreased. Tat only brought the two segments closer together. Literally. Te spread between retreads (14.9 million in 2013, up 100,000 units) and new replacement truck tires (15.7 million, down 300,000 units) is only 800,000 units. Te last time the two commercial segments were that close was 2009, when retreaded truck tires actually outnumbered new tires (see Chart 15). Does it really mater who winds up on top every year? It does to the 680 retread shop owners in the U.S., who enjoyed a steep 9.6% increase in retread pricing last year. Chart 14 2013 U.S. MARKET SHARE, RETREADED TRUCK TIRES (Based on 14.9 million units) Others 4.0% Marangoni 5.0% Michelin 23.0% Goodyear 26.0% Bandag 42.0% Chart 15 2013 TRUCK TIRE REPLACEMENT MARKET BREAKDOWN (Before 2009, the number of retreaded truck tires produced last topped new truck tire shipments in 2004) 20 Retreaded Retreaded truck tire pricing (including casings) 2008: $197.95 2011: $247.55 2009: $184.61 2012: $228.24 2010: $209.79 2013: $250.24 Te average cost of a casing dipped from $79.10 to $78.61 in 2013. However, the retreaded truck tire market as a whole still rose to $3.7 billion. Combined with $6.3 billion in new truck tire sales, the replacement market totaled $10 billion. Te order of the top retreading processes hasn't changed since Michelin North America Inc. purchased Oliver Rubber Co. from Cooper Tire & Rubber Co. in 2007. In order they are: Bandag precure at 42%; Goodyear precure, mold cure and UniCircle at 26%; Michelin Pre-mold and Custom Mold and Oliver precure at 23%; and Marangoni RingTread and precure at 5% (see Chart 14). Continental Tire the Americas LLC continues to add ContiLifeCycle retreaders to its network. Te company estimated more than 300,000 ContiTread precure retreaded truck tires were produced for North and South America in 2013. What to expect Te Big Tree tire manufacturers account for 60.5% of the replacement truck tire market with seven brands (see Chart 16). Not coincidentally, they have strong retreading networks, which will keep them entrenched at the top for a long time. Cooper lost Roadmaster brand share when workers at its Cooper Chengshan (Shandong) Tire Co. Ltd. joint venture plant in China went on strike in protest of Apollo Tyres Ltd.'s proposed acquisition of Cooper. Te deal has since been called of; if the strike also ends, Cooper could regain the market share it lost within the year. Chart 16 2013 U.S. REPLACEMENT MEDIUM/HEAVY TRUCK TIRE BRAND SHARES (Based on 15.7 million units) Brand 2013 2.0% 18.0% Dunlop 2.0% Bridgestone 17.0% Dynatrac 2.0% Goodyear 12.5% Toyo 2.0% Yokohama New BFGoodrich 10.0% Roadmaster 1.5% Michelin 15 Firestone 2010 2011 2012 2013 The average price of a retreaded truck tire in 2013 was $250.24. The average price of a new tire in 2013 was $401.27. 42 1.5% Sumitomo 1.5% 4.0% Gladiator 1.0% Hankook 2009 Sailun 5.0% Double Coin 10 8.0% Continental 3.5% Kelly 1.0% General 3.0% Kumho 1.0% Hercules 3.0% Other 3.0% MTD January 2014