Based on current market trends and future growth prospects, technology research firm Technavio has released a market study predicting that the U.S. tire retreading market will expand by 14% over the next four years. Growth at this rate would translate to a $6.06 Billion market by 2021.
These projections aren’t just speculation. The in-depth market analysis included input from key vendors and industry experts. Researchers based their forecast on three factors driving the appeal of tire retreading – a cheaper alternative to new tires, pressure on fleet operators to keep costs down, and new regulations incentivizing fuel-efficient tires.
A Pure Cost Comparison
With tires making up one-third of a typical fleet’s annual expenditure, related costs can mean significant savings or substantial increases. Given the 40% greater cost-effectiveness of retreads over new tires, the appeal of the retreading option is clear. Retreading reduces the need for raw materials and dramatically increases the lifecycle of each tire.
Pressure to Control Costs
Fleet operators juggle a myriad of costs in the pursuit of operational efficiency, but tires are a vital expense. In an atmosphere of constantly fluctuating costs, industrial tire retreading provides reliable cost savings over new tires. Companies which invest up front in premium tires will maximize value over time by increasing reuse potential to up to three retreads per tire. Given the pressure on fleet operators to control costs, retreading provides an unmissable opportunity.
Fuel-Efficient Tire Regulation
Reducing greenhouse gas emissions from heavy-duty vehicles has become a priority for regulators, particularly in California. In that state, the use of SmartWay-verified LRR tires or retreads is now mandated. This not only pushes fleets to use low-rolling-resistance tires but also promises to connect quality retreads with lower-cost imported tires. Should other states follow suit, this type of regulation could have significant implications for the U.S. retread industry.
A Trend Toward Longevity
To this point, market trends consistently point toward a future aimed at extending the life of tires and making them increasingly reusable. Technology will give us more resilient tires out of the box, as well as nanotechnology to reduce wear and tear throughout their lifespan. These factors influence another trend – the increased willingness of fleet operators to invest in premium tires which will enable multiple retreads.
More Value-Adding Options
At RDH Tire & Retread, we’re dedicated to keeping trucks, construction vehicles, and fleets moving with minimal downtime. Though we’re the largest retreading operation in the United States, we also deliver a comprehensive array of additional tire services. With mount and dismount, East Coast tire freight services, and scrap tire disposal, we make retreading effortless for fleets of all sizes. Solid tires, TyrFil, and sidewall protection extend the life of your tires both before and after retreading. Whatever OTR tire services your operation or industry requires, RDH is the full-service team you can depend on.