Facts section: commercial
No more cannibalism Fleets take their trucks out of park and buy new and retreaded tires
T
he average age of a Class 8 truck is 6.7 years. That is higher than the historical average, and the highest since ACT Research Co. (www. actresearch.net) began tracking it in 1979. A dramatic reduction in the demand for freight in 2009 is partially responsible. That led to a decrease in North American commercial truck production, and a 51% decrease in OE truck tire shipments in 2009 vs. 2008. When fleets needed new tires, they cannibalized the empty trucks they had parked. The result was an 18% decrease in replacement truck tire shipments during the same time frame. Chart 17 Demand picked up last 2010 REPLACEMENT year, however, and OE and MEDIUM/HEAVY TRUCK replacement tire shipments TIRE BRAND SHARES* increased 28.5% and 19.7%, (Based on 15.2 million units) respectively. Brand 2010 Ken Vieth, president and Goodyear 20.0% senior analyst at ACT Research, says North American truck Michelin 19.5% production could rise more Bridgestone 18.0% than 50% in 2011. Firestone 7.5% “The industry closed 2010 with a string of three strong Yokohama 7.0%
months of net orders,” he says. “With nearly 71,000 orders booked, the fourth quarter was the best quarter for Class 8 vehicles since the second quarter of 2006. “The ramp-up in demand is consistent with the up-cycle we have been forecasting for over a year, and confirms production levels will increase significantly in 2011.” Although truck tire pricing increased, not all the announced price increases stuck, especially earlier in the year. An 11R24.5 drive tire, load range G, averaged $389.16, which was up 1% compared to 2009 (MTD calculates dealer pricing in December). The segment remains highly competitive. The Big Three manufacturers account for 68.5% of the replacement truck tire market, but there are 18 brands with at least 1% market share (see Chart 17). Bridgestone Bandag Tire Solutions, Goodyear Tire & Rubber Co. and Michelin Retread Technologies Inc. represent 93.5% of the domestic retreading market (see Chart 18). An estimated 14.3 million retreaded medium and heavy truck tires were produced in 700 U.S. plants in 2010. That’s a 10% increase in production compared to the previous year. The top 100 retreaders in the U.S. accounted for
Continental
4.0%
General
3.5%
Hankook
3.0%
Double Coin
2.5%
Toyo
2.5%
BFGoodrich
2.0%
Hercules
2.0%
Roadmaster
2.0%
Dunlop
1.5%
Bridgestone 42.5%
Dynatrac
1.5%
Goodyear 28.0%
Gladiator
1.0%
Kumho
1.0%
Sumitomo
1.0%
Others
3.0%
* Because numbers are rounded to the nearest one-half percent, the total may not equal 100%. Brands must have at least 1% of the market in shipment numbers to be listed at 1%.
44 MTD_28-51.indd 44
Chart 18 2010 U.S. MARKET SHARE, RETREADED TRUCK TIRES (based on 14.3 million units)
Michelin 23.0% Marangoni 4.0% Others 2.5%
MTD January 2011 4/26/11 11:05:50 AM