THE NUMBER 1 RESOURCE FOR VOCATIONAL TRUCK FLEETS
Expect higher prices and tighter supplies. Imports of radial truck tires from China into the U.S. have dropped 25% in the first three months of 2019, from more than 1.8 million to just shy of 1.4 million, compared to the same period a year ago.
Toyo Tire U.S.A. will increase the price of almost all of its commercial tires on May 1 with just one exception.
Dayton brand truck and bus tires will see a 20% price increase which Bridgestone Americas says is the result of increased business costs and market dynamics.
Bridgestone Americas Tire Operations LLC and Bridgestone Canada Inc. will increase the price of Firestone brand truck and bus radial tires on Feb. 1, 2019.
Tire prices will continue to rise with increases in raw material costs, tariffs, and a more robust economy fueling growing fleet needs.
It’s been said before and it will be said again – it’s never “one-size-fits-all” when it comes to discussing any aspect of commercial truck fleets. A changing landscape, driver shortage, and growth in last-mile deliveries are having an impact.
Michelin North America Inc. will increase prices on its commercial tires on Dec. 1 by as much as 8%.
A fleet cost reduction program goes straight to the corporate bottom line. If a company operates at a 10% annual net profit margin, reducing annual fleet expenses by $100,000 is the equivalent of generating $1 million in sales. Although fleet managers manage hundreds of thousands to tens of millions of dollars in corporate assets, only half are incentivized to achieve targeted performance goals. I advocate incentivization should be a universal best practice extended to all fleet managers.
Since tires rarely self-destruct, there is always a smoking gun, and it’s in your best interest to find it. You do that through failure analysis.
Remember how the tire market was doing in the first quarter of this year? No? I’m guessing that is the result of selective memory. It was pretty slow, and that is an understatement.