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%.
Higher commodity prices are putting upward pressure on fleet prices for replacement tires. National accounts are no longer as willing to absorb the majority of price increases, which are between 3%-8% on select tire lines.
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.
For the past four years, tire costs have been stable. But, new cost pressures have emerged in 2017, due to higher prices for the commodities used to manufacture tires and the trend to larger diameter, more expensive tires.
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.
A tire veteran provides tips to keep in mind when shopping for a tire that would best fit your fleet's needs. It's not always about price; it's also about efficiency and mileage.
As a wear item, tires are a depreciating asset. Your job, as the fleet manager, is to slow the rate of depreciation. Replacement tires as a cost category are a fleet’s second-largest operating expense, exceeded only by fuel. By maximizing tire tread life, you lower per-mile costs, resulting in fewer premature removals and optimizing the condition of tire casings, allowing for multiple retreads.
The updated TCX625HD tire changer features a drop down inner roller to reduce service time by 25% and increase ease-of-use.
media brand
The secure and easy all-access connection to your content.
Bookmarked content can then be accessed anytime on all of your logged in devices!
Already a member? Log In
