Tires are trending more expensive recently due to an increase in demand. Although the overall trend is up, some sectors have seen larger growth than others. The largest increase in truck tire price has been at the lower price point. The forecast for the future is that the prices are going to continue to rise. This is due to the increase in demand and also supply concerns for the future. The rising prices are in part due to increases in tariffs which get passed on to consumers.
- Although the market for replacement tires is thriving and strong, this is not a good thing for fleet companies as they make an impact in cost.
- Some of the factors that are outside the control of tire manufacturers for keeping tire prices low for fleets are the possible Chinese tariff on tires.
- The tire market is following the recorded overall strong trucking market. E-commerce has also been one of its enablers.
“Tires are one of the top three operating costs for fleets. Budgeting for this top fleet expense is tough, with everything from the economy to drivers making an impact.”