Retreaders look for better year

But demand, pricing remain issues

By: Mike Manges

It’s hard to find quality OTR casings right now, says Mark Goodes, CEO of Craft Tire Inc. Raw material prices also are increasing, he reports.

It’s been a tough environment for retreading, and the numbers show it. According to Modern Tire Dealer’s 2010 Facts Issue, published last month, an estimated 13 million retreaded medium and heavy truck tires were produced in the U.S. last year vs. 14.7 million medium and heavy truck tire retreads produced in the U.S. during 2008.

Retread pricing also has been down. The average price of a truck tire retread fell 8% in 2009 compared to 2007, based on an MTD survey of retreaders.

Retreaded tire sales (without casings) totaled $1.64 billion in 2009, an 18% drop from the previous year.

Commercial Tire Dealer recently spoke with several independent retreaders to get their take on the market. We also asked them to discuss the challenges they’re facing and share their thoughts about what 2010 will bring.

John McCarthy, president, McCarthy Tire Service (Wilkes-Barre, Pa.):  “Demand was our biggest problem last year. But from what I hear from our construction customers — road construction, especially — there is some work out there.

“The stimulus money has been very slow in getting out in some states, but some jobs have been (created) and some of our customers have secured them. These guys are going to start working. We’re forecasting a 10% increase (in retread sales for 2010).

“But you have to understand that if you call on the same customers you did two years ago, you’re not going to have as much business as you did. It’s getting your salesmen to get out there and call on new business.”