Commercial Business

Analyst: Tough Road Ahead for Truck Tire Market

Posted on November 9, 2016

At the 2016 Specialty Equipment Market Association (SEMA) Show, the tough market environment was on the minds of commercial tire dealers and manufacturers. The good news is there's an expectation for a turnaround in the first half of 2017.

Nick Mitchell, senior vice president of research for Northcoast Research Holdings LLC and Modern Tire Dealer columnist, says dealers and manufacturers both talked about the challenging operating environment in recent months. They pointed to a pair of factors:

  • Ongoing weakness in original equipment orders. (It's down about 20% year-to-date.)
  • Heavy pre-buy activity ahead of the preliminary anti-dumping and countervailing tariffs on truck and bus tires imported from China.

Mitchell says, "The former is pressuring margins, especially on product that is imported from China in light of the fact that cash deposit rates of around 30% are being applied to all imports (preliminary AD/CVD tariffs total about 50%).

"That said, most contacts expect pricing to firm materially in late first quarter of 2017 or early second quarter of 2017, as many (SEMA Show) attendees noted that the global market needs the TBR capacity that is in China given the fact that there is not enough production output in the rest of the world to fill the gap."

Related Topics: 2016 SEMA Show, commercial tires, NIck Mitchell, TBR tariff

Comments ( 0 )
More Stories
Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

News

Cooper Enjoys a Full-Year Income-to-Sales Ratio of 8.5%

Cooper Tire & Rubber Co. posted net income of $69.3 million on net sales of $783.9 million for its fourth quarter ended Dec. 31, 2016. That compares to income of $59.2 million on sales of $775.5 million for the same period in 2015.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

News

Toyo’s Net Tire Sales Drop 6.7% in 2016

Toyo Tire & Rubber Co. Ltd. reported a net loss of 12.3 billion yen on net sales of 381.6 billion yen for its fiscal year ended Dec. 31, 2016. That compares to net income of 1.6 billion yen on net sales of 407.8 billion yen for fiscal 2015.

Trelleborg says the new VF1050/50R32 tire for spreader applications limits soil compaction.
News

Trelleborg Has New TM3000 Spreader Tire

Trelleborg Wheel Systems will unveil a new tire size in its TM3000 range for spreader applications at agricultural trade shows in the U.S. and France in February.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!