Saoud said the market for retreads has been shrinking even though fleets are setting records for miles driven. He blamed a 3% loss in retreads to the influx of “low cost tires.” Saoud said some of the tires coming into the country “don’t meet the rule of the law.”
Pointing out that the top three expense items by fleets are people, fuel and tires, Saoud said retreads can increase profitability for fleets and dealers far better than only using new tires. Saoud believes there are 500 retread facilities in the U.S. accounting for 50,000 jobs.
He said Bandag retreaders produce 800 tires per hour which equates to about seven million retreads per year. “The case for premium retreads is clear…they save trucking about $3 billion per year.”
Saoud spoke on the opening day of NATRE in New Orleans.
Gus Lima, CEO of the Latin Expo Group LLC, and founder of the expo, announced NATRE is moving to Nashville in 2018. NATRE will be held April 4-6, 2018, at the Music City Center in Nashville.
The 2017 expo continues through April 21. Modern Tire Dealer is media sponsor of the event.
To read more about what's happening at NATRE, see: