Human resources, supply chain issues and rising costs are some of the biggest challenges that retreaders face.
That's according to the Tire Retread & Repair Information Bureau's (TRIB) recent State of the Industry Survey.
When asked "What are the biggest challenges facing your business (ranked in order of importance on a scale of one to 10?)," respondents listed human resources as their top challenge, followed by supply chain, rising costs, casing availability, regulatory/legislative challenges and misconceptions about retreading.
When asked to list "changes made" in their businesses that have had the greatest impact on productivity and/or profit, retreaders cited acquisitions of other retreaders and geographic expansion, increased investments in equipment and hiring more people/paying competitive wages/increasing efficient work processes as the top three game-changers.
Forty-three percent of respondents reported that they made large investments in their operations during 2022 and/or plan to make large investments in 2023. An equal number (43%) said they made or are planning to make minimal investments. Fourteen percent said they made or will make no additional investments.
Looking further ahead to 2023, 62% of respondents said they are forecasting revenue increases in 2023. NIne percent expect to see a decrease in revenue. Twenty-nine percent expect revenue to be "about the same" as in 2022.
Sixty-three percent of respondents believe casing prices will increase in 2023, while 25% expect casing prices to remain flat. Only 12% believe the price of casings will decrease.
TRIB also asked retreaders to list ways they are focusing on sustainability. Responses included using paper, plastic and cardboard recycling; converting to LED or other energy-efficient lighting; sending wooden pallets to mulch companies; installing solar power; buffing collection and recycling; removing single-use plastics in break rooms; and increasing the digitalization of files to cut down on the use of paper.
“It’s been a strong couple of years for the retread industry and we felt it was important to take the pulse of our members, stay informed about the challenges and opportunities they face, and understand their plans and outlook for 2023," says TRIB Managing Director David Stevens. "TRIB’s goal is to continue this survey on an annual basis to track and highlight the key issues facing our members and the retread industry as a whole.”
