Retreaded tires may be just the ticket for SUV owners struck by new-tire sticker shock

Retreads are the real deal, according to industry advocates, and tire dealers who have not yet pursued this additional revenue stream can benefit by exploring the opportunities that may be available.
Jan. 1, 2020
5 min read

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Retreads are the real deal, according to industry advocates, and tire dealers who have not yet pursued this additional revenue stream can benefit by exploring the opportunities that may be available – especially during a down economy.

“Our industry is pretty much a bullet-proof industry; we’ve always done well in hard times,” says Harvey Brodsky, managing director of TRIB, the Tire Retread and Repair Information Bureau.

He encourages you to participate in the Feb. 9-11 American Trucking Association’s (ATA) Technology & Maintenance Council (TMC) Annual Meeting and Trade Show at the Orange County Convention Center in Orlando, Fla. The Tire Industry Association (TIA) is hosting a TIA Pavilion as part of the event.

“If I were a tire dealer I’d attend or send several of my key people. It’s not a cost, it’s an investment,” Brodsky advises, pointing out that manufacturers of new tires will also be fully represented along with the retreading segment.

“This is the first year for the TIA Pavilion, and we are excited about offering show attendees the opportunity to see some of the best in retreading technology,” notes TIA Executive Vice President Roy Littlefield. “If you are in the commercial tire or tire retreading industry, the TIA Pavilion will be the place to be.”

“The retailer attending this show will get an education – especially the old-timers,” says Brodsky, referring to tire dealers who may have been previously put-off by the concept of carrying retreads.

“We are the Rodney Dangerfields of the tire industry,” he cheerfully acknowledges, evoking the late, great comedian who was always lamenting how “I don’t get no respect.”

The technology has vastly improved in recent years, according to Brodsky, citing rapid advances in quality control and diagnostic equipment. “It gives the equivalent of a CAT scan or MRI” to ensure that the tire is sound.

“When (a new tire’s) first life is over, it’s proven that it can hold air,” he explains. “The retreader – simplifying here – is just adding rubber” to an existing casing that has already shown its worth. “You can’t tell the difference between retreads and new tires.”

SCHEDULE

Bodsky goes on the say that the adjustment rate for failed retreads is actually less that what manufacturers of new tires experience.

And whether you are interested in retreads or new tires, venturing to the ATA/TMC/TIA event is likely to be more productive than the hubbub and distractions of the larger all-encompassing automotive industry expositions, he says.

“This is a more manageable show; this is a very serious show,” Brodsy asserts. “You can really learn a whole lot.” He also observes that the Orange County location offers plenty of food and lodging bargains outside of the main venues if budgeting is an issue. “There are all the cheap eats you want. Orlando is not an expensive place to attend a show.”

Obviously, making the journey is particularly useful if you carry commercial tires, he says, yet retreads can be equally intriguing to dealers who stock mostly car and light truck tires given the popularity of SUVs.

Although retreads are not much of a player regarding typical passenger cars, owners of bigger vehicles that they treat as day-to-day cars present a viable market. “You can buy off-brand (new car) tires for nothing, but that doesn’t hold true as the sizes get larger,” Brodsky explains.

“It’s a really good opportunity for tire dealers – especially those with SUV customers – to learn about retreads,” he says, citing the price points associated with new tires.

Brodsky says a joke among tire dealers is that “we need to have a cardiologist in our showroom” when a potential customer sees the price tag affixed to a set of new SUV or light truck rubber.

“He has a heart attack because he can’t believe his ears,” he muses. “These people are going crazy because the tires cost more than what money they have.”

Retreads, therefore, offer an affordable alternative to anyone with an SUV or light truck.

Drivers who are concerned about the environment are good sales prospects as well because retreading fits in with a desire to recycle old tires. While it takes about 22 gallons of oil to manufacture a single new truck tire, a retread can be produced with only about seven gallons of oil, according to Brodsky.

The monetary savings are even more pronounced on the commercial tire side, he continues. Because fuel and vehicle maintenance costs are largely fixed and a huge drain in these troubled financial times, “the only place a fleet can save money is on tires,” he says. “You can cut your tire costs at least in half by using retreads.”

Brodsky discounts the belief that the “road alligators” commonly seen along the nation’s highways are caused by failed retreads. That is not true, he says. The origin of road rubber can be traced to both new tires and retreads. “It’s caused by all tires that are not maintained properly. Because people don’t check their air pressure, tires fail.”

Also, a “dirty little secret of the trucking industry” stems from the practice of riding on a compromised tire until it starts coming apart, according to Brodsky. If a non-steer tire begins emitting the thump-thump-thump sound of impending trouble, many drivers will take advantage of the dual-mounting configuration by riding it out until the next truck stop rather than absorb the lost time and expense of pulling off the road and waiting for a tow: Replacing a ruined tire is often more cost effective than missing a key delivery deadline.

For more information, visit www.tireindustry.org and www.retread.org.

About the Author

James Guyette

James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.

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