AKRON (April 24, 2000)—Just how concentrated is the North American retreading industry?
An analysis of available data shows that about 7 to 8 percent of retreaders operate 30 percent of the active retread plants in North America, and account for more than 55 percent of medium truck tire retread output.
Of the 1,200 or so active retread plants in the U.S. and Canada, more than two-thirds are tied up with one or more retreading systems providers, leaving fewer than 400 retreaders still truly independent. The vast majority of these retreaders have a single plant.
Despite losing more than a dozen prominent franchisees in the past few years, Bandag Inc. still has a commanding presence in the marketplace, with 395 franchised locations in the U.S. and about 50 more in Canada.
Bandag claims companies using its process made nearly 9 million medium truck tire retreads in North America last year, accounting for about 45 percent of the market. Of this total, Bandag´s Tire Distribution Systems Inc. subsidiary accounts for more than 1 million units.
The retreading operations owned by Goodyear, Michelin and Bridgestone/Firestone Inc. account for an estimated 2.5 million medium truck units annually, or nearly 14 percent of the estimated North American output.
After Bandag´s network of nearly 450 franchisees, Hercules Tire & Rubber Co. claims the next largest number of customers, with 262. Oliver Rubber Co. lists more than 200 clients of its Oliver and Long Mile processes, just ahead of Goodyear´s 167 Next-Tred locations.
Michelin Retread Technologies Inc.´s network has grown to 38 plants, with an estimated total annual capacity of more than 1.5 million units. Hawkinson Treading Inc. claims 34 licensed customers, while Marangoni Tread North America has seven franchisees and claims to be on target for 20 by year-end.
Editor´s note: Latest rankings of North America´s Largest Retreaders can be found in the "Tire Market Data" section of this site. Additional news articles on retreading are seen in the "News & Features" section, both of which can be accessed via buttons found on TB´s home page.