Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • TBC Corp. to make donation to company charity to reward vaccinated employees
      Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
    • SEMA closes deal for SEMA Garage property in Michigan
      Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
    • Pirelli adds 3rd North American bicycle tire distributor
      Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
      Keter to expand NeoTerra SKUs through mid-2022
      Federal approved as 5th Formula Drift tire supplier
    • Vipal targets North America for machinery sales growth
      Commercial tire, retreading sectors on solid footing
      JK Tyre adds radial truck tires to U.S. portfolio
      Mitchell 1 enhances ADAS info access in TruckSeries software
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Bridgestone to upgrade Japanese OTR tire plant
      Point S Canada signs point-of-sale agreement with Flexiti Financial
      Fountain Tire promotes pair to new executive roles
      ETRMA adding Nexen and Czech and Slovak trade groups to membership
    • Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
      Federal approved as 5th Formula Drift tire supplier
      Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
    • Yokohama OHT adds severe-duty solid tire to Galaxy brand
      Bosch adds 22 aftermarket parts in Q1
      Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
    • Point S Canada signs point-of-sale agreement with Flexiti Financial
      WTC webinar to address tire/wheel-balancing process errors
      Commercial tire, retreading sectors on solid footing
      TBC Corp. to make donation to company charity to reward vaccinated employees
    • Bosch adds 22 aftermarket parts in Q1
      Marinucci: Detailed instructions will save time
      Bartec introduces TPMS software updates
      Snap-On introduces TreadReader handheld tire scanner
    • WTC webinar to address tire/wheel-balancing process errors
      SEMA closes deal for SEMA Garage property in Michigan
      SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Coopers are ready to rock: Cooper Tire, Alice Cooper seek best garage band
      Last Mile: Delivery surge raises demand for medium truck tires
      Nexen touting manufacturing quality milestone
      Apollo isn't planning U.S. plant — yet
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Safety tips for wheel balancing
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
    • Video: Demounting
      Making rims ready for a tight seal
      Tire changer types, tips and trends
      How to clear rim rust and corrosion
    • Video: Safety
      Ergonomics on the shop floor
      Customers
      Considerations for shop safety policies
    • Video: Tire Repair
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
      An introduction to tire repair
    • Video: TPMS Service
      Replacement TPMS sensor overview
      The life-saving work of TPMS
      An introduction to TPMS service
    • Video: Training
      Options and resources for CE tech training
      Internship ideas to attract tech talent
      Choosing the right auto service tech school
    • Video:Vehicle Lifting
      Tips and recommendations for lifting safety
      The gravity of proper lift points
      Safety essentials when using jack stands
    • Video: Wheel Torque
      The danger of too much, too little torque
      The importance of torque specifications
      Introduction to proper wheel installation
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
April 23, 2001 02:00 AM

Retreading in 2000-the highlights

Peggy Fisher
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Every year at this time our thoughts are turned to retreading since spring is the traditional time when the International Tire & Rubber Association (ITRA) has its convention and Expo.

    As you read this issue of Tire Business and see the wonderful statistics that show the state of the retreading industry and its largest players, you've got to ask yourself just what happened last year to get us to the present situation.

    The Firestone tire recall, begun last August, dominated most of the news and everyone's concerns during the last half of 2000. As a result, many things that would have been front-page news stories were pushed to the back of newspapers-and our minds.

    Perhaps it's time to recap some critical events that have shaped and are shaping the retread industry in order to understand why it is where it is and where it is going. Maybe this will give you insight into managing your business in the coming year.

    According to the ITRA, there were 1,231 retreaders in 1999. The number in 2000 fell to 1,123, and there will be around 1,100 by the end of this year.

    As you can see, the decline in retread plants is slowing down. Perhaps we are getting to that critical mass where, in order to meet demand, this magic number of plants is needed. Or maybe there is just a slowing of consolidation as the economy figures out what it's doing and as legal maneuvering continues among the giant consolidators.

    The biggest consolidation of the year was the combining of the commercial tire distribution and retreading assets of Goodyear and Treadco Inc. into a joint venture company that may be the largest truck tire service network in the world.

    The new company is called Wingfoot Commercial Tire Systems L.L.C., which operates 180 commercial tire centers and 76 retread plants throughout the U.S.

    As with Tire Distribution Systems (Bandag Inc.'s network of dealers), Bridgestone/Firestone Inc.'s GCR Group and Michelin North America Inc.'s purchase of Tire Centers Inc., this consolidation is another acknowledgement that being allied with a cradle-to-grave supplier-providing both new tires and retreading-is the way the industry is going.

    While this consolidation may have been a boon for Treadco and Goodyear, it certainly was a bust for Oliver Rubber Co. You may remember that Oliver bent over backwards and did a few flips as well to equip all of Treadco's plants when that Fort Smith, Ark.-based firm severed its relations with Bandag in 1996.

    Treadco then became Oliver's largest customer, accounting for about 20-25 percent of that company's annual tread rubber sales. Now, all 21 of Treadco's retreading plants are being converted to the Goodyear Next-Tred System. What will this do to Oliver?

    As you probably recall, Cooper Tire & Rubber Co. acquired Oliver in October 1999 when Cooper bought Standard Products Co., Oliver's parent.

    Many people have wondered whether Cooper will retain Oliver or spin it off. However, the Findlay, Ohio-based rubber company has said it intends to keep Oliver and maximize the synergies between the retread company and their efforts to make inroads into the medium truck market.

    In December, Larry Enders, formerly president of Oliver, was named president of Cooper's commercial tire division, responsible for radial medium truck tire and retreading operations. Only time will tell if he can make this happen.

    While things remain difficult for Oliver in the retread area, Marangoni Tread North America Inc. seems to be quietly growing in strength. It added two more dealerships to its Ringtread precure retread program last fall and now boasts eight franchised plants in North America.

    The Bandag/Michelin lawsuits, which began in September 1999, continue to drag on. In case you've forgotten, Bandag is suing Michelin for allegedly stealing trade secrets, spreading false rumors about Bandag and engaging in predatory pricing.

    Michelin is countersuing, accusing Bandag of ``monopolistic practices.''

    The latest action in this battle for retread industry dominance has dragged Bridgestone/Firestone into the fray. Michelin claims Bridgestone and Bandag are in collusion ``to ensure that Michelin does not become a significant competitor in retread tire systems and the fleet market'' by offering Bandag dealers financial incentives not to license Michelin's retreading system.

    This consolidation and competition has affected the ITRA Expo, too. With around 800 retread plants tied up with one or more retreading systems provider, there are only about 300 retreaders truly independent-which explains the drop in retreader attendance in the last few years.

    A number of retread equipment suppliers have good market coverage through full dealer networks and don't have new products every year to show; so an annual show is unnecessary for them. As a result, ITRA has gone to a biennial trade show and will hold regional conferences in the alternate years to meet the educational needs of retreaders and commercial tire dealers.

    On the legislative front, two issues are pending that may affect retreaders.

    The first is a bill tire manufacturers are pushing as a means of simplifying the calculation of federal excise taxes (FET) on truck tires. (See story on page 11.) The current method is based on the weight of the new tire, which can vary with slight changes in manufacturing processes and design.

    The proposed method is based on tire carrying capacity. On the four major sizes used in over-the-road trucking (11R22.5, 11R24.5, 295/75R22.5, 285/75R24.5 Load range G), it looks like the FET may drop from between $1 and $7 a tire if the proposed method of calculating is adopted.

    Everyone wants the amount of taxes accumulated to be the same, but fears are that the proposed amount charged per 10 pounds of carrying capacity ($.08/pound over 3,500) is not enough. This decrease in excise tax would reduce the price differential between new tires and retreads.

    The other legislative issue involves tire labeling. As part of the TREAD Act, the National Highway and Traffic Safety Administration (NHTSA) is looking at requiring DOT codes on both sides of the tire. (This would apply to retreaded tires as well.)

    Mold cure retreaders would have to put the DOT code plates on both the upper and lower portions of hot molds, which is time consuming, difficult and dangerous. For precure retreaders, it adds another level of expense at the least for labor and materials.

    Despite improvements in retreading equipment, materials and processes, retreading continues to get a black eye every time a tire runs flat and a tread-belt package is left on the side of a road. Probably the worst attack on retreading came from Ft. Wayne, Ind., last December, when a two-part news story appeared on WANE-TV lambasting retreads. This was followed coincidentally by another anti-retread story run by WISH-TV in Indianapolis.

    In February, Tennessee considered legislation ``to explore the feasibility of prohibiting use of retreaded tires on commercial motor vehicles.'' Fortunately, the Tire Retread Information Bureau (TRIB) was standing ready to defend retreading and got the facts out to the appropriate people.

    Follow-up stories were run in Indiana using TRIB's materials, and Tennessee dropped the anti-retread bill after receiving TRIB's information as well as outcries from Tennessee retreaders.

    The retread industry is going through tremendous evolution. There are new forces at play that will shape the industry for years to come as well as continuing attacks on the integrity and economics of retread products. Retreaders will continue to face serious challenges and hard decisions.

    There's never been a better or worse time to be a retreader.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award