Manufacturers Price Increase
Some major manufacturers have recently announced price increases for commercial truck tires with some already taking effect and others beginning December 1, 2020. A mix of many different factors and elements affect the cost of truck tires. The most significant is the cost of raw materials, including natural rubber, oil, steel and carbon black, as well as some other less significant ingredients. Currently, rubber prices have been steadily increasing since late August. And though manufacturers will absorb fluctuations in price to a certain extent, there is a breaking point and it seems we have reached it.
Since the drastic increase in rubber prices
- – Bridgestone has announced an increase for prices of the Firestone brand with an average of 5% and some sizes up to 8%.
- – Yokohama has also announced an increase for all position steer, drive and trailer tires up to 6%.
- – Kumho just announced that it will raise prices 7% on January 1st, 2021.
- – Sumitomo had also notified dealers of the coming increase, though they have not defined the precise jump in price
- – Other manufacturers will be sure to follow as they will not be able to absorb the increased cost of rubber for long without hurting their bottom line.
There are also increasing notifications from overseas manufacturers in China, Thailand, Vietnam and
other Southeast Asian countries about imminent increases in prices from 3%-8%. Add these increases to the diminishing supply from these countries due to continued and expanded anti-dumping investigations
by the U.S. Dept. of Commerce, the availability of medium truck tires will continue to tighten and prices from wholesalers and retailers will continue to rise. As Covid-19 continues to affect all parts of the U.S., many manufacturers potentially may see temporary closures of facilities for safety, further straining supply and availability of product.
In short, brace yourself for higher prices. Consider front-loading purchases to meet 2021 projections to carry your shop or fleet through shortages in supply and inevitable increases in price in the very near future.
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