RMA explains ‘slight growth’ in tire shipments forecast

The tire industry can be encouraged by predicted growth in U.S. tire shipments this year, according to a recent report by the Rubber Manufacturers Association (RMA). The RMA’s mid-year forecast projects a slight growth in overall tire shipments — taking both original equipment and replacement tires together — in 2016.

A mixed bag of growth

The RMA reports a bit of a mixed bag, with original equipment truck tire shipments expected to decrease while replacement truck tire shipments are projected to rise. Overall, total truck tire shipments will drop slightly. Passenger vehicle original equipment (OE) tires are expected to see only a very slight increase while replacement passenger tires are projected to decrease. However it's good news for the light truck tire segment, which is expecting solid growth in both OE and replacement tire shipments.

What's behind the results?

RMA Public Affairs senior vice president Dan Zielinski said overall the industry continued to experience “slow but steady growth.” He said tire shipment expectations usually mirrored the U.S. economy — and economic growth to-date has been less robust than hoped, with growth of 1.1 percent in both the first and second quarters.

Zielinski said OE truck shipments declined because fewer new trucks were entering the market and the passenger replacement tire decline most likely reflected the slower than expected U.S. economic growth. Increased sales of light trucks for commercial purposes and a rebound from previous years' slow growth was probably behind the rebound in the light truck sector.

A positive future

However, the future looks promising. Zielinski predicted that steady increases in vehicle miles traveled, low fuel costs, improvements in consumer confidence and more robust U.S. economic growth should result in larger tire shipments.

This comes on the back of a strong performance in 2015, during which U.S. tire manufacturers increased their output across the board with increases of 4.2 percent, 1.4 percent and 2.1 percent in passenger, light truck and medium truck/bus tire production respectively, according to the RMA.

RMA’s data showed production of passenger tires rose to 126.1 million units, light truck tires to 26.4 million units and medium truck tires to 14.8 million units, for a combined total of 167.8 million.

Tagged: Rubber Manufacturers

RMA explains ‘slight growth’ in tire shipments forecast