{"id":12195,"date":"2021-08-23T16:33:07","date_gmt":"2021-08-23T14:33:07","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=12195"},"modified":"2021-08-23T16:33:07","modified_gmt":"2021-08-23T14:33:07","slug":"tire-7","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/08\/23\/tire-7\/","title":{"rendered":"Tire industry rolls with the punches"},"content":{"rendered":"

Today\u2019s challenges are tomorrow\u2019s opportunities, and the shocks brought about by COVID-19 are teaching the commercial vehicle tire industry how to better absorb such blows in the future.<\/p>\n

After taking one on the chin courtesy of the COVID-19 pandemic, the U.S. commercial tire industry is bouncing back in 2021. Because of the pandemic and lockdowns, motor vehicles overall in the U.S. traveled 13.2% fewer miles in 2020 compared to 2019, which equates to less wear and tear on tires and less need for new ones.<\/p>\n

Now the economy is ready to grow again, and commercial trucks are in high demand, with June spot rates up 101% year over year, according to DAT Freight & Analytics<\/a>. And FTR Transportation Intelligence forecasted a 14.5% YOY increase in freight for the second quarter of 2021, with a 7.1% increase expected for Q3 and 5.8% for Q4. The demand for tires seems to back up this growth.<\/p>\n

\u201cThe tire market was booming during Q1 of 2021, with truck replacement shipments up 11% year over year, primarily among U.S. Tire Manufacturing Association members who are up 12.5% year over year,\u201d said Tom Fanning, Continental\u2019s head of U.S. market, truck tires. \u201cBooming growth will continue for Q2, especially when compared to 2019.\u201d<\/p>\n

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Credit: Bridgestone Bandag<\/div>\n<\/div>\n<\/div>\n
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\"Retreading<\/div>\n<\/div>
\nRetreading tires is cost effective, saving hundreds of dollars versus new tires, and keeps up to 15 million tires out of North American landfills per year.<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

While the economy is growing again, there has been a restructuring of route distribution, with last-mile delivery operations gaining market share. According to the Customized Logistics and Delivery Association white paper The Age of Amazon: Why 3PLs & Last-Mile Delivery Fleets Must Draw Closer, ecommerce in North America jumped 44% in 2020, a side effect of the lockdowns. The trend shows no signs of reversing, as this white paper also projects last-mile delivery will have a compound annual growth rate of 14% from 2020 to 2024, when it will reach $44.88 billion.<\/p>\n

\u201cOver the past decade, we have witnessed the volume of truck tires for the regional application continuing to increase year in and year out, nearing long-haul volumes,\u201d Fanning said. \u201cThis has not been seen in the U.S. market in recent memory. As soon as the next five to 10 years, regional tire shipments are expected to eclipse long-haul volumes.\u201d<\/p>\n

Supply chain issues still complicate matters. First, Southeast Asia\u2019s rubber-producing countries of Malaysia and Thailand were not able to use migrant workers to tap the rubber trees because of travel restrictions between nations. Fungal leaf disease has also impacted the production of natural rubber, which comprises about one-third of a truck tire. Production was down 10% in 2020, which caused rubber prices to rise 70% YOY in May of this year to $2.29\/kg, according to the Singapore Commodity Exchange<\/a>.<\/p>\n

\u201cTires are hard to come by right now; you\u2019ve got higher prices and lower supplies,\u201d noted Kevin Rohlwing, SVP of training for the Tire Industry Association (TIA). \u201cWe can\u2019t say it\u2019s a shortage, but in certain sizes and certain styles, you\u2019re not going to be able to get them.\u201d<\/p>\n

The problem, Rohlwing explained, is that because there are so many types of commercial tires with different sizes and treads, requiring different steel casings and rubber compounds, manufacturers can\u2019t always pivot quickly to produce them when customer demand increases.<\/p>\n

Rohlwing pointed out that \u201cwherever weak demand is increasing the most\u201d is where shortages will crop up. In response, tire manufacturers are raising prices. In March, Goodyear Tire & Rubber Co. announced it would increase passenger tire prices, while Bridgestone, Continental, Michelin, and Yokohama have upped the cost of their commercial tires. Yokohama cited an \u201cunprecedented increase in the cost of raw materials, and the ongoing rise of operational costs necessitated the price adjustments.\u201d<\/p>\n

\u201cDisruption in the supply chain coupled with decreased production in 2020 will lead to supply shortages throughout 2021,\u201d Fanning said of Continental specifically. \u201cAs a global manufacturer, we are sourcing tires from our global production network to supplement local supply, but the container shortage will also impact the speed and availability of these deliveries.\u201d<\/p>\n

Today\u2019s challenges are tomorrow\u2019s opportunities, though, and the shocks brought about by COVID-19 are teaching the commercial vehicle tire industry how to better absorb such blows in the future. And by the end of the decade, the process of how an average fleet procures, manages, and maintains tires is shaping up to look radically different. On every front, from gathering data to recycling spent rubber, innovation within the commercial tire industry is gaining traction.<\/p>\n

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Credit: Goodyear<\/div>\n<\/div>\n<\/div>\n
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\"Electric<\/div>\n<\/div>
Electric vehicles tires will have to stand up to the rigors of instant torque at takeoff, which can wear tires faster, while still maintaining low rolling resistance increase range. This 1-meter concept tire from Goodyear, the C100, designed for the Citro\u00ebn 19_19 Concept vehicle, features efficiency benefits along with smart technology and the tread works like a natural sponge for better grip on wet and dry roads.<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

As material science engineers tinker in the lab to improve tire durability and performance, supply chain experts are busy innovating ways to make it easier to track the tire lifecycle and get every last mile possible out of each tire, whether it be an 18-wheeler or battery-electric delivery van. And when a tire is worn out, the industry is looking at economical and sustainable ways to keep all that rubber out of landfills via retreading and recycling.<\/p>\n

This is all great news for commercial fleets, as tires are typically the top expense after fuel and labor costs. The downside is that, for now, access to these benefits largely relies on more investment, testing, training, and employee buy-in. Employing those are standard operating procedure for large fleets, though elevation or temperature. It is imperative that drivers regularly check their tire\u2019s psi pre- and post-trip for a safe journey.\u201d<\/p>\n

The advent of tire pressure monitoring systems and automatic tire inflation systems<\/a> has helped commercial fleets solve the underinflation problem.<\/p>\n

\u201cCustomers looking for the lowest overall driving cost should strongly consider a digital TPMS, as properly inflated tires get 15% longer tread life on the tire\u2019s first life and 20% longer casing life for retreading,\u201d Fanning said. \u201cOne customer has told us they have reduced roadside service calls to zero by implementing our ContiConnect Yard solution. This service helps our customers maximize their tire investment and reduce downtime.\u201d<\/p>\n

The more smart tires there are, the more fleets can leverage the data they gather. Michelin, for instance, equips 90% of its truck tires with radio-frequency identification (RFID) chips to help fleets locate and monitor their supply in the warehouse and on the road. This real-time tire data also can reveal insights into road conditions along the route.<\/p>\n

\u201cIt\u2019s about being proactive and seeing the early signs that could indicate a failure down the line,\u201d said Pierluigi Cumo, marketing director for on-road at Michelin. \u201cWe have offers to address the emergency aspect with OnCall (end-to-end break-down solution), but we also want to use that data to see if there\u2019s specific spots that fleets need to pay particular attention to.\u201d<\/p>\n

That can be more challenging for smaller carriers to pull off.<\/p>\n

Fortunately, as the decade progresses, these barriers to adoption will thin, as typically happens with new technology and equipment. That means any fleet owner will be able to unlock more efficiencies sooner rather than later. To help guide fleets on what options to investigate, we asked tire experts to share their insights on the anticipated technology trends that will help drive these changes. And it all starts with something all fleets have plenty of\u2014data.<\/p>\n

Digital tire tracking trends<\/h3>\n

Spurred by the onset of telematics, access to more data has transformed trucking operations in the past decade. The first areas to see the efficiency improvements were in the cab with the driver and under the hood with the powertrain. In this next decade, tires will get their turn.<\/p>\n

\u201cTire manufacturers are developing these new intelligent tires that can give you all sorts of performance in real-time; pressure, speed, temperature, you name it,\u201d said Robert Braswell, executive director for the American Trucking Associations\u2019 Technology & Maintenance Council (TMC). \u201cAnd those tires are sending their information back to the office through telematics, so the fleets have visibility of what\u2019s going on. That\u2019s a revolution in fleet tire management.\u201d<\/p>\n

TMC attributed tire failures to more than half of truck roadside breakdowns, with underinflation playing a pivotal role.<\/p>\n

\u201cYou have to have sufficient inflation pressure for the load being carried, and that\u2019s not always the easiest thing to determine,\u201d Braswell said, noting that tire suppliers have complex inflation data tables that dictate proper inflation related to axle ratio and weight rating of the load.<\/p>\n

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Credit: Continental<\/div>\n<\/div>\n<\/div>\n
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\"Digital<\/div>\n<\/div>
Digital tire monitoring solutions such as ContiConnect allow fleets to ensure tires are properly inflated and at less risk for failure and costly roadside repairs.<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

\u201cIn the old days, they used a thumping stick, which is completely useless. Then, we migrated to using tires that are calibrated to a master gauge\u2014very labor-intensive,\u201d Braswell said.<\/p>\n

\u201cOne misconception within the industry is that once you inflate commercial tires to the recommended specification, they do not need to be attended to for a long period of time,\u201d noted Bridgestone Applications Engineer Greg Kidd. \u201cThe reality is that air will permeate out of the tire at a rate of 2 psi per month and inflation will also be impacted by any dramatic change in elevation or temperature. It is imperative that drivers regularly check their tire\u2019s psi pre- and post-trip for a safe journey.\u201d<\/p>\n

The advent of tire pressure monitoring systems and automatic tire inflation systems has helped the underinflation problem.<\/p>\n

\u201cCustomers looking for the lowest overall driving cost should strongly consider a digital TPMS, as properly inflated tires get 15% longer tread life on the tire\u2019s first life, and 20% longer casing life for retreading,\u201d Fanning said. \u201cOne customer has told us they have reduced roadside service calls to zero by implementing our ContiConnect Yard<\/a> solution. This type of service around the tire helps our customers maximize their tire investment and reduce downtime.\u201d<\/p>\n

The more smart tires there are, the more fleets can leverage the data they gather. Michelin, for instance, equips 90% of its truck tires with radio-frequency identification (RFID) chips to help fleets locate and monitor their supply in the warehouse and on the road. This real-time tire data also can reveal insights into road conditions along the route.<\/p>\n

\u201cIt\u2019s about being proactive and seeing the early signs that could indicate a failure down the line,\u201d said Pierluigi Cumo, marketing director for on-road at Michelin. \u201cWe have offers to address the emergency aspect with ONCall (end-to-end breakdown solution), but we also want to use that data to see maybe there’s specific spots that fleets need to pay particular attention to.\u201d<\/p>\n

Cumo added a secondary function of On-Call is being able to confirm the location of replacement tires to ensure product availability in the event a truck or trailer were to get a flat on the road. \u201cFleets can optimize how they spread their inventory to make sure that they have the ability to put the truck back on the road quickly if something happens,\u201d he offered.<\/p>\n

This is a drastic improvement over the conventional way of tracking via manual inventory.<\/p>\n

\u201cBefore, fleet managers would track tire usage by unit number. They know who the driver is, and they know the routes that they’re running and for some reason, this particular unit goes through a lot more tires than this other one, so then they begin to try to figure out what’s going on,\u201d said Kyle Chen, channel manager for fleet and OE TBR at Bridgestone Americas. \u201cBut now with some of the new technologies they can home in on some of that much quicker. It does come down a lot of times to the individual driver and how well they’re trained.\u201d<\/p>\n

In addition, Goodyear has brought this visibility to other commercial vehicles. The Goodyear SightLine, which launched in June, allows for a more predictive view of cargo vans, addressing the significant increase of e-commerce and rapid growth in the last-mile sector.<\/p>\n

\u201cMuch like smartwatches that monitor vitals like heart rates and oxygen levels, Goodyear SightLine\u2019s <\/a>tire intelligence.<\/p>\n

monitors the health of a tire,\u201d said Chris Helsel, Goodyear\u2019s senior vice president of global operations and chief technology officer. \u201c[It] takes the mystery out of understanding tires and communicates when tires need service or replacement.\u201d<\/p>\n

The Goodyear SightLine platform measures pressure, friction, leaks, and road conditions such as slickness. An updated version is expected to communicate road conditions to other vehicles as well. According to Goodyear\u2019s initial testing, integrating SightLine technology into a vehicle control system can reduce stopping distance loss by 30%. Goodyear, which in June completed its acquisition of fellow Ohio-based tire manufacturer Cooper Tire & Rubber Company, also has its Complete Tire Management solution, which pulls in digital inspection information to gather pressure, depth, and wear data with real-time alerts to help fleets stay ahead of issues and avoid breakdowns. Michelin Tire Care and Bridgestone IntelliTire provide similar services.<\/p>\n

Stay tuned for part two, where we’ll discuss some of the latest trends in retreading and efficiency.<\/i><\/p>\n

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By John Hitch<\/a><\/span><\/p>\n

Source: https:\/\/www.fleetowner.com\/<\/a><\/span><\/p>\n

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KNOW WHO WE ARE<\/strong><\/a><\/h1>\n

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Today\u2019s challenges are tomorrow\u2019s opportunities, and the shocks brought about by COVID-19 are teaching the commercial vehicle tire industry how to better absorb such blows in the future. After taking one on the chin courtesy of the COVID-19 pandemic, the U.S. commercial tire industry is bouncing back in 2021. Because of the pandemic and lockdowns,…<\/p>\n","protected":false},"author":3,"featured_media":12196,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[36],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12195"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=12195"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12195\/revisions"}],"predecessor-version":[{"id":12197,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/12195\/revisions\/12197"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/12196"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=12195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=12195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=12195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}