2012 Tire Shipments to Grow 2 Percent

2011 Total Tire Shipment Growth 0.2 Percent

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.March 7, 2012 - Tire shipments in 2012 are projected to increase by approximately 2 percent – nearly 6 million units- to 290 million units, according to the Rubber Manufacturers Association (RMA). For 2011, tire shipments showed a slight 0.2 percent decrease to 284 million units. Contributing to the small growth were a 26 percent year-over-year increase in gas prices that affected vehicle miles travelled as well as several global natural disasters that affected vehicle builds and OE shipments.

Original equipment (OE) tire shipments for both the light vehicle and commercial truck markets will make up the bulk of the increase in 2012 as continued pent up demand for both for light vehicles and commercial trucks will add to domestic new vehicle sales and production.

Growth in replacement tire shipments is expected to be less than 1 percent, or approximately 242 million total units in 2012 as higher fuel costs may further affect vehicle miles travelled. Nonetheless, the forecast is for continued overall positive economic conditions for both the consumer and commercial sectors as both the Gross Domestic Product and Industrial Production indicators are expected to show moderate growth.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2011 and 2012 include:

  • Original Equipment (OE) Passenger Tires: Passenger OE tire shipments are anticipated to increase by approximately 3 million units, or nearly 8 percent, to 38.6 million units in 2012 as domestic vehicle production is expected to increase. Total light vehicle sales for 2012 are projected to be greater than 13.5 million vehicles, up from 12.8 million vehicles sold in 2011. OE tire shipments for 2011 came in at 35.7 million units, up nearly 8 percent as domestic auto production continued to increase. Of note were the vehicle inventory and availability issues during 2011 as a result of the Japanese earthquake/tsunami, which disrupted supply chains and impacted OE shipments.
  • Original Equipment Light Truck (LT) Tires: This category experienced a 15.7 percent increase in 2011 to approximately 4.2 million total units due to a 9 percent increase in domestic vehicle builds using LT tires and improved economic conditions respective to the commercial sectors. Little or no growth is anticipated for 2012 as further vehicle domestic production increases will be small. As a result, total shipments are forecast to remain at approximately 4.2 million units.
  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: Medium OE tire shipments increased by approximately 1.7 million units in 2011, or 55 percent, to nearly 5 million units, reflecting pent up demand for commercial trucks and trailers concurrent with a 4.1 percent increase in the Industrial Production Index. This sector is forecast to continue to grow by approximately 12 percent in 2012, or another nearly 600,000 units as the commercial sector continues to strengthen reflecting economic growth forecasts.
  • Replacement Passenger Tire: Shipments decreased in 2011 by 6.2 million units, or 3.1% percent, to 194.4 million units as vehicle miles travelled fell 1.2 percent. The economy is expected to continue to experience a slow rebound in 2012 commensurate with a small increase in miles driven. As a result, an approximate 1 percent growth rate, or nearly 2 million units, is forecast for 2012. Non-RMA imports decreased nearly 9 percent in 2011 but an approximate 7 percent increase is anticipated for 2012.
  • Replacement Light Truck Tire: LT tire shipments showed a slight decrease of 0.3 percent to 28.6 million units in 2011. The increase in new light truck vehicle sales plus fewer miles travelled contributed to this slight decrease in replacement shipments. Similarly, little or no growth is anticipated in 2012 as miles driven by small commercial vehicle market – mainly “class 3” trucks – as well as a core group of consumers will remain relatively constant.
  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires: This market increased by approximately 700,000 units in 2011 to 16.5 million units, as the commercial sector of the economy grew by nearly 4 percent. For 2012, growth is expected to moderate such that tire shipments will increase by approximately 2 percent, or 400,000 units.

 

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The Rubber Manufacturers Association is the national trade association for tire manufacturers that make tires in the U.S.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for nearly 85 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

2010 Tire Shipments to Increase Eight Percent

Increases to Passenger Tire Shipments Cited

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.August 9, 2010 - Tire shipments in 2010 are projected to increase by approximately eight percent primarily due to a 38 percent increase in Original Equipment Manufacturer (OEM) passenger tires and a five percent increase in passenger replacement tires, according to the Rubber Manufacturers Association.

Total 2010 tire shipments are projected to increase to 282 million units from last year’s 260 million. The rebound in 2010 shipments would be roughly equal to 2008’s shipment level.

The increase in tire shipments reflects an economy reemerging from the severe economic downturn coupled with the recent turnaround of the domestic automotive manufacturers and a return to established driving habits. However, high unemployment, low consumer confidence and continued depressed home values continue to weigh on the consumer.

RMA’s Tire Market Analysis Committee forecast for key categories and their respective segments for 2010 include:

  • Original Equipment Passenger Tires:

Large increases in domestic vehicle production as a result of the resumption of auto manufacturer production driven by OEM incentive and financing programs will lead to a nearly 38 percent increase in 2010 shipments to approximately 34 million units. With the economy predicted to stabilize and slowly emerge from the recession in 2010, a rebound in vehicle sales and subsequent vehicle production is anticipated. This will further increase OE tire shipments in 2011 by nearly three million units to the 37 million unit level.

  • Original Equipment Light Truck (LT) Tires:

This category will experience an approximate 13 percent increase, or 400,000 units, in 2010 to nearly 3.2 million units due to stabilizing economic conditions and the subsequent impact on the commercial sectors which utilize light truck vehicles. Despite a continual consumer demand preference for vehicle fitments with p-metric passenger tires in place of LT tires, a nearly 100,000 unit gain is anticipated in OE LT as the economy continues to recover in 2011.

  • Original Equipment Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

Given the severe economic conditions in the commercial sector in 2009 depressing OEM truck sales, a nearly 16 percent increase is forecast for 2010 to approximately 2.8 million units. The continued economic rebound and pent up demand for vehicles is projected to result in a net gain of approximately 800,000 units increase in shipments in 2011.

  • Replacement Passenger Tire:

Due to faster recovery in the auto sector from the protracted and deeper economic downturn in 2009, the market will realize a better than expected five percent increase in 2010, or approximately 10 million units, reaching a level of 199 million units. Growth is anticipated to continue in 2011 with the replacement sector estimated to increase by a modest twote million units.

  • Replacement Light Truck Tire:

This segment represents a core group of consumers and the small commercial vehicle market – mainly “class 3” trucks. As such, the extension of the first-time homebuyer’s tax credit provided a temporary boost to the housing/construction industry allowing for a nearly three percent increase in the forecast for replacement LT tire shipments for 2010 reaching the 28 million unit level. No further changes to this level is anticipated in 2011 primarily in line with future changes to the housing industry

  • Replacement Medium/Wide-Base/Heavy On-Highway Commercial Truck Tires:

The market will realize an increase of approximately 15 percent, or nearly two million units in 2010 to approximately 15 million units total as a result of the better than expected recovery in the commercial sector. However, given the uneven economic rebound forecast going forward, this market is expected to increase by approximately 600,000 units in 2011.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products.

RMA’s Tire Market Analysis Committee is comprised of tire market professionals representing the major U.S. tire manufacturers, which account for more than 90 percent of all U.S. tire shipments. Their analyses and forecasts of current and future industry activity include a review of RMA tire industry and economic data, government trade figures, and vehicle sales and production. TMAC develops its consensus view for tire demand from this process. The views expressed in this release are not the sole opinion of any one committee member, member company, or RMA representative.

Tread Rubber Shipments to Decrease by 1.2% in 2006

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.December 20, 2006 - Continued economic growth sustained strong demand for tread rubber shipments in 2006. However, the inability to source off-road tire casings as well as the pull-forward effect of new truck purchases into 2006 — a result of 2007 engine emissions standards — will adversely affect total shipments for the year. As a result, tread rubber shipments are predicted to fall by 1.2% for 2006, according to the Rubber Manufacturers Association’s Tread Rubber Market Analysis Committee (TRMAC). However, growth will resume in 2007 as shipments are forecasted to increase by approximately 1.3%.

The 2006 forecast will mark the first decline after three consecutive years that shipments have increased. This represents a total of approximately 15.7 million tires retreaded in 2006 in the United States.

Retreaded tires are used by commercial aviation, commercial trucks, school buses, and off-the-road vehicles such as industrial, agricultural and mining equipment.

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The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include more than 100 companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. RMA members employ over 120,000 workers and account for more than $21 billion in annual sales.

1.7% Increase Predicted in 2006 Tread Rubber Shipments

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C. August 30, 2006 - Continued economic growth will fuel a steady increase of 1.7 percent in U.S. tread rubber shipments through 2006, approximating 2005’s 1.9 percent growth, according to the Rubber Manufacturers Association’s Tread Rubber Market Analysis Committee (TRMAC).

The 2006 forecast will mark the fourth consecutive year that shipments will increase, and represents a total of approximately 16.35 million retreaded tires in the United States.

Retreaded tires are used by commercial aviation, commercial trucks, school buses, and off-the-road vehicles such as industrial, agricultural and mining equipment.

# # # #

The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include more than 100 companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. RMA members employ over 120,000 workers and account for more than $21 billion in annual sales.

2.8% Increase Predicted in 2006 Tread Rubber Shipments

For more information contact:
Dan Zielinski
(202) 682-4846
dzielinski@rma.org

WASHINGTON, D.C.March 27, 2006 - Economic growth, a strong demand for off-the-road tires, and truck traffic volume will fuel a 2.8 percent increase in 2006 total tread rubber shipments, up from 1.9 percent growth in 2005, according to the Rubber Manufacturers Association’s Tread Rubber Market Analysis Committee (TRMAC).

Continued strength in construction, increases in the number of trucks, expansion in the manufacturing sector and positive freight trends are expected to sustain total growth through 2008 of 1.7 percent.

The 2006 forecast will mark the fourth consecutive year that shipments will increase, and represents a total of approximately 16.35 million retreaded tires in the United States.

Retreaded tires are used by commercial aviation, commercial trucks, school buses, and off-the-road vehicles such as industrial, agricultural and mining equipment.

# # # #

The Rubber Manufacturers Association is the national trade association for the rubber products industry. Its members include more than 100 companies that manufacture various rubber products, including tires, hoses, belts, seals, molded goods, and other finished rubber products. RMA members employ over 120,000 workers and account for more than $21 billion in annual sales.