T H E S T A T E O F T H E R E T R E A D I N D U S T R Y P R E S E N T E D B Y D R . J O S H U A A B E L L B A N D A G M A R K E T I N G
AN INDUSTRY FIRMLY ROOTED IN THE UNITED STATES AND CANADA $28.4 B Economic 268,000 value-add 683 Jobs supported in the US: Retread plants in your local direct, induced and indirect. communities in the US & Canada. RETREAD MARKET 44% of all commercial replacement tires on the road. Over $3 billion in savings to domestic fleets. Note: Data reflects US and Canada, Modern Tire Dealers, 2017 Facts Issue, Jan 2017 Economic impact and jobs data Is supported by IMPLAN modeling presented in the Retread Tires in US and Canada Report, July 2018
Industry Overview CHALLENGES OPPORTUNITIES SUSTAINABILITY GROWING RELIABILE LONG-TERM CUSTOMER BENEFITS PERFORMANCE PROFITABILITY COMPETITION MISCONCEPTIONS
Industry Overview
Retread Tire Perceptions Retreads are perceived to be better for Environment & Value QUALITY VALUE PERFORMANCE New Better New Better New Better 1 1 1 0.5 0.5 0.5 0 0 0 -0.5 -0.5 -0.5 Retread Better Retread Better Retread Better -1 -1 -1 Large Medium Small Large Medium Small Large Medium Small Fleet Size Fleet Size Fleet Size RELIABILITY TREAD LIFE/WEAR ENVIRONMENT New Better New Better New Better 1 1 1 0.5 0.5 0.5 0 0 0 -0.5 -0.5 -0.5 Retread Better Retread Better Retread Better -1 -1 -1 Large Medium Small Large Medium Small Large Medium Small Fleet Size Fleet Size Fleet Size Source: BOSS Survey, N=1,957
Retread Tire Perceptions New tires are perceived to be better for Quality, Performance, Reliability & Tread Life/Wear QUALITY VALUE PERFORMANCE New Better New Better New Better 1 1 1 0.5 0.5 0.5 0 0 0 -0.5 -0.5 -0.5 Retread Better Retread Better Retread Better -1 -1 -1 Large Medium Small Large Medium Small Large Medium Small Fleet Size Fleet Size Fleet Size RELIABILITY TREAD LIFE/WEAR ENVIRONMENT New Better New Better New Better 1 1 1 0.5 0.5 0.5 0 0 0 -0.5 -0.5 -0.5 Retread Better Retread Better Retread Better -1 -1 -1 Large Medium Small Large Medium Small Large Medium Small Fleet Size Fleet Size Fleet Size Source: BOSS Survey, N=1,957
RETREAD RELIABILITY SEPARATING FACT FROM FICTION Since 1995, 5 independent studies were conducted to assess the reliability of retreaded tires in the marketplace. Each study came out in support of retreading. The Maintenance Council of the Virginia Department of National Highway Traffic Safety Arizona Department of American Trucking Association American Trucking Associations Transportation Administration Transportation TIRE DEBRIS PREVENTION RECAPPED TIRES COMMERCIAL MEDIUM TRUCK SURVEY OF TIRE DEBRIS ON RUBBER ON THE ROAD TASK FORCE TIRE DEBRIS METRO PHOENIX HIGHWAYS
RETREADS ARE ENVIRONMETALLY FRIENDLY Retreading is the responsible tire choice. Uses 68% Reduces GHG LESS OIL to Lowers natural emissions due to manufacture than rubber usage less energy use . a new tire 1 BILLION Decreases tire Saves enough Supports 250 local energy to power waste by retread plants & 800 homes for an 1 billion pounds 50,000 direct & hour. annually. indirect jobs. Source: Retread Tires in the US and Canada
Retreaded Tires Are Used Everyday COMMERCIAL SCHOOL BUSES TRUCKING FIRMS AIRLINES • “Our tires spend most of their productive life • High-scrub fleets often retread 8 times or more. • Our most precious cargo transported as retreads…” every school day. • Package delivery & waste removal fleets commonly retread for the steer position. • “On average, main-gear tires can handle from five to nine retreads, and nose-gear tires can be recapped from three to 15 times”*. *Rbt L. Crandall, Chariman, American Airlines, 2000
FLEETS SAVE OVER 3 BILLION DOLLARS ANNUALLY No Scrap fee Cost 30-50% Lower Lowest Cost and fewer less than maintenance per mile purchases comparable costs option needed New Tires Source: TRIB, Retread Tires in the US and Canada, July 2018.
Reliability Profitability Lower cost / mile to fleets Engineered for safe and reliable performance Bandag Retreads Perform Like Comparable To New Tires* Backed By Sustainability Bridgestone Retreads are a The world’s No. 1 environmentally responsible tire and rubber company tire choice Disclaimers: *based on test data of drive tires in a Waste segment application, **
RETREADS: A RELIABLE, PROFITABLE, SUSTAINABLE, CHOICE for fleets of all sizes, maximizing tire asset potential & maximizing total cost of ownership.
RETREADS: A RELIABLE, PROFITABLE, SUSTAINABLE, CHOICE We must make retreading an integral part of replacement tire business and continue to educate the industry on the value of retreads as we move toward sustainable mobility in the future.
T H A N K Y O U ! P R E S E N T E D B Y D R . J O S H U A A B E L L B A N D A G M A R K E T I N G Office: 615-937-5744 Email: abelljoshua@bfusa.com V i s i t b a n d a g . c o m f o r m o r e i n f o r m a t i o n
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