Tire prices saw repeated increases throughout 2021 and this year may not prove much better according to manufacturers.
The same supply chain constraints that led to longer delivery times and higher prices amid growing demand for trucks and key equipment like tires —one of the greatest expenses for fleets — are still posing challenges for manufacturers.
Last week, Yokohama announced another price hike for consumer and commercial truck tires in the U.S. “in response to the continued rise in operational costs.” The company previously hiked prices Nov. 1, Aug. 1 and May 1 last year.
Other tire manufacturers have also continued to raise prices at a time when the rate of inflation in the U.S. hits 7%, a 40-year high. Last year alone, many tire manufacturers big and small raised prices an unprecedented five or more times, according to tirebusiness.com.
Bridgestone last Spring increased prices by 8% on Firestone brand truck and bus radial tires sold in the U.S. and Canada (one of four price increases in 2021) and added another 14% this month. Michelin increased prices on commercial tires up to 13% in July of last year, followed by a hike in September reaching up to 14% and then another increase up to 16% on January 1.
As market volatility continues, those hoping for a return to normal in 2022 may be in for a rough ride.
“In respect to our industry’s supply chain dilemma, I believe those projecting a return to normalcy in 2022 might be a bit too optimistic,” Jeff Barna, president and CEO of Yokohama Tire, said in a recent statement regarding the company’s performance last year and its outlook on the year ahead.
