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Retreading Business Ltd.
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EDITOR/PUBLISHER
David Wilson
CONTRIBUTORS
Valentine Iwenwanne Rafik Kozman Leo Linkesch Daniel Rojas Enos Ewan Scott Satnam Singh Mary Tang Maria Tarazaga Vladislav Vorotnikov Richard Wilson
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David Wilson
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EDITORIAL
TRUCK TYRE SALES DOWNTURN A NATURAL CORRECTION IN MARKET BEHAVIOURS
The last three years have been turbulent times for most sectors of the economy, so it came as no surprise that we were approached a couple of months ago to report on and analyse the unusual drop-off in truck tyre sales (both new and retread) that has occurred during the early part of 2023. The result of that quest is Ewan Scott’s insightful piece on the dy- namics of the truck tyre market, published in this issue of Retreading Business.
The cumulative impact of Covid, the War in Ukraine, rampant inflation, and in certain areas, the lingering shadow of Brexit, has had a massive impact on our industry. Significant fluctuations in long-haul transport (including the transport of people), especially in Eastern Europe, the ri- se in the cost of living, and the impact of sanctions on key raw material for the tyre sector such as oil and carbon black, are all issues which have created turmoil in the markets.
However, according to Simon Hodson from Astutus Research, there are many more general trends affecting the way we buy our products, which have affected truck tyre sales, including a general move to lar- ger trucks with bigger capacities, improved efficiencies in road haulage, and the huge growth in last mile deliveries by fleets of light commercial vehicles and vans.
Although these macroeconomic factors are no doubt affecting long- term behaviour in the truck tyre market, the specific slump in sales ex- perienced this year, appears to be more a case of the market correcting itself than anything else. Jorge Crespo, the Managing Director of UK retreader Vaculug, puts any short-term decline in retread sales down to Chinese tyre imports returning to normal levels, whilst Simon Hodson suggests the Q1 fall may reflect changes in dealer stock levels as indus- try emerges from the pandemic.
So, the overarching message is don’t panic, the markets have a way of re-setting themselves to the correct levels following turbulent times, but don’t lose sight of the changes in consumer behaviour that stand to impact sales of truck tyres and retreads in the long term.
Ewan Scott’s full analysis on this topic can be read starting on page 28 of this issue of the magazine.
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