What’s driving up tire prices?

In the past month, major tire manufacturers announced price increases.

Rising raw material costs, along with increased transportation costs, are driving up prices, according to Bill Kaiser, President of Motorcoach Tire Sales of Columbus, Georgia. 

Many operators may experience delays in tire shipments because of driver shortages in the trucking industry, along with bottlenecks in clearing cargo for unloading in West Coast ports, Kaiser said. 

“The commercial tire industry is experiencing spot shortages of all sizes as the increasing demand for goods has resulted in rising truck fleet miles, and a corresponding increase in the need for tires,” Kaiser said. 

He added that United Motorcoach Association Members will benefit from exclusive discounted pricing his company has with some brands. 

Goodyear, Bridgestone raising prices

Goodyear Tire & Rubber Co. recently implemented an 8% price hike on its Goodyear, Dunlop and Kelly branded consumer tires. The company said the increase is being implemented “in response to changing market dynamics in the industry.”

The tire maker said about two-thirds of raw materials costs are influenced by oil prices, and raw materials make up about 36% of the cost of goods sold. Natural rubber and butadiene prices are above pre-COVID-19 levels, and carbon black prices have been rising steadily, reported Tire Business.

Bridgestone Americas Inc. announced it, too, will be increasing prices by 8% on Firestone brand truck and bus radial tires, also in response to rising material costs. The new pricing will take effect for all tire orders shipped on or after May 1, the company said. 

In March, Bridgestone announced an 8% price increase that was applied to Bridgestone brand truck and bus radial tires and Bandag retreads. This price increase went into effect on April 1.

Adam Hall, Field Sales Manager for Mileage Sales with Bridgestone Americas Tire Operations, says customers on leasing plans won’t see an uptick in costs this year.

“We do know that raw material costs are driving prices up right now with many manufacturers, but we at Bridgestone have been able to hold our prices flat,” Adam said. “Those customers on mileage lease programs will have the peace of mind to know that their prices have been pre-negotiated and will stay flat for the entire year. That will allow them to plan ahead and know exactly what their tire expense will be for each trip. This is one of the many benefits of signing on with a mileage lease program.”

by  |