Tire Prices Increase Due to Higher Commodity Costs
Replacement tire prices are experiencing upward pricing pressures due to higher prices for the commodities used to manufacture tires. In the past, price increases in replacement tires impacted retail consumers more so than fleets, which tend to buy from national account vendors based on pre-negotiated prices.
“Despite general cost stability in 2016, we have seen a continuation this year of the pricing uptick which was observed in 2017. Manufacturers have attributed the pricing increases to rising commodity costs, brand value strength, and the strengthening of the dollar,” said George Albright, assistant director of maintenance for Merchants Fleet.
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