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Tread Rubber Shipments Decrease in 2000

Washington, DC - Strong demand for new commercial truck replacement tires in 2000 resulted in weakened demand for the tread rubber used to produce retreaded tires, according to the Rubber Manufacturers Association. Shipments decreased by 7.9 percent from the 1999 level of 536 million pounds to 493 million pounds in 2000.

According to the Tread Rubber Market Analysis Committee's forecast for 2001, the general softening of the U.S. economy, as well as the contraction of the commercial truck sector experienced during the latter half of 2000 will contribute to a further slowdown in shipments by 3.7 percent. Furthermore, an overall decline in commercial truck ton-miles has directly affected demand for retreaded tires.

However, this trend is expected to reverse course in 2002 as the economy gets back on track with a forecasted growth in GDP of approximately 3 percent. Additionally, the resumption of a normal annual growth pattern in the demand for commercial truck tires will result in an annual growth rate of 1.9 percent for shipments of tread rubber from 2001 to 2006.

Over 20 million retreaded tires were sold in the United States in the year 2000, with sales totaling more than $1.5 billion. Retreaded tires are used by commercial aviation, commercial trucks, school buses, and off-the-road vehicles such as industrial, agricultural and mining equipment.

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