USTMA, tire makers back retreading bill

WASHINGTON—U.S. Rep. Tim Ryan (D, Ohio) has introduced a bill he believes could bolster the retread tire industry by providing a tax deduction for consumers who purchase retreaded tires.

H.B. 8165, dubbed the Commercial Vehicle Fleet Retread Tire Utilization and Recovery Act of 2022, is intended to increase the demand for retreaded tires. Ryan said this, in turn, will limit tire waste, promote sustainability and support U.S.-based jobs.

"As we work to transform Ohio's economy and compete with the rest of the world, it's vital we reinvest in the industries that treat our workers well and keep our economy going," Ryan said in a statement, noting that 51,000 U.S. jobs are tied to the retreading industry.

"By providing a tax incentive for consumers who purchase retreaded tires, this legislation will support good-paying jobs, level the playing field for American workers and businesses, and position our manufacturers to once again lead this industry with American products built by American workers," he said.

In introducing the bill, Ryan cited "Retread Tires in the United States & Canada: An Analysis of the Economic & Environmental Benefits for Fleet Operators and the U.S. Government"—a joint study from The Duke Center for Sustainability & Commerce; N.C. State Supply Chain Resource Cooperative; and The University of Michigan Transportation Research Initiative—that found a decline in the use of retreads since 2020.

The study, funded in part by Bridgestone Bandag L.L.C., contends that competition from "ultra-low cost imported tires" has led to the decline in retread usage. Between 2011 and 2015, the volume of ultra-low-cost tire imports grew by 70 percent, the study said.

At the same time, 65 percent of those using the ultra-low-cost tires say they are less likely to retread them than they would a premium-brand tire, a trend that compounds to the decline of retread usage, according to the study.

The study also made a direct correlation to the upswing in low-cost import tires and the closure of an estimated 450 independently owned small- and medium-sized retread facilities between 2000 and 2016.

Late last year, the U.S. Department of Commerce, in reviewing the 2019 counterveiling duties levied against truck/bus tires produced in China, found that imports of truck/bus tires from the country plunged to 1.38 million units in 2020. That's down from 3.19 million tires imported in 2019 and 9.21 million imported units in 2018.

Despite the more recent trend, the U.S. Tire Manufacturers Association affirmed the impact of the low-cost imports on the retread industry.

"Retreading of commercial tires in the U.S. market has steadily decreased over the last 25 years, due primarily to the decreasing cost of foreign alternatives for new tires, which are 65 percent less likely to be retreaded because of their design and construction," Anne Forristall Luke, President and CEO of USTMA, said is a statement.

Luke went on praise Ryan's proposed legislation, which she said helps to promote the safety, sustainability and viability of retreaded tires.

"By providing tax credits to fleet purchasers who buy U.S. retreaded commercial tires, the federal government would be helping to level the global playing field for U.S. tire companies and shift the business model back in favor of retreading, which provides a highly effective way to recycle tires with many notable economic and environmental benefits," Luke said. "Encouraging U.S. fleet managers to purchase retreaded commercial tires is a win-win given the sustainability, jobs, and long-term economic benefits of retreading."

USTMA, in its own news release supporting the retreading legislation, noted that retreading—when compared to new tires—can have a significant positive impact on the environment. Among those benefits are:

• Using 15 fewer gallons of oil and 90 fewer pounds of total material per tire;
• Saving about 215 million gallons of oil per year in the U.S. and Canada;
• Reducing CO2 emissions by 24 percent;
• Cutting water consumption by 19 percent;
• Reducing air pollution by 21 percent; and
• Removing about 1.4 billion pounds per year from the waste stream.

Meanwhile, "Retread Tires in the United States & Canada: An Analysis of the Economic & Environmental Benefits for Fleet Operators and the U.S. Government," noted that premium-brand tires originally purchased as steer tires for commercial vehicles can be retreaded multiple times and used as drive or trailer tires throughout their lifecycles. This, the study found, can extend the life of the tires by as much as 500 percent.

Retreading also can save fleets in the U.S. and Canada as much as $3 billion per year.

Goodyear, in backing the proposed retread legislation, also cited the sustainability of retreads as being a key factor for their usage.

"Retreading extends the life of commercial tires, providing a more sustainable option for fleets while also helping them lower their operating costs," Dave Beasley, vice president of Goodyear North America Commercial Tires, said in a statement. "We welcome this legislation introduced by Congressman Ryan because it helps deliver these benefits by incentivizing fleet customers to buy commercial retreads and choose new tires that can be retreaded."

Goodyear isn't alone in support of the Commercial Vehicle Fleet Retread Tire Utilization and Recovery Act of 2022. Bridgestone, likewise, has thrown its support behind the bill.

"Bridgestone enthusiastically supports the legislation introduced by Congressman Ryan, as it addresses sustainability, job growth, and the creation of a more robust domestic supply chain," Paolo Ferrari, CEO of Bridgestone Americas Inc. and global co-chief operating officer of Bridgestone Corp., said in a statement. "Increased use of U.S.-manufactured retreaded tires will create local jobs, reduce costs for tire customers, save energy, reduce material consumption and waste, and reduce dependence on tires imported from overseas.

"We thank Congressman Ryan for his leadership and look forward to working with him on this issue."

Ryan, who represents Ohio's 13th District, is running against Republican nominee J.D. Vance for Ohio's open U.S. Senate seat. The seat is held by Republican Rob Portman who is not seeking re-election.