Smithers tire industry report available

AKRON—Two years of the pandemic has left deep fissures in industry supply chains and logistics, material pricing and work force absenteeism.

As the tire industry is expected to rebound in the coming year—forecasted at $276.8 billion, or about 2.47 billion units—understanding these trends is crucial for any business.

As such, Smithers, an Akron-based testing, compliance and consulting firm for a range of industries, has taken a deep dive into "The Impact of Supply Chain Disruption on Tire Manufacturing," a study that analyzes "all stages of tire manufacturing, sales and distribution."

The report, available for purchase from Smithers for $6,750, looks ahead to 2027 in predicting what the direct challenges will be to the security of these supply chains and the overall cost that tire industry companies are expected to face.

Specifically, the experts at Smithers looked at:

• Sustainability and the push "to integrate recycled and bio-based materials in tire construction." "This will lead to new priorities in material sourcing, manufacturing and end-of-life disposal," Smithers said in a Feb. 9 news release detailing the new study. "This is creating a premium on designing better low rolling resistance tire compounds, as well as developing commercial applications for recovered tire materials, both within the industry and beyond;"
• Material pricing for raw materials and feedstocks, and their related volatility;
• Shipping and logistics;
• The onset of online and digital sales, with e-commerce "becoming increasingly important;"
• SKUs, as tire OEMs and dealers "are diversifying, supplying more specialized tires, especially for the electric vehicle segment, which has been supercharged across 2020-2021;"
• Work force absenteeism, "as a lack of trained labor in U.S. tire manufacturing and distribution facilities is creating a further impediment even as OEMs react to the latest omicron-driven fluctuations in sales;" and
• Geopolitical issues, especially the imposition of import tariffs.

According to Smithers, the study offers "critical insight" into specific business models as they function against the backdrop of these trends, and how more sustainable supply chains can be created for the future.

Visit www.smithers.com to purchase this study.