Specialty tire demand fluctuates by segment, data shows

AKRON—Last year was a mixed bag for the "other tires" sectors of the tire distribution industry in North America.

While demand for agricultural tires remained relatively stable in 2020—or even ticked upward in some categories—because of the "essential business" status afforded the agronomy sector during the early months of the COVID-19 pandemic, demand in other sectors, such as construction, waned as projects were delayed or put on hold.

Since a relatively high share of tires in the "other tires" sector sold in the U.S.—such as agriculture, off-the-road mining/construction/miscellaneous, industrial, solid, trailer, recreational, motorcycle, etc.—are imported, tracking import trends can be a valid barometer of overall sector activity.

In 2020, the value of imports in these sectors dropped slightly—down 4.3 percent to $2.26 billion—but a number of individual categories showed relatively robust growth versus 2019, according to Tire Business' analysis of the Commerce Department data.

The largest categories, by value, were the ST trailer tires and treaded agricultural tires (defined as "herringbone" tread patterns by Commerce), with imports in 2020 valued at $781.9 million and $241.4 million, respectively.

In the agricultural category, the number of treaded farm/forestry tires imported rose slightly (0.7 percent) but the overall value dropped about 1 percent. India and Thailand are the top countries of origin for imports in this sector, accounting for nearly three-fourths of the 695,618 tires imported last year.

The average declared customs value for a tire in this category was $347.05 last year, but the range was broad, from a low of $80.24 for tires from Thailand to $1,422.91 for tires from Spain.

Imports of agricultural implement tires rose 14.6 percent last year to 1.23 million units, with an average customs value of $67.63. India, Thailand and China are the largest exporters of such tires to the U.S., accounting for nearly 85 percent of shipments.

Looking at the market from a domestic point of view, Titan International Inc.—one of only five companies with farm tire capacity in the U.S.—said 2020 was its "strongest" year for the North American aftermarket in the past several years, with a number of its dealers commenting that the farm tire business helped them weather a period of reduced demand in their consumer business.

North America accounted for roughly half of Titan's sales of $1.25 billion in 2020. Overall, sales were down 13 percent last year for Titan, but in the ag sector, sales dropped only 3 percent and North America accounted for at least 60 percent of sales in that business.

Trade in industrial/construction tires—treaded and non-treaded—fell by double-digits last year in the four major categories tracked by Commerce.

Imports of solid tires, by contrast, jumped 13 percent last year over 2019 to 5.38 million units, valued at $166 million. Sri Lanka and China dominate this category, accounting for 88.5 percent of imports.

Growth in the imports of ST-type trailer tires and motorcycle tires reflected a trend that emerged as the pandemic progressed—that people started traveling to outdoor recreational activities as a way to ward off "cabin fever."

China dominates the trailer tire category, accounting for 84 percent of the 35.7 million units imported last year.

Imports of motorcycle tires jumped 23.1 percent last year to 3.23 million units, with an average value of $45.04 per tire. Indonesia, Thailand and South Korea are the three leading exporting countries of motorcycle/scooter tires to the U.S.