Tire industry contributed €44bn to European Union GDP

Brussels – Tire manufacturers contributed almost €44 billion to European Union GDP in 2023, a report for the European Tyre & Rubber Manufacturiers' Association (ETRMA) shows.

According to the analysis by UK-based Oxford Economics, ETRMA member companies last year sold over 300 million tires produced at their European facilities.

The commissioned study assessed the impact of the EU tire manufacturing industry on the EU economy, focusing on the key areas of economic footprint, international trade and R&D.

In terms of core economic footprint, tire makers contributed €43.9 billion to the 2023 GDP, 13% higher than in 2014 – at 'constant 2023 prices'.

The contribution comprised of a direct impact of €13.9 billion generated by the manufacturers themselves as well as €20.0 billion supported through supply-chains as indirect impact.

Another €10.0 billion ‘induced impact’ was contributed through the wage-spending of direct and indirect workers.

The tire industry also supported almost half a million jobs across the EU in 2023, representing a fall of 6% since 2014.

As tire production grew over the period, the fall in total employment reflects productivity improvements across the wider EU economy and changes in market dynamics, explained the report.

In 2023, tire makers employed 112,000 workers, equivalent to one in every 270 workers employed in manufacturing across the EU.

A further 259,000 jobs were supported through supply-chains, and 128,000 jobs by “the wage-financed spending of the tire manufacturers' employees, and employees in their supply-chains.”

With an employment multiplier of 4.5, for every 1,000 people employed in the EU tire manufacturing industry, an additional 3,500 jobs were supported in other parts of the EU economy.

Oxford Economics estimated that in 2023, the productivity of tire manufacturing workers was approximately 60% higher than the average across the EU economy.

In terms of international trade, the value of EU tire exports in 2023 reached €7.4 billion - equivalent to 12% of the value of total EU exports in manufactured rubber and plastics products.

At the same time, the region imported €6.9 billion in tires, resulting in a €0.4 billion trade surplus.

According to the report, there has been a trade surplus for every year between 2014 and 2023, except for 2022 when there was a temporary removal of anti-dumping duties on imports of bus and truck tires from China.

Furthermore, in 2023, EU tire makers spent €4.2 billion or 15% of their total spend on inputs from outside of the EU.

The largest shares of this were spent on chemical products and natural rubber from countries including Cote d'Ivoire, Thailand, and Indonesia.

Meanehile, the EU tire manufacturing industry invested heavily in innovation: between 2017 and 2023 spending an estimated €10 billion on R&D.