Commercial tire market facing “rollercoaster ride” in N America

Santa Ana, California – This year could be a "rollercoaster ride" for the North American commercial truck tire market, believes Dan Funkhouser, vice president of commercial tire sales at Yokohama Tire.

The market rebounded in 2024 as e-commerce trends and a growing need for efficient delivery services led to a steady increase in demand, Funkhouser set out in a 7 March company press release.

Other helpful trends, he said, included demand for sensors to monitor air pressure and temperature, a push for more fuel-efficient tires, and consolidation in the fleet and dealer business.

This year, however, proposed tariffs against Mexico, China and Canada "will absolutely have an impact on the North American market,” explained Funkhouser.

Currently, as "the situation is still fluid, it’s too early to determine the level of impacts,” the tire executive pointed out.

Continued Funkhouser, the “wild card” is the economy, particularly as “inflation and the threat of tariffs can cause uncertainty in the market and change spending habits.”

Compliance with new regulatory changes related to emissions will also have an impact during 2025, according to the Yokohama Tire vice president.

And, fleets will continue to face issues around the switch to EVs and lack of charging stations, ongoing driver shortages, economic pressures, and maintenance and downtime.

“There are lots of things fleets can’t control, but at least we can help our customers have an impact on controlling the expenses they are able to, such as tires,” stated Funkhouser.

Despite the challenges, the VP has retained a positive outlook for 2025, identifying construction, e-commerce, logistics and agriculture as the sectors offering particular opportunities for growth in 2025.

“These sectors will offer new opportunities and challenges for tire companies,” concluded Funkhouser.