Yokohama Tire’s North American vice president sums up state of commercial tire market today

Thanks to a surging economy, the commercial tire market is on a roll. With a new commercial tire plant opening in Mississippi in October, Yokohama Tire Corporation (YTC) is poised to increase market share. Rick Phillips, vice president of sales, explains current market developments and how they will affect the industry.

Question: The commercial tire market was up last year. Why?

Rick Phillips: In 2014, the market was up eight to 10 percent over 2013. It all starts with the economy. The stock market is doing well, which has led to increased consumer confidence and spending. When consumers buy things, they get moved by truck, and that’s good for our industry. We’re definitely back to pre-recession levels.

Question: What improved sectors of the economy have most impacted the trucking industry?

Phillips: Manufacturing in the U.S. is now more attractive, which is good because products get hauled more. Housing has also been on the upswing. Any time somebody buys a house, they purchase many things that go with it, and that spurs spending. General road construction, fracking and oil drilling have increased, too.

Question: When the economy is rolling, do OEM truck sales go up?

Phillips: OEM sales is one of the indicators for market strength. If you’re a trucking company, the only reason you would buy a truck is to move freight.