Greater expectations: doors open wider to once-confined markets. (Retreading Analysis)

Greater expectations

Doors open wider to once-confined markets

After experiencing a hectic 1990 with several new highs and a few lows, the retread industry can finally see some light at the end of the tunnel.

New and exciting opportunities lie ahead for retreaders in 1991 and, for the first time in a while, they are in areas other than the truck tire segment.

However, retreaders will face their greatest challenges ever in achieving profitability and long-term success. Many factors could change the entire scope of this once-vibrant and healthy industry.

Let's review the record for retreading in 1990:

Passenger retread production

Although this industry should see some reason for optimism in 1991, its 1990 production record is not that impressive.

Our estimates for the year indicate production of 9.8 million passenger tire retreads, a 14.7% drop in total units. That's down from the 11.5 million produced in 1989.

(Estimated tire retread production figures are from the Tire Retreading/Repair Journal.)

Positive economic conditions could help this market stabilize in 1991. …