Opportunities and Challenges for the Tire Industry

After the dramatic reduction of inventories in 2008–09, the industry is now seeing a period of rapid growth. But will tiremakers be able to cope with skyrocketing raw material prices?

In the three years since 2008, the world of tires has changed radically, moving swiftly from bust to boom. The current picture is of strong demand, shortage of capacity and rising raw materials prices as shortages bite. The recession of 2008–2009 significantly accelerated the steady move in the balance of power in the tire industry to Asia, away from the US and Europe.