UK Retreaders Form Marketing And Communications Group

Much has been written about the plight of the retreading industry in previous years, particularly car tyre retreading. Some in the industry have placed part of the blame on the trade for not stocking or promoting the product. In reply, the trade often accuses retreaders of not helping themselves.

Mindful of this charge, some RMA members have formed a Marketing & Communications Committee (MCC) to look at ways of addressing the problem. Prime mover in the formation of the MCC is Gary Oliver, MD of retreaders Colway and Motorway Retreads. In the May issue of TYRES & ACCESSORIES, Gary introduced the idea that retreading not only delays new tyre disposal, but actually minimises waste generation.

He called for Governments and the tyre industry to adopt retreading as the Best Practical Environmental Option (BPEO). Whatever your opinion of the likelihood of this happening, it is good to see the retread industry standing up and being counted. Gary Oliver gave RMA members a presentation about the current state of the market and his views on what needs to be done to improve matters.

The situation has not always been as dire as it is today – it is all too easy to forget the heyday of car tyre retreading in the early 1990s, when the Technic group won two Queen’s Awards for Export and the UK was well ahead of its tyre disposal targets, due in no small part to retreading. How quickly things change. Gary Oliver says that today’s all-time low price level for new tyres began in 1996 with the Far Eastern economic crises.

Since then a number of factors have conspired to keep prices depressed, among which are improved manufacturing techniques, technology transfer, chronic overcapacity, and currency levels (weak Euro, strong Sterling). Truck tyre retreading has fared better, with numbers holding up. An interesting trend is the growing proportion of premium retreads, compared to budget.

This reflects the increasing involvement of new tyre manufacturers in this sector and highlights the ability to market value in the truck retread sector. The key reason for the opposing fortunes in car and truck retread sales is the different routes to markets taken by the products. The former might pass from manufacturer, to wholesaler, to retailer before the end user buys the product.

A premium truck retread on the other hand, will often go from the manufacturer direct to the end user. In this latter case, it is easy for the interested party to communicate the advantages of the product direct to the user. No Price Advantage Traditionally, retreads have been sold on price.

It could be argued that premium truck retreads have been, and still are, sold on value, which equates to pence per mile. The price advantage has all but disappeared for some car and budget truck retreads, with new tyres as cheap as – or sometimes cheaper than – retreads. In such a situation, maintains Gary Oliver, the industry needs to stress the environmental advantages of the product.

He believes that realisable, sustainable, environmental, quality-based arguments exist, the key is how to communicate these advantages to the consumer. Since 1996, the Used Tyre Working Group has monitored the levels of tyre recovery. Last year, the UK tyre industry under-performed by almost 40%, prompting the UTWG to suggest to Government that 100,000 tonnes of additional cement kiln disposal was urgently needed to meet mandatory European tyre recovery targets.

However, the UK Government is very keen on the idea of sustainability, within which the preferred waste hierarchy is ‘Reduce, Reuse, Recycle’. Burning tyres for fuel is regarded at best as recycling and it is here that Gary Oliver sees the advantage for retreading. Waste minimisation-reduction is the key to sustainability and, if retreading can be promoted as waste reduction, it will become the BPEO.

Communications Strategy The industry needs to communicate its green credentials to Government, the trade and the consumer – there is little point in convincing the man in the street if he is consequently steered away from retreads by the depot salesman. The trouble here is that, certainly in the case of car, why should new tyre manufacturers care about retreads whilst many manufacturers feature heavily in distribution channels? With a far-reaching communications strategy and a strong environmental message, Gary Oliver is convinced that the growing number of environmentally-aware motorists can be persuaded of the value of retreads and to ask the tyre dealer for them. This would force the dealer to re-examine his current stocking policy.

The emphasis is very much on the word “industry”. Individually, Gary Oliver believes that retreaders stand little hope of improving their lot, but a generic environmental message, communicated through the RMA, stands more chance of being heard, hence the formation of the MCC. At the time of writing, the MCC is barely more than embryonic, with no specific plan of action, or details of funding finalised, although by the time this appears in print, these will have been decided.

There are five members of the MCC, representing the six largest independent car and truck retreaders. As well as from Gary Oliver, companies on the MCC are Bandvulc, Kingpin, Technic and Vacu-Lug. The RMA is also represented, of course.

What is certain, says Gary Oliver, is that the retreading industry needs to do something to help itself. Exactly what form this will take – lobbying Government, allying with environmental groups – the group will have to decide for itself. Its aims are summed up in a statement which concluded Gary Oliver’s presentation to his fellow retreaders.

The MCC should, he suggested “By communication, realise the sustainable, environmental, competitive advantage that is inherent in UK tyre retreading.” Nobody said that this is going to be easy, but it is worth doing nevertheless – some might even say it is essential if a viable retread industry is to continue. We await developments with interest.