An Industry that’s Adapted to Change: Yokohama Tire’s Dan Funkhouser Evaluates the Commercial Tire Segment

SANTA ANA, CA – (Feb. 22, 2023) – Three years in, the pandemic has altered the commercial truck industry, including the tire segment. In this Q&A, Dan Funkhouser, Yokohama Tire vice president of commercial tire sales, looks at the ways the industry has adapted to the changes and what to expect moving forward.

Question:
Has the trucking industry fully recovered from the effects of the pandemic?

Dan Funkhouser: I don’t think recovered is the correct term. I think adapting to the changes caused by the pandemic is a better way to look at it. Trucking, like every other industry, had to make changes in order to limit the impact of the pandemic. Some of those, such as the use of technology to communicate, will remain and help in the future. Others, like the driver shortage, which existed before the pandemic, continue to cause issues.

Question: How has Yokohama adapted?

Funkhouser: We’ve adjusted very well to the post-pandemic world. We embraced on-line meeting techniques and evaluated travel policies to make sure we are as efficient as possible in how we go to market and service our channel partners. Our team was out in the field, where possible, the entire time. We focused on remaining close to customers and end-users and did not slow down on new product introductions.

Question: How will 2023 shape up for Yokohama and the commercial tire market?

Question: Which industry issues will have the largest impact on the market in 2023?

Question: What’s the major concern for Yokohama?

Funkhouser: Anything that would slow down the economy is obviously a major concern.

Funkhouser: Overall, the workforce shortage. This includes both drivers and mechanics. There are not enough drivers to carry all the freight that is available. Another big issue is the lack of mechanics. This affects everything from repairs and overhauls to just general and scheduled maintenance. Tires are one of a fleet’s biggest expenses, and not maintaining air pressure increases not only the tire bill but also increases fuel consumption. Not doing both of these will have a negative effect on the equipment and the fleet productivity and profitability overall.

Funkhouser: Communications have always been vital, especially
between the fleet and the servicing dealer to ensure they have the correct product needed in inventory. A trend you’ll see is the way this type of technology has improved and been adopted, which is so important right now due to the ongoing supply chain issues.

Funkhouser: Last mile will continue to grow, but not at the rates we have seen in the past. The cost of those deliveries has increased and consumers are starting to feel the pinch.

Funkhouser: Yokohama continues to see double-digit growth in our UWB business year-over-year, thanks to extended treadwear (the original miles of our 902L drive tire is best in class) and enhanced fuel economy. Also, as demand for our UWB product continues to grow, our servicing dealer and truck stop providers are keeping more product in inventory to ensure our fleet customers’ needs. We also offer a complete line-up from drive tires, 902L and 709L; to trailer, 114R and 109L; and our newest offering, the 716U, for use in the refuse application. Lastly, our fleet customers tell us Yokohama has the most retreadable UWB casing in the industry.

Funkhouser: They will, but it’s not going to be an overnight change. Battery technology, charging infrastructure, acquisition costs and the required operational investment have a long way to go before we see a massive shift in this direction. For now, and into the near-future though, we’ll continue to see adoption on smaller scales and specific operations, and locations.

Funkhouser: Both the dealer and fleet mergers and acquisitions we’ve seen thus far will continue. The dealers are growing their footprint to provide better service to their fleet customers. Fleets are going to need at least two brands of tires to ensure they have the product needed to keep the trucks on the road. Yokohama has partnered with the best servicing dealers in the industry. These mergers and acquisitions offer us opportunities to grow our business as our partners grow.

Funkhouser: Not ‘new sectors’ per-se, but as mentioned, we expect last mile to continue to grow and we’re expecting a rebound in and around the oil fields, which were relatively slow in 2022. Regional applications and operations as a whole will be a driving force in 2023.

Funkhouser: Yokohama Tire Manufacturing Mississippi (YTMM) set new production standards in 2022 in volume and quality. This momentum will carry into 2023 and beyond and help us launch new products faster. The team assembled in Mississippi continues to build best-in-class tires. YTMM has produced several of the new products we have introduced in the U.S. market, including the 504C, 505C, 712L, 715R and our soon-to-be-launched 114R regional trailer tire.

Efficiencies signify Yokohama’s total dedication to producing extremely fuel-efficient products. That continues today with tread designs, tread compounding and our casing technology. When you put everything together you get Dependability: from the performance of the product during the original life and into the retreading stages, to the Yokohama team who are always there when needed. And finally, to our sales network and partners who have the product and the best servicing capabilities in the industry to keep your fleet rolling down the highway.