Buy your winter tires this summer?Not eccentric ...
En août, qui a envie de vérifier si son véhicule est adéquatement chaussé pour la période hivernale ? Un coup d’œil pourrait s’avérer judicieux puisque les pneus, comme les matériaux de construction et les électroménagers, n’échappent pas aux difficultés d’approvisionnement et aux pressions inflationnistes.
Publié le 29 août 2021
Julien ArsenaultLa Presse
An offer that tightens, prices pushed upwards
The announcements have not been widely publicized, but since the start of the year, tire manufacturers like Bridgestone and Michelin have decided, sometimes more than one recovery, to raise their prices.The dealers and car centers tried to take the lead with orders to garnish their stocks, but latecomers could have unpleasant surprises earlier than usual.
It is the French giant who is the last to have raised his pricing grid by announcing, on August 2, an increase of up to 8 % of its tires of tourism and vans from Michelin, Bfgoodrich and Uniroyal in America in AmericaNorth. L’augmentation est prévue pour le 1er septembre.Orders placed before this schedule will be spared by the increase.This increase concerns summer tires, but most types of tires have not escaped inflationary pressures.
Michelin did not want to answer the press questions about his most recent decision.The increase in transport costs combined with excess demand for natural rubber (see other text) may well have weighed in the balance.
"Most manufacturers have sent us letters concerning price increases," explains PatrickThe way, marketing and communications director at Point S Canada.We were relatively lucky as a group to have stocks [during the pandemic].There are certain products that we no longer had.We offered something else.We plan the same thing in the fall.»»
Chez Groupe Touchette, également propriétaire de Pneus Chartrand Mécanique, on constate également une « grosse inflation»» du côté des pneus, particulièrement en ce qui concerne les produits en provenance d’Asie (des marques comme Imperial, Rovelo, TracMax…), souligne DavidGigurale, vice-président au marketing et marchandisage.
No shortage, but ...
For the moment, no one dares to talk about shortage.But supply challenges could force some consumers to opt for a more expensive range of tires if the offer is more limited during the fall rush and certain types of tires fly faster.Michelin and Bridgestone products, manufactured in Canada and elsewhere in North America, will be easier to obtain compared to other products from abroad.
Consumers and garages who wanted less expensive tires may have to pay a little more.I don't think there will be a shortage, but maybe there will be fewer Chinese products [usually cheaper].
DavidGigurale, vice-president of marketing and merchandise at Groupe Touchette
"It is possible that a consumer cannot buy the brand he wanted," he continues, "but we will have something else to offer.The price could vary.»»
At Point S Canada, whose network of seven brands has more than 850 points of sale, an average invoice for four new Asian tires can oscillate $ 500 - by excluding installation -, according to M.The way.However, it may be more salty if a consumer must turn to a higher category of tires in the event that there are stock breaks.
In order to avoid unpleasant surprises, the marketing and communications director at Point S Canada recommends that you quickly have a choice.
As of mid-September, there should be fewer choices.Around October 15, it will be complicated and in November, it will be necessary to take what is left to run safe.You have to be foreseen.
PatrickThe way, directeur marketing et communications chez Point S Canada
Groupe Touchette made feet and hands to minimize the impacts of supply difficulties by preparing to ensure that her warehouses are well garnished.
"I don't know what our competitors have done," observes M.Gigurale.To our garages, we tell them not to wait.Is it worth telling consumers to buy their tires now?I presume that it is never bad to go in advance.»»
Preventive assessment
Automobile dealers that offer tire storage service are also on the lookout for what is watching for industry.Park Avenue group, which operates 21 dealers and states some 20,000 tire games, began to list those who arrive at the end of their useful life.
This allows the company to warn its customers, underlines its vice-president and chief of the exploitation, Norman John Hébert.
"Customers don't want to talk about tires in August, but we can get ahead," he said.Today I can say what customers need winter tires.If there are stock breaks, maybe customers will have to order tires that do not do their business.»»
M. Hébert n’a pas voulu s’avancer sur la dynamique des prix plus tard cette année, mais il a prévenu que dans un marché « d’offre et de demande»», la rareté de certains produits aura un impact sur les prix.
Rarity of rubber and price of containers in question
There are the costs of maritime transport, which strike all sectors, but tire manufacturers are also confronted with another problem - which does not seem about to absorb - which comes up their margins: the shortage of natural rubber.
It is found in tires, shoe soles, clothes, and it serves as an insulation in electrical components, but natural rubber has also been prized since the start of the pandemic to make protective equipment, asgloves, used by health and health staff.
After a decline that started in early 2017, the price of this material has come up since April 2020 to reach approximately $ 2.10 the book last July, according to the Indexmundi.
The problem: despite high demand, production cannot adjust overnight.Hévéa, the tree whose white sap is essential for the production of natural rubber, puts an average of seven years before arriving at maturity.Plantations are mainly found in Indonesia, Thailand, China as well as West Africa.
Small farmers are not able to meet demand.In recent years, they had changed the vocation of their plantations because the price of rubber was lower.
Claudia Rebolledo, from the Department of Management of Logistics Operations in HEC Montreal
In addition, while prices were lower, producers weakened the trees from their plantations, which have become more vulnerable to diseases, by overexciting them.Droughts and other disasters such as floods also had a negative impact on production.
« Un petit agriculteur ne sait pas comment le marché va se comporter, précise Mme Rebolledo.When it changes planting, it cannot go back even if prices change.»»
The increase in demand may encourage farmers to plant trees, but this could be done at the cost of deforestation, she notes.There would then be biodiversity issues.
Where are the containers?
The other problem has been more publicized in recent months.This is the availability of containers, which contributes to exploding the costs of maritime transport when the empty metallic boxes are snatched.
The price of containers has exploded since in many places around the world, ports are congestioned for health reasons or lack of labor, which causes delays in delivery.
The containers are expensive and after that, it's hard to find a boat.It’s a bad problem.
PatrickThe way, directeur marketing et communications chez Point S Canada
Selon Mme Rebolledo, cette situation ne semble pas sur le point de se résorber.
"No organization knows when the situation will go back to normal, analyzes the director of the Department of Management of Logistics Operations in HEC Montreal.They do not seem ready to make investments to solve these problems since we do not know how long this will last.»»
About 80 % of the goods consumed worldwide are delivered by boat.Spare solutions are very limited for companies that must import outside goods.
