Not that many years ago, a dealer could cover 80% or more of the commercial light truck tire market with just six 16-inch sizes.

That has changed – a lot. More and more OEMs are moving to lower profile sizes, bringing a slew of new SKUs to the market.

Newer GM, Ford and Dodge light trucks are coming with more 17- and 18-inch sizing options, primarily to address the need for greater load carrying capacity and better aesthetics.

That is not to say the replacement market for commercial light truck tires is growing; it isn’t. In fact, the market fell off some 10% between 2005 and 2006. The rapid rise of gas and diesel prices in 2006 – and into 2007 – has caused vehicle purchase delays (or outright cancellations) as small commercial fleets consider more fuel-efficient alternatives.

What tiremakers are facing, though, is a call for greater load capacity and more size options – even in some tire models that weren’t necessarily intended for commercial fitment.

Where once six sizes were enough, experts tell us that dealers soon will have to stock nine to 12 light truck commercial sizes to cover the market.

Adding perspective, the OE and replacement channels for commercial light truck tires stand at about 3.0 million tires in total. Of this, 16-inch sizes have shrunk to about 1.1 million units, with the lion’s share going to 17-inch and above, including 17.5- and 19.5-inch sizes.

One industry expert says the 225/70R19.5 size is now the volume leader in this narrow market sector, where it is expected to enjoy a 5% to 8% growth rate per year from now through 2010. The 245/70R19.5 size will experience a 3% to 4% growth rate during the same time period, while the once-dominant 235/85R16 size will decline rapidly.

Another market watcher says that when it comes to divining tire size shifts, tiremakers and dealers need look no further than chassis changes to new Ford, Dodge and GM light trucks.

For example, 2006 saw high demand for LT245/70R17 and LT265/70R17 sizes on the Dodge Ram three-quarter ton duallies – often used in construction settings – because of the durability of the product and its retreadability.

Last year, GM’s 2500 and 3500 chassis had 16- and 17-inch size options, Ford F-250s and F-350s called for 18-inch tires, and Dodge’s Ram 2500 and 3500 chassis had 17-inch tires.

“The 16-inch sizes we’ve depended on for so many years were largely 85-series tires,” one expert says. “But, sizing popularity has evolved into a bump in demand for 17-inch sizes in a 70 series and, more noticeably, in 18-inch sizes with 70-series aspect ratios. The addition of more SKUs for the independent tire dealer is a natural result. Precisely the same thing happened with the automobile.”

While the new sizes are lower and wider, they effectively carry the same load and come with the same outside diameter as the 16-inch sizes they have replaced. It’s simply a matter of being more eye appealing and durable. A shorter sidewall means less sidewall damage during urban or construction use. These are small pluses, but pluses nonetheless.

“We are also getting requests for 17-inch sizes with more traction built in,” says one expert. “That’s why we’re paying attention to the steel-steel 255/70R17 and the 265/70R17 sizes with more aggressive lug tread designs.”

Larger fleet operations – particularly delivery services like UPS and FedEx and retail fleets like Budget and Penske – want to lower their cost of ownership. And that means more durable, fuel-efficient tires.

As petroleum and gas prices continue to rise, the trend will move rapidly down to small, local accounts, including electricians, plumbers or HVAC contractors with fleets as small as a few vans or light trucks.

Construction Changes
Durability issues are being addressed by moves away from all-fabric carcasses to steel-steel designs.

Tire companies say they can clearly and easily demonstrate how a steel-steel radial will outperform a fabric tire. “The owner of the steel-steel radial will enjoy a 50% improvement in ownership value based on original mileage and retreadability alone,” one expert says. “That’s why the marketplace for OE and replacement medium radial tires is now using less than a million fabric tires today.”

While North America and Europe are predominately radialized, other parts of the world – many South American and Southeast Asian countries in particular – are still heavy bias ply, fabric tire markets. That is changing, though, as China has increased export of steel-steel radials to North America.

Long-Term Opportunity
Most important is the opportunity for independent tire dealers to nurture long-term relationships with commercial light truck tire customers. And that means dealers cannot stop after the initial sale.

One expert says dealers should suggest to their commercial light truck tire customers that they can implement a specialized periodic preventative maintenance (PM) check. “Every time the dealer sees a vehicle in for one of those PM checks is an opportunity to sell other types of vehicle services, ranging from oil changes and balancing to retreads and brakes,” an expert says.

Smart, aggressive dealers will quickly see ways they can assist small fleet customers beyond just tires and basic service. In addition, dealers must pay attention to how the tires they recommend will impact the fleet’s bottom line in terms of cost-per-mile and cost of ownership.

“It is within your purview to offer a substantial reduction in the cost of owning a set of tires just by putting on a set of 19.5-inch steel-steel medium radial truck tires to replace 16-inch OE tires,” one expert suggested.

Another expert suggests dealers “sit down for a minute and think about this business. It’ll pay your overhead and more if you can show the customer that you will set up a complete periodic maintenance program for all of their light trucks – from pickups to box trucks.

“Like the big fleets, none of these people can afford downtime, whether they are florists, electricians, dry cleaners or plumbers. Moreover, their vehicles are often overloaded and exposed to stop-and-go driving, hard turns and curbing every day. That’s because they often are on a new route every day, and they don’t know what they’re going to encounter,” he says.

“Make it your job to work with them at maximizing their overall vehicle costs, including tires. You must rotate their tires, advise them about load-carrying capacities and constantly check inflation pressures – just like you would with the big fleets,” says this expert. “Even though this market segment isn’t growing, it is changing, and with change comes new opportunities and new relationships.”