3/7/2025
After a few tough years, the commercial truck industry, including the tire segment, rebounded in 2024, according to Dan Funkhouser, Yokohama Tire vice president of commercial tire sales. However, with proposed tariffs and other uncertainties, 2025 could be a rollercoaster ride. In this Q&A, Funkhouser explains why and what to expect in the coming months.
Question: How did the commercial tire market fare in 2024?
Dan Funkhouser: In 2024, the commercial tire market experienced several notable trends and developments. Thanks to E-commerce and the growing need for efficient delivery services, there was a steady increase in demand. Also, there were safety and efficiency innovations introduced, such as sensors to monitor air pressure and temperature. In 2024, we saw a major push for more fuel-efficient tires. There was also a consolidation in the fleet and dealer business. This helped strengthen some market positions and product portfolios.
Question: What’s the outlook for Yokohama in 2025?
Funkhouser: I am an optimist. As such I have a positive outlook for 2025, even though there are major headwinds in the industry. I say this because I know that in the end, Yokohama and our channel partners will continue to service the transportation market with best-in-class services and products.
Question: Which industry issues will have the largest impact on the market in 2025?
Funkhouser: The proposed tariffs against Mexico, China and Canada will absolutely have an impact on the North American market and supply chain. As the situation is still fluid, it’s too early to determine the level of impacts, but we’ll continue to monitor the situation closely. The driver shortage remains a critical issue for the trucking industry. Fuel efficient products will continue to be in demand as regulation requirements increase. The wild card, as always, will be the economy. Inflation and the threat of tariffs can cause uncertainty in the economy and change spending habits. Compliance with new regulatory changes related to emissions will also have an impact on 2025.
Question: What are some of the latest challenges for fleets these days?
Funkhouser: Fleets have the same challenges every year: operating their fleet at the lowest cost-per-mile with the highest utilization of equipment they can. The switch to EVs and the lack of charging stations, the ongoing driver shortage, regulatory compliance, economic pressures, and maintenance and downtime are all real-world issues for fleets. These will always be a concern. There are lots of things fleets can’t control, but at least we can help our customers have an impact on controlling the expenses they are able to, such as tires. We do this through our Smart Solution program.
Question: What new trends and/or developments do you see for the industry? Any new sectors to watch?
Funkhouser: The sectors that offer the best opportunity for growth in 2025 are construction, e-commerce, logistics and agriculture. These sectors will offer new opportunities and challenges for tire companies.
Question: What’s new for Yokohama in 2025?
Funkhouser: Yokohama will be launching two new tires at TMC. The 116R is a premium regional all-position steer tire offering best-in-class performance and durability. The 116R, which will be made at our plant in Mississippi, is engineered to bring long tread life and durability to regional fleet operations and superior fuel efficiency for super regional activity. It’s scheduled to launch later this spring. We will also introduce our most fuel-efficient drive tire ever, the BluEarth 718L. This product is a premium drive tire engineered with an ultra-fuel-efficient tread design and industry-leading compound, to help improve the profitability of today’s long-haul fleet operations.
More details on Yokohama’s commercial tires can be found at www.Yokohamatruck.com.
