Competition in the tire business is at an all-time high, with more brands and tread options than ever. In the passenger and light truck tire space, the influx of offshore manufacturers has changed the landscape because the quality has improved. Substandard tires have become more uniform and reliable due to advances in manufacturing technology. The price differences between name brands and unknown brands are significant, and that combination has proven challenging for more established tire manufacturers in North America.

Price, marketing, promotions, and sponsorships play a significant role in driving sales of passenger and light truck tires. In contrast, the commercial truck tire market is primarily driven by one thing: math. It’s the age-old price-versus-cost model: Some fleets focus on tire price, while most focus on cost per mile. Price buyers only care about finding the cheapest tires to save cash. They don’t care about retreading or fuel mileage. Their only interest is making sure they have legal tread depth on all wheel positions at the lowest possible price.

On the other hand, the cost-per-mile fleets are hyperfocused on getting the most out of every casing since retreading plays a major role in reducing costs. These carriers are fighting for pennies when it comes to tires and fuel mileage because they add up when you are talking about millions of miles. The gap between major brands and no-name offshore manufacturers is narrowing, but not at the same pace as the passenger and light truck tire market. In the end, it all comes down to math: The brands offering the lowest cost per mile will prevail.

In an interesting twist, a consortium of commercial truck tire dealers has launched its own line of private label truck tires, partnering with a manufacturer with 40-plus years in business to offer fleets a cost-saving alternative. They appear to be targeting the price crowd, but there is a casing warranty, and the dealer group is heavy into retreading. There’s no way to tell if these tires can compete on cost per mile at this stage, but the fact that truck tire dealers have launched their own brand is unprecedented.

Several factors make this possible. First and foremost, technological advances in truck tire design, construction, and manufacturing have improved uniformity. Truck tire designers and engineers who took early retirement from the majors are becoming available after sitting out their non-compete periods, providing an influx of talent and experience to offshore manufacturers. Additionally, independent truck tire dealers control hundreds of locations across the country, providing an immediate distribution network. They control sizes, tread designs, and prices, giving them a significant advantage in the marketplace.

At the same time, offshore manufacturers are expanding beyond Southeast Asia with manufacturing facilities in North Africa to increase their market share in Europe. Instead of sending containers of tires through the Suez Canal, they will only have to ship containers of natural rubber. They’re closer to oil in the Middle East, and labor costs are lower than for European-made tires. This will likely affect the European tire market.

If you’re wondering whether offshore manufacturers could expand into the Americas, one company has already announced plans to open a passenger and light truck tire plant in Mexico that can be expanded to produce truck tires. Several name-brand manufacturers already produce tires in Mexico, making it a strategic location to support North American production.

While the name on the sidewall still matters for performance and cost per mile, the gap is closing. Improvements in offshore manufacturing are bringing brand prices into the cost market. Cost fleets will keep testing a variety of tires to find the lowest operating costs, and they will let the math make the decisions.

Price fleets have more options than ever, and with the latest addition to the U.S. market—a national service, distribution, and retread network to support the brand—increased supply with steady demand is the ideal market control. As quality improves, it’s good news for every fleet in North America.