Rethinking Tire ROI

Although tires represent a significant portion of fleet operating costs, emerging technologies are giving fleet managers more control than ever. Data-driven maintenance strategies – which combine telematics and predictive insights to proactively manage tire health – help extend tire life, reduce downtime and ultimately lower total operating costs.

Fleets that consistently control tire costs focus on preventive rather than reactive measures. Tire spending is partly about purchase price but also influenced by fuel consumption, downtime, labor, roadside service events and tire life. Small improvements in tire performance or maintenance can make a significant impact when multiplied across an entire fleet.

Connected Tires
Smart monitoring continues to evolve, with tire-pressure monitoring systems becoming standard across most modern vehicles.

“These systems provide real-time visibility into tire pressure and condition, making it easier for drivers to take corrective action and helping fleets avoid unnecessary wear and inefficiencies,” said Tim Brockschmidt, maintenance client partner for Element Fleet Management (www.elementfleet.com).

But there’s more to a monitoring system than indicating which tire is low on air. The goal is to provide fleet managers with insights to inform their maintenance plans.

According to Dan Neal, urban product category manager for Michelin North America (www.michelinman.com), “The real value isn’t simply collecting more data but using data to help avoid unexpected downtime. As fleets become more data-driven, we’re seeing a shift from reactive maintenance to predictive maintenance.”

Beyond Tread Designs
Today’s tire technology covers more than tread designs. Advanced compounds, casing designs and architecture are helping to deliver meaningful gains in durability, traction and wear performance.

“For utility fleets, technologies designed to resist curb damage, maintain traction throughout the life of the tire and extend wear performance are often more valuable than small differences in the way a tread looks,” Neal said.

Application Specific
Tire designs are becoming increasingly application specific, with manufacturers zeroing in on the unique operating conditions of utility, regional and urban fleets rather than taking a one-size-fits-all approach.

Because the real cost of tires is often hidden in downtime, fuel consumption and tread life, many leading fleets conduct controlled trials before making large-scale purchasing decisions. Running a small pilot program that includes measuring results allows a fleet to understand the true financial impact of a tire or service within the actual operating environment.

“In many cases,” Neal said, “the results challenge assumptions and reveal opportunities that aren’t obvious from a specification sheet or invoice.”

EV Considerations
Selecting tires for electric vehicles introduces considerations such as greater vehicle weight and increased focus on efficiency, but the fundamental question remains the same: Is the tire optimized for the fleet’s load, route, terrain and service requirements?

Best results are achieved when fleets prioritize matching the tire to the application as opposed to selecting a tire based solely on the vehicle’s powertrain.

“Fleets that see the best total cost of ownership are those that evaluate tire performance in their specific operating conditions and select solutions that deliver the right balance of durability, traction and longevity,” Neal said.

Still, EV-focused tires are showing up in the marketplace. Since EVs are typically heavier and deliver higher torque, their tires can wear out more quickly than those on internal combustion engine vehicles.

To serve growing EV fleets, industry manufacturers are designing tires with higher load ratings and durability and even categorizing them as “EV ready” or “EV specific” to reflect these enhancements, Brockschmidt noted.

TCO Surprises
Perhaps one of the most counterintuitive lessons in fleet management is that the lowest-priced tire may not be the lowest-cost tire.

“A tire that delivers more durability, longer life and better fuel efficiency can generate savings that far outweigh the initial purchase price difference,” Neal explained.

Higher-spec or EV-ready tires may be priced higher, but with good reason: They are designed to better withstand vehicle weight and torque, which can reduce replacement frequency and improve life-cycle value.

“Fleet operators should evaluate tire investments through a total cost of ownership lens rather than focusing solely on upfront purchase price,” Brockschmidt said.

Meaningful Savings
While sophisticated technologies provide value, consistently executing basic fleet maintenance practices – such as monitoring tire pressure – can deliver some of the most meaningful and immediate cost savings. Even something as simple as slightly underinflated tires can significantly accelerate wear and negatively affect fuel economy over time, increasing overall operating expenses.

Fleet managers who do not stay current with tire advancements risk missing out on savings and efficiency gains. Innovations in materials, designs and monitoring are targeted at extending tire life, improving fuel economy and supporting the evolving demands of modern fleets, including electrification.

At the same time, although the connection between tires and technologies continues to grow, fleet managers don’t need to chase every new trend to gain an edge. Prudent evaluation can deliver both long-term savings and service enhancements.

Neal suggested that managers “should periodically evaluate advances in tire technology and validate them through real-world testing. Fleets that continuously measure and optimize performance are the ones that realize the greatest long-term savings.”

About the Author: Gary L. Wollenhaupt is a Colorado Springs-based freelance writer who covers the transportation, energy and technology sectors for a variety of publications and companies.