High vehicle ownership rate contributes to demand

New Zealand has one of the highest vehicle ownership rates per capita in the world. In 2005 there were 3,150,253 registered motor vehicles in New Zealand. This translates to one licensed motor vehicle per 1.5 people. As a result, there will be an ongoing demand for tyre servicepeople.

Increasing importance of customer service

Increased competition among tyre fitting companies has resulted in a greater emphasis on customer service and staff retention. Tyre fitters deal with customers on a day-to-day basis, which is emphasised in on-the-job training. Tyre companies have sought to provide fast, efficient service through retail outlets offering a while-you-wait service. Some of these outlets are small and only employ three or four people.

Declining opportunities for retreaders

Opportunities for tyre retreaders are declining as demand for their services is dropping. This is due to improving tyre technology, car tyres lasting longer, and the accessibility of cheaper imported car tyres. As a result, the main work for tyre retreaders is commercial and agricultural vehicles. 

However, these trends may change. As the Government concentrates on climate change, more car owners may move to retreading as a way to reduce the large amount of tyres that are disposed of each year.

New computer technology means fewer retreaders required

New computer technology also has a large influence on the number of people employed as tyre retreaders. One of New Zealand's biggest tyre retreading companies recently introduced computerised machines that can complete tasks which were previously done manually, including buffing off old tread, gluing on new tread, and stacking tyres. This has caused staff numbers to decline.

Turnover variable

Turnover among tyre servicepeople varies. Among tyre retreaders, turnover is low. Among tyre fitters who are new to the industry, turnover can be high. Experienced tyre servicepeople often move into supervisory or management roles.

(Written 15/05/2007)

Sources:

• Ministry for the Environment. ‘Tyre Life Cycle in New Zealand’. 2006. (www.mfe.govt.nz).


• Ministry of Transport. ‘How Many Vehicles are in the Vehicle Fleet?’. 2004. (www.transport.govt.nz).


• Statistics New Zealand. 'New Zealand Official Yearbook 2006'. 2006.