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November 18, 2024, 8:52 AM
News on November 15, recently, the European Tire and Rubber Manufacturers Association (ETRMA) released a heavyweight report, revealing the huge contribution of the tire manufacturing industry to the EU economy. Data shows that tire manufacturers injected nearly 44 billion euros into EU GDP in 2023, a figure that covers both direct and indirect contributions.
The report provides an in-depth analysis of the economic influence of the tire industry, pointing out that analysis by the Oxford Institute of Economics in the UK shows that the number of tires sold by ETRMA member companies in European factories exceeded the 300 million mark last year, with a direct economic effect of 13.9 billion euros. The support of the supply chain has produced an indirect economic effect of up to 20 billion euros. In addition, the "induced impact" of wage expenditures also reached 10 billion euros.
According to the Carbon Black Industry Network, the tire industry is not only an important pillar of the economy, but also a stabilizer of the job market. In 2023, the industry will provide nearly 500,000 jobs for the EU. Although this figure has declined since 2014, considering the increase in tire production, this more reflects the improvement of production efficiency and changes in the market environment. The report emphasizes that tire manufacturers contributed 43.9 billion euros to GDP in 2023, an increase of 13% compared with 2014 at "constant 2023 prices".
In terms of employment, tire manufacturers directly employ 112,000 workers, which means that one in every 270 workers in EU manufacturing comes from the tire industry. At the same time, the supply chain also supports 259,000 jobs, and the number of jobs driven by the wage expenses of tire manufacturers and their supply chain employees reaches 128,000. Overall, the employment multiplier effect of the tire manufacturing industry is significant. For every 1000 people employed, it can add 3500 jobs to other sectors of the EU economy.
It is worth mentioning that the productivity of tire manufacturing workers also far exceeds the average level of the EU economy. Estimates from the Oxford Institute of Economics show that the productivity of tire manufacturing workers in 2023 will be about 60% higher than the overall EU economy. In the field of international trade, EU tire exports reached 7.4 billion euros, accounting for 12% of the EU's total exports of rubber and plastic products, while imports reached 6.9 billion euros, achieving a trade surplus of 400 million euros. This surplus has persisted almost between 2014 and 2023, with the exception of 2022 due to the temporary lifting of anti-dumping duties on imports of bus and truck tires from China.
In addition, EU tire manufacturers are also actively deploying in overseas markets, with investment outside the EU reaching 4.2 billion euros in 2023, accounting for 15% of total expenditure. These funds mainly flowed to countries such as Cote d'Ivoire, Thailand and Indonesia, where they were used to purchase chemical products and natural rubber. In terms of R & D innovation, the EU tire manufacturing industry has also spared no effort. From 2017 to 2023, the industry's cumulative investment in R & D has reached approximately 10 billion euros.
