The European tyre manufacturing sector delivered a remarkable contribution to the EU economy in 2023, adding around €44 billion to the region’s GDP and supporting close to 500,000 jobs, according to a report from the European Tyre and Rubber Manufacturers' Association (ETRMA) in collaboration with Oxford Economics. Released today, the report provides a detailed overview of the sector’s substantial impact on GDP, employment, international trade, and long-term productivity in the European Union.
Dive into the full article below.
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According to Chris Delaney, President of ETRMA, this report reinforces the critical role of tyre manufacturing in Europe’s industrial landscape. “The report confirms the tyre sector's indispensable role in economic growth, innovation, and productivity, which are all vital for Europe's industrial competitiveness,” Delaney noted. “Tyres are not just about mobility – they are about keeping the economy moving forward.”
The report highlights how the tyre sector not only contributes to direct employment but also generates significant job opportunities across other sectors. Adrian Cooper, CEO of Oxford Economics, explained the extensive economic ripple effect generated by tyre manufacturing. “Our research demonstrates the significant contribution of tyre manufacturers to the EU economy, which extends beyond their own operations. For instance, our analysis demonstrates that for every 1,000 people employed in the EU tyre manufacturing industry in 2023, an additional 3,500 jobs were supported in other parts of the EU economy through the industry’s expenditure," he said.
This industry’s economic contribution also extends into the public sector. “The total tax contribution stimulated in the same year would have been sufficient to pay the wages of around 300,000 teachers, medics, and social workers across the EU,” Cooper added, highlighting the extensive public benefit facilitated by the sector's tax contributions.
Research and development have become a cornerstone of the tyre sector’s impact on European productivity. Between 2017 and 2023, the industry invested €10 billion in R&D, funding innovation that could lead to a €4.6 billion productivity boost to the EU’s GDP by 2035. Such advances reflect the industry’s commitment to delivering long-term growth and maintaining competitiveness in the global market.
Adam McCarthy, Secretary General of ETRMA, underscored the sector’s dedication to both economic stability and sustainable growth. “This research underlines the considerable impact of the tyre industry on Europe’s economy and society,” McCarthy said. However, he cautioned that challenges remain: “There are increasing challenges, such as high energy costs, to maintaining a strong manufacturing footprint in Europe. We call for future regulations to continue to support our industry's contribution to Europe's transition to a more competitive and sustainable future.”
The ETRMA report serves as a reminder of the essential role tyre manufacturing plays in bolstering the European economy. Yet, as the industry faces hurdles from rising energy costs and regulatory pressures, supportive policies will be essential to maintaining a strong manufacturing base and enabling the sector to continue delivering economic, social, and environmental benefits.
The full report, along with an executive summary, is available HERE for further insights into the tyre industry’s role in shaping Europe’s future.
