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          1. Tire Dealers Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 7/13/2020
            SIC Codes: 5014, 5531
            NAICS Codes: 44132
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Tire Dealers Industry Profile

            Companies in this industry operate physical retail establishments that sell new and used tires; some also provide automotive repair services. Major companies include Discount Tire, TBC Corporation, Monro Muffler Brake, Les Schwab Tire Centers and retail units of manufacturers Bridgestone and Goodyear (all based in the US), as well as Beaurepaires (Australia) and Kwik-Fit (UK).

            Global demand for tires is projected to rise 3.4% per year through 2022, reaching a value of $267 billion, according to rubber and plastics market research firm Smithers Rapra. Demand is expected to be strongest in the Asia/Pacific region, where per capita vehicle ownership is increasing. China is the world's largest consumer and producer of tires, followed by the North American and Western European markets, where premium and high-performance tires help drive demand.

            The US tire dealer industry includes about 20,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.

            COMPETITIVE LANDSCAPE

            Demand for replacement tires is tied to vehicle use, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Large companies benefit from economies of scale in purchasing and advertising. Small firms can compete effectively by serving a particular region, by specializing (such as in tires for high-end cars) or by joining purchasing/distribution networks. The US industry is concentrated: the 20 largest companies generate about 50% ...

             
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