First Research US Industry Profile

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Tire Dealers
SIC Codes: 5014, 5531
NAICS Codes: 44132
Last Quarterly Update: 9/16/2019
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% of revenue.
With about 60% of the market, independent tire dealers sell more consumer tires to end users than any other distribution channel, according to Modern Tire Dealer (MTD). Growth of the independent dealer channel has come at the expense of mass merchandise chains and stores owned by tire manufacturers. Both Amazon and growing direct-to-consumer sales by tire manufacturers threaten to take market share from independent tire dealers. Online tire sales are a small but growing competitive threat. Representing 7% of the total consumer tire market, some 16.7 million tires were sold online in 2017, according to MTD research.
Imports, primarily from China and Thailand, and to a lesser extent Canada, South Korea, and Japan represent a significant share of the US replacement tire market. US consumer tire imports from China have decreased sharply in recent years due to tariffs imposed on imports by the US Department of Commerce and the International Trade Commission. Shipments to the US from China fell from 60.5 million units in 2014 to just 12.3 million units in 2017, according to MTD. Overall trade relations with China worsened in 2018 and 2019 as the Trump administration toughened US trade policy, citing China's alleged abuse of US intellectual property rights. Thailand has surpassed China as the largest exporter of tires to the US, with 33.8 million units shipped in 2017.
Products, Operations & Technology
Dealers sell replacement tires for passenger cars (about 50% of industry revenue) and commercial vehicles (20%). Other sources of revenue include service ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

05/13/2019
02/11/2019
11/05/2018
07/30/2018
04/23/2018
01/22/2018
10/16/2017
07/10/2017
04/10/2017
01/09/2017
10/03/2016
07/05/2016
04/04/2016
01/04/2016
09/28/2015
06/29/2015
03/30/2015
01/05/2015
10/06/2014
07/14/2014
03/24/2014
12/16/2013
09/16/2013
06/24/2013
04/01/2013
12/17/2012
09/24/2012
07/09/2012
04/16/2012
01/09/2012
10/03/2011
06/20/2011
03/21/2011
12/06/2010
09/13/2010
06/07/2010
02/22/2010