Industry Analysis & Industry Trends
Over the next five years, the Tire Manufacturing industry will continue to recover, with pent-up demand for tires boosting sales growth. Fuel-efficient tires that cater to cost-conscious consumers will be popular among consumers and help drive industry sales. Firms will invest in creating tires that cater to this demand as fuel prices rise and environmental awareness grows. Nevertheless, overseas competition and demand will continue to threaten this industry's performance... purchase to read more
Industry Report - Industry Investment Chapter
Investment for ongoing operations in this industry is medium. For every dollar spent on wages, the average industry firm will invest roughly $0.23 in capital equipment. The technology needed for tire manufacturing is quite capital intensive and skilled labor is needed to carry out the production process. The recession caused many companies to cut back on capital expenditures and instead use less of the existing plants for production. This process also involved laying off workers, but companies mainly focused their efforts on using the existing plant capacity.
Many of the new types of tires that cater to the cost-conscious consumer do not require significant capital investment because manufacturers can build these tires on existing production lines with little added investment... purchase to read more