Industry Analysis & Industry Trends
Rolling along
The Heavy-Duty OTR Tire Manufacturing industry will continue to rely on downstream demand for its overall performance in the next five years. During the recession, the construction, mining and agriculture sectors faced declines, which directly affected this industry. As these sectors begin to improve, the industry will slowly revive. Furthermore, rapid growth in developing countries and the soaring mining industries in North America and South America will support strong demand for exports.
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Industry Report - Starting a New Business Chapter
The Heavy-Duty OTR Tire Manufacturing industry's barriers to entry are high, primarily because of the heavy concentration among major players. The top four industry participants account for more than 80.0% of total revenue, highlighting their dominance of the market. Because consumer tire manufacturers can expand their operations into OTR tire manufacturing more easily than new entrants, their stronghold on the industry is inevitable. Initial investments can also act as a barrier to entry because setting up OTR tire manufacturing facilities is costly.
Input costs can also act as a barrier to entry. Natural and synthetic rubber account for the largest purchasing expenses for OTR tire manufacturers. Wit... purchase to read more