Falling flat: Low unemployment rates and rising consumer incomes will lead to modest revenue growth

Despite strong downstream demand, the Tire Manufacturing industry has contracted moderately over the five years to 2017 due primarily to the appreciating US dollar, falling global rubber prices and a rise in foreign competition. Operators within this industry manufacture motor vehicle and aircraft tires, inner tubes and tire repair materials. Therefore, demand from downstream markets, such as automobile manufacturers and tire retailers, are the main drivers of industry revenue. Over the five years to 2022, industry performance is expected to improve modestly, as the unemployment rate remains low and consumer incomes rise...purchase to read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 12-17
-3.3%
Forecast Growth 17-22
Profit
Employment
42,429
Businesses
111

Industry Threats & Opportunities

  • Falling global rubber prices and the appreciating US dollar have caused industry revenue to contract moderately
  • Operators are expanding domestic production capacity in the wake of a revival in the automotive sector
  • Tough punitive tariffs on Chinese tire manufacturers have been a boon to the industry
  • Industry Report - Industry Key Buyers Chapter

    The Tire Manufacturing industry has a moderate level of market share concentration, with the top four major companies producing an estimated 60.0% of industry revenue in 2017. However, market concentration fell from 69.4% in 2012. Part of this drop stems from the shrinking market share of the two American major players, Goodyear and Cooper Tire & Rubber. Goodyear's industry market share fell by an estimated 3.4% during the five-year period leading up to 2017, while Cooper Tire & Rubber's share of the market declined by an expected 1.7% over the same period. The reduction in market share of the US-headquartered major players is primarily driven by the rise of inexpensive Chinese imports and the appreciating US dollar. Bot...purchase to read more.

    Additional Insights for the Tire Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tire Manufacturing Industry are

  • Managing raw material costs
  • Successful negotiation with labor unions
  • Aggressive marketing
  • IBISWorld analysts also discuss how external factors such as Demand from car and automobile manufacturing and Per capita disposable income in the Tire Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tire Manufacturing Industry?

    This industry manufactures aircraft and motor vehicle tires, inner tubes and tire repair materials. The finished products are then sold to aircraft and motor vehicle manufacturers and tire wholesalers. Operators do not retread tires.

    Industry Products
  • Passenger vehicle tires
  • Midsize- and heavy-truck tires
  • Tractor and implement tires
  • Other vehicle tires
  • Misc.
  • Industry Activities
  • Pneumatic, semipneumatic and solid-rubber tire
  • Inner tube
  • Motor vehicle tire
  • Tire repair material
  • Aircraft tire
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from car and automobile manufacturing
  • Per capita disposable income
  • Total vehicle miles
  • Trade-weighted index

  • Current Performance
  • Changing market demands
  • Upstream volatility
  • Chart: Revenue Growth

  • Industry Outlook
  • Tariff Changes Affect Industry Supply and Demand
  • Reshaping domestic markets
  • Table: Tire Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tire Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tire Wholesaling
  • Tire Dealers

  • Key Selling Industries
  • Plastics & Rubber Machinery Manufacturing

  • Products & Services
  • Passenger vehicle tires
  • Midsize- and heavy-truck tires
  • Tractor and implement tires
  • Other vehicle tires
  • Misc.
  • Chart: Tire Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic demand
  • Tariffs and foreign demand

  • Major Markets
  • Independent tire dealers
  • Exports
  • Mass merchandisers and warehouse clubs
  • Tire company stores
  • Auto dealerships
  • Misc
  • Chart: Major Market Segmentation for the Tire Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesDepreciationWages and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tire Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Manufacturing Industry

  • Industry Globalization
    Bridgestone Corporation, Compagnie Generale des Etablissements Michelin, The Goodyear Tire & Rubber Company, Cooper Tire & Rubber Company,
  • Table: Bridgestone Corporation - financial performance
  • Table: Compagnie Generale des Etablissements Michelin - financial performance
  • Table: The Goodyear Tire & Rubber Company - financial performance
  • Table: Cooper Tire & Rubber Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tire Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of rubber (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    High-Performance (Hp) Tire
  • A tire that differs from standard tires by speed rating, tread style and handling characteristics, which are all usually more advanced.
  • Original Equipment Manufacturer (Oem)
  • A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • Tread Act
  • An acronym for the Transportation Recall Enhancement, Accountability, and Documentation Act that requires manufacturers to label, test, recall and track tires according to regulation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tire Manufacturing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Tire Manufacturing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tire Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tire Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tire Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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