Roadblocks: External competition will threaten industry revenue growth despite rising demand

The Tire Wholesaling industry, made up of merchant distributors of used and new tires and tubes, is on a growth track. Rising income levels and lower tire prices have lifted demand for tires, which has bolstered industry revenue. Over the five years to 2018, per capita disposable income has steadily increased, encouraging consumer tire purchases. Additionally, until 2017, wholesalers benefited from the plummeting price of rubber, the major input for tire manufacturers. However, external competition has threatened tire wholesalers over the past five years. Tire manufacturers can provide low-cost tires to retailers directly by integrating the wholesale process, while wholesalers need to nurture long-standing business relationships with both retailers and manufacturers to secure revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$42bn
Annual Growth 13-18
2.2%
Forecast Growth 18-23
Profit
Employment
39,894
Businesses
4,767
Market Share of Companies

Industry Threats & Opportunities

  • Wholesalers can now communicate with retailers more efficiently, which streamlines sales and inventory functions
  • Wholesalers have acquired other players in an attempt to capitalize on existing business lines
  • Price competition and higher spending on expansion will contribute to stagnant profit margins
  • Industry Report - Industry Investment Chapter

    Capital intensity is moderate in the Tire Wholesaling industry. Selling products onto dealers involves taking/scheduling orders, transportation and storage, all of which are predominantly labor-intensive tasks. Therefore, for every dollar spent on labor, the average industry operator will invest $0.15 in capital equipment.The main capital expenditures made by the industry are leasehold improvements for storage facilities and equipment purchases such as forklifts or transport vehicles. Over the five years to 2018, wholesalers have tried to save on operating costs, compensating for the increased tire prices. Many companies leased their storage facilities rather than purchasing the building outright, which decreased the capital investments required to resume business. How...purchase to read more.

    Additional Insights for the Tire Wholesaling Industry

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

  • Upstream vertical integration (ownership links)
  • Prompt delivery to market
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Total vehicle miles and Number of motor vehicle registrations in the Tire Wholesaling industry impact industry performance..

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    What's in this report

    What is the Tire Wholesaling Industry?

    Industry operators primarily engage in wholesale distribution of new and/or used tires and tubes for passenger and commercial vehicles.

    Industry Products
  • Standard passenger vehicle tires
  • Medium- and large-truck tires
  • Light-truck tires
  • Farm, specialty and other types of tires
  • OTR tires
  • Industry Activities
  • Motor vehicle tires and tubes wholesaling
  • Tire and tube repair materials wholesaling
  • Used tire (except scrap) wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total vehicle miles
  • Number of motor vehicle registrations
  • Per capita disposable income
  • New car sales
  • World price of rubber

  • Current Performance
  • Profit volatility
  • Consolidating operations
  • Internet presence
  • Chart: Revenue Growth

  • Industry Outlook
  • A mixed story for profit
  • Acquisition slowdown
  • Table: Tire Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Truck & Bus Manufacturing

  • Key Selling Industries
  • Tire Manufacturing

  • Products & Services
  • Standard passenger vehicle tires
  • Medium- and large-truck tires
  • Light-truck tires
  • OTR tires
  • Farm, specialty and other types of tires
  • Chart: Tire Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Independent tire dealers
  • Mass merchandisers & Warehouse Clubs
  • Auto dealerships
  • Tire Company-owned stores
  • Miscellaneous Outlets
  • Chart: Major Market Segmentation for the Tire Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tire Wholesaling

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

  • Industry Globalization
    American Tire Distributors Inc.,
  • Table: American Tire Distributors Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Wholesaling 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 Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World Price of Rubber (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Acquisition
  • A company purchasing another company and including it in its business operations.
  • Synthetic Rubber
  • A polymer that is made from synthetic substances to create a rubber substitute.
  • Warehouse Clubs
  • Companies that sell bulk items to consumers.
  • What Our Customers Say

    Why buy this report?

    The Tire Wholesaling Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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