Wheels in motion: Rising disposable income and increased internet presence will support industry growth

The Tire Wholesaling industry is on a growth track. Over the five years to 2017, per capita disposable income rebounded, encouraging consumers to release pent-up demand for tire purchases. Additionally, wholesalers have benefited because the price of rubber, the major input for tires, has plummeted in recent years. Greater internet use has also improved industry operations, as wholesalers can now communicate with retailers more efficiently, streamlining sales and inventory functions. This strategy has also helped wholesalers eliminate some operational costs, which creates the potential for higher profit margins. As most of these trends are projected to continue through the five years to 2022, industry revenue is expected to continue growing as well, albeit at a slightly slower rate...purchase to read more.

Industry Statistics & Market Size
Revenue
$40bn
Annual Growth 12-17
1.8%
Forecast Growth 17-22
Profit
Employment
39,080
Businesses
4,947
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
  • Tire dealers will require a higher volume of tires to sell for a larger number of cars
  • Industry Report - Industry SWOT Analysis Chapter

    The Tire Wholesaling industry is in the mature phase of its life cycle. Industry value added, a measure of the industry's contribution to the overall economy, is expected to grow at an annualized rate of 1.4% over the 10 years to 2022. Comparatively, US GDP is expected to grow at an annualized rate of 2.1% during that same period. The industry's service is well established and it has not experienced substantial technological change. Also, the industry has been undergoing consolidation and creating more value out of existing distribution centers to compete effectively against external competition. Consequently, while IVA is expected to grow slower than the economy as a whole, the industry is still firmly in the mature phase of its lifecycle...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 Demand from tire dealers 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 wholesale new and 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
  • 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
  • Demand from tire dealers
  • Number of motor vehicle registrations
  • World price of rubber
  • Per capita disposable income
  • Total vehicle miles

  • 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
  • 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
  • Automakers
  • Service stations
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (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
    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?

    IBISWorld’s industry research report on Tire Wholesaling can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    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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