Tire Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,150 tire merchant wholesalers in the US primarily sell new and used tires and tubes for passenger and commercial vehicles. Firms may also sell complementary products such as wheels and other automotive parts. Customers include independent tire dealers, auto repair shops, auto parts stores, big box retailers and wholesale clubs, hardware stores and other distributors. Tire wholesalers also supply replacement tires to dealers of motorcycles and ATVs, as well as agricultural, construction, and industrial vehicles. This profile excludes tire manufacturers’ sales branches.
Complex Inventory Management
The number of unique sizes and tiers of quality and price are expanding as manufacturers look to meet market demand.
Direct Sales by Tire Manufacturers
Tire manufacturers are opening distribution centers in efforts to supply automobile dealerships, auto parts stores, and other large customers of tire wholesalers.
Industry size & Structure
A typical tire merchant wholesaler operates out of 1-2 locations, employs fewer than 20 workers, and generates about $30 million annually.
- The tire merchant wholesaling industry consists of about 1,150 companies which employ about 43,000 workers and generate about $35 billion annually.
- Customer industries include auto repair shops, auto parts stores, big box stores and wholesale clubs, hardware stores, and dealers of agricultural, construction and commercial equipment dealers.
- The industry is concentrated with the top 50 firms accounting for 80% of industry revenue.
- Large companies that distribute passenger vehicle tires include American Tire Distributors (ATD), Tire Rack, and Tire Group International.
- Large firms that distribute industrial and specialty tires include Gallagher Tire and Monster Tires. The industry is predominately comprised of privately-owned companies.
Industry Forecast
Tire Wholesalers Industry Growth
Recent Developments
Nov 19, 2024 - Tire Prices, Wages Up
- Consumer prices for tires rose 1.3% in October 2024 compared to a year ago and fell 0.4% from the previous month, according to the Consumer Price Index. Employment and labor costs for motor vehicle and parts wholesalers both increased in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Employment grew 1% in September year over year, and average wages for nonsupervisory employees were up 8.5%, reaching $30.88 per hour, per the BLS. Producer inflation for motor vehicle and parts wholesalers increased 3.9% in September 2024 compared to a year ago, according to BLS producer price data.
- Major US tire distributor American Tire Distributors (ATD) filed for Chapter 11 bankruptcy protection in late October 2024, the firm's second bankruptcy filing in the past six years, according to Modern Tire Dealer. The company said the filing was necessary as it undergoes a reorganization which includes the option of a new ownership plan. ATD’s previous filing was in 2018, and the company emerged from bankruptcy after completing its recapitalization and lowering its debt load by $1.1 billion. ATD has said it will continue to operate during its current reorganization.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- The US Tire Manufacturers Association has projected an increase in replacement truck tire shipments in 2024, according to FleetOwner.com. Total replacement truck tires are expected to total 22 million units, a 6.9% increase over 2023. More construction projects, anticipated active truck utilization, and improved spot rates during the second half of the year are expected to support tire sales growth after a sluggish 2023.
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