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
Sep 26, 2024 - Sales Fall, Inventories Up
- Sales for motor vehicles and parts wholesalers, including tire wholesalers, fell 0.9% in June 2024 compared to a year ago, according to the Census Bureau. Inventories for motor vehicles and parts wholesalers grew 10.9% in June 2024 year over year. Producer inflation for motor vehicle and parts wholesalers rose 1.8% in July 2024 compared to a year ago, according to producer price data released by the US Bureau of Labor Statistics (BLS). Employment by motor vehicle and parts wholesalers increased 0.9% in July 2024 compared to a year ago. Average wages for nonsupervisory employees in the industry reached $29.88 per hour in July 2024, an increase of 4.4% year over year, per the BLS.
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved 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.
- According to a new Modern Tire Dealer survey, 43% of tire wholesalers reported their tire unit sales were up by an average of 14.3% in Q1 2024, and 52% of tire wholesalers reported dollar sales increased by an average of 9.3%. The State-of-the-Industry Survey showed that 28% of tire wholesalers said tire unit sales were flat during the first quarter of 2024, and 15% said dollar sales were flat during the same period. About 29% of tire wholesalers reported tire unit sales were down an average of 8.2% in Q1 2024, and 33% reported their dollar sales were down 5.7% on average. When asked about the difference between bottom-line profitability between Q1 2023 and Q1 2024, 48% of tire wholesalers said their profitability increased by an average of 16.4% during the period.
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