Tire Wholesalers NAICS 423130

Mar 25, 2025 - Aftermarket Tire Industry Grows

• Demand for aftermarket tires grew across all categories in 2024 according to data from the US Tire Manufacturing Association. Replacement tires for medium trucks and buses had the highest growth with a 12.5% increase over the previous year to 23.4 million units. Light-truck tire shipments grew 7% (36.7 million units) and passenger tires grew 1.3% (222 million tires). Original equipment tires for light trucks also performed well for 2024 (up 13.6%), while medium truck/bus tires and passenger tires both fell 8% and 5.7%, respectively. Overall tire production could fall in 2025 with Bridgestone, Sumitomo, and Goodyear all either closing US plants or cutting back on manufacturing. Those closures are expected to shrink tire output by 4 to 5 million tires.
• Consumer prices for tires rose 0.4% in December 2024 compared to a year ago and, per the Consumer Price Index. Anticipated foreign tariffs on consumer goods by the Trump administration have already spooked auto makers and prices could potentially skyrocket if the tariffs go into effect. Costs have already risen significantly for motor vehicle and parts wholesalers - prices are up 4.7% in November 2024 compared to a year ago, according to US Bureau of Labor Statistics data. Employment for motor vehicle and parts wholesalers was flat at 0.3% year over year in October 2024 while wages for nonsupervisory employees were up 6.7%, reaching $30.53 per hour. An industry-wide shortage of mechanics and technicians as cars become more complex and computerized makes existing workers well-paid and in-demand.

• 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.