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Tire DealersPublished by: First Research, Inc. Published: May. 5, 2008 - 10 Pages Table of Contents
AbstractThe US tire dealer industry includes about 11,000 firms with combined annual revenue of $22 billion. Large companies include TBC Corporation, Discount Tire, Les Schwab Tire Centers, and retail units of manufacturers Goodyear and Bridgestone. The industry is fairly fragmented: the 50 largest companies hold about 45 percent of the market. A typical dealer store has annual revenue of $1.5 million.COMPETITIVE LANDSCAPE Demand for replacement tires is tied to vehicle usage, which in turn depends on economic activity. The profitability of individual companies depends on marketing, since the product is largely a commodity. Large companies benefit from economies of scale in purchasing and advertising. Small firms can compete effectively by specializing (such as in tires for high-end cars or farm equipment) or by joining purchasing/distribution networks. The average annual revenue per employee is about $140,000. PRODUCTS, OPERATIONS & TECHNOLOGY Dealers sell replacement tires for passenger cars (55 percent of the market) and commercial vehicles (25 percent). The industry includes tire-specific stores, automotive parts stores, tire departments of mass retailers, and a variety of automobile service centers. The majority of dealerships are independently owned, though many are franchises or owned by tire manufacturers. Most tires are made predominantly from natural or synthetic rubber, and may also include steel, rubber-like elastomer polymers, carbon black and other compounds, and processing oils and waxes. An average sized steel-belted radial tire for passenger cars weighs approximately 20 pounds, 16 ... Get Full Details About This Report >> |
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