Rubber meets road: Despite growing input prices, industry profit margins are projected to decline

The Tire Manufacturing industry in Canada has exhibited growth over the five years to 2018. Vehicle sales growth in North America, increased vehicle travel and the depreciation of the Canadian dollar have pushed up revenue. New tires improve fuel efficiency and safety, therefore, trends toward a greater appreciation for vehicle efficiency have improved demand for more advanced tire technology. Moreover, as the price of gasoline fell during the period, consumers responded by driving more. As the world price of rubber falls, industry operators experienced greater price flexibility. However, input prices have rebounded in recent years due to greater global demand for more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Volatile input prices and rising imports have put downward pressure on industry revenue
  • International trade, particularly with the United States, is an integral component of the industry
  • Rising demand for replacement tires will increase downstream orders of industry products
  • Industry Report - Industry Key Buyers Chapter

    The Tire Manufacturing industry in Canada maintains a high level of market share concentration. Tire manufacturers produce tires for all types of vehicles and the concentration among various market segments is largely similar. The expected market concentration of the overall industry has remained high during the period. The largest tire manufacturers are all multinational companies with strong global positions. In Canada, there are three major manufacturers that have relevant domestic operations: Michelin, Goodyear and Bridgestone. The industry has experienced a level of consolidation, as smaller players that do not benefit from economies of scale and increased automation have been forced to exit the industry. How...purchase to read more.

    Additional Insights for the Tire Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tire Manufacturing Industry are

  • Managing raw material costs
  • Successful industrial relations policy
  • Aggressive marketing/franchising - given the high level of competition
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Per capita disposable income in the Tire Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tire Manufacturing Industry?

    This industry is primarily engaged in manufacturing and retreading tires and inner tubes from natural and synthetic rubber. The finished products are then sold to motor vehicle manufacturers and tire wholesalers.

    Industry Products
  • Passenger tires
  • Light truck tires
  • Off-the-road tires
  • Medium- and heavy duty truck tires
  • Agricultural tires
  • Industry Activities
  • Pneumatic, semipneumatic and solid-rubber tire
  • Inner tube
  • Motor vehicle tire
  • Tire repair material
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Per capita disposable income
  • Total vehicle-kilometres
  • Demand from motor vehicle manufacturing

  • Current Performance
  • Growing vehicle demand
  • Consolidation and contraction
  • Rising trade tempers industry gains
  • Chart: Revenue Growth

  • Industry Outlook
  • Faltering demand
  • Cost-conscious consumers
  • Upstream volatility
  • Table: Tire Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tire Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tire Wholesaling in Canada
  • Tire Dealers in Canada

  • Key Selling Industries
  • Plastics & Rubber Machinery Manufacturing in Canada

  • Products & Services
  • Passenger tires
  • Medium- and heavy duty truck tires
  • Light truck tires
  • Off-the-road tires
  • Agricultural tires
  • Chart: Tire Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Domestic demand
  • Foreign demand

  • Major Markets
  • Exports
  • Replacement passenger car and light truck market
  • OEM automakers
  • Replacement medium- and heavy-duty market
  • OEM truck and machinery manufacturers
  • Chart: Major Market Segmentation for the Tire Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Tire Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Manufacturing Industry

  • Industry Globalization
    The Goodyear Tire & Rubber Company, Michelin North America, Bridgestone,
  • Table: The Goodyear Tire & Rubber Company - financial performance
  • Table: Michelin North America - financial performance
  • Table: Bridgestone - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Manufacturing 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 Manufacturing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Number of Motor Vehicle Registrations (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    High-Performance (Hp) Tire
  • A tire that differs from standard tires by speed rating, tread style and handling characteristics, which are all usually more advanced.
  • Low Rolling Resistance Tire
  • Tires that minimize energy wasted as a tire rolls. They generally last longer than high performance tires.
  • Original Equipment Manufacturer (Oem)
  • A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tire Manufacturing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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    This report on Tire Manufacturing:
    • 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 Manufacturing 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 Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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