Rolling along: Rising disposable income will drive industry revenue

Over the five years to 2019, revenue for the Tire Wholesaling industry in Canada is expected to decline slightly. While the industry had been bolstered by improving economic conditions, particularly at the consumer level, sluggish demand from tire dealers and spikes in the price of rubber has led to depressed revenue. Profit for the industry is anticipated to decrease over the five years to 2019, due to significant volatility in the price of rubber. However, some industry operators can pass along these input costs to downstream markets, helping offset more severe declines in profit margins. Over the five years to 2024, the industry is anticipated to keep rolling along, bolstered by improving disposable more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Larger operators are acquiring smaller operations to expand distribution networks
  • Demand for new and replacement tires will expand existing operations
  • Retailers are expected to increase inventory levels
  • Industry Report - Industry Key Buyers Chapter

    The Tire Wholesaling industry in Canada has a low level of market share concentration. The industry is highly fragmented, however, industry operators are expected to increasingly undergo merger and acquisition (M&A) activity to benefit from economies of scale and increase the geographical reach of their distribution networks. For example, American Tire Distributors (ATD) acquired Kipling Tire Co. in early 2014 and Albert Tire LLC in 2015 to increase its distribution network. Additionally, ATD acquired Pneus Superieurs in 2017, a Quebec-based company, to expand its presence in Canada. ATD is also anticipated to benefit from greater purchasing power through the Kipling acquisition, which will enable the company to negotiate lower prices for upstream inventory...purchase to read more.

    Additional Insights for the Tire Wholesaling Industry

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

  • Upstream vertical integration (ownership links)
  • Prompt delivery to market
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Demand from tire dealers and Number of motor vehicle registrations in the Tire Wholesaling industry impact industry performance..

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    What's in this report

    What is the Tire Wholesaling Industry?

    This industry wholesales new and used tires and tubes for passenger and commercial vehicles.

    Industry Products
  • Standard passenger vehicle tires
  • Medium and large truck tires
  • Light truck tires
  • Farm, specialty and other types of tires
  • Industry Activities
  • Motor vehicle tires and tubes wholesaling
  • Tire and tube repair materials wholesaling
  • Used tire (except scrap) wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from tire dealers
  • Number of motor vehicle registrations
  • World price of rubber
  • Per capita disposable income
  • Total vehicle-kilometres

  • Current Performance
  • Resurgence in downstream demand
  • Pressure on profit
  • Internet presence
  • Chart: Revenue Growth

  • Industry Outlook
  • Rolling along
  • Profit stagnates
  • Indirect industry assistance
  • Table: Tire Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Truck & Bus Manufacturing in Canada
  • Tire Dealers in Canada

  • Key Selling Industries
  • Tire Manufacturing in Canada

  • Products & Services
  • Standard passenger vehicle tires
  • Medium and large truck tires
  • Light truck tires
  • Farm, specialty and other types of tires
  • Chart: Tire Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Independent tire dealers
  • Mass merchandisers and warehouse clubs
  • Automakers and auto dealerships
  • Chart: Major Market Segmentation for the Tire Wholesaling 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 Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tire Wholesaling Industry

  • Industry Globalization
    American Tire Distributors Holdings Inc.,
  • Table: American Tire Distributors Holdings Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tire Wholesaling 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 Wholesaling Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • World price of rubber (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • An operator purchasing another operator, and including the firm in its business operations.
  • Synthetic Rubber
  • A polymer that is made from synthetic substances to create a rubber substitute.
  • Warehouse Clubs
  • Operators that sell bulk items to consumers.
  • What Our Customers Say

    Why buy this report?

    The Tire Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tire Wholesaling:
    • 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 Wholesaling 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 Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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