The US Tire Industry Has Approximately 10,000 Firms, with an Annual Income of $20 Billion, but the Largest Eight Companies Account for 27% of This

DUBLIN, Ireland--Jan. 2, 20066, 2006--Research and Markets (http://www.researchandmarkets.com/reports/c31558 ) has announced the addition of Tire Dealers - Industry Profile to their offering.

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 Glossary of Acronyms

Summary

Brief Excerpt from Industry Overview Chapter:

The US tire dealer industry includes about 10,000 firms with combined annual revenue of $20 billion. Large companies include TBC Corp.; Discount Tire; Les Schwab Tire Centers; and retail units of manufacturers Goodyear and Bridgestone. About 3,000 of the firms are small with fewer than five employees; about 12 have annual revenue over $100 million; the eight largest account for about 27 percent of industry revenue.

COMPETITIVE LANDSCAPE

Demand for replacement tires, both new and used, is tied to vehicle usage and consumer confidence in the economy. Because of high fixed costs, profitability of tire dealers depends on business volume and competitive pricing. Small firms can compete with large ones by specializing in type of application (such as tires for high-end cars or farm equipment) or by joining purchasing/distribution networks through which they can leverage the collective buying power of the organization. Large companies benefit from economies of scale in buying products and services. The average annual revenue per employee is about $138,000, but at the largest firms is around $585,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Replacement tires are 75 percent of the market for tires, and competition is intense at the retail level. For these reasons, manufacturers offer dealers a number of services, such as warranty, credit, advertising, and training programs. A supplier's support is important for retailers, who need quick fulfillment of orders, support for special orders, and favorable pricing, promotions, and credit.

Companies Mentioned
TBC Corp
Discount Tire
Les Schwab Tire Centers
Goodyear
Bridgestone

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