Report: '08 U.S. tire production nearly $17 billion

Jan. 1, 2020
Last year?s American tire manufacturing industry?s revenues amounted to $16.9 billion, with an estimated gross profit of 17.3 percent, according to a just-released report from Research and Markets, an international publishing firm based in Ireland.

Last year’s American tire manufacturing industry’s revenues amounted to $16.9 billion, with an estimated gross profit of 17.3 percent, according to a just-released report from Research and Markets, an international publishing firm based in Ireland.

Imports from 66 countries were valued at $9.6 billion. The U.S. tire industry exported $4.3 billion worth of merchandise to 182 nations. Adding import value to – and subtracting export value from – the industry’s shipment value, the total domestic demand in 2008 was $22.2 billion.

The 165-page tome, which does not include retread statistics, “is the most comprehensive market research report available on this industry,” says Laura Wood, Research and Markets’ senior manager. “It provides the most updated data and analysis on the industry’s key financial data, cost and pricing, competitive landscape, industry structure and trends and opportunities.”

In 2008, the value of tires imported into the U.S. was relatively high, she explains, at about 60 percent of U.S. production. “Because of this reliance on imports, the report covers the foreign trade statistics, including the top 25 countries the U.S. imports from and their respective import values,” notes Wood.

“This industry exhibits a high amount of trade activity, because in 2008, the value of exported products within this industry into the U.S. has also been relatively high, at approximately 30 percent of U.S. production. This reliance on exports is also covered in the reports foreign trade statistics,” Wood says.

“Over the past three years, the industry has shown a strong growth in exports, at approximately 13 percent constant annual growth,” she continues. “This growth in international trade is further analyzed in the reports export section covering major trade partners.”

She goes on to point out that “the downstream analysis section of this industry reveals a large dependency on personal consumption. Understanding the recessionary effects on consumer consumption for products within this industry is essential. This industry has a high concentration of players, with the market consisting of fewer companies with relative similarity in size. This aspect exposes the industry to further possibility of merger and acquisition opportunities, as well as anti-trust scrutiny. The competitive landscape section provides a closer examination of this situation.”

Wood says the report includes the most recent information on the domestic and global tire markets, along with identifying overseas growth opportunities. Updated quarterly, the publication “contains the most current data available and sophisticated forecasts up to 2013, accounting for the affects of the current economic recession. Industry experts consider this report the most comprehensive and consistently updated guide to the industry.”

For more information, visit www.researchandmarkets.com/research/70d1da/tire_manufacturing.

About the Author

James Guyette

James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.

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