Modern Tire Dealer

JAN 2019

Magazine for the professional tire industry

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M T D J a n u a r y 2 0 1 9 30 2 0 1 9 F a c t s S e c t i o n : O v e r v i e w MTD is 100 years young! WE START OUR CENTENNIAL CELEBRATION WITH FACTS ISSUE NO. 53 O nly three years ago, Modern Tire Dealer published its 50th Facts Issue. Now we are celebrating the magazine's 100th anniversary! And what better way to start than with our 53rd annual look at the tire industry that was, is, and will be. Our 15-page Facts Section lets our readers know what happened in 2018. How many shipments were there? Which countries affected our industry the most? Were retreaders really affected by low-cost new truck tires from China? (Spoiler alert: e numbers say "yes.") Why are your fellow tire dealers buying specific brands of automotive parts? e answers may surprise you. If you want to know how healthy the market is, check out the tire sales chart below. For the first time, the replacement tire market in the U.S. topped the $40 billion mark! And you are responsible for the majority of those sales, either directly through your 29,000 independently owned outlets or indirectly through wholesale distribution. At the same time, the market remains very competitive. e average sales margins chart, also on this page, gives you a benchmark of how you are doing. As you can see, there is room for more profitability on the retail side. On the wholesale side, 2018 was one for the ages. By mid-year, Michelin North America Inc. had purchased 50% of TBC Corp. from Sumitomo Corporation of Americas and formed National Tire Wholesale (SCOA), while Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. had formed TireHub LLC. In less than three months American Tire Distributors filed for bankruptcy, reorganized, and emerged from bankruptcy. ose three wholesalers enter 2019 with the combined capacity to distribute 58 million tires in the U.S. through 348 distribution centers. e facts we present not only verify what has happened, but also reveal trends that give you an idea of what will happen. For example, you can expect to compete against fewer Sears Auto Centers in 2019. At the same time, the increase in the number of Pep Boys Service & Tire Centers makes Icahn Automotive Group LLC — as in billionaire Carl Icahn — a company with which to be reckoned in the aermarket. What tire sizes can you expect to replace in 2019 and beyond? You ask, we answer by listing the most popular original equipment sizes in the last five years. Beginning this month price increases on Vredestein, Continental, General, Michelin, BFGoodrich, Uniroyal and Pirelli passenger and light truck tires were implemented. So were prices on select Toyo consumer and commercial tires. Bridgestone Americas Tire Operations LLC and Bridgestone Canada Inc. will increase prices on Firestone truck tires beginning Feb. 1. Will those price increases stick nationwide? You may have to wait until the 54th Facts Issue to find out, although you will quickly discover what your own customers will pay for those tires. Over the next 11 months, we will continue to acknowledge our anniversary with more facts, figures and stories about our past, all designed to give you further insight into a market that is in constant motion. Let the celebration begin! — Bob Ulrich All figures in this 15-page Facts Section are Modern Tire Dealer figures unless otherwise noted. U.S REPLACEMENT TIRE SALES, 2018-2015 (IN BILLIONS OF DOLLARS) In 2018, the U.S. replacement tire market was worth $41.9 billion. Tires 2018 2017 2016 2015 Passenger $26.6 $25.5 $24.9 $24.4 Light truck $5.4 $5.3 $5.1 $4.8 Truck $7.5 $6.8 $6.3 $6.4 OTR $1.8 $1.7 $1.6 $1.6 Farm $.622 $.535 $.512 $.500 2018 TIRE SALES MARGINS Tire segment 2018 2017 Retail passenger 24.2% 24.8% Retail light truck 22.8% 24.6% Commercial light truck 21.2% 20.5% Medium/heavy truck 15.6% 16.8% Wholesale passenger 12.2% 11.7% Wholesale truck 11.3% 10.4%

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