Tires and Tubes

SIC 5014

Companies in this industry

Industry report:

This industry category includes companies that primarily wholesale new and used tires and tubes for passenger and commercial vehicles. It also includes companies that wholesale tire and tube repair materials.

Industry Snapshot

Tire wholesalers sell new replacement automobile tires (60 percent of revenue); new replacement truck, bus, and industrial tires (35 percent); and used or retreaded tires (5 percent). Some wholesalers also sell wheels and associated parts. About 60 percent of consumer tire sales are premium manufacturer brands, 20 percent are economy manufacturer brands, and the rest are private label.

According to the U.S. Census Bureau, there were 2,271 establishments engaged in tire and tube wholesaling in 2009. Together these companies employed 30,674 workers who earned a combined payroll of $1.3 billion. Most companies were small with 944 establishments employing fewer than 20 people. The industry was also concentrated, with the largest 50 companies accounting for about 70 percent of the total $25 billion in revenues in 2010, according to Hoover's.

After suffering through the economic recession at the end of the first decade of the 2000s, when consumers cut back on travel and thus had a reduced need for replacement tires, as well as little discretionary income to spend on such items, the wholesale tire industry began to recover in 2010. Other factors affecting the industry in the early 2010s included the rise in rubber prices that accompanied the global increase in cost of energy and raw materials. According to a 2011 report by IBISWorld, "The rising rate of average miles driven is expected to increase as income levels rise, resulting in greater tire wear and higher demand for replacement tires." Although profitability was expected to be hurt by competition from imports and continuing high raw material prices, "expansion to the Internet will help industry revenue."

Major companies in the early 2010s included American Tire Distributors Holdings Inc. (ATD), based in Huntersville, North Carolina. ATD, which posted more than $2.1 billion in sales in 2010, operated 80 distribution centers in 40 states and employed 2,300 people across its nationwide network. After filing an initial public offering in 2010, ATD was acquired by private investment firm TPG Capital.

Another industry leader was TBC Corp., headquartered in Palm Beach Gardens, Florida, and operating as a subsidiary of Sumitomo Corporation of America (SCOA). TBC was a diversified auto parts distribution firm from 1956 to 1996, when the company began to focus exclusively on tire operations. In December 2003, TBC acquired National Tire & Battery from Sears, taking on 225 stores in 20 states. TBC had 9,400 employees and revenues of more than $520 million in 2010.

Bridgestone Bandag LLC, based in Muscatine, Iowa, with 3,788 employees, was another significant player in the industry. The firm was a subsidiary of the Tokyo, Japan-based Bridgestone Corp., which reported overall sales of $35 billion in 2010.

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News and information about Tires and Tubes

Acquisition of Tires and Tubes for the Car Fleet
Mena Report; February 5, 2018; 286 words
Contract notice:acquisition of tires and tubes for the car fleet Value excluding vat: 360 000 euros This market is divided into lots: yes Deadline for receipt of tenders or...
Contract Award: Hutchinson Industries Wins Federal Contract for "Tires and Tubes, Pneumatic, except Aircraft"
US Fed News Service, Including US State News; January 23, 2018; 274 words
...Department of the Army), ACC - NJ (W15QKN), has awarded a $740,342.99 federal contract on Jan. 22 for "tires and tubes, pneumatic, except aircraft".Contractor Awardee: Hutchinson Industries Inc., Defense And Security Division...
Term Contract for Purchase of Tires and Tubes
Mena Report; August 7, 2017; 301 words
Tenders are invited for purchase of tires and tubes. Notes: deadline for submission of questions and/or clarification is tuesday, august 8, 2017 at 9:00 am. the term of this...
Pneumatic Tires and Tubes and Recapping or Retreading Tires
Mena Report; April 4, 2016; 283 words
Tenders are invited for Furnishing and delivering pneumatic tires and tubes and recapping or retreading tires. Bid Date & Time: 04/29/16 2:00 PM Notes: For more information contact Steve Wilhem...
Supply of Tires and Tubes for Vehicles
Mena Report; June 7, 2016; 328 words
Contract notice: Supply of tires and tubes for vehicles. This contract is divided into lots: no Estimated value excluding VAT: 1 309 090,90 EUR Deposits and Guarantees...
Presolicitation Notice: Department of the Army Seeks "TIRES AND TUBES, PNEUMATIC, EXCEPT AIRCRAFT"
US Fed News Service, Including US State News; March 30, 2016; 298 words
...Department of the Army, Army Contracting Command, has issued a presolicitation notice (W56HZV16R0133) for "TIRES AND TUBES, PNEUMATIC, EXCEPT AIRCRAFT".This presolicitation notice was posted on March 29 and the response date is April...
Supply - Tires and Tubes for Cars, from the Forestry Directorate Satu Mare
Mena Report; December 24, 2015; 592 words
...Tenders are invited for Supply - Tires and Tubes for Cars, From the Forestry Directorate...Satu Mare. Procurement Supply - Tires and Tubes for Cars, From the Forestry Directorate...Total quantity or scope: Supply - Tires and tubes for cars, from the Forestry ...
Tires and Tubes Plant
Mena Report; October 30, 2015; 327 words
...Ltd. is planning to build a plant in India to make tires and tubes for two-wheelers, with production expected to begin...plant, where it is planning a capacity of 20,000 tires and tubes daily. The plant will be built in the Sanand Industrial...

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