Tire Dealers in Canada Industry Market Research Report Now Available from IBISWorld
New York, NY (PRWEB) April 28, 2014 -- Over the past five years, the Tire Dealers industry suffered primarily due to the economic downturn's effects on consumers and commercial markets. As the recession worsened in 2009, all markets put off purchasing tires. “Fortunately for the industry, as economic conditions such as disposable income and unemployment improved in 2011, consumers released pent-up demand for replacement tires,” according to IBISWorld Industry Analyst Brandon Ruiz. However, fewer replacement tires were needed as new vehicle sales increased, which slightly inhibited industry revenue growth. Nevertheless, industry revenue is expected to grow at an average annual rate of 1.5% to $4.0 billion, including an estimated 0.2% increase in 2014.
Going forward, potential threats exist that could hamper industry revenue growth. The industry faces high competition, primarily from car dealerships, but also from alternative modes of transportation. Car dealerships typically have a competitive advantage over industry operators because vehicle warranties include tire replacement. “Moreover, when consumers take alternate modes of transportation, demand from tire dealers diminishes,” says Ruiz. For example, when fuel prices increase, consumers generally avoid driving vehicles and instead opt to use more affordable alternatives, such as public transportation. With less car use, wear and tear will not be as prominent and demand for replacement tires will decline.
Over the five years to 2019, industry operators are expected to experience mixed results from improvements in the overall domestic economy. On one hand, as disposable income and unemployment continue to improve, consumers will release pent-up demand for tires, benefiting industry operators. On the other hand, improvements in the overall economy will likely increase new vehicle sales. A rise in new vehicle sales will increase the total pool of vehicles that use tires; however, it will also likely inhibit growth in the short term because new vehicles come ready with factory-issued tires. Nevertheless, this trend is not expected to weigh down the industry.
For more information, visit IBISWorld’s Tire Dealers in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry retails tires and tire tubes for passenger cars, sport-utility vehicles (SUVs) and commercial trucks. Businesses that offer maintenance services in addition to tire sales are included in this industry; however, car dealership tire services and online tire sellers are excluded.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld 2, +1 (310) 866-5042, [email protected]
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