|Last Quarterly Update:||9/16/2013|
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Companies in this industry primarily manufacture new tires and inner tubes for a variety of vehicles. Major companies include Goodyear and Cooper (US), Michelin (France), Bridgestone Corporation and Sumitomo Rubber Industries (Japan), Continental AG (Germany), Pirelli (Italy), and Hankook (South Korea).
Worldwide tire sales were estimated to be more than $185 billion in 2011, according to Rubber & Plastics News. In addition to the US, France, Japan, China, and Germany are major sources of tire production. The industry is dominated by large players that typically have manufacturing operations in multiple markets around the world.
The US tire manufacturing industry consists of about 100 companies with combined annual revenue of about $20 billion. Key drivers include raw material costs, energy prices, and interest rates.
Demand is driven by sales of new vehicles and the need for replacement tires. Because tires are largely a commodity, profitability depends on cost-efficient operations. Large companies can afford the research to develop tires from new, technologically advanced materials and can invest in improving production efficiency. Small companies can compete by producing tires or tire-related products for niche markets, such as bicycles or farm equipment. The US industry is highly concentrated: the top four companies generate more than 70 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Companies in the tire industry manufacture new tires, inner tubes, and materials for tire repair and retreading, primarily from synthetic and natural rubber. Tire ...
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