US Tire Industry

It's clear to see, changes are starting to happen in the U.S. tire industry. In the past ten years there has been a shift in buying habits as more and more people are choosing to buy tires online.

According to the Rubber Manufacturers Association, the independent tire dealers still dominate, accounting for 69 percent of the replacement passenger market. Mass merchandisers have captured 17 percent and manufacturer outlets claim 10 percent. Internet tire stores account for just 4 percent of the current U.S. market.

This market dominance by the independent dealers is expected to come under threat, as more people decide to buy tires online. As rubber prices increase across the market (due to oil prices), the independent stores just can't compete with the low prices offered by a typical discount tire company. They undercut the smaller independent dealers by bulk buying and selling online.

Intense competition amongst tire sellers is further fuelled by decreasing demands for tires. Due to advances in manufacturing techniques, modern day tires last longer than they used to. People are also driving less due to increased gasoline prices.

"The challenge is that competition from the Internet and national retailers has increased. Tires are getting more expensive. Even though they're lasting longer and the number of units aren't climbing as fast as dollar sales, everyone wants a share of that," said Skip Potter, executive director of the Chesapeake Automotive Business Association, which represents locally owned tire service centers in Maryland, the District and Delaware.

This is great news for the U.S. tire consumer. As tire sellers compete intensly for our custom it's expected we'll be getting more special offers, discounts, and incentives by choosing to buy tires online.