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The KeyBanc Industry Report

Tire Review and KeyBanc Capital Markets Inc. in Cleveland are working together on a monthly survey of U.S. tire dealers to gauge real-world factors – such as manufacturer tire pricing, supply levels, and tire unit and dollar sales.

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Tire Review and KeyBanc Capital Markets Inc. in Cleveland are working together on a monthly survey of U.S. tire dealers to gauge real-world factors – such as manufacturer tire pricing, supply levels, and tire unit and dollar sales. Here are some of the findings as of Feb. 4:

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Dec. YoY CONSUMER Units Sold: 3% (Nov.: 4%)

Dec. YoY COMMERCIAL Units Sold: 13% (Nov.: 5%)

Dec. CONSUMER Inventory

  • Too High: 2% (Nov.: 13%)
  • Too Low: 5% (Nov.: 2%)
  • Just Right: 92% (Nov.: 84%)

Dec. COMMERCIAL Inventory

  • Too High: 67% (Nov.: 21%)
  • Too Low: 2% (Nov.: 23%)
  • Just Right: 31% (Nov.: 56%)

Dec. Tiremaker CONSUMER Pricing

  • Normal: 91% (Nov.: 64%)
  • Aggressive: 7% (Nov.: 26%)
  • Firm: 2% (Nov.: 10%)

Dec. Tiremaker COMMERCIAL Pricing

  • Normal: 16% (Nov.: 77%)
  • Aggressive: 83% (Nov.: 13%)
  • Firm: 1% (Nov.: 10%)

Dec. YoY Service Dollar Sales: Up 5% (Nov.: 5%)

Dec. YoY Service Gross Margin: Up 1% (Nov.: Up 2%)

Industry Roundup: Tire sales volumes in the last two months of 2014 and into 2015 were relatively weak, driven down by typical end-of-year slowdowns and by a sharp fall off in import tire sales reflecting the draw down on China consumer tire imports in anticipation of countervailing and anti-dumping duties.

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U.S. dealers report December consumer sales increasing 3% year-over-year, and December commercial tire sales increasing 13% YoY. This compares to 4% and 5%, respectively.

Dealers said their December consumer tire inventories were consistent with business, but that their commercial tire inventories were running a bit high.

Dealer vehicle service dollar sales in December rose 5% YoY, coming off of a 5% rise in November.

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