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The KeyBanc Industry Report

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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 for January 2015 compared to December 2014:

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Jan. YoY CONSUMER Units Sold: 3.9% (Dec.: 3%)

Jan. YoY COMMERCIAL Units Sold: 3.3% (Dec.: 13%)

Jan. CONSUMER Inventory
• Too High: 69.7% (Dec.: 2%)
• Too Low: 6.6% (Dec.: 5%)
• Just Right: 23.7% (Dec.: 92%)

Jan. COMMERCIAL Inventory
• Too High: 64.9% (Dec.: 67%)
• Too Low: 6.1% (Dec.: 2%)
• Just Right: 28.9% (Dec.: 31%)

Jan. Tiremaker CONSUMER Pricing
• Normal: 60.5% (Dec.: 91%)
• Aggressive: 28.3% (Dec.: 7%)
• Firm: 11.2% (Dec.: 2%)

Jan. Tiremaker COMMERCIAL Pricing
• Normal: 76.3% (Dec.: 16%)
• Aggressive: 9.6% (Dec.: 83%)
• Firm: 14% (Dec.: 1%)

Jan. YoY Service Dollar Sales: Up 0.1% (Dec.: Up 5%)

Jan. YoY Service Gross Margin: Down 0.1% (Dec.: Up 1%)

Industry Roundup: Heading into the new year, tire sales volumes were relatively weak. Consumer tire sales were up just 3.9% YoY, while commercial tire sales stayed at a 3% YoY positive.

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Nearly 70% of consumer tire dealers said their inventories were too high for prevailing business, a poor showing compared to December 2014’s report of just 2% being off the mark. Commercial tire inventories were just as bad, but the miss was consistent with the month prior’s results.

Dealer feedback on February sales indicates inclement winter weather in the Northeast was been positive for current and future demand.

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