Plimsoll: U.K. Tyre Industry Recipe For Uncertainty - Tire Review Magazine

Plimsoll: U.K. Tyre Industry Recipe For Uncertainty

(Clacton, U.K./Tyres & Accessories) A study of the UK’s leading tyres, exhausts and batteries companies suggests few are fully in control of their overall business strategy.

The survey by business analysts Plimsoll indicates a remarkable inconsistency in the companies’ commercial and financial behaviour. Very few of the tyres, exhausts and batteries firms planning to come out on top in 2007 in terms of profit and sales will actually achieve their goals.

David Pattison, senior analyst on the project, says: “In today’s highly competitive tyres, exhausts and batteries market, you cannot sit still for a minute. If you have seen sales increase this year and good profits, there is a fair chance that next year you will not be able to maintain it. Likewise, if you did not increase sales this year you are going to have to set a priority of trying to grab some growth in the next trading period.”

The survey comes a year on from a previous Plimsoll study of the tyres, exhausts and batteries market. The company, based in Stockton-on-Tees, is one of the leading business performance analysts in the U.K., France and Japan.

Last year, Plimsoll carried out a survey grading each company based on how successful they were based on their sales and commercial success; and their overall financial strength, taking into account profitability levels and the level of debt carried by these companies. This year, Plimsoll has revisited and updated the analysis to see how the companies have coped with another year of competitive trading. The findings show that more than half of the 1,000 companies analysed have changed strategy in the last 12 months – and not all by choice.

Of the 331 “winners” last year, 172 have retained their winning status. 237 are new to the winners category, having switched strategy since last year.

Of the “losers” last year, 93 have found themselves in this less than prestigious category for a second year. More worryingly for the industry, they have been joined by 77 other new ‘losing’ companies.

Of the 213 companies awarded chaser status last year, 102 continue with their pioneering strategy. They have been joined by another 137 companies, bringing the total number of chasers in the industry to 239.

Last year, Plimsoll ranked 235 companies as sleepers. 99 of these continue to preserve financial strength at the expense of sales growth, and they have been joined this year by 83 other companies who have switched strategy.

Said David Pattison: “What this analysis is clearly saying is that, in a very competitive market, of the companies planning to be a winner by the end of 2007, few will actually achieve their goal.”

You May Also Like

Continental’s ContiConnect Lite to allow digital tire management for OTR tires

Continental said ContiConnect Lite helps fleet managers monitor the condition of their tires via bluetooth.

ContiConnect-Lite-OTR

Continental launched ContiConnect Lite, a new version of its digital tire management app, which the company said creates a bridge between tire sensors and professional tire management and offers a free-of-charge gateway to selected ContiConnect features. Continental said it can also now be used on tires with an integrated Gen2 sensor. Since this year, Continental has been delivering its off-the-road (OTR) radial tires with a bluetooth-enabled sensor. In addition to OTR tires, Continental said it also offers digital tire management to its truck tire customers.

Hana Technologies signs license agreement with Michelin for RFID tire tags

Since its inception, Hana Technologies has spearheaded the manufacturing of over 150 million RFID tire tags.

Handshake agreement
Continental debuts new sustainably-focused U.S. headquarters in South Carolina

The building’s 840 solar panels are capable of offsetting up to 25% of its total energy consumption.

Front-of-Continental-Americas-HQ-1400
Yokohama Rubber reveals 2024 motorsports activity plan

Yokohama said participation in motorsports activities is crucial to its efforts to strengthen the Advan and GeoLandar brands.

Yokohama-Nitrocross
Tesla Model 3 TPMS service

Resetting and programming TPMS sensors for a Tesla is a lot like any other vehicle, and the challenge is still the same: keeping the light off.

bendpakEVgarageTPMS-1400

Other Posts

TIA’s Advanced Farm Tire Service training to take place in June

The training class for technicians in the agricultural and farm tire industries is set to take place June 11-14.

TIA_training-
Three spark plug service and replacement tips

How to avoid and overcome roadblocks that may come up during the removal or installation of spark plugs.

Continental-sparkplug
Maxxis-sponsored athletes make podium, overall top 10 at Mint 400

Maxxis athletes Michael McFayden, Ethan Ebert and Trey Gibbs had podium finishes at the Mint 400 on Maxxis RAZR XT tires.

2024-mint400-maxxis
Sun Auto Tire reveals winner of Ford Bronco Sport giveaway

Lowell Anderson entered the giveaway at his local Sun Auto Tire & Service store while receiving a routine oil change.

Sun-Auto-Bronco-giveaway