Growing its network is a priority for TireHub LLC, says Ted Becker, the company’s CEO. He details several current and future initiatives in this MTD exclusive.
MTD: Can you bring us up to speed on TireHub's activities in 2024? Have you added locations and/or enhanced TireHub's capabilities?
Becker: 2024 has been a year of enhancing several of TireHub’s core capabilities: capacity, retail support for customers and technology.
Growing our network has been a priority this year. In Q4 2023, we opened our first regional distribution center (RDC) in Allentown, Pa. In early October 2024, we opened our second RDC in Fort Worth, Texas. It’s a 422,000-square-foot facility that significantly increases our inventory capacity and allows us to hold more breadth and depth of the Bridgestone and Goodyear portfolios, in addition to assorted complimentary products. (Editor’s note: Formed in 2018, TireHub is a joint venture between Bridgestone Americas Inc. and Goodyear Tire & Rubber Co.)
We also opened a new TireHub Logistics Center (TLC) in St. Louis, Mo. at the beginning of the year and have seen great success in increasing our share of market in that area. We’re on track to open three more TLCs by year end, as well, in Milwaukee, Wis.; Charleston, S.C.; and a second location in Boston, Mass. This will bring our total network footprint to 80 TLCs and two RDCs.
Lastly, in regard to growing our network, we also constantly evaluate our current centers to make improvements when needs arise. For example, we just moved our location in Miami to one that is significantly larger and in a better location to meet more of the needs of dealers and retailers.
This year, we launched our TireHub Plus dealer program. TireHub Plus is a comprehensive solution of tools and services that will help boost revenue, enhance profitability and attract new consumers for TireHub customers. Simply put, it is designed to help independent tire dealers be more successful and we’ve exceeded our expectations with the growth of this new program.
Also in 2024, we continue to invest in our B2B Dealer portal, TireHub Now. Year-to-date, we have focused on exceeding dealers’ expectations with new functionality that makes it easier for them to achieve their service goals: better search capabilities, enhanced delivery tracking, a more modern user interface, enriched program support, at-a-glance rebate information and more. Our goal is for TireHub Now to be the reference in the industry.
MTD: What's your take on the state of the wholesale tire distribution channel in the U.S. as we near the end of 2024?
Becker: The wholesale tire distribution channel continues to face pressure in the second half of 2024. Among other things, shifts in consumer demand, consolidation, e-commerce growth and supply chain changes/disruptions are impacting distributors and the way they do business. That said, we are bullish on the role wholesale distribution plays to support just-in-time needs for tire dealers and retailers. Therefore, we are more focused on the long-term opportunity for this channel. The need for forward-deployed inventory and just-in-time delivery is more critical than ever before.
TireHub’s strategy is to maintain our sights and investments on where we win: increased capacity, leading inventory depth and breadth, superior service and operational flexibility to support our customers and our key partners, Goodyear and Bridgestone.
MTD: How is consolidation among wholesalers/distributors forcing TireHub to be a better wholesaler/distributor? What has TireHub changed or improved upon in response to what’s happening in the landscape?
Becker: With consolidation comes both opportunities and risk and that has certainly been true among wholesales/distributors. That said, regardless of what happens with consolidation, we are delivering on what is important for our customers: just-in-time, forward-deployed inventory, with consistent national availability and leading breadth and depth. This is what Goodyear and Bridgestone created TireHub to do and this is where we intend to continue winning.
MTD: Have the shipping challenges of the past several years normalized or are things still in a state of flux? If the latter, how is TireHub navigating those challenges?
Becker: We have all seen the shipping challenges that have occurred as of late, but we are fortunate to have experienced minimal impact, especially when it comes to international products.
MTD: Many tire distributors invested a great deal of time and energy in right-sizing their inventory levels during late-2022 and 2023. How would you describe TireHub's current inventory?
Becker: TireHub has a very unique proposition: we are tasked with providing the full breadth and depth offering of Bridgestone and Goodyear products. As we have added capacity to our network during this time, we’ve increased inventory. Our inventory levels are the best they’ve ever been and we will continue to grow inventory to fulfill our mission and meet the needs of the industry.
MTD: Is TireHub planning to pick up and carry any new tire brands?
Becker: TireHub is unique in that we’re a premium brand-focused distributor. We are proud of our brand portfolio and will continue to provide our customers (with) the best possible experience with our current offerings. We continually re-evaluate the needs of dealers and retailers to remain competitive in the marketplace and will always ensure their needs are met.
MTD: What can we expect to see from TireHub during the rest of 2024 and next year? What will be the company's top priorities?
Becker: You can expect TireHub to stay focused on the needs of our customers because we are committed to helping them elevate their business. Our 'Hubbers' (employees) put customers at the center of everything. In fact, we have built our culture around saying ‘yes’ to dealers and retailers. So our top priorities remain capacity, services and technology. We will exceed customers’ needs with increased capacity, delivery excellence, contemporary retail support, best-in-class technology and the right inventory at the right place at the right time.
When TireHub was created in 2018, we were set up to be intentionally outrageous, readily embrace challenges, introduce new ideas and build something unique. Six years in, I’m proud and confident to say it’s working. We have been different from the beginning and that remains how we win for our key partners and most importantly, our customers.
