Tire dealers, manufacturers and industry observers had plenty to say in 2024. Here are more quotes that defined the year that was.
January
“If you look across all aspects of commerce, there aren’t many products that are more important than your car. Everything revolves around it. (Vehicles) are such a key element of society, yet they’re so undervalued.” - Ryan Benton, who directs Whiteville, N.C.-based Black’s Tire Service Inc.’s retail business
February
“The five biggest headwinds for 2024 are the potential continuation of the consumer deferment cycle; macroeconomic pressures forcing consumer trade-down; the lack of tariffs on Thai imports, causing an influx of low-tier tires; escalation of global conflicts, causing supply chain failures, while elevating prices and furthering an affordability crisis; and the risk that a ‘green winter’ could slow down seasonal tire purchases.” - John Healy, managing director and research analyst at Northcoast Research Holdings LLC and MTD’s Your Marketplace columnist
March
“Our stores are basically serviced out of 22 (distribution centers), so if we have all the products in the wrong (warehouse), it doesn’t matter how much of it you have. It has to be at the correct distribution center and that has been our most ongoing challenge.” - Gary Skidmore, senior vice president and general manager for TBC Corp.’s Big O Tires’ program
“We are very excited about our partnership with Pilot and the opportunities moving forward." - Tommy Duff, co-owner of Southern Tire Mart LLC, commenting on the company’s ongoing partnership with Pilot Flying J
April
“We are forecasting a fairly flat year for 2024, with a small increase at some of our newer stores,” - Jon Langerak, president and CEO of Byron Center, Mich.-based Wonderland Tire Co., and MTD’s 2023 Tire Dealer of the Year, commenting on full-year 2024 demand for retreaded tires
“We are investing heavily in building real-time connections to third parties. As for AI, we are evaluating how best to use that technology in-house first. The most likely result of that will be enhanced support services for our customers.”- Jay Adams, president of MaddenCo
“We’ve taken the approach that we want to invest in local brands on a local basis and then have something that’s a little broader across multiple markets.” - David Manning, co-CEO of Goodturn Tire & Auto
May
“EV tire customers have a higher likelihood of being the early adopters in this segment and they are a lot more interested in performance and focused on how many miles they’re getting on a charge. They are a lot more in-tune with their vehicle and the technology that it has, which makes them a much more informed customer.” - Joe Ramsay, CEO of Reformed Management Group, which operates eight stores on the west coast of Florida
June
“I know dealers still have a lot of inventory they’re trying to work through, but the fact of the matter is that miles driven seem to be up and vehicle sales seem to be strong. It looks like the second half of the year will continue similar to the way it's been during the first half of the year.” - Rob Williams, president, Hankook Tire America Corp.
“Customers don't have the additional dollars that they might have spent before on branded products and therefore, they’re looking at alternatives. They’re looking for great-quality products that provide great value.” - Samuel Felberbaum, president of Prinx Chengshan Tire North America
“Despite some economic challenges affecting the adoption of electric vehicles, we remain optimistic about their future growth potential. While the initial hype may not have matched reality, we believe that as economic conditions improve, electric vehicles will gain traction.” - Ron Dolan, president, Sailun Tire Americas
“The North American market is a growth driver for the Continental global tire business and our strategy is to continue developing partnerships with independent dealers - understanding that with ongoing consolidation, there will be opportunities, as well as challenges.” - Jochen Etzel, CEO, Continental Tire the Americas LLC
July
“Whenever these times come, people tend to look for real value. Some (people) associate value with (being) inexpensive, which is kind of a marketing spin people have put on consumers for a very long time.” - G.S. Sareen, CEO and president of Omni United (S) Pte. Ltd.
“I think overall end user demand has been consistent with previous years, but as always, the devil is in the details. The economy, particularly the current state of inflation and the subsequent high prices on the entire basket of goods, is definitely having an impact on the consumer.” - Stan Chandgie, chief operating officer and executive vice president of sales, Yokohama Tire Corp.
“The real boom in OTR may not happen until the economy picks up and that looks to be a 2025 timeframe. Customers share with us that business is just OK, but inventories are high. This is expensive due to interest rates and creates profitability pressure on dealers.” - Aaron Murphy, senior vice president of CMA/Double Coin
“What it means to be a technician today is different than what it was 40 years ago. There’s a lot more variation to vehicles. There’s more diagnostics and a lot more specialization and advanced tools required. Finding someone who has the mechanical skill set and wants to invest in themselves is not an easy task.” - Chris Ripani, chief operating officer, Sun Auto Tire & Service Inc.
August
“The popularity of SUVs and CUVs continues to grow globally, growing at just over 16% last year, according to vehicle count data, driving increased demand for specialized tires. In fact, according to the U.S. Tire Manufacturers Association, the CUV/SUV segment of the tire market is expected to fuel most of the growth in tire sales over the next several years.” - Shawn Denlein, president, sales and marketing, Kumho Tire USA
“Our goal of being (at) 75 to 100 (stores) is not just us throwing a dart at a board. These are realistic goals. But to hit those goals, we’ll need to use acquisitions, as well as greenfield. We'll likely use acquisitions to get into new markets and then greenfield to fill them out.” - Brian Maciak, CEO of Burt Brothers Tire & Service
September
“Austin is a key market for us and this acquisition aligns with our strategy of growth in high-demand regions,” says Joe Buscaglia, CEO of Big Brand Tire & Service, upon the acquisition of Tires to You, a seven-store dealership based in Austin, Texas
October
“As a company, we’re not selling tires. We’re empowering the customer with the right data and information, so they can make the best choices.” - Dean Muglia, CEO of Discount Tire
“Contrary to what we see on the new tire side, the retread market is far below prior years, except 2020. It started improving a bit towards July and August, but had been pretty far down in the beginning of the year and I attribute that to the large influx of (imported truck) tires.” - Luigi Cumo, Michelin North America Inc.’s vice president of B2B marketing,
November
“This is an industry that has an enormous amount of supply from Asia. And in my opinion, this industry should look to diversify to other areas, like Africa or Latin America." - Robert Behar, owner, Summit Capital Partners, which owns 22 RNR Tire Express franchise stores
“It is essential we have the right access to tools and information needed to repair vehicles.” - Dick Gust, CEO of the Tire Industry Association, commenting on the need for more Right to Repair legislation
“Deal activity is cyclical. The total value of M&A in the U.S. was down 25% in 2023. That was the worst year in dealmaking in a decade. When previous years’ activity has been very low, one might reasonably expect to see that turn around. I certainly do.” - Michael McGregor, partner at Focus Investment Banking LLC and MTD’s Mergers & Acquisitions columnist
December
“We’ve heard from our vendors and our suppliers that their costs are going up. Fuel costs and logistics are more expensive.” - Mason Hess, director of Purcell Tire & Rubber Co.’s global mining division
“We expect the farm tire market in the United States to remain stable in 2025. The main variable that will influence this scenario will be the price of raw materials. If prices continue to fall due to reduced exports, many farmers will have less cash on hand.” - Alan Eskow, vice president, BKT USA Inc
“I’ve long believed that in a traditional wholesale business, for all the investments one makes in improved distribution capability, their reward is to remain one of four to six tabs open on every screen on every parts counter in every tire store in America. We see that as a really tough business – especially this year.”- Phillip Kane, CEO of Turbo Wholesale Tires LLC
“Digital transformation has become a priority, with wholesalers adopting e-commerce platforms and digital tools to streamline operations and enhance customer experiences. The rise of direct-to-consumer sales models has increased competition, prompting wholesalers to offer value-added services and flexible distribution solutions.” - Joaquin Gonzalez Jr., president, Tire Group International LLC
“We are cautiously optimistic about the state of the industry in 2025. Although we certainly expect some headwinds, we also recognize that times like these represent an opportunity for us to double down on improving our processes and investing in our people so that we can continue to offer industry-leading service to our customers.” - Cheryl Gossard, president of K&M Tire Inc.
