Industry Analysis & Industry Trends
The Tire Manufacturing industry has traversed rocky roads over the five years to 2016. Volatile rubber prices, coupled with pressure from competitively priced imports, are anticipated to cause industry revenue to decline. Many companies are outsourcing their tire production to countries with lower labour costs, limiting domestic production. Moreover, research and development advancements have slowed over the past decade and smaller players that do not benefit from economies of scale have consequently lost their competitive advantage and been forced to exit the industry. Demand for tires is anticipated to improve over the next five years as consumer incomes rise and the economy gradually continues to strengthen... purchase to read more
Industry Report - Starting a New Business Chapter
There are no licensing requirements, government regulations or resource constraints that are significant enough to prevent firms from entering the Tire Manufacturing industry. The major resource required to enter this industry is capital. The investment requirements for entry include significant capital purchases, including equipment to manufacture tires and related purchases. The steep price for the investment required might deter firms from entering the industry.
Manufacturers also need to seek distribution channels for their products. It is difficult for new entrants to get access to the distribution channels created among a handful of major players... purchase to read more