The tire industry in the USA is one of the most important segments in the country’s prestigious auto parts sector, not only does it play a key role for the world’s leading automotive industry, but the US tire market also contributes significantly to its GDP, employment, and foreign trade earnings. As the USA remains one of the world’s top automotive manufacturing countries, global tire demand and demand for other auto parts in the global automotive market continues to increase. BizVibe’s tire industry analysis expands on the market growth, key statistics achieved, tire production in the US and key drivers for the market’s growth. The tire industry in the USA is expected to continue experiencing growth at a steady and consistent pace going forward.
According to a recent report from the USTMA (the US Tire Manufacturers Association), today’s tire industry in the USA provides employment to over 737,000 people. Additionally, it directly supports more than 284,000 U.S. jobs through manufacturing, distribution and retailing, and is responsible for more than 450,000 additional U.S. jobs in supplier-induced activities. So far, the US tire market consists of at least 55 tire-related manufacturing facilities across 19 states in the country, and generates over $148.4 billion in sales, demonstrating the important and critical role that tire industry plays in the country’s shipping and commerce needs.
The US tire industry is forecasted to grow at a CAGR of more than 5% in terms of volume until 2021. Currently, the global automotive market is dominated by the passenger car segment, followed by light commercial vehicles, medium and heavy commercial vehicles, and off-the-Road (OTR) vehicles and two-wheeler segment. As a result, the passenger car tire segment accounted for the largest share of the global tire market. As a result, its dominance is expected to continue throughout the forecast period as well.
In terms of tire production, the USTMA also projects that the total shipment of tires this year is likely to drop slightly to 318.1 million units compared to 318.4 million in 2016. The original equipment (OE) passenger tire shipments are also expected to decrease by 1.8 million units from 2016 while passenger replacement tire shipments are projected to increase by 1.8 million units. Original equipment light truck and truck tire shipments are expected to increase while decreases are projected for replacement light truck and truck tire shipments.
Apart from the top American-based car tire manufacturers such as Goodyear and Copper, other leading international tire companies—namely Bridgestone, Goodyear, Michelin, Cooper, Continental, Sumitomo, Hankook, Yokohama, etc—are also manufacturing and producing tires at an efficient pace in the US
When it comes to tire exports, statistics from the International Trade Centre indicates that the US exported over $4.48 billion worth of tires in 2016. In terms of volume of exports, the USA exported 42.26 billion units of tires to the global market, representing 6.4% of the world’s total tire exports during that year. The largest exporting destinations for the American tires are currently Canada, Mexico, Australia, Germany, and Chile.
The USA’s leading position in the global tire market has also attracted a significant number of buyers and traders from all over the world and US tire companies hope to source the best business deals. To help your tire business stay at the peak of the industry, BizVibe provides the best-in-class solutions to source products and make business deals with the top tire manufacturers in the US. The state of the tire industry in the USA is expected to continue prospering.