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After suffering through a seesaw January, where dealers saw the benefits of winter weather to start the month offset by weak trends in the final weeks of the period, our survey respondents reported that business improved in February.

Well, we made it through 2012, which almost everyone can agree was not the tire industry’s banner year. As we were winding down the year, dealers got their Christmas wish answered as winter finally made its presence felt.

Tags: John Healy, Nick Mitchell, tire industry analyst, Your marketplace

There were some noticeable developments in the tire industry during October. Namely, tire dealers received modest price concessions from the manufacturers as raw material costs remained at favorable levels, and the benefits from the expiration of Tariff 421 accelerated (the post-tariff pricing was intact for the entire month).

Tags: Chinese tariffs, John Healy, Ludwig Report, Nick Mitchell, Your marketplace

A number of independent tire dealers were surveyed concerning current business trends. Except for tire prices and costs, the results of the August 2012 survey are compared with those of August 2011.

Tags: John Healy, Ludwig Report, Nick Mitchell, Your marketplace

I speak with several tire dealers every month. During the last three months, the ratio of dealers reporting weak business to improving business still not good — but a glimmer of evidence that a turn in business may be occurring.

Tags: Ludwig Report, Saul Ludwig, The Ludwig Report

The bad news is that raw material costs continue to increase. In December 2011, butadiene was $1.03/lb., in April 2012 it was $1.45/lb. Other representative raw material comparisons (per pound) are: styrene, 56 cents then to 66 cents now; carbon black, 50 cents then to 60 cents now; and natural rubber, $1.55 then to $1.72 now. Yes, tire prices are high, and even as consumers are balking, tire manufacturers cannot absorb those cost increases, so higher tire prices are on the way

Tags: Ludwig Report, Saul Ludwig, Tire prices

Last month I wrote that due to sharply lower raw material costs during 4Q11, I would not expect to see any further tire price hikes any time soon. Unfortunately, that was a wrong call because predictability of future raw material prices is all but impossible.

Tags: Ludwig Report, Raw material costs, Saul Ludwig, Tire prices

For sure, the retail consumer tire business was rather lackluster in 2011 as the combination of high gasoline prices (that led to a decline in miles driven), high unemployment and low consumer confidence led to tire buying deferral.

Tags: Saul Ludwig, The Ludwig Report

This year has been characterized by soft retail demand, high tire prices forced by surging raw materials, poor fill rates early in the year and new leaders of North American operations at both Goodyear and Cooper Tire.

Tags: Ludwig, Ludwig Report, Saul Ludwig

Uncertain European economies, the U.S. debt crisis, Congressional gridlock, 9.2% unemployment and a slumping stock market are enough to explain why consumers are putting off big ticket purchases as long as possible. Add to that, a $1,000 bill for four tires, alignment and a few other suggested repairs further shocks your customers.

Tags: Ludwig Report, Saul Ludwig