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Inventories are historically low, Ludwig says

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"Even though manufacturers increased tire prices in January by up to 6%, that may not be sufficient to cover raw material costs that have moved even higher since the price hikes were announced," says Saul Ludwig in the latest installment of the "Ludwig Report" in Modern Tire Dealer magazine.

"If the raw material costs continue to increase through March, I wouldn’t be surprised to see another tire price hike from your suppliers," he continued.

"With demand increasing and inventories at historically low levels, pricing power now lies with the manufacturer," Ludwig said. He didn't expect dealers to see many marketing specials this month.

Ludwig is a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in each issue of Modern Tire Dealer magazine.

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