Commercial Dealerships Continue to Consolidate

The commercial tire market is getting stronger, but top dealers are still finding their footing.

There have been many changes in the form of mergers and acquisitions, the uptick in demand for lower-tier tires and the introduction of artificial intelligence. (MTD's 2025 list of the 25 Top Commercial Tire Dealers in the U.S. can be found on page 60 of the October edition of MTD.)

Acquisition action

Three big players in the commercial tire segment made big acquisition moves this year.

In February, Bend, Ore.-based Les Schwab Tire Centers Inc. acquired Pete’s Road Service, which had 10 stores, a retread plant and a distribution center in southern California.

“Pete’s is one of the strongest and largest independent commercial tire dealers in southern California and this acquisition is a great opportunity for Les Schwab Tires,” said Mike Broberg, CEO of Les Schwab Tire Centers, at the time.

This acquisition came shortly after Les Schwab Tire Centers acquired CMC Tire, a commercial tire dealership with 11 locations throughout Utah, Nevada and Colorado.

Les Schwab Tire Centers officials said both CMC Tire and Pete’s Road Service would continue to operate under their current names.

These acquisitions increased Les Schwab’s number of commercial-only stores to 21 from zero and its combination stores to 580, compared to 499 on last year's MTD Top 25 Commercial Tire Dealers list.

At the beginning of June, Durand, Wis.-based Bauer Built Inc. also made a big move by acquiring Meekhof Tire Sales & Service Inc.

The acquisition of Grand Rapids, Mich.-based Meekhof added 14 retail and commercial locations and two retread plants to Bauer Built’s network.

The retail and commercial locations are in Michigan and Illinois and beefed up Bauer Built's Midwest footprint that also includes North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Missouri and Indiana, as well as its home state of Wisconsin. The two retread shops include one Michelin Retread Technologies (MRT) facility and one Oliver retread shop.

“Both Bauer Built and Meekhof Tire believe our success comes from putting people first —customers, employees and partners alike,” said Jerry Bauer, chairman and CEO of Bauer Built. “This partnership honors that legacy while positioning us for future growth.”

Not long after, Columbia, Miss.-based Southern Tire Mart LLC acquired the Pooler, Ga.-based Dorsey Tire Co. Through the acquisition, Southern Tire Mart added Dorsey’s five locations, including its Bandag retread plant.

Keven Haddox, who manages Southern Tire Mart’s business west of the Mississippi River, said that the acquisition came from wanting to “fill in some areas we needed to complete.”

“Billy Dorsey, (owner), Bruce Chamblee (chief operating officer) and Patty Kelly (owner and chief financial officer]) did a great job with the company,” said Haddox. "They’re very service-oriented and retread-oriented, so they fit in very well with how we go to the market. And with the way they did business and the positions of their locations just fit really nicely with us.” 

Commercial challenges

When asked about the biggest challenges facing the commercial tire business, the majority of the Top 25 Commercial dealers told MTD that things like finding employees, the volatile economy and the impact of tariffs and imported products are near the top of the list.

“The biggest challenge facing our commercial tire business is navigating a choppy market defined by a combination of factors, including persistent inflationary pressures, a soft economy in some key sectors and intense competition from imported tires,” says Daniel Horn, vice president of sales at Wilkes-Barre, Pa.-based McCarthy Tire Service Co. Inc.

“The cost of doing business — from real estate and insurance to employee healthcare —continues to rise at a rate that is often faster than the revenue and profit we're generating.”

Horn says this creates a difficult balancing act. "Additionally, the influx of lower-priced imported tires puts significant pressure on our pricing, particularly for retreads and domestically made commercial tires.”

Horn adds that McCarthy Tire Service is committed to finding the right mix of products and services to provide value to its customers.

John Ziegler III, regional sales and operations manager at Massillon, Ohio-based Ziegler Tire & Supply Co. dba Ziegler Tire, agrees that finding “quality and experienced technicians and mechanics” continues to be an issue. "With retirements and the aging blue-collar workforce, those are really difficult employees to replace."

 “Biggest issues continue to be developing employees that are comfortable selling tire products,” says David Mickelson, CEO and president of Sioux Falls, S.D.-based Graham Tire Co.

Mickelson says another issue stems from educating the customer on the different offerings from all the different tiers and that “everything is now always about the price of the tire.”

Import truck tires have impacted commercial tire sales by shifting focus to price, according to Seth Kamps, vice president of purchasing and inventory at Byron Center, Mich.-based Wonderland Tire Co.

“The biggest challenge facing our industry right now is the tariff issue,” says Tony Grace, CEO of Alma Tire Companies, which is based in Alma, Mich. “Besides hampering our ability to estimate future costs, it’s more difficult to recommend the right product from a value standpoint, especially with new tires.”

What’s demand like?

“Demand for commercial truck tires is currently showing a mixed but generally stable picture,” says Horn from McCarthy Tire Service.

He points to a decrease in original equipment shipments, but says there’s been a notable increase in the replacement market. Horn believes this is positive for the commercial tire business as it indicates a strong need for maintenance and service.

He also mentions a steady flow of business from McCarthy Tire Service's national fleet accounts and other loyal customers who rely on the dealership for full-service tire needs.

“However, the overall demand is being influenced by the broader economic landscape, including fluctuating freight rates and a soft agricultural market in some of our service areas,” continues Horn. "Our focus remains on providing exceptional service and a wide range of tire and mechanical solutions to meet the evolving needs of our customers.”

Ziegler III agrees that demand has somewhat stabilized, though he mentions it differs based on segment. Sales of tires for road construction, last-mile and less-than-truckload applications have been extremely strong. But other segments — truckload, for example — have remained soft.

“Overall, this has been a strong year in tire sales,” says Ziegler III.

Grace from Alma Tire says this year's commercial truck tire demand feels softer than in years past. "But in reality, there are opportunities to gain new business. Freight is moving, trucks need tires and customers need to find the best value. But the solutions might look different today.”

AI in commercial

The hot topic in every industry at the moment is AI — and the commercial tire service sector is no different.

Horn says that although McCarthy Tire Service has not publicly disclosed details about its use of AI, the company is actively exploring “innovative technologies, including AI tools, to enhance our business operations.”

“The commercial tire industry is evolving and we recognize the potential for AI to improve efficiency, streamline processes and provide deeper insights into our business. We are always evaluating new solutions that can help us optimize our services, better manage our inventory and provide an even higher level of service to our customers.”

Ziegler III says that Ziegler Tire’s retread process continues to automate more each year. "This year, we implemented a device that reads and logs remaining tread depth into reporting to be used for the customer,” he notes, helping to monitor pull points.

Rick Benton, who directs Blacks Tire Service Inc.’s wholesale division, says his company uses AI for some things. "But the commercial business is a relationship business and we focus on building stronger relationships with our team and future leaders. It’s hard for AI to service fleets and run service calls, for sure.”

Grace at Alma Tire agrees by saying, “AI is coming and how it will figure into our industry in a truly helpful way is an interesting question.”

He says if Alma Tire does use AI, it will be to enhance the capabilities of its people and processes. "New technologies will come and go. However revolutionary they may be, doing a good job, being honest and taking care of the customer will always be the most important aspects of how we do business.”