All the acquisition activity of 2021 adds up to momentum, and industry analyst John Healy is looking for it to spill over into 2022. He says conditions are showing this year could be even stronger.

Pricing actions were frequent in 2021, and more have already rolled into the new year,. Analyst John Healy says on average those price hikes resulted in a 20% increase over 2020 prices. Interestingly, he says the cost to build an average tire went up 24% in 2021.

From surprise acquisitions to supply chain, pricing and labor challenges, 2021 delivered plenty of punches. Industry analyst John Healy has tracked them all and has insights for tire dealers of what issues will be the most important to monitor in the months ahead.

Our recent conversations with tire dealers leave us with the view that retail tire sell-out trends are climbing upward on a year-over-year basis.

What's next for the largest independent tire dealership in the U.S. and its newest acquisition, the industry's largest online tire seller? Experts weigh in on the future of this "earth-shattering" combination in this MTD exclusive. 

Recent dealer commentary suggests that demand for consumer tires last month was higher on a net basis than it was during the same month in 2020.

Looking closely at raw material costs, we note that the “basket” of raw materials needed to build a common replacement tire has increased 23.7% on a year-over-year basis.

Our recent conversations with dealers leave us with the view that retail sell-out trends are continuing to improve on a year-over-year basis, while also showing strength over 2019 levels. However, activity levels did fall slightly from what our dealer base experienced last month.

Last month, I reported that retail sell-out trends were starting to cool down. But it appears that this might have been an anomaly, based on more recent data. Recent dealer commentary suggests that demand for passenger and light truck tires at the retail level has rebounded from prior-month levels.