Strandberg: Who Are the Consolidators of Tomorrow?

We all know the consolidators of today across the world of tire dealerships. They didn’t reinvent the wheel — or the tire. The good ones built scale through disciplined execution, strong operations and a consistent playbook. They acquired well, integrated well and created systems that allowed them to grow across markets.

That model has worked. It’s still working. But it’s also worth asking a more forward-looking question: What will the next generation of consolidators look like?

While the fundamentals of the industry remain strong, the environment around it is changing. Technology is advancing. Vehicles are becoming more complex. Customer expectations are rising. And over time, even the definition of car ownership may evolve.

The next wave of industry leaders will not abandon the current playbook. But they will build on it in ways that today’s operators should be paying close attention to.

The first shift will be toward a more integrated, technology-enabled operating model. Today’s best operators already rely on shop management systems and basic reporting. The consolidators of the future will go much further. They will build centralized data environments that allow them to track performance across locations in real time, optimize pricing dynamically and make faster, more informed decisions. Technology will not just support the business. Technology will help run it.

This becomes even more important as vehicles themselves become more complex. Advanced driver assistance systems (ADAS), electric drivetrains and, eventually, higher levels of autonomy will continue to reshape service needs. Whether fully autonomous vehicles arrive quickly or gradually, the direction is clear: fewer routine mechanical failures, more specialized and regular work and a greater emphasis on diagnostics, calibration and software integration.

The future consolidators will lean into that complexity. They will invest early in the equipment, training and certifications required to service increasingly sophisticated vehicles. They will stay ahead of repair protocols and position themselves as trusted service providers in a more technical ecosystem. In doing so, they will differentiate themselves from operators who treat these changes as incremental rather than structural.

At the same time, the customer experience is evolving — and not just at the margins. Today’s consumer expects transparency, speed and convenience. They are used to tracking packages in real time, booking services online and receiving proactive communication. Those expectations do not disappear when they need automotive service.

The next generation of consolidators will treat the customer experience as a core competency, not an afterthought. That means seamless digital scheduling, clear and consistent communication throughout the service process and a level of professionalism that mirrors other premium service industries. It also means rethinking the physical environment of the store — not just as a functional space, but as part of the brand experience.

Over time, the best operators will begin to resemble hospitality-driven service businesses as much as traditional tire dealers.

There is also a structural shift worth watching: the potential move from fragmented, individual customers to more centralized fleet relationships. As rideshare, delivery services and, eventually, autonomous fleets grow, a greater portion of service demand may come from institutional customers rather than individual vehicle owners.

The consolidators of the future will be positioned for both. They will continue to serve retail customers, but they will also build capabilities to handle fleet relationships, including faster turnaround times, standardized processes and the ability to scale across markets.

All of this points to a simple conclusion: Scale will still matter, but how you build and operate at scale will evolve. So where does that leave today’s independent operator? There are two paths and they are not mutually exclusive.

The first is to build toward becoming one of those future consolidators. That means thinking beyond a single store or even a small group of stores. It means investing in systems earlier than you think you need to. It means developing leaders, standardizing processes and building a brand that can travel across locations. It also means being proactive about technology and training, not reactive.

In other words, it means building a platform, even if it starts small.

The second path is to build a business that those future consolidators will want to acquire. The criteria are not radically different, but the bar is rising. Clean financials, strong local market position and consistent profitability still matter. But increasingly, buyers will look for operators who are already aligned with where the industry is going. Are you investing in the right capabilities? Do you have a strong management team in place? Are your processes standardized and repeatable? Is your customer experience consistent and differentiated? These factors will play a larger role in how buyers evaluate opportunities.

The consolidators of today created value by bringing structure and scale to a fragmented industry. The consolidators of the future will create value by layering technology, specialization and experience on top of that foundation.

The opportunity for today’s operators is to decide which side of that equation they want to be on. Because the next generation of industry leaders is not starting from scratch. They are being built right now in shops that are already thinking a little differently about what this business can become.