The whole tire industry is waiting to see what happens next as Goodyear Tire & Rubber Co. integrates the Cooper Tire & Rubber Co. business into its portfolio. One thing John Healy knows is that Goodyear has found even more savings than the $165 million the tiremaker initially expected to realize.
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.
Philip Biscan took ownership of Van’s Tire Pros of Alliance in late 2018 and has been able to spur on growth despite the ramifications of the pandemic.
Increasingly, we all need to be looking at how the impact of new entrants or new combinations in the tire industry may change valuations in the future.
It can be very tempting during a difficult period to come out financially on the plus side and think, “I’ve worked especially hard, so I deserve to reward myself.” Yet here I am going to advise you to hold off.
