Industry Analysis & Industry Trends
Large-scale tyre manufacturing in the United Kingdom is in trouble, due to strong import competition from low-cost producing countries like China. Margins have been falling over the past five years, due to soaring input prices (especially rubber), which many manufacturers have been unable to pass down the supply chain. The global financial crisis exacerbated the poor conditions in the industry, as tyre demand plummeted in 2009-10. Output of manufacturers dropped, which saw capacity utilisation fall and costs skyrocket. Over the five years through 2011-12, industry revenue is forecast to expand just 0.7% annually to £1.97 billion, mainly driven by higher prices rather than output... purchase to read more
Industry Report - Industry Key Buyers Chapter
The top four companies will account for an estimated 34.2% of industry revenue in 2011-12. Although the concentration level is low, there is only one remaining large-scale tyre manufacturer in the United Kingdom, Michelin, with 25.6% market share. Concentration fell over the past decade, as many global manufacturers exited the industry due to strong import competition and high costs. The concentration level will continue to fall over the next five years, while the focus will mainly be in the form of specialised tyre manufacturing on a small scale... purchase to read more