Industry Analysis & Industry Trends
The industry has contracted steadily during the past five years, despite stimulus from rising vehicle manufacturing activity and an anticipated increase in the number of motor vehicles registered in the United Kingdom during the period. However, strong import competition, dwindling export sales and reductions in manufacturing capacity challenged growth during the past five years. The projected fall in global rubber prices also dampened industry growth, as it forced operators to lower selling prices. Industry revenue is expected to decline at a compound annual rate of 4.7% over the five years through 2016-17.
During the current year, revenue is projected to decrease by 2.9% to £1.7 billion, primarily due to continued downward pressure on prices from low global rubber prices... purchase to read more
Industry Report - Industry Analysis Chapter
The industry has contracted during the past five years, but this is partly the result of high revenue during the base year. Turnover grew sharply during 2011-12 as improving economic conditions led to renewed demand for tyres, following suppressed spending during the economic downturn. However, in the years since, an expected fall in export sales, strong import competition and a reduction in manufacturing capacity have restricted industry growth. Meanwhile, drastic declines in global rubber prices have had a considerable influence on industry performance, as rubber is a key input. Rising rubber prices generally compel operators to inflate selling prices in order to pass on at least a portion of these cost increases to customers. The.. purchase to read more