MacKay & Company released its 2024 Tire Distribution study on Thursday. Reversing a growing trend dating back to 2018, the percentage of tire distributors reporting year-over-year tire sales gain in 2023 were lower than in any of the previous five years, dropping from 41% of total survey respondents to 23%. Those indicating declining sales and unchanged sales have both increased since 2022.
“The graphic depiction of the annual data clearly exhibits the change in the reporting levels. We will need to wait for another data set to see if those reporting unchanged tire sales remains at a high level and it is ongoing trend or if 2023 is more of an anomaly,” the company says.
Similar patterns also are seen among those tire businesses that sell retread tires. A growing number of distributors are reporting unchanged and declining sales while fewer note increasing sales, the company adds.
Throughout the pandemic, MacKay & Company states tires were consistently among those parts that fleets, dealers and distributors struggled to maintain adequate inventory levels. The availability challenges have improved with fewer tire selling businesses reporting declining inventory levels and, conversely, more reporting unchanged levels. Overall, new tire inventories decreased by 0.3% in 2023 as retread inventory rose slightly by 0.4%.
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“We see improvement in pricing, inventory, sales of both new and retread tires,” says Molly MacKay Zacker, vice president of operations at MacKay & Company. “Overall, businesses selling new and retread tires report a more positive landscape.”
MacKay & Company's 2024 Tire Distribution study represents the second annual report focused on the medium- and heavy-duty tire aftermarket. Since 1995, MacKay & Company has provided a comprehensive look into the tire market through two annual reports. The first report focuses on tire replacement, brand preferences and forecasts as reported by operators and the second highlights tire distribution patterns as reported by tire dealers, truck dealers, independent garages and other distribution channels.
To learn about more report findings, please email [email protected].
