Plimsoll: An 8th of UK tyre companies heading for ‘rocky ground’

UK tyre manufacturers and distributors are risking their long-term sustainability in order to increase sales, according the latest report issued by Plimsoll publishing. Yet while sales have seen an upsurge, the 127 companies continuing with their current business model are said to be “in danger of spiralling out of control and are heading for rocky ground. “

David Pattison, author of the new market report, said: “Of course it’s exciting to see these companies increase their market share and invigorate the market, but if their financial health continues to decline then all these extra sales will count for nothing.

“In a market that displays modest growth, it’s evident that these businesses are impacting on the rest. Of the other 873 companies analysed in the report, under a third have seen their sales dramatically decline. Due to the 127 companies surging ahead, the others in the industry are facing the consequences.”