Atlas Tire Wholesale: Invested in the Future

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Atlas Tire has announced the company’s latest expansion plans, and they’re big!

Atlas Tire Wholesale Inc. recently informed their suppliers and key clients of a massive expansion project that is sure to change the industry landscape here in Canada, as well as further improve the quality of service Atlas Tire is able to offer tire retailers.

“I am pleased to announce that Atlas has embarked on a major step to increase our capabilities to meet the demands of the market, while increasing our efficiencies,” said Peter Gregory, founder and President of Atlas Tire Wholesale.

But Gregory’s words fall short of expressing the true scope of the company’s very ambitious plans. In fact, Atlas Tire’s latest investment includes a warehouse facility in the north central Greater Toronto Area (GTA) that boasts a mind-boggling 4.18 acres under roof with an impressive 25 truck-level shipping doors. To be clear, that’s just the warehouse part of the facility. Factor in all the paved land surrounding the warehouse, and you can begin to imagine how expansive this new property truly is.

Atlas has dubbed this new facility their “Inventory Support Centre,” and the warehouse is so massive that it even eclipses the Distribution Centres operated by some of the major tire manufacturers with facilities in the GTA.

The new warehouse facility will soon be home to over 240,000 tires and wheels—and that’s in addition to the existing warehouse properties Atlas Tire already operates in Canada in order to provide the fastest and most efficient service possible to their clients and industry partners.

With this newest building, Atlas Tire’s warehouse footprint in the GTA alone grows to almost 400,000 sq. ft. (plus their facilities in western Canada). When fully operational the new facility will have a minimum of two shifts—day & night—and will employ up to 40 people. In the future, operations may move to three shifts covering 24 hours.

Industry trends

This latest expansion is a must, says Gregory. The market is changing, and so are the needs of both end users, and local retailers. “SKU proliferation continues,” he explains, “and the variety of tires required to serve the market is increasing at a rapid pace. There is no end in sight.”

SKU proliferation is being driven by automobile manufacturers, “and with our OE first strategy, the complexity of SKU proliferation is part of our daily reality,” he adds.

Atlas Tire has long been known for their tagline: “The Power of Inventory,” and this latest investment is all about the company putting their money where their mouth is. It’s one thing to have a tagline, but it’s quite another to live it. And with their dedication to providing the inventory dealers and retailers need—when and where they need it—the extra space to stock the right tires at the right time makes perfect business sense.

“Our inventory has been our advantage over the years, we have the reputation in the industry as ‘the source for hard to find tires’ and we have proven this to the market for many years,” Gregory explains. “We are now making a major investment—many millions of dollars—to maintain this key advantage, and to maximize the potential of the key advantage.”

Gregory further explains the realities facing today’s tire retailers, as well as the industry as a whole. “The market needs tires. The market is seeking solutions. There can be no solution without inventory, so we are investing to ensure we have the inventory”.

Earned growth vs. consolidation

The impressive growth curve Atlas Tire has enjoyed over the decades is well earned. Unlike some companies that grow when they acquire smaller players in their space, Atlas has grown organically, and has earned the success they enjoy.

“In this time of industry consolidation, Atlas has remained independent and has generated strong organic growth,” Gregory says. “Unlike many of our competitors, we have not grown based on consolidation. We have earned our growth by delivering value to the market.”

That value is seen in the broad spectrum of products Atlas Tire carries, including higher-end tires for the more demanding end user. “Atlas has earned much of its growth in the high value sector of the market—prestige and premium OE, UHP and larger rim diameter tires,” Gregory adds.

Investing in technology

While the sheer acreage of Atlas Tire’s newest warehouse facility is impressive, what’s even more exciting is how the company will manage the many hundreds of thousands of tires and wheels in inventory.

Although Peter Gregory isn’t willing to share any trade secrets with the industry at this time, he has explained how each of his workers will be armed with state-of-the-art equipment and tools in order to be able to manage the flow of tires into and out of the warehouse with speed, efficiency and accuracy, further assuring that Atlas Tire clients get the inventory they need, when they need it.

While the tire market continues to evolve, and while SKU proliferation becomes a growing challenge, Atlas Tire’s clients can rest assured they will be able to get the tires they need, when they need them. This new facility is further proof of the Atlas Tire’s commitment to their core strength, inventory.

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