Highway Tyres

Legacy on Wheels

Steering a family-owned business to an industry success story

Since its inception in 1955, Highway Tyres has travelled a long and storied road, evolving from a small family-run business to a $30 million enterprise. At the helm of this thriving company is Mitch Grant, CEO, whose leadership has been instrumental in steering the business through significant industry shifts.

“Highway Tyres started in 1955, specializing in retreading,” Grant says. “Back then, retreading was a robust industry in Australia, making up about 90% of our business.” This method of refurbishing worn tyres was both cost-effective and environmentally friendly. However, the arrival of Chinese imports in the mid-2000s disrupted the market. “It became unviable to manufacture retread tyres cost-effectively,” he explains. “A brand-new tyre was often cheaper than producing a retread.”

Adapting to market changes

The shift required a revaluation of operations and a transformation in how the company approached its core business. Grant highlights that adapting to such significant changes was challenging yet necessary. “We had to think differently and find ways to remain competitive,” he says. This adaptability set the stage for the company’s future growth.

To stay afloat, Highway Tyres diversified. “In the mid-90s, we started importing other new brands, which helped us strengthen our business,” Grant says. The strategic pivot proved vital as the complexity of vehicle tyre sizes also began to grow, making the retreading process increasingly impractical. What began as a small family-owned operation with $2 million in annual turnover has since grown exponentially, now boasting a $30 million annual turnover, five retail stores, and three wholesale outlets across Victoria and Queensland.

Diversification also allowed the company to mitigate risks. “Expanding our portfolio ensured we weren’t overly reliant on one aspect of the business,” Grant notes.

Expanding a niche market

The company carved out a unique niche by combining novelty with innovation: coloured burnout tyres. “We developed a product that creates colourful smoke during burnouts,” Grant shares. Originally popular among Australian car enthusiasts, these tyres found a surprising market in the U.S. for gender reveal celebrations. “We sell about 100 tyres a month into the U.S., and our online store generates around $600,000 annually.”

The innovation didn’t stop at the product itself; the company also invested in marketing and building a loyal customer base. “We created an online store that made these tyres accessible globally,” Grant says. This strategic move allowed the company to tap into new markets and sustain its growth.

The coloured burnout tyres, marketed under the Highway Max brand, are manufactured at the company’s head office in Doveton, Victoria. “We’ve shipped them to over 20 countries for uses ranging from drifting to baby gender reveals,” Grant says with a chuckle. While retreading has become a minor part of the business, these novelty tyres have provided a protective niche that has helped the company remain competitive. “We’ve built a strong reputation in this niche market, which has been critical for our global presence,” Grant explains.

A family-driven business

The company’s enduring family legacy is another foundation of its success. “The original owner’s son, Steven Elms, is our general manager today,” Grant says. Grant’s father, Ross, is also a director and remains actively involved. Multiple generations working together have maintained continuity, a shared vision, and a strong sense of purpose. “The values instilled by the founders still guide us,” Grant says. This enduring connection between the past and present is evident in the company’s approach to business and community.

Highway Tyres has cultivated a strong company culture with 60 to 65 staff members across its locations. “Our staff’s average tenure is around 13 years, and we have eight team members who have been with us for over 30 years,” Grant says. While high turnover among tyre fitters is typical in the industry, Highway Tyres prioritizes employee growth and development. “Most of our managers started as tyre fitters, aligners, or warehouse staff. We promote from within to provide pathways for career advancement.”

Investing in employee well-being and development has improved retention and created a highly skilled workforce. “Our team’s expertise is one of our biggest strengths,” Grant emphasizes. “Their dedication and knowledge enable us to provide exceptional service.”

Prioritizing safety and sustainability

Safety and sustainability are integral to Highway Tyres’ operations. “We adhere to stringent safety protocols,” Grant says. “The safety of our staff and customers is paramount, especially with the heavy machinery involved.” On the sustainability front, the company has long been conscious of its environmental impact. “We do our utmost to minimize our footprint and ensure end-of-life products are reused wherever possible.”

Grant highlights that sustainability is not just a business practice but a responsibility. “We’re constantly looking for ways to reduce waste and improve our processes,” he says. This commitment aligns with the growing demand for environmentally conscious businesses.

Standing out in a competitive market

Innovation remains a key focus for staying competitive. “The brands we distribute, particularly Kenda, set us apart,” Grant says. “Kenda’s four-wheel-drive range is incredibly popular, especially in Australia, where the off-road market is booming.” Highway Tyres’ emphasis on customer service and retail experience differentiates it from competitors. “We want customers to walk into our stores and think, ‘Wow, I haven’t seen a tyre service like this before,’” he explains. “From the waiting rooms to the coffee we serve, we aim to provide an experience worth their price.”

Grant also notes that staying innovative requires continuous investment in technology and training. “We’re always looking for the next big thing that will enhance our service and product offerings,” he says.

Overcoming industry challenges

Challenges are par for the course in the tyre industry. “Supply chain issues, raw material costs, and freight expenses are ongoing challenges,” Grant says. “COVID made inventory management particularly difficult, but we’ve worked closely with our factories to forecast as accurately as possible.” Employment remains another hurdle. “Finding people who are driven and passionate has been tough,” he admits. “But the tyre industry offers unique opportunities for progression. A tyre fitter can become a store manager in just a few years.”

The company has implemented vigorous recruitment and training programs to address these challenges. “We’re focused on building a talent pipeline that can grow with the business,” Grant says.

Focus on the four-wheel-drive market

Highway Tyres is also investing heavily in the four-wheel-drive market. “Kenda’s four-wheel-drive range, designed in the U.S., is gaining traction here,” Grant says. “We’re developing a dealer network to support this growth.” Recent initiatives include taking dealers on an off-road trip in Arizona, showcasing the product’s capabilities. “It’s about providing value beyond just being the cheapest option,” he emphasizes.

The company’s focus on this market reflects broader trends in consumer preferences. “People are investing more in vehicles and accessories that allow them to explore the outdoors,” Grant observes.

Supporting wholesale partners

The company’s philosophy extends to supporting wholesale partners. “We want our partners to thrive,” Grant says. “If their businesses are profitable, everything else falls into place.”

Highway Tyres collaborates, working closely with wholesale partners to ensure mutual success. “We provide tailored support, including marketing resources and product training, to help our partners maximize their potential,” Grant explains. By fostering an environment of trust and open communication, the company builds partnerships that go beyond transactional relationships.

Grant emphasizes the importance of creating a sustainable ecosystem. “When our wholesale partners succeed, it strengthens the entire supply chain,” he says. The company also leverages its extensive industry experience to offer insights and strategies that align with its partners’ specific needs, ensuring they can adapt effectively to market changes.

“We’re not just looking for sales; we’re looking to create partnerships that benefit everyone involved,” Grant says. These efforts reflect Highway Tyres’ commitment to building a network of reliable, thriving partners contributing to the company’s long-term growth and stability. “We’re not just looking for sales; we’re looking to create partnerships that benefit everyone involved,” he says.

Driving forward with innovation

Reflecting on Highway Tyres’ journey, Grant’s optimism is evident. “We’ve come a long way from our roots in retreading,” he says. “Through diversification, innovation, and a focus on community and staff, we’re positioned for a bright future.”

Looking ahead, the company aims to build on its successes while addressing evolving market demands. “We’re not content standing still,” Grant stresses. “Our focus is on creating value for customers and partners while continuing to innovate in the tyre industry.” This includes leveraging new technologies to improve efficiency and exploring emerging opportunities in sustainable practices.

Grant also highlights the importance of fostering a positive workplace culture as a key driver of future growth. “Our people are our biggest asset, and investing in their development ensures we’re ready to tackle whatever comes next,” he concludes.

AT A GLANCE

Highway Tyres

What: An Australian tyre retailer and distributor offering many tyres and services.

Where: Based in Victoria, Australia, retail stores in Doveton, Kilsyth, Mitcham, Moorabbin, and Mordialloc.

Website: www.highwaytyres.com.au

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