4 on the floor: Vehicle owners prepare for tire sticker shock

Eric Colamarino knows he’s running out of time to find winter tires for his Ford pickup truck.

The 30-year-old Unity resident said he has been searching for tires since July, only to be met by factory back orders and prices that are 20% to 25% higher per tire. Colamarino said he bought two Goodyear tires for use this winter and is searching for two more that match.

“It creates a stressful trigger not having the proper tires for the weather that’s quickly approaching, and it adds to that stress due to supply issues,” he said.

The tire industry for months has been plagued by rising prices and is seemingly one of the latest casualties of national supply chain issues.

By September, the tire industry was facing “significant inflationary pressure” from logistics, shipping and raw materials, as well as shortages of workers and truck drivers, according to Tire Industry Research, an international organization that publishes reports on the global tire industry.

In the U.S., tire prices increased 9% between October 2020 and October 2021, U.S. Bureau of Labor Statistics reported.

“It seems like probably three times this year manufacturers have increased their prices because of where they’re coming from and if they’re sitting in those containers in the ports,” said Dennis Ledgerwood, owner of Moore Tire Service in Greensburg. “But, yeah, they have been raising (prices).”

Kelley Blue Book in April attributed increasing prices to people purchasing trucks and SUVs, which tend to use larger tires.

That same month, Bloomberg reported that the price of natural rubber — which is used for car parts such as hoses, belts and tires — reached a four-year high. At the time, the global supply was running short after China took advantage of low prices and began stockpiling rubber. A leaf disease also ravaged the supply of the Pará rubber tree.

By the second half of 2020, the U.S. was starting to feel pressure from supply issues, Bloomberg reported.

Bridgestone Americas Inc., Goodyear Tire & Rubber Co. and Michelin North America all raised prices by 8% at least once this year. Rubber News, a publication covering rubber product manufacturers, in May reported Goodyear attributed the increase to changing market dynamics.

In addition to tires, several other vehicle-related items have been rising in price. According to the U.S. Bureau of Labor Statistics, vehicle parts increased by almost 6% between October 2020 and October 2021. In that same period, motor oil, coolant and other fluids increased by about 11%.

“It’s costing more to do the things that we were able to do last year,” Ledgerwood said.

Leo Moore, owner of Leo’s Tire Service in Vandergrift, said rising prices are reflected in customer bills.

“They’re getting sticker shock,” he said. “Obviously, folks need tires, so they’re going to buy them regardless of the price.”

Both shop owners said they have winter tires in stock, but Moore noted that common sizes and certain brands could see shortages in the future.

Ledgerwood said he put on the first set of winter tires for the season in early November, adding, “they ordered them early enough because they figured they’re not going to be available when the need them.”

Steve Babyak, owner of Romeo’s Tire Center in Leechburg, said tire prices have never been this high in his 40 years in the tire industry.

“As long as I’ve been here, tire prices maybe go up once a year,” Babyak said. “This year, they’ve gone up every month.”

Babyak said the average price of four standard tires runs about $700 to $800.

“It’s actually embarrassing,” Babyak said of the high prices. “Usually, it’s about $200 less than that.”

Continental Tire this month announced that it will increase prices on passenger and light truck tires, beginning Jan. 3. Details on the price increase will be released this week, the company said.

Akron, Ohio-based Goodyear this month reported its third quarter sales were $4.9 billion — a 42% increase from a year ago. The company attributed the gains to “favorable industry trends,” saying that “overall consumer replacement demand remains robust.”

Babyak said demand for tires is still strong although shipping delays and product shortages are a constant.

“People can’t buy cars really or get cars, so they’re fixing their cars up and taking care of them,” Babyak said.

Pandemic impact

Tires are just the latest chapter in the automobile industry’s woes since the start of the covid-19 pandemic.

Fewer people purchased vehicles last year, causing dealership sales to slow. Other dealers were not permitted to sell new cars as government officials issued shutdown orders. As fewer vehicles were being produced, semiconductor chips, which perform a number of functions in vehicles, were put to use in electronics being purchased by those working from home.

The auto industry is expected to see $210 billion in lost revenue because of the semiconductor shortage, a report from consulting firm AlixPartners suggests.

As demand for new vehicles began to increase by the summer, production slowed, meaning there were fewer cars to purchase. At the same time, the price of a late-model car, truck or SUV increased about 30% from May 2020 to June, according to the consumer price index.

“Since February, things have gotten crazy in this business,” Moore said.

Staff writer Joyce Hanz contributed to this report.