Manley: Tire dealers look to future

In a year that will be remembered for its death, illness and the all-around inconvenience of COVID-19, there still were moments in 2020 to smize — smile with your eyes.

For the tire industry, the year brought challenges, but vehicles still hit the road, tires wore down and business continued.

"Made us very thankful that we didn't own 31 restaurants, 31 movie theaters, 31 gyms, 31 barbershops or 31 nail salons or have a business that was directly tied to these other industries," Chris Mitsos, vice president of Mountain View Tire & Service Inc., said. Mountain View operates 31 locations throughout the greater Los Angeles metro area.

"With few exceptions, (customers) were very thankful we were open and ready to serve them. Our customers also showed us how essential we really are to the community, especially in a market like Southern California where, without a car, you are in a less than desirable position," Mr. Mitsos said.

In early April, Scott Shubin, president of Goodguys Tires & Auto Repair, which operates nine retail locations in and around Fresno, Calif., called the situation surreal. At the time, he said, foot traffic was way down but regular customers were catching up on maintenance.

In late April, he was positive for the future heading into an easing of lockdown orders and the start of summer weather.

"Our car count has certainly dropped off, but the average spend is up," Mr. Shubin said at the time.

Recently, Mr. Shubin reflected on the year, saying it was "scary at first, but then it settled down."

"With everything we had going on with COVID, wildfires and shutdowns, we have survived and even thrived," he said.

Mr. Shubin said that his customers "really supported us, and we really appreciated them more than ever."

JP Gallagher, owner of specialty tire wholesaler Gallagher Tire Inc. in Pottstown, Pa., called 2020 an "emotional roller coaster." The business merged two distribution centers into one location with double the capacity in February.

"When the pandemic hit, I was looking at my inventory — and of course with the new building, I ordered quite a bit more — and we had never been at the levels that had been in March of this year," Mr. Gallagher said in September.

"It was scary for a little while, but the team came together, our customers are fantastic, and we were able to do what needed to be done."

In late December, he said it was tough to have such high expectations for the new building, then face the realities of the pandemic.

"Fortunately, we are moving in the right direction," he said recently.

"… 2020 took a lot out of many. I was lucky to come through with just a few bruises. I wish others fared better with their year."

Of course, 2021 will bring its own challenges. On the wholesale side, Mr. Gallagher said it will be all about acquiring products.

"Domestic production is challenged by a lack of qualified tire builders along with domestic logistics," he said. "International producers are also struggling to find employees — to a lesser degree — but the challenges of the steamship lines and container shortages will make imports a bigger struggle."

Mr. Mitsos said navigating new California COVID laws may be problematic.

"Additionally, I think it will take most of 2021 for us to get back to normal car count levels at the stores," he said.

"So, there will be tough choices that will have to be made in terms of discretionary spending and staffing levels at the stores."

When asked what the biggest challenge entering 2021 is, Mr. Shubin said it will be a familiar one.

"Like many years, finding qualified and motivated people to help take us to the next level," Mr. Shubin said.