Tire dealers see signs of life, new challenges in May

NORTH CANTON, Ohio — Business in mid-May was better than a month earlier, but it's still down from a year ago. And good technicians still are hard to find.

That's the sentiment among a number of independent tire dealers around the U.S.

The COVID-19 pandemic and the response to containing it stifled demand for tires in March and April. Now, as restrictions are being lifted around the country, tire dealers are hoping for a well-traveled summer full of foot traffic and sales.

Throughout the coronavirus pandemic, Tire Business has kept in contact with a number of tire dealers around the country for periodic updates on how their businesses are adjusting.

This story appeared in the May 25, 2020 edition of Tire Business

"Thankfully, we have no sick staff, which is our primary concern," Bob Kellogg, president of Warren Tire Service Center, which operates 15 shops in upstate New York, said. The company employs 130 full- and part-time employees.

Mr. Kellogg said business was down — at least 20% — in March, April and May, compared with 2019. But, in mid-May, he described the business as healthy.

Retail foot traffic continues to be a big obstacle though, Mr. Kellogg said.

"Overall, I would stress staying positive during this pandemic and conveying that message to all staff on a regular basis," he said. "The signs of the strain this has had on people is showing, and it takes a consistent effort and discipline to push forward."

Howard Fleishmann Sr. of Community Tire Pros & Auto Repair in Phoenix said a low car count is also a concern in Arizona, but — thanks to the dry, desert climate — it's starting to increase.

"We have heat, and that is driving traffic for air conditioning and neglected repairs and maintenance," Mr. Fleishmann said.

"… Our business has improved slowly over the last four weeks. Not back to normal, however (we're) on our way."

At Community Tire Pros' six locations, Mr. Fleishmann said, customers seem "impressed" with the safety procedures the dealership has put in place. He said they haven't had as many customers seeking touchless service as they expected, even after heavily advertising it.

"We are doing it all, including sanitizing the vehicle before it is returned to the customer. This process adds 30 minutes to each transaction, and many (customers) request we wipe things down rather than allow for the extra time to sanitize."

Tire dealers have been using a lot of different methods to take payments and relay information to customers. Some shops are utilizing new technology designed for the aftermarket while others are taking payments over the phones.

Greg Mynaugh, president of United Tire & Service L.L.C., said a touchless payment option is provided at United Tire's 13 locations throughout Pennsylvania.

"Customers appreciate text to pay, but only a small percentage use this," Mr. Mynaugh said. "And they like the digital inspections that we use via Bolt On Technology."

Barry Steinberg, CEO of Direct Tire & Auto Service in Watertown, Mass. with locations throughout the greater Boston area, said dealerships aren't allowing customers in the showroom. Instead, customers drop off their keys, and payment is done via text or over the phone.

"(We are) absolutely doing most of our selling on the phone for tires," Mr. Steinberg said. "We send videos for all multi-point inspections, which our clients love the transparency and complete explanation by our technicians."

Scott Shubin, president of Goodguys Tires & Auto Repair, which operates nine retail locations in and around Fresno, Calif., said Goodguys has tried to get out in front of its competitors and "embrace the new protocols."

"We've added a 'touchless' option for customers," Mr. Shubin said, adding his dealership offers pick up and delivery, online payment for tires and phone payment for other services. "All of our employees wear masks, gloves, and we cover the steering wheel, seat and floorboard of the customer's vehicle.

"It's gone well so far."

Mr. Fleishmann in Phoenix said finding good workers still is an issue in the industry.

"Some things never change — still trying to add high-quality technicians and (they are) still very hard to find," Mr. Fleishmann said. "Unemployment is paying $840 a week (and) many people are not wanting to go back to work."

Shane Robertson, president of Robertson Tire Co. with 14 locations throughout Tulsa, Okla., said business is slowly picking up as restrictions are lifted in Oklahoma. He said his company had no layoffs during the pandemic and has hired eight people in the last month.

"Our biggest challenge right now is dealing with fraudulent unemployment claims, and handling COVID-19 'family and medical leave' pay issues," Mr. Robertson said. "There are a lot of people out there trying to take advantage of the situation."