WASHINGTON — The U.S. tire industry contributes nearly $171 billion in economic output annually, equal to about 0.8% of the nation's gross domestic product, according to an analysis of the U.S. economy commissioned by the U.S. Tire Manufacturers Association (USTMA), while providing employment for over 800,000 individuals.
The study, conducted by John Dunham & Associates of Long Boat Key, Fla., uses standard econometric models first developed by the U.S. Forest Service, and now maintained by IMPLAN Inc. Data came from industry sources, government publications and Data Axle.
The study covers a variety of sectors of the economy tied to tires, including manufacturing, wholesaling and retailing, as well as industries impacted by tire manufacturing distribution up and down the supply chain.
All told, the extended industry also generates nearly $12 billion in federal business and personal taxes and $6.8 billion in state and local taxes, the study concludes.
Manufacturing generated nearly $32 billion in output in 2021, the last year for which full-year data were available.
The manufacturing sector paid $6.8 billion in wages to 77,862 workers, or an average of $87,334 per worker.
Broken down by state, South Carolina shows up No. 1 in terms of output ($6.13 billion), jobs (14,294 positions) and wages ($1.32 billion). Tire Business data from the Global Tire Report on manufacturing capacity also rates the Palmetto State as No. 1 with over 122,000 units of daily capacity at eight factories.
No. 2 on the USTMA/Dunham list is Ohio, despite being only 12th in terms of production capacity. Ohio's ranking is tied to the fact that Goodyear is headquartered in the Buckeye State and both Goodyear and Bridgestone Americas have extensive research and development operations in the state.
Output in Ohio is valued at $3.36 billion, generated by 7,963 workers. The wage per worker is $102,625, higher than nearly all other states.
Tennessee, North Carolina and Georgia are the next largest based on the value of their output.
The study's methodology summary does not mention retreading, so it's unclear whether retreading is considered part of tire manufacturing. At the same time, the study shows $4.1 billion in economic activity and 10,657 jobs related to tire manufacturing in 46 states where there are no tire plants.
In terms of distribution — wholesaling and retailing (including manufacturers' captive outlets) — the USTMA/Dunham study values this sector's output at $36.5 billion, while providing employment for 213,761 workers.
The average wage per worker is $67,112, with wages in the wholesaling sector measurably higher than in retailing ($79,506 versus $65,520).
Broken down by state, California and Texas are heads and shoulders above the other 48 states, with output valued at $3.7 billion and $3.25 billion, respectively, and with sector employment of 19,025 and 18,858.
Florida, Ohio and Tennessee are ranked three through five, with economic output of $1.84 billion, $1.7 billion and $1.56 billion, respectively.
In terms of wages paid, California ranks first with $76,712 per person employed in the distribution sector, ahead of New Jersey ($76,108), Michigan ($75,537), Tennessee ($72,711) and Iowa ($71,765).
According to the study, the tire industry's direct impact comes to just over $68 billion while providing over 291,000 individual employment.
