Unfortunately, tire prices are increasing. Of the numerous reasons, below are some of the major contributing factors:
- Supply and demand. Car manufacturers are making cars again, but my understanding is that when they were hurting during our recession, the tire manufacturers were forced to lay off and close factories all around the world. Now that they are building cars again at more normal numbers, the tire manufacturers are having a hard time keeping up.
- Ecological pressure/material costs. As we search for new and more ecological ingredients involved in tire production that are better for our environment, it brings added costs. For example, Michelin has started using renewable oils in some of their tires (sunflower seed oils), which are less harmful to our environment and replenishable. BFGoodrich is striving to lower the scrap count at their plants by replacing old machines and refining their processes. These are only a few of the steps that tire manufacturers have taken to be more responsible. These changes to help make our tire production more efficient and green tend to add costs both to the materials and the process.
- Import taxes. Many of the tires we use are not made in the U.S.