Evening journal., 1923-01-29
Best Year in Tire Industry;
Price Adtunce NOU in Order

and trucks must be equipped with
-tires. the Importance Of the tire in
dustry can be readily recognized
The first American pneumatic
clincher type tire was made in 1896.
During the years following this in
troductory tire in the industry has
developed IN line with the general
automobile business. making most
remarkable strides during the last
few years. with the result that Il is
y now tho major part Of the billion
dollar American rubber industry.
Close 10 70 per cent OF the value
of all rubber products made in the
country are represented IN tires. and
- per cent OF the worlds produc-
ton Of crude rubber is consumed
a in the manufacture Of tires and
tubes Just how extensive this con-
sumption Of crude rubber is may be
gagged when II !s known that SO
pounds is used in the making OF the
average tire The average inner
tube contains about two pounds OF
crude rubber. The industry also
PLAYS an important part in the fab
rio market, as as pounds OF cotton
Is required 70 produce the average
casing.
From the standpoint Of production
and sales the year Just closed estab-
lshed a new record. But the tire
business YES IN the anomalous posi-
ton OF maintaining enormous pro-
ducuon schedules with but small
profits. This was brought about
not warranted by manufacturing and
sales costs. but which we're the re-
suit OF competitive conditions.
100000 Pneumatic Tires.
Statistics covering IRE production
compiled by the Rubber Association
Of America are not yet available FOR
the whole OF 1927. but Il Is estimated
that Close 70 100000 pneumatic
castings were turned out. During
the arst ten months approximately
100000 inner tubes were manu-
featured. Tho peak OF production
was attained during August. when
sixty-three companies reported that
they had made total OF 2.so5,20s
tires and 3.sOs.224 inner tubes. Al
though q is estimated that there
are about 1853 tire manufacturing
companies. me siRty-three concerns
reporting 20 the rubber association
are considered a. representing from
20 20 % per cent. OF the produc-
ton capacity OF the industry.
During the first six months OF 1922
PIP manufacturer OF rubber goods
consumed 25s.75s7s7 pounds OF
crude rubber IN the manufacture OF
finished products, this representing
between 80 and IS per cent. OF the
total consumption. or this amount
more than so per cent. or 210 ,01s.+b1 |
pounds. were used in the making |
Of tires and tire sundries. having a
sales value OF sz5e.45 ,65s. Auto /
mobile and truck pneumatic tires.
with a sales value OF S1e2,Sa0.0bs. /
and solid tires, representing a value
of s11.152.417. were produced in the ]
first half OF 1922.
OF the s34s.09o.zss total sales
value Of all rubber products only |
t1SO.631.432 represented mechanical
rubber goods. boots and shoes and
the various other rubber goods. On
the basis Of the third week Of Janu-
ary. 1922. 1921 workers were en-
ployed daily by the rubber Industry.
In the previous year 110,1O4 work
ers were employed. and the total
value Of all rubber goods produced
was s331.517.s74. OF which tz51,-
4s2sO5 covered tires and tlrs sun
dries.
More efficient manufacturing meth
DDS and the competitive conditions
referred TO above had an important
bearing on the tire bill Of American
motorists during the year. While
1921 set new low record for tire
prices, when they were from so 10 90
per cent. under those OF 1910. this
mark was still further reduced dur
Ing the year Just closed. Low prices,
however. were combined with quail
Ity product, for in most instances the
important factors in the industry
their hirh standard Of
Recent Developments IN the crude
rubber market, which brought about
an advance in the cost Of the raw
material OF approximately 100 per
sent. due 20 the close TO so per cent,
cheaper than in adoption OF an ex-
port restriction plan by the British
colonies, win have an important
'earing on the price Of tires in the
uture. The action Of the crude rub
Ter market and an advance IN the
'ost OF fabric we're responsible for
he raising Of tire prices last week.
even with prices now being from 10
o 12h ger cent, above those quoted
n December. the motorist r. receiv-
ne a greater valus than ever be-
ore.
Demand For 100000 Tires
In glancing into the future OF the
ire business one has only 10 con-
ider that there are now about IL
10000 motor vehicles registered
n the United States to realize the
opportunities OF this industry. Il
) conservative 20 estimate that each
{ these vehicles will use during the
curse OF the present year at least
hree tires. Some authorities hold
hat on an average each car wears
ut a full set or four tires. But as
uminR only three are consumed
here will be a need for S3,00O,00O
res for replacements only. On top
( this consider. the new cars that
IN be turned out OF the automo-
lie factories. Production eched
les for 1928 probably will provide
pr at least 100000 cars. Each
ar will be equipped with five tires,
r a total Of 10000. 900 castings This
leans that there lie a potential de-
land for about 100000 automo-
Ia no