Dirt Talk by BuildWitt – Ep. 388

Guest: Joe Pehanick, CEO of East Bay Tire
Host: Aaron Witt
Date: November 6, 2025

Episode Overview

This episode features an in-depth conversation between Aaron Witt and Joe Pehanick (CEO, East Bay Tire), exploring the "unsexy but essential" world of tires. The discussion covers how East Bay Tire is modernizing a legacy business, the critical role of tires in infrastructure and supply chains, the unique business challenges in Hawaii and California, tire manufacturing, recycling conundrums, operational data, and the importance of authentic leadership in the dirt world. The conversation is rich with practical insights and candid moments.

Key Discussion Topics & Insights

1. East Bay Tire: A Legacy Built on Evolution

• Company History & Market Presence
  • East Bay Tire, started by Joe’s great-grandfather in 1946, originally dealt in used tires, evolving into a new tire distributor, and expanding services over decades ([05:24]–[07:00]).
  • Deep ties to Hawaii, established through postwar trade and extended stopovers, with formal expansion and distribution in the late 1980s and 1990s.

"My great grandfather, Joseph Fuch, when he started the business in 1946...would fly to Japan and pull used tires back from the war zones...We've been there really doing business since the 50s."
— Joe Pehanick, [05:24]

• Modernization: Joe, a next-gen leader, is steering East Bay Tire toward being more data-driven, customer-educational, brand-agnostic, and value-focused rather than just selling and servicing tires.

2. Business in Hawaii & California: Unique Challenges

• The team explores the profound logistical and socioeconomic difficulties of operating in both Hawaii and California:
  • Cost of Living and Infrastructure in Hawaii: Difficulty for locals to remain, post-fire rebuild struggles, bureaucracy, and land use controversies ([08:21]–[16:07]).
  • Contrast Between Urban and Rural California: Most of California is agricultural and rural, contrary to outside perception focused on the coast and tech cities ([20:13]–[22:57]).
  • Parent Company’s Need for High Efficiency: “We have to be phenomenal operators...extremely, extremely efficient.” ([16:30], Joe)

"You have to be pretty good to survive [in Hawaii and California]."
— Aaron Witt, [16:20]

3. The Tire Business: Complexity, Scale, and Impact

• Customer Base: Spans OE manufacturers, dealers, end users (mining, ag, trucking, golf courses), and more ([17:15]–[18:37]).
• Tire Applications: Each sector views and values tires differently; e.g. golf versus quarry ([18:24]–[19:36]).
• Tracks and Emerging Needs: Adapting to customer needs across sectors, including crossover specialties like rubber tracks ([19:36]–[19:45]).

"We think we sell tires. We service a thousand different industries."
— Joe Pehanick, [18:24]

4. How Tires Move the World

• Critical Role in Supply Chains:
  • Tires are central to logistics (trucking, ports, agriculture), with maintenance, durability, and fuel impact at stake ([23:17]–[27:02]).
  • Heavy transport tire tech has progressed: steer tires, for example, now exceed 200,000 miles with proper maintenance ([25:34]–[25:54]).
• Insights on Trucking Industry:
  • Over-the-road Class 8 trucking is East Bay’s biggest segment.
  • Trailer tires, despite being chosen for cost, account for 42.5% of a unit’s fuel impact ([26:26]–[26:58]).

"The heartbeat of our consumerism is over-the-road trucking."
— Joe Pehanick, [28:46]

"Drives and trailers are each 42.5% [of the fuel impact], and then steer is the 15."
— Joe Pehanick, [26:55]

5. Tire Manufacturing, Science & Sustainability

• Rubber Origins: Field observations about rubber and palm oil plantations in Southeast Asia; raw latex harvesting still rudimentary ([36:29]–[37:11]).
• Tire Construction: Detailed look at tire structure—cords, beads, treads, and compounding ([43:14]–[45:00], [46:11]–[47:10]).
  • Vulcanization: Energy-intensive, slow process—ripe for innovation ([46:26]–[47:10]).
• Retreading: Declining in trucking, uneconomical or impractical for large mining tires. Complex materials make recycling tough ([41:44]–[54:26]).
• Disposal/Recycling Issues:
  • Heavy tires often used to construct walls at mine sites.
  • Few real recycling uses exist; most post-life solutions involve shredding or improper disposal, both costly ([48:13]–[50:04], [53:01]–[53:28]).

"The industry does not have an end game on [tire recycling]."
— Joe Pehanick, [52:59]

6. Operational Data and Customer-Centric Service

• Data as Differentiator:
  • East Bay’s investment in real-world, brand-agnostic data collection (mileage, hours, KPIs) is used to help customers select and maintain optimal tires, track performance, and reduce costs ([63:43]–[64:52], [88:14]–[90:13]).
• Application Matters:
  • Right tire for the right operation (e.g., L5 loader tire’s design speed); user and operating errors (haul road quality, improper operator technique) directly impact tire life ([65:16]–[69:51], [71:14]–[74:06]).
• Mining vs Civil Construction:
  • Mining’s culture of optimization and granular operational data compared to civil construction’s more traditional approach ([76:28]–[81:15], [82:04]–[86:12]).

"Comparing one tire to another tire in the exact same application, because that's what it all comes down to..."
— Joe Pehanick, [64:43]

"Big, big, long-term decisions...that could really change their budget—we basically need at least a full year [of data]."
— Joe Pehanick, [89:59]

7. Leadership, Culture & Authenticity

• The Human Element:
  • Success in dirt world businesses is rooted in leaders genuinely engaged in the business and the field, not just the office—ownership, values, presence, and "walking the floor" ([103:17]–[104:59], [105:38]–[111:37], [112:03]–[113:40]).
• Contrast with Big Corp:
  • Discussion of ego, corporate Kool-Aid, and stifling of individualism at large companies versus the authenticity possible in private, family businesses ([92:48]–[100:01]).
• Generational Stewardship:
  • Joe shares his perspective as a next-gen leader both honoring and evolving his family's legacy ([115:04]–[117:24]).

"You can't fake passion. And you'll see it in people's actions."
— Joe Pehanick, [111:55]

"I love people who live and breathe anything...just in, into something. All in."
— Joe Pehanick, [114:19]

8. Podcasts, Communication & Purpose

• Podcasting for Impact—Not Ego or Reach:
  • Both host and guest emphasize that success should be measured by real value delivered—even if only a few niche listeners benefit ([119:52]–[122:17]).
  • The importance of genuine, human communication in an era of AI/ChatGPT/outsourcing content ([131:49]–[134:39]).

"Speaking and writing is the thought process. Is your thought process...If you remove that [with AI], you're removing the thinking part."
— Aaron Witt, [132:00]

• Leadership Tip:
  • Giving voice and recognition to frontline employees, whether through training or simply listening, creates lasting value ([107:26]–[108:31]).

Notable Quotes & Memorable Moments

• On Tires’ Centrality:

  • "The whole world moves on tires. Joe certainly hasn't underappreciated that, and he's trying to build appreciation everywhere he goes."
    — Aaron Witt [00:00]

• On Hawaii’s Cost of Living:

  • "I've seen actual rentals for $1,500 a month for a home like this. It's a side shed. And this would be a luxury side shed in some parts of Maui."
    — Joe Pehanick [09:23]

• On Industrial Realities:

  • "Driving through Silicon Valley...people think this is how the world works. No, no, no, no, no. Like the Port of Long Beach, big ships, containers, cranes...this is what keeps our whole world going."
    — Aaron Witt [27:02]

• On the Role of Leadership:

  • "You've got to be in the business. And so many leaders are not even remotely close to the business."
    — Aaron Witt [103:17]

• On Application-Specific Problem Solving:

  • "It's not the tire’s fault. It's the tire dealer for not either a, having the breadth of options, and/or knowing that this option is a better fit for this application versus this application."
    — Joe Pehanick [64:43]

• On Passion and Culture:

  • "I love people who live and breathe anything...just in, into something all in. Those people are awesome."
    — Joe Pehanick [114:19]

Timestamps for Key Segments

• Origins of East Bay Tire, Family Legacy: [05:24]
• Hawaii Business/Infrastructure Insights: [08:21]–[16:07]
• Differences: Rural, Urban California: [20:13]–[22:57]
• Supply Chains, Importance of Truck Tires, and Stats: [23:17]–[27:02]
• Contemporary Tire Manufacturing Explained: [36:29]–[47:10]
• Retreading and Sustainability Challenges: [41:44]–[54:26]
• Brand-Agnostic, Data-Driven Service Model: [63:43]–[64:52], [88:14]–[90:13]
• Why Operations Succeed or Fail: Application, Culture, Data: [71:14]–[74:06], [76:28]–[86:12]
• Mining vs Civil Construction, Operational Learnings: [81:15]–[86:12]
• Leadership, Presence, and Family: [103:17]–[113:40]
• Podcasting, Communication, and AI Cautions: [119:52]–[134:39]

Conclusion

This episode offers a rare, candid window into the tire industry and its intersection with construction, mining, and logistics. Joe Pehanick advocates for a service- and data-driven approach while emphasizing the human connections, humility, and hands-on leadership that produce lasting business success. Both Aaron and Joe deliver actionable wisdom that applies well beyond the tire rack—straight to building better, people-first companies in the dirt world.

Find Joe’s podcast: aroundthebead.com | Spotify | Apple Podcasts | YouTube

Connect with Joe:

• LinkedIn (Original posts, no ChatGPT)

Memorable closing:
"Progress over perfection."
— Joe Pehanick, [137:25]