Specialized Executive Vice President: It Will Take More Than a Year For Cycling Inventory to Recover

Mar 26, 2021
by James Smurthwaite  
Specialized lead times inventory talk
A slide taken from Margevicius' talk showing the lead times of certain components.

If you've been struggling to get hold of bike parts recently, don't hold your breath that anything will change any time soon. In a talk given as part of the Tapei Cycle Online Show yesterday, Robert Margevicius, Specialized's Executive Vice President, predicted it could take "a year or more for the industry to fully recover and build back up the inventory so we have the product available for the market".

Margevicius noted that bike sales remained stable for the past 25 years but a surge of more than 38% this year has caused serious disruption. With demand now far outstripping supply, lead times have ballooned on components from 30-60 days up to more than 300-400 days for some parts such as suspension, contact points and wheels. He warned that inventory levels are currently dangerously low and with customers now unwilling to wait, any sale that isn't made on the spot seems to lead to a lost sale for the industry rather than a delayed one.

We went to Taiwan and started a bike company

One solution might be to increase the supply of components, however, it seems the manufacturers are unwilling. Margevicius is predicting that the industry will record a 43% growth by 2030 but his confidence doesn't seem to be shared by the factories in Taiwan. In a separate talk at the Show, Bicycle Retailer and Industry News reports that both Margevicius and Ton Anbeek, CEO of Accell Group, urged Taiwan's components manufacturers to upgrade their capacity with new factories but for now, they are choosing to be more conservative.

While the factories have apparently increased efficiency by around 10-15%, Margevicius believes this will not be enough to keep up with a growing market. He said, "That isn't really helping us much, to be honest with ya. The future is now, and industry leaders... need a sense of urgency and a mandate to believe and invest... There are billions of dollars to be made and profits for those who believe and invest in a healthier and a stronger business."

Anbeek echoed his thoughts, saying, "To meet the growing demand in the coming years we need component suppliers to invest in extra capacity to produce more critical components and products as soon as possible. And this needs, more than ever before, to be based on a long-term commitment and partnership between branded bike manufactures and component suppliers. Accell and its brands look forward to working with you to profit enormously from this very green and favorable market circumstance and trends."

We went to Taiwan and started a bike company
Taiwan's manufacturers seem unwilling to upgrade their capacity for the time being.

However, in the few years it takes to get a factory online, the boom period may have passed and this would leave manufacturers with more capacity than orders. Other industry trends, such as the growth in local manufacturing and factories opening in other Southeast Asian countries may also be playing into their lack of confidence.

All of this, paired with a shortage of shipping, the ongoing situation in the Suez and the rising price of raw materials, doesn't paint a pretty picture for those riders waiting to get their hands on some new kit anytime soon. To watch the full talk given by Margevicius, click here.


231 Comments

  • 333 1
 The demand surge is real... we're facing our longest lead-times ever, while seeing raw materials and logistics costs on the rise too. We know it's not what everyone wants to hear, but it's unfortunately the reality we're faced with. However, we're in a very fortunate position of being the sole manufacturer of the majority of our product line. We've taken this opportunity to scale up - we've hired close to 20 new people, both in our machine shop and in our i9 finishing and assembly operations. We've poured 7-figure dollar amount investments in CNC machines as well. We know this boom will subside, but we're positioning ourselves to produce more, faster, when the dust settles. Of course we know it's hard to hear how far out we (both i9 and the bike industry) are on parts, but we're increasing production capacity weekly and focused on getting riders and companies their product as fast as possible. We thank riders for their continued patience, and we'll see you on the trail!
  • 18 0
 @IndustryNineOfficial I love that you produce the majority of your product in-house and it's why I buy your product. I appreciate you doing everything you can including capital investments.

When the 'dust settles' as you put it and I'm guessing you mean supply/demand returning to more normal levels do still see the capital expenditure as justified for a short term spike? Do you plan to get more OEM contracts to maintain higher levels of production once the "dust settles"?
  • 25 0
 @rtclark:

We've been very fortunate to be on an upward growth trajectory for a number of consecutive seasons, and OEM business has certainly been part of that. Ultimately, we'd love to keep expanding the OEM channel, but also continue to keep our nascent Spain-based EU operation growing. Ultimately, growth is the plan, but the pandemic has served as a crucible to force that acceleration.
  • 7 2
 I am an operational efficiency and lean business consultant working with businesses across Canada, I love seeing how businesses in an industry I care a lot about adapt and adjust, certainly some interesting case studies will emerge 'once the dust settles'. The K-shaped ecnomy is a real thing and the need to pivot, adapt and be agile is required on both ends of the curve. Great to hear how you've pivoted operations to make those crucial adjustments. The pandemic has certainly shifted a number of industries to thinking about ways to operate which drive value, reduce waste, and build capacity. This investment will in automation will pay dividends if you continue to build it on a cultural mindset of continuous improvement. Your investments will surely support future growth beyond current-state abnormalities. Keep up the great work!
  • 5 1
 Kudos to you! Fingers crossed that lead time issues will eventually be solved. As a cyclist I wish you luck and hope for the best. time to bring home more manufacturing??

Thankfully in the UK we have Hope!!
  • 12 0
 @IndustryNineOfficial I can't say how much I love seeing one of my favorite companies jump into the comments section to just talk bikes with their people. Much love y'all!
  • 20 0
 @GM303: Thanks rider! We're bike people - first and foremost - so of course we're obsessively on PinkBike daily.
  • 4 0
 @IndustryNineOfficial: Thank you for all you do! I have been riding on your wheel 10+years, Amazing products and people! Cheers!
  • 3 0
 #hydra boom
  • 9 0
 @IndustryNineOfficial While I don’t personally run your hubs. I go with the silent American option. I personally do truly appreciate the devotion to staying American made, by talented hard working local people. All of these situations in the world right now have shown how advantageous this can truly be, and why there should be a resurgence of Made in America pride (or Germany, UK, Australia, where ever you may live) Now more than ever is the perfect time to support your local manufactures.
  • 3 0
 @IndustryNineOfficial: keep up the good fight guys!
  • 4 0
 @IndustryNineOfficial: North Caroline pride, Thank you
  • 1 0
 What is the approx lead time for the custom hubset now @i9? Thanks.
  • 4 0
 Maybe this would be a good time to move to higher-quality European or Japanese bearing cartridges? Your hubs are the utmost quality in every way except the truly important one: bearings. There are many occasions every year when I sell Taiwanese-made DT Swiss hubs to a customer who came in wanting I9 hubs, when I know the customer well enough to know that he or she is just going to be frustrated by the ultra-low-quality Enduro bearings (in weird sizes that can’t be replaced with higher-quality items from ie, SKF or NTN).

And yeah, I’ve talked to y’all directly about this before. You’ve been pretty non-responsive, although on at least a few occasions you’ve provided a bearing kit...of more of the same, but still, it’s the right gesture.
  • 2 0
 @IndustryNineOfficial: I ordered some of your hubs and a stem a few weeks ago. Going to be waiting 10+ weeks still as far as I am aware.

Totally and utterly worth it. The more we support our brands here, the more we get to grow our own industrial base. Keep rockin', I9!
  • 3 0
 That's waling the talk. Looks like Specialized on the other hand is asking companies in the Far Easto to invest so Spec can have product to sell.
  • 1 0
 @Vyckinis: We're still pretty far out.. we're seeing a range of delivery between 8-12 weeks.
  • 2 0
 @Apfelsauce: Appreciate the feedback rider. We always strive for continued improvement.
  • 132 3
 'Ok you manufacturers who've husbanded your businesses to decades of slow, steady growth in a changing global market and with Taiwan-China political relations in the background, what you need to do is pour your own money into increasing capacity so that we can take better advantage of this bubble and I'm sure you'll figure out the rest later' - some dichead from the C-suite of an American company with a cool website
  • 8 1
 Nailed it.
  • 20 2
 Exactly. As an OEM factory I would just tell all these companies to pound sand or go make your shit in-house.
  • 7 0
 @gus6464: Those people that they are telling to "go pound sand" are their customers. But, I do agree many of these companies now don't really make anything. Everything they produce has been outsourced to other companies. Does a company like Specialized own a factory any longer?
  • 6 1
 @vondur: Specialized owns water bottle factory for years and about 3-4 years back they opened their own tire factory.
  • 2 0
 @skvedo: thought their tire factory was with IRC?
  • 6 0
 @wibblywobbly: I wonder what will happen when the Federal Reserve “prints” a few billion extra dollars, gives it mostly to their buddies in bug business what will happen to the average person...Inflation is a good thing right????
  • 4 0
 @unrooted: Big bug is to blame!
  • 73 1
 Godspeed you, bike shop owners
  • 22 5
 Probably make more $$ now since people will come in for bike service because they can’t find bike parts online. I know a lot of riders that replace vs fix.

Creaky cranks? Buy new ones
Fork needs serviced? Buy a new one
Brakes feel squishy? Buy new ones
  • 51 1
 Lift your skinny calves like antennas to heaven.
  • 14 0
 @daugherd: This assumes the shops have the parts in stock to make the repairs. Most global distributors are sold out of high-wear items like chains, derailleurs, cassettes, and brakes for the foreseeable future. The summer is going to be a mess.
  • 6 1
 If suppliers can't keep up, bike brands will simply rise prices - problem solved. They will eventually earn the same money.
  • 19 1
 @aaronfpeet: F♯ A♯ 28.99mm
  • 2 0
 @daugherd: that would be nice but parts are as scarce as bikes, I wanted to but a new pair or pikes for myself and I will have to wait until July in the UK
  • 5 0
 @kiksy: bahhahahahahahah I didn’t think there were any more GY!BE puns that would work. Thanks for proving me wrong!
  • 4 0
 How are you gonna raise the price on a product you don't have?
  • 3 0
 @daugherd: Tough part there is parts availability. At my shop we had some bikes sitting for 6 months waiting for parts that have already been paid for by the shop but not the customer. It's not a fun situation to be in. I am glad I got out of the retail side of things this year. Took all the fun out of being a shop employee
  • 4 1
 @daugherd: buy bike repair stand, fix shit yourself. Alternate: attempt to fix, f*ck it up worse, buy new.
  • 2 0
 @Tjjones1214: If you meant there is no parts availability, I'm with you. I actually moved into a retail bike spot after needing a change. I'm enjoying it but the answers to "do you have this bike" or "whaddaya you mean you can't fix it right now" are getting a little tedious. Service is backed up due to volume (people are fixing anything and everything), and some we can't do since we just can't get the parts.

I think the majority here look for quality parts and generally can fix their own stuff. But for the way bigger majority of people in the wide world who only feel, or can only afford, a Canadian Tire or Walmart bike the world is much tougher. Older standards, harder to find parts, repairs worth more than the bike is. We've gone through a dozen wheel sales after some kid curbs his bike or people back into their bike in the garage just this week because it's easier/faster to get the whole thing rather than rebuilding a crappy wheel or hub after waiting for those parts. And when our wheel supply dries up, well....

You hafta not break things this season. Its the only way to guarantee you're not sidelined. Whether a shop does it or you do it, you can't fix stuff without a new part.
  • 3 0
 @iammarkstewart: That's exactly what I meant. I have worked in shops since '07 and I have never seen anything like this. Took it as my cue to get an industry job. Much happier being away from the retail side of things. Really brought my passion back.

Glad you're having a good time in the shop! Some of the best memories I have come from workplace shenanigans hahaha
  • 1 0
 @aaronfpeet: feels like post rock appreciation society all over again (:
  • 5 0
 @daugherd: I work at a shop as a tech and people are spending $200-$300 on bikes worth $100 to get them back up and running.
  • 3 0
 Allelujah! Mind the Bend! Descend!
  • 2 0
 @aaronfpeet: GY!BE reference?!
  • 1 1
 @daugherd: You didn't think that one through did you? This parts shortage is affecting everyone. buy your cassettes and chains now if you can, cuz man, by june there will simply be no chance.
  • 63 2
 I think the Taiwan factory owners have it right, pretty sure were going to be reading about a 38% decline in sales in a year or so from now , and a booming used market . I have already seen a few "his and hers" bike adds of basically new bikes.
  • 13 0
 Yes we'll see a decline, but some of the new buyers will stick around. How many is the million-dollar question. Looks like the manufactures have placed their bets.
  • 2 0
 You could be right about this, when considering the method of manufacture many of them implement, such as forging, press work, casting, extrusion etc etc - all fairly expensive and lengthy processes to get moving.

New CNC machines / machining capacity however is something that could be increased quickly and not for too much outlay, I doubt its that simple.

However - what if they are wrong and they do miss the business opportunity of a lifetime?
  • 22 0
 His and hers bike ad right now: Ridden for 6 months, has a few scratches, no warranty, retails for 5000 w/tax I'll sell for 4950 Firm
  • 2 0
 @pumpjumpnflow: No joke had some customers at my last shop sell their Ripmo AF's for more than they paid. they came in and bought V2's
  • 4 0
 @pumpjumpnflow: I don't know how many used bikes I've seen locally advertised for more than retail. I've seen a bunch that were probably $150+ over MSRP, and you know what, the ad disappears a few days later. My cousin got her daughter a used Woom and she paid full MSRP for a two year old bike. When she got to the lady's house to pick it up, there were two cars waiting who wanted to be there just incase the first buyer didn't show up.

Time to scrap together all the old frames in my garage and sell them with all the old parts I have laying around.
  • 1 0
 @justanotherusername: CNC machines and capacity are not quickly added to a shop. In a normal year machines have lead times of up to 18 months and even longer now......remember HAAS, DMG, Mazak and others all have worker and supply chain challenges due to the shut downs. Now the used equipment mark is very strong. We constantly get calls from used equipment sales folks asking us if we are going to sell any of our machines.
  • 3 0
 @CornPop: ah right, we just added two machines in the last 6 months, both with 6 week lead time, from order to shop floor.

We are enquiring about a third machine now, lead time on this one a bit longer at 10 weeks.

Maybe you are purchasing more exotic kit than we are?
  • 2 0
 @BikesBoatsNJeeps: I have made money on two kid bikes and sold them within hours of listing. I did not get real greedy and try to get msrp, but I have definitely been lucky with buy low sell high. Newest kid bike i preordered which I normally hate doing, but could not risk it this time. Paying full price was a little rough though.
  • 1 0
 @BikesBoatsNJeeps: I did that last summer and made enough to buy my current bike. All I’ve got left is small parts, I’m just waiting another month or so and then that will all go up for sale. If you’ve got old out of date parts, now is the time.
  • 2 0
 @pumpjumpnflow:

The car industry too. I bought a 2015 Tacoma two years ago for $28k.

I have put 80,000kms on it and now I can probably get $30,000.
  • 1 0
 @WayneParsons: look at the price to rent a car these days...
  • 1 0
 THIS. The increased demand isn't going to be sustained indefinitely, and building production capacity is expensive.

A subset of manufacturers (particularly smaller/high end ones) may be able to sustain increased production volume by taking market share from others, but this won't work for the major OEMs selling generic product.
  • 2 0
 @dsut4392: how do we know the demand won’t be sustained, at least to a large extent? - I’m not saying to 100% of the current level but it is possible that what has happened with the pandemic has caused some permanent change, this coupled with the push for green transport and leisure and the rise of ever better trail bikes, places to ride and I think more largely at the high end - e-bikes.

I think with e-bikes becoming better and better things may just keep going for some time, I have never spoken to so many people who rode when younger or before kids etc that are researching / purchasing (or trying to) E-bikes, the fact they are expensive is to some an even bigger lure, it’s a fancy toy that’s nice to own too.

As an example, a supplier of ours talks bikes to me regularly and their whole sales dept have all bought ebikes recently, 6-8 guys, nothing to do with the pandemic, one bought one and the rest followed suit over a few months - they literally love them, none have the time to get fit enough to smash the trail centre twice on a Sunday morning but they can now.
  • 44 0
 Well I guess ill change my riding style from Patrick Swayze in Road House to Patrick Swayze in Ghost.
  • 24 0
 I'll opt for Patrick Swayze in Point Break thanks.
  • 20 0
 I'm still riding like Chris Farley standing next to Patrick Swayze in SNL Chippendales skit.
www.youtube.com/watch?v=stqG2ihMvP0
  • 11 0
 This summer will be more like Patrick Swayze in Red Dawn. Just you and your friends in the woods with minimal supplies
  • 2 0
 @tincancharlie: I’m gonna Darryl Bates all of you
  • 4 0
 These are the comments that bring me here... comedic gold.
  • 2 0
 @Cholopolitan: Life sure has a sick sense of humor, doesn't it?
  • 1 0
 @everythingsucks: literally laughing out loud here
  • 4 0
 Road House had a lot of boot knives in it. Could be a new trend in bike shoes for the inevitable fight scene vs. hikers with switchblades.
  • 1 0
 @tincancharlie: That happened 2 weeks ago in Bellingham.
  • 4 0
 @tincancharlie: Its all fun and games until some hiker calls you a chicken dick
  • 31 0
 On the bright side I can still find apples to eat.
  • 28 0
 Or you know, we could maybe start looking to make parts stateside, or Canada/Mexico at least. We need to invest in jobs here, as so many are out work.
  • 4 3
 Most out of work people don't want to work in manufacturing.
  • 2 0
 You get the same answer as that provided by the Taiwan factories - unwilling to invest on what may appear to be a bubble.
  • 4 1
 @A-HIGHLY-EDUCATED-PROFESSIONAL: I own US based manufacturing company, and I see all the "Hiring" signs in the industrial parks.
  • 3 0
 @HBkites: good workers are not easy to find and more importantly retain
  • 2 0
 @twozerosix: good employees are extremely easy to retain... treat them right and compensate them for being good employees and they will be loyal. I've hired dozens over the years in several different industries and I've always advocated for those employees when it was time for management to make money available. I've moved on through a fee jobs over the years and employees I've hired into positions over the years have actually stayed there since I would advocate for them to replace me. I think it is incumbent on companies to retain talent. It doesn't always work that way but it can.
  • 2 0
 @BikesBoatsNJeeps: not putting any doubt into your statement. However - if a factory worker at a domestic manufacturing company can make the same or better hourly wage money at Chick Fil A, or a grocery store, or something that works better with their schedules than 4-10’s that start at 6am...those people are hard to retain. Yes, absolutely incumbent on managers to make their jobs worthwhile, have a growth path, advocate for their needs, but this isn’t common practice in domestic manufacturing. Still very much “us vs them” in my experience.
  • 2 0
 @twozerosix: Sounds like we've identified one of the problems.
  • 33 16
 Just love to hear "we look forward to profiting enormously", instead of "we look forward to pushing the industry to be better/cleaner/more inclusive/etc"
  • 41 0
 You mean hear the truth?

"better/cleaner/more inclusive/etc" are just things companies say so people will buy their stuff.

The sole purpose of a company is to generate profit.
  • 4 0
 These are the things you say when you need to generate demand. That's not a problem right now.
  • 2 5
 @rtclark @Caiokv: thats the truth I expect to hear from facebook...amazon... I like to think that, for the most part, the bike industry stands for something alongside profiting - bringing a tool of freedom, entertainment, and love for the outdoors so hearing "we look forward to profit" instead of "this is an opportunity to make things more efficient, greener, get our name and love of bikes/bike stuff out there..." is disappointing.
  • 1 0
 @Caiokv: Generally true, unless your a Certified B Corp.
  • 3 0
 We love treating businesses like people and people and their environment like money!
  • 12 0
 This makes me so uneasy, we have bikes now but they are slowly disappearing off the shelf and I can't get any to replace those bikes, we couldn't get a PPP loan because or numbers were off the charts last year but end of the day profits were overall down because we utilized amazon a lot to get stuff QBP was sold out on, I hope I can retrain and continue to grow.
  • 10 0
 Oooorrrr you float the capital for your suppliers direct or indirect via SCF to fund the manufacturing upgrades for your suppliers at twice the speed and build a distributed value relationship within the whole supply chain. Seemed to work well for Tim Cook and immediately won him SCM company of the year, several years in a row.
  • 6 1
 I don't think that works as well in the bike industry. Contract manufacturers and suppliers to Apple make a majority of their money from specifically selling to Apple, so it makes sense for Apple to float them some capital in that it's Apple taking on the future market risk. In the bike industry, we see the opposite. If I understand correctly, many bike companies contract with only a handful of frame builders in Taiwan. So unlike the Apple situation, the further upstream suppliers are actually larger than many of the companies purchasing from them. That makes it much harder for companies to push significant capital upstream. Component-wise, I don't actually know how Shimano and SRAM source and build their widgets. Maybe it would be possible here?
That said, I'm not in the bike industry so most of this is a guess.
  • 9 0
 As a rider who does 100% of his own maintenance/builds, I have slowly been acquiring all of the usual wear items that I can think of to get me by for hopefully 18 months if not more.... tires, sealant, chains, brake pads and fluid, spokes, nipples, chainring, cables and housing, fork wipers and fluid (hardtail) and assorted bolts.

I targeted what I was after and signed up for email notifications when the item came back in stock and immediately pulled the trigger.
  • 8 1
 Bike parts are now like toilet paper. Hoard as much as you can when you can.
  • 8 0
 @kr2ranger: what is the bike part equivalent of a bidet?
  • 7 0
 @TerrapinBen: trail running shoes?
  • 1 0
 I am so torn on selling my old dback mission. Yeah I could make a few bucks, but I may need to poach brakes, dropper, etc.
  • 12 1
 This infographic was made before the entire USA's bottle cage allotment for 2021 got stuck in the Suez canal.
  • 3 0
 I guess shipping to the West coast does not go thru Suez canal but the Pacific?
  • 9 0
 Isn't this a chance for the really brave manufacturers to increase vertical integration to get ahead too?
  • 8 1
 Is this really true or is this more of "buy our bikes now!" This attitude is certainty activating my "car dealership" radar of " this car is limited production, you should buy it now because there are no more coming!"
  • 27 18
 But still, prices keeps increasing and value for money goes down.
  • 74 2
 I dont think you understand how business and economics work...
  • 4 0
 I guess those bike industry managers need to go back to school...
  • 4 0
 Right, because no one can get parts. That is what happens when supply goes down.
  • 9 0
 demand ^ price ^
  • 6 0
 I don't think you do. What he described is classic demand pull inflation where you have more money chasing fewer goods and that's what we are experiencing because of a supply chain crunch.

These bike execs think the industry is going to the moon with pandemic bike boom and the ebike revolution, the factories don't. You're a billion dollar bike brand and think there's billions more to made but you're losing sales because of long lead times? Sounds like you need to control the factory, not the other way around.
  • 8 0
 What about a new hub or BB standard to drive up sales? It seems like it’s been a few weeks...
  • 5 1
 I'm sure there are going to be a lot of comments about having manufacturing more localized. I'd love to see more brands produce locally here in the US, and I'm sure some are thinking about it as we sit here.

...That being said. Everyone wants US made until they see the price tag...

There are brands like Guerrilla Gravity that are really shaking things up with innovate (and green) ways to produce bikes. The issue is scaling some of these idea up and the fact that you have to pay your workers a livable wage. Plus, biking is still seen as a hobby here in the US. There isn't as much demand for bikes in the US as there is in other countries where they are a mode of travel. So, it really may not be worth the investment to manufacture in the US when a lot of your demand is across the ocean anyway.

It's not impossible, and I want to see it happen. But that's *maybe* a 5 year plan if companies pour money into it.
  • 9 1
 I can buy USA made bmx parts for very competitive prices. Why does a USA made bmx frame cost ~$400-$500 and most USA made hardtail frames are quadruple that? I understand there may be more labor and making different sizes adds costs, but a $There are a few sub $1,000 hardtail frames, but most are much more. $2500 steel hardtail frame is silly. I wish Moeller or standard would build some rowdy-ish hardtail frames and sell them for $800-$1000. I'd own at least one for sure.

I am loving what GG is doing and they will most likely get my money when I am ready for my next FS frame.

Now I am day dreaming about a trans blue S&M hardtail frame with black profile hubs, raw cranks, polished velocity rims.
  • 3 0
 @Doogster: My guess is it's because the frames are harder to make, or require more types of tubing they don't use in the same volume. Standard makes $4-500 BMX frames but asks 1400 for a gravel frame.
  • 1 0
 @tttyyler: They are $1450 now, which seems reasonable compared to other US made frames. Too bade they do not come with a fork. I wonder if additional volume could bring the price down 20 percent or so.

FBM briefly made and sold a gravel frameset for $1300. Not bad for a US made frame and fork. I wish I had the means to snag one back when I could.
  • 1 0
 @Doogster: I read once that most guys on Harleys probably wouldn't even ride motorcycles if Harley didn't exist because they like the brand's image more than the activity itself. The same can probably be said for most people riding Standard road/gravel bikes. It's just a nostalgia purpose for people who grew up in the mid school BMX days but are too old to ride anything else in their catalogue.
  • 2 0
 @tttyyler: There is definitely a factor of chasing youth and nostalgia. A think more people just love bikes and riding no matter the wheel size. Why not support the companies and the people you supported as a kid if you can?

Side note: Have you seen prices on some of the old and even mid school bmx stuff? prices are insane.
  • 6 0
 oh no
anyway
continue support made in china and slave labour.
why not suport own eu or us manufacturers??
  • 3 0
 Just ordered some Crankbrothers alloy wheels and they are drop-shipping direct from Taiwan in 5 days to my house via DHL. I ordered another set in January that shipped the same way. It seems they are eating extra shipping charges to keep lead times efficient, and releasing inventory real time from the factory.
  • 8 2
 Time to buy a 3D printer!
  • 35 0
 Print me an AXS derailleur, some pistachio 38s and a new left hand shimano brake lever please?
  • 2 0
 @pbuser2299: especially that left hand brake lever
  • 2 0
 @phalley: I built a Shigura last year and got me some Saint levers for the Bling. Now I'm building a new set (N+1 bike) and the Saint levers were the cheapest in-stock option! New xt or xtr levers were 30€/piece more expensive
  • 2 0
 It's sad to walk into a bike store and see empty shelves, I want them to do well and be able to take advantage of this surge in popularity. Today I was looking for a specific tire (but common) for my son and I called 5 bike shops before I found one (luckily there is no shortage of bike shops in North Van).
  • 4 1
 So why is it that I can aquire all these parts within a week and I'm yet to see an empty bike shop? Seriously, everybody is screaming bike part shortage but my bank account disagrees.
  • 2 0
 Inventories will definitely take more than a year to recover in so many sectors.
Supply chain is crazy just now in mass manufacturing. I have never seen it like this before. It is causing so many headaches just now and it's only getting worse!

I am not a dentist waiting for my santacruz, but I am one of the engineers who faces the issues caused by 2020/2021 supply chain issues daily.

It's a crazy world out there just now!
  • 3 1
 What chaps my ass is I ordered parts from SRAM AXS Reverb, AXS XX1 complete drive train and Guide brakes. Six months later and I’m STILL WAITING ON THE f*ckING DROPPER!!!! It’s infuriating that I see manufacturers trickling bikes out there with these components and I’m not even on the back burner. I’m on the f*cking floor behind the stove! Thx SRAM.
  • 7 2
 It's a good time to ride a little slower and not break shit.
  • 12 2
 Ride fast, take chances. You only live once.
  • 4 4
 @TerrapinBen: then you enjoy not riding all summer while your bike is down for repairs indefinitely because you can't replace anything.
  • 2 0
 @TerrapinBen: normally I'd agree with you, but after breaking a rim a month ago and struggling to find a suitable replacement, I'm trying to take it a little easier on my bike so I can keep biking through 2021.
  • 8 0
 user name does NOT check out ;-)
  • 1 1
 @alexsin: much like the toilet paper hoarders, just gotta start hoarding consumable bike parts.
  • 4 0
 Toilet paper hoard, check. Flour hoard, check. Next up: grips, saddles, and spokes?
  • 7 2
 Only make 250k a year. Gonna need a cheaper hobby. It was fun.
  • 3 0
 Core problem with bike industry summed up right there:

"There are billions of dollars to be made"

Sad to see the bizarro world of pricing we accept as normal these days.
  • 1 0
 I don't think there's a conspiracy, but why aren't other manufacturers also having trouble supplying components?

Shipping delays and increased costs, yes ... but something seems amiss. We deal with Chinese machine shops–I'll ask the folks involved if they're noticing delays from Asian suppliers.
  • 1 0
 "Move manufacturing to the US" No move it to the UK along with raw materials
minining and process, as thats where I'm located : )

Ideally countrys should have a basic level of own self sufficiency on things if possible,
as current situation is highlighting many issues.

This one will have its effects, container ship blocking Egypt's Suez Canal.
  • 1 0
 I don't see the idea to increase production capacity for temporary demand surge as a good idea.
1. Taiwan has limited space compared the US.
2. After this surge plateaus once everyone got their bicycle, the factories will need downsize to save on operating cost. And guess will be footing bill?
3. Lastly, bicycling for is just fad like riding fixies. My take is they weren't riding before the pandemic it's likely won't continue. There'll be a few that truly fell in love that got comfortable with regular bicycling. This is mostly coming from my pre pandemic general observation.

The Specialized spokesperson is merely interested making a quick profit, while not caring about the long term cost others would have to shelf out.
  • 5 1
 Taiwan is too far away,!!! We need to produce locally.
  • 7 1
 Producing locally brings its own issues - I know of a manufacturer who actually lost an order as they produced in-house and not taiwan.

Pretty much the whole industry (Big brands of course, not boutique stuff) uses Taiwan as its assembly base, as most frames are made it helps that the parts are too, its all sent to one place, assembled and shipped out to the brand, sometimes directly to the brands distributors.

Its pretty hard to convince them in that situation that a parts going to be travelling thousands of miles to be recieved for assembly, when it can be sourced (or at least could!) locally and purchased in numbers that give favourable pricing.

Things can change, but it isnt going to happen quickly - doesnt mean manufacturers cant capitalise on the aftermaket scene though.
  • 3 1
 As much as I would love to buy local. I just can't afford it. (In the UK anyway) business rates an taxes (an stupid brexshit) force prices of home made companies products higher than most can afford. I buy Hope because they're products though expensive are so durable a n backed up with spare parts for decades they're worth that cost in the long term. Not a lot companies can boast to that. Brexshit has put extra costs on EU components for the foreseeable Frown
So viva la Taiwan
  • 3 0
 Forgot to say, the high cost of living adding to high wages adding to high product costs.
  • 2 0
 @nojzilla: What about companies like Superstar, Works Components, Renthal, Unite, Burgtec? They are not really any more expensive than taiwanese suppliers being realistic. Chainrings for £35 wheelsets for £200, bars for £50, etc

Frames from people like Starling and Orange are not really that much more now either - sure the direct sellers like YT etc have them on price but compared to Taiwanese carbon they are the same if not cheaper.
  • 2 1
 @justanotherusername: not all but a lot of those companies products are made in the far east... as for orange and starling etc... over priced pogo sticks. These boutique companies tend to make steel frames that flop like a wet fish and yes they are way out of my price range. Yeah I can get a YT or Commencal bike for the price of those frames. I can get a Vitus for peanuts compared to UK made companies.
Don't get me wrong I would love to support UK companies (and I do. But, as mentioned most of those parts are off shore/far east) just cos its a UK company doesn't meant the parts are UK made as we've seen recently with the brexshit/cotic bike fiasco....
  • 4 13
flag Pandamonia (Mar 26, 2021 at 11:19) (Below Threshold)
 @nojzilla: Brexit hasnt put up EU prices you idiot. They are more expensive because they are coming from China. 55% of the product has to be made in the EU to avoid import tax. Turns out bike stuff is chink made crap imported to the EU and then sold at a huge margin to the rest of us idiots
  • 1 2
 P.S I wouldn't touch carbon for all the £€¥ in the world
  • 1 0
 @nojzilla: huh? The list of companies I gave are majority UK made - maybe burgtec don’t make the plastic pedals and theirs and unites bars but other than that it’s all UK stuff, unless you know something I dont?

Renthal, stem is uk at least alloy bars uk
Works - headset uk, rings uk
Unite - pedals uk, rings uk, stem uk, guide uk.
Burgtec - pretty much as above
Superstar - Hubs, rings, headsets, jockeys, seat clamps, etc all uk

What am I missing?

As for the uk frames being ‘pogo sticks’ - well that doesn’t validate your point about cost, does it?
  • 6 0
 @Pandamonia: you contradict yourself in quite a hilarious way there.

First you say prices haven’t gone up due to Brexit, then you say it has because the stuff coming from Europe is made in China.

Make your mind up you xenophobic turd.
  • 1 0
 @justanotherusername:
I run renthal bars
Burgtech, cool
Unite, works, hardly affordable
Superstar, what all the other Taiwan made stuff pedals wheel parts etc?

As for the floppy/pogo sticks, why pay boutique money for those when I can get high performance for WAY less ?

99% of the bikes and parts we ride are made in the Far East wether they're from UK, Euro or US companies. Fact
  • 1 0
 @justanotherusername: As much as I would love to support UK companies an jobs. As a biker on a budget, as long as my parts have durability, longevity an affordability AND knowing that most of those parts are made in the same few far east factories. I don't care where they come(marketed) from.
  • 4 0
 @Pandamonia: Taiwan isn't in China...... racist idiot
  • 1 1
 @nojzilla: maybe we have a different idea of ‘affordable’ - rings at £35, angle headsets cheapest on the market, superstar may use some Taiwanese bits but mostly UK made (who makes rims in the uk?)

Sounds like you formed an opinion and you are sticking to it, back to alibaba for your parts I suppose.....
  • 1 0
 @justanotherusername: I have no need for an angle set, run hope H'sets. I use moslty Ebay UK suppliers only since brexshit due to the import increse, an CRC.I do have one LBS that's good but you have to be a dentist to shop there! As for rings I use Absolute Black oval on the trail bike but, the cheap CRC version,UK made ???I think. Blackspire snaggle tooth Made in Canada for like £25-30 cos the wide narrow performance is the Best I've ever used especially for that £
I may be wrong but i think superstar use rebranded Novotech hubs an Alex rims? Welgo for pedals?
I honestly think you'd be surprised how many companies from around the world get parts made by the Same few large far eastern manufactueres. It really opened my eyes when I worked in the BMX industry.

The current covid/brexshit situation is also a lage factor in me not caring where my parts are marketed from as long as my bike is running. With this news I think I'll stock upon KMC chains, again super performance for litlle £, so good that shimano have KMC make thier chains.....
  • 4 8
flag Pandamonia (Mar 26, 2021 at 12:30) (Below Threshold)
 @justanotherusername: I know you might be a bit thick and all that being Canadian i wont hold it against you. But the EU has free trade with the UK so Brexit isnt the problem. What is the problem is the EU importing chinese goods and paying import duty and then exporting to the UK with more duty. If the companies had any brains they wouldnt pay duty on exported goods but clearly they have not worked this out yet. Brexit isnt the problem, stupid companies are.
  • 2 6
flag Pandamonia (Mar 26, 2021 at 12:32) (Below Threshold)
 @nojzilla: Its not made in Taiwan you fool. Its mostly made in mainland china which by the way has an island off its coast called Taiwan.
  • 4 0
 @Pandamonia: I’m British and live in England.

Brexit was the cause for the free trade agreement, no?

Was this an issue before Brexit - no

How can you therefore not understand that it’s due to Brexit? The bike brands in the EU haven’t changed their business model since Jan 1st and that’s when the prices rose, no?

Did you know it also works the other way - e.g. nukeproof are now much more expensive to purchase in the EU, damaging nukeproofs trade.

You seem to have absolutely no understanding of what you speak or you are just completely blinded by your Brexit tribal loyalty.
  • 2 0
 @Pandamonia: I can also guarantee you most of the bikes and parts at the level we use them are made in Taiwan, not China.

Do you has a brain?
  • 5 0
 @Pandamonia: Please, I worked in the bike industry for shops and suppliers. Stop using unsults an racist slurs an step away from the keyboard.
  • 1 0
 @nojzilla: Sounds like you are out of touch and maybe familiar how they used to do business - take a look at superstars social media, probably a couple of million quids worth of machinery, hubs completely made in house, same with unite and works, look on their pages, plenty of pics of equipment making stuff in the UK.

Sure, the odd bit like axles, rims and stuff are overseas parts but by majority it’s UK stuff.
  • 5 0
 @nojzilla: I think we can certainly agree on the fact that pandamonia is an ignorant, racist

Even truth in plain fact can’t alter the opinion of some of the absolutely brainwashed.
  • 1 0
 @justanotherusername: Preach brother!
  • 2 4
 @justanotherusername: I know exactly what im talking about. Chinese made parts have never been free of import tax. It was just paid to the EU before and now its not. Specialized imports direct to the UK and has said that brexit doesnt affect its pricing at all. So there is no way that Brexit trade rules can affect the price of Bikes made in china or the EU.
  • 3 9
flag Pandamonia (Mar 26, 2021 at 13:17) (Below Threshold)
 @justanotherusername: Oh dear, a soy boy called me a WAACIST... oh dear. Just cus i pointed out the junk is made in china. Which is why its all unreliable as shit. like most stuff made there
  • 3 0
 @Pandamonia: Wrong. Due to no UK stock I was watching an XTR shifter (made in Japan) from an EU seller on Ebay. When brexshit happened, Over night the postage went up from free to £13, ALSO subject to import duty. Due to brexshit...........
slow hand clap
  • 2 0
 @Pandamonia: what on earth are you taking about?

I will try once more, and simply for you to explain as it seems you are struggling, right:

- Bike brand ‘pandamoniabrexitcretinbikes’ is based in Germany - pre Brexit it imports bikes from Taiwan and pays the required import duty and charges upon import (this company isn’t huge like specialized so doesn’t have the ability to have dealers in every country)

- It sells a bike to a UK customer and due to being part of the single market, absolutely no charges are paid, no customs, no VAT, no duty, bike costs customer £2000.00

- Roll on Jan 1st and Brexit - customer in the UK buys bike but now the UK isn’t part of the single market so under the new arrangement the customer is liable to pay import duty at 14% - so the customer now pays £2280 for the bike - assuming no handling fees.

Do you understand now? Surely you do, it’s very, very basic.
  • 1 6
flag Pandamonia (Mar 26, 2021 at 14:14) (Below Threshold)
 @justanotherusername: How about i explain this for you since you are a DUMB SHIT. Import tax when imported in to EU. Import tax Paid when exported to UK. EU import tax RECLAIMED ON EXPORT. You dont pay twice f*ckWIT.
  • 3 0
 @Pandamonia: what is ‘import tax’?

What can’t you understand? The CUSTOMER pays the import DUTY at 14% not the business selling it, it’s due to rules of origin.

It’s very, very, very simple - the whole industry is talking about it, everybody else understands it, except you.

www.export.org.uk/news/549784/Booming-biking-sector-tries-to-work-through-new-Rules-of-Origin-and-VAT-regulations.htm

Are you a troll or just incredibly hard of thinking?
  • 3 1
 @Pandamonia: yah insulting an entire (f*cking awesome) country is the right way to go.

+ 2 for the “xenophobic turd”.
  • 1 1
 @justanotherusername: I think you will find businesses and people pay import tax depending on who does the importing. The problem is the EU is importing chinese made goods and then trying to export them to the UK so its no different than importing direct from China. The issue is the EU companies are not reclaiming the duty paid to the EU. Its VERY simple and thats why German made cars full of chinese made parts having not gone up in price!
  • 1 0
 @Pandamonia: It’s like actual reality is taking place in front of you yet you are arguing that it isn’t, what a genuinely strange fantasy it is rabid brexiteers inhabit.

Ignore the articles, ignore the actual business telling you what is happening, just go with what you want to believe in the sunlit uplands that exist only in your own brain.
  • 1 0
 @Pandamonia: one final, last time -https://www.moneysavingexpert.com/shopping/buying-online-from-europe-post-brexit/

I’m sure either won’t read it, won’t understand it or just plain won’t believe it though.
  • 3 0
 Panic buying checklist....um, check. What chains are people rocking these days?
  • 2 0
 The $80 ones.
  • 2 1
 Customer unwilling to wait is a lost sale? Maybe for the fair weather fat couch potato who doesn’t know the difference between SX and XX1.

This comment doesn’t pertain to any of us here and on other bike Forums.
  • 1 1
 Sorry, forum fk up
  • 3 0
 If Mr. Specialized is so sure the boom will stick, why do they not invest in manufacturing themselves?
  • 1 0
 I completely agree. I think it'll a short term gain, then a loss when demand plateaus back to the pre pandemic usual amount.
  • 1 0
 Never had a problem finding any parts or a new frame. Universal cycles has an insane inventory and had a frame shipped to my door in 2 days. You MF'ers need to learn how to build bikes.
  • 4 0
 Whats new?
  • 13 0
 what is new is the pace of change. we are getting very close to the vertical wall part of this exponential curve of increasing money supply/decreasing purchasing power.
to quote hemmingway.. it happens slowly at first, and then all at once.
  • 2 0
 @rippinrob: Most people don't understand exponential functions.
  • 5 1
 thanks tips.
  • 1 0
 What would be really helpful is more big companies not opening warehouses next to supplier factories and filling them full of inventory for the future....
  • 2 0
 Now is the day of the smaller bike companies that order in smaller quantities!
  • 6 0
 You say that, but I'm not so sure. Bigger companies are likely to have one or multiple people in Taiwan checking on their factories and jockeying to get the best place in line. They purchase larger amounts of product so suppliers are more likely to let them get it first. They have deeper pockets which is useful in an age where you need to buy so much stuff a year in advance. They already have at least some shipping space booked because they ship containers every week as opposed to when needed by a smaller company. They design a lot of there stuff in house making them less vulnerable to other companies supply chains. I would say this is a terrible time to be a small bike company... UNLESS they manufacture locally in which case they're doing much better.
  • 2 0
 @hmstuna: Agreed, may be a good time to sell frames or components but I wouldn’t want to be a small bike company right now, or a shop without decent cash flow for that matter - you will need to be able to order well in advance.

I can actually see this situation causing many smaller guys to go bankrupt.
  • 1 0
 @hmstuna: Having a tad of insider information, I will say its easier to order a pallet of something than the much larger orders that Specialized has to put in for something.
  • 3 0
 @hamncheez: true in a sense, but your guaranteed far less consistency in when and how you'll get it. Specialized at least knows they'll get some of their bikes fairly regularly. If you're a small company and you put in an order it can easily get lost or delayed in the chaos. And far less people care.
  • 1 0
 How about having new component companies start up and make this crap in the USA. At least they could justify the crazy prices then
  • 1 0
 Yea, might take a year or 3 though to get started....
  • 3 4
 Relying on slave labor in shitty little countries has finally bit the bike companies in the ass. ( although asses covered by huge, money stuffed wallets ) I say build those quick to fail / wear out componets in our own shitty little country... Bring on the $ 20,000 mountain bike !!
  • 1 0
 Not sure when Taiwan became a 'shitty little country with slave labour'. Try visiting places outside your insular mind before you speak about places you know nothing about.
  • 2 0
 Hmm... guess I’ll run a couple more psi in the tires and start lubing my chain ...
  • 1 0
 Bob is an industry icon, few know the supply chain of the bike industry as well as he does.
  • 1 0
 I ordered my giant this Christmas hoping to get it by summer. Guess I gotta wait till Christmas again
  • 2 0
 Meanwhile, my old DH bike is languishing on the buy/sell.
  • 1 0
 I just ordered 4 pairs of brake pads. They are getting very difficult to find.
  • 2 0
 Move manufacturing to the US
  • 1 0
 Can't wait for the prices to get lower in a year then ...
  • 1 0
 Good news! I only have to wait six months for spokes!
  • 1 0
 Looks like this is the year my overdraft recovers......
  • 1 0
 time to fire up the lathe at my work
  • 1 1
 I remember reading about a struggling bikeshop owner. His wife owned six horses.
  • 1 2
 I'm pretty sure KTM on a whim could come in, build everything in house and dominate the silly ass mtn bike industry like they've done in motorcycling.
  • 1 0
 And they can’t wait to drive up there prices even more
  • 1 0
 Just bought new dropper, headset and minions
  • 1 1
 Specialized Executive Vice President (AKA Captain Obvious)
  • 1 2
 But in the meantime we are gonna rape you as much as we can while you are desperate for bikes
  • 1 0
 Is ita parts-demic?
Below threshold threads are hidden

Post a Comment



Copyright © 2000 - 2021. Pinkbike.com. All rights reserved.
dv56 0.031903
Mobile Version of Website