Norco has announced that it will be putting its factory DH and XC on hold next year to allow the brand to work through the industry's recovery from the pandemic.
Following an extremely successful 2022 season it comes as a big shock to see the Norco team close its ranks for at least the next season. Norco has said that it is helping the teams' athletes and staff find roles for next season and development will continue on its next-generation DH and XC platforms.
The pausing of the team does mean that Sam Blenkinsop, Henry Fitzgerald, Lucas Cruz, Elliot Jamieson, Gracey Hemstreet, Peter Disera, Sean Fincham, Gwendalyn Gibson, Emilly Johnston and Carter Woods could be looking for teams next year. With some big names in the mix and some great results achieved this year we hope they will find a new home for next season.
In its press release, Norco states the decision was made to "confidently navigate the industry’s pandemic recovery" allowing the company to continue to offer riders and dealers what they want from the brand.
 | Since we started building mountain bikes, Norco has been driven by the energy and spirit that competition has brought to our work. 2022, in fact, has been the Norco Factory Team’s most successful year in its over 30 years of racing – results that we continue to celebrate as the season winds down; which makes this announcement even more heartbreaking:
At the end of the race season, we will temporarily pause the Norco Factory DH and XC team programs. We understand this decision drastically affects the lives and careers of so many talented people who have contributed to the program’s success. To ensure that all our 2022 team athletes and staff can stay on-track for 2023, we’re advocating on their behalf with our industry partners and colleagues to help secure support for all of them.
This pause will allow Norco to confidently navigate the industry’s pandemic recovery. It’s a pragmatic, but excruciating sacrifice we’ve had to make to ensure that Norco will continue to meet the needs of riders and our dealers long into the future.
We’ll continue to ride, engage with our communities, and forge forward as we develop and build innovative mountain bikes, including our next generation of DH and XC platforms.
Thanks to all our riders, support staff, sponsors, and fans for your decades of inspiration. It means the world to us.— Norco |
They made a fortune the past 3 years with major brands having revenue hikes from 50 to 300%. Cry me a f*cking river.
Massive lead times on new bikes, warranty frames and entire model years being skipped.
If this pause means I have more chance of getting a 2023 Sight in the UK I am (selfishly) all for it.
Now people's buying power is being hit more severely it's possible they've found they're sitting on old stock, need to pay for new stock and have to get that money from somewhere. Race teams are an easy call as far as that goes.
Not excusing any of this action/behaviour, but I think a lot of brands are in worse positions than people expect.
If there are sectors that would be aware of upcoming shit before the others, I'd say it's those 3, so things may not be bright ahead...
Buy some spare chains, cassettes, and tires :p
There are definitely more important things to be concentrating on in the coming months/years.
By some miracle, let’s hope it isn’t as bad as we are all predicting.
It will be, england almost had a crisis wednesday till BoE bailed out but that wont last long. I wonder (who) was being margin called and had them buy bonds to save their asses, make the roll roll a bit longer. For the IMF to say "we are monitoring the economic devopment of england" like its a third world country was comical. Short england and germany.
I'm sure there will be some "making hay while the sun shines" margin increases in there but from my limited glimpses into the industry in the past few years the simple cost of getting bikes and parts made then shipped out to dealers/customers has risen significantly too. It really isn't as simple as companies making all that extra profit from the increased RRPs compared to years gone by.
www.bloomberg.com/opinion/articles/2022-09-29/uk-pensions-got-margin-calls
It seems the Tories are going full ride or die with this, so sucks to be us here in the UK for the foreseeable future.
As far as the situation here is concerned I think there will be another leadership election very soon if they try to press on with these plans.
I worked at a shop that sold Norco briefly, and fully agree with that statement. Impossible to get small parts from, warranty was non existent, and good luck getting any help with ebike issues… which were plentiful. In the end they opened an account with a shop less than a mile away because they had two stores compared to our one, even though we had quickly become one of their largest accounts in Northern California.
You’re not George Soros, you muppet.
Let’s revisit this in a year’s time and see how accurate you are.
JP
Must be some bad karma or something lol
Credit Suisse is critical(swiss might bail them out though). Blackrock deleveraging on sick english economy.
I've been out of the industry for a while, so grain of salt on all of this, but they lost Shimano a number of years back, and either lost entirely, or lost exclusive rights to a number of other brands who either expanded to other distributors, or cut them out entirely and established their own distribution networks in Canada. Combine this with the overall struggle of bike shops pre-covid, the rise of online shopping from international retailers, and the massive impact that covid supply chain issues would have on a distributor, and I would be surprised if Norco isn't feeling a squeeze from multiple directions.
Also, Norco as a bike brand is way bigger than just mountain bikes. I'd wager that with their large base of accounts across the country, it's probably much easier and cheaper for them to develop and sell commuter hybrids or generic kids' bikes or almost anything else they do than high end mountain bikes. In the grand scheme of things, the race team is likely a passion project more than anything else - probably has been for quite some time.
Now they need to recover from the pandemic? GTFO
Price of shipping a container across the Pacific
* last year: $19,000
* earlier this year: $14,500
* now: $3,900.
The big players (Trek, Specialized, Cannondale) would be chuffed if at the end of the year, after all the staff wages are paid, the tour-de-france teams and race teams paid for, facilities paid, warranty replacements and recalls paid for, for if they've made $20-50 million profit on a $1B turnover. 2-5% of turnover.
If anybody can find evidence they make more than that I'd love to see it.
Shimano on the other hand make a lot more money than that. On a $4-5B turnover it looks like they make about a 20% net profit when all is said and done. Again, please correct me if I'm wrong but I've had a good read and that looks right to me.
Not...cheap, fast, unproven stuff. You and your boys convince yourselves you spent that money because you just knew for sure in your super smart heads that the brand would hold up even if they never fielded a World Cup team.
Your asses bought them because big dogs got sponsored and put them to the test. If you bought a YT without World Cup pros proofing them...you'd just be a damn fool that got lucky.
There’s a gofundme page here: www.gofundme.com/f/alicia-and-her-family-with-medical-costs?utm_campaign=m_pd+share-sheet&utm_medium=copy_link_all&utm_source=customer
@brianpark Why are pinkbike users being asked to pick up the bill? Does your company not offer health insurance? I am very lucky as a Canadian to not only have free healthcare but extended health through my employer. It really makes me sad to see that my neighbours have to use online funding to foot the bills the for their healthcare.
A team of that size if very expensive to run: Salaries, transport, etc. No one at Norco was rubbing their hands, looking for ways to screw over their atheletes and friends.
Norco is a bit of a unique situation as while they’re a bike brand. They’re actual cash flow come from them also being 1 of the 2 big distributors in Canada. Which I’m sure battled insane supply chain issues only compounding their chaos.
Nobody in their right mind would let a talent of her caliber go. She could have been the future of the gravity side of their brand for years to come.
It has been weird that the DH team rode a pimped DH bike for the last two years now so something has been off their I guess
Maybe now Norco will be able to concentrate on speccing bikes with parts that are actually compatible with each other. Bought by Optic C2 Shimano in January and it's taken 6 months and far too many weeks in the LBS to diagnose that the Praxis crankset and chainring it comes with don't work with a Shimano 12-speed chain. Norco's solution? Fit a chain retention device! That's why the Optic C2 Shimano is the only model with a chain device.
Great bike dumb spec.
@ripsilver Okay, I didn't know that, but the fact that (basically) Halfords have taken over tells me that things aren't likely any better. Either way you'll be dealing with a clueless teenager as they are too tight to employ people who know what they're doing.
Here in Aus, Norco are sold mostly by 99 bikes, as close a cycling version of Halfords as it's possible to be. Mostly low end bikes catering for the bulk end of the market. Sales staff that are sales staff, not the ride addicts you get in LBS. Customer service that sucks.
LBS that try and stock Norco can't compete with the bulk sales prices of 99 bikes and give it away after a few years.
I've spoken to many staff in quite a few different stores that are quite patronising until they realise you've been riding bikes longer than they've been alive and they are way out of their depth.
Their prices are the only pro due to the bulk buying power.
I very much doubt it was even discussed in the board meeting.
Best news for that young lady is she will find another team very likely. For many of the others, it may be tough out there.
I think that's what people mean when they say you have to get a real job. They hate that others enjoy what they do to make money, so saying they don't have a real job makes them feel a bit better.
Take my boy. Massively into mtb. Jumping, trails, park, etc. his heros are Matt Jones, Brendon Fairclough, etc. Riders that have massive and quality tube and insta presence. What does he want? Helfare kit, etc.
Racing is a laborious commitment. Social media is a quick polished snapshot hit.
On the dh side With the team fees going up, with a new coverage and unknown viewership …. The price of everything going up , I would take the wait and see approach too.
Man, I feel for local bike shops trying to deal with this as well
Im currently shopping bikes & not in a rush but was all up on Norco - - but this move makes me wonder why I should support them vs Commencal, SC or others. Seems like lots of other people would think this too - not a punishment move (Im just one buyer) but whole team amputation doesnt inspire confidence in Norco exaclty
Totally agree with you though.
Maybe I’m wrong!
Also, advocating "with our industry partners and colleagues to help secure support"? C'mon man, this is a business, not a food pantry.
One of those was pre pandemic. Basically they're a PITA on the dealer side. In my hometown, Norco has been passed around to at least three shops in 6 years.
"could be looking for teams next year. " Well if they want to continue in the sport and their dreams i suppose YES they will be looking for teams. Imagine basically being let go. You don't just get to retire you will have to stumble to find something.
This is just sickening.
If anyone wants a deal or a Norco sight we will be selling a 2021 Norco sight C2.
~3 months ago (July 2022) I spoke with a lower mainland bike shop (Greater Van) who requested Norco ship them 44 bikes, and they received 4. This is a HUGE missed opportunity to get bikes onto local mountains.
I tried to steer a family member into a Sight, but they're too hard to find. And they ended up with a Transition instead - now they are being marketed when he rides.
You mean "layoffs"?
I wonder if this has anything to do with the new Uci/discovery schedule and the possibilities of larger team entry fees and such? Will we see more teams dropping in the next few weeks? Have they been given more information about next years restructuring?
Using Covid as an excuse shows how out-of-touch they are with their base.