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Some of the world’s largest bicycle manufacturers are examining the supply chain shake due to delays in parts delivery, several manufacturers have said they are the longest in decades.
The global shortage of bicycles has increased last year, with supply problems highlighting confidence in the components of a group, as Japan’s Shimano controls 65% of the high-end gear and brake market.
“It has encouraged us to look around a little more and step out of the comfort zone to explore different suppliers,” said Eric Bjorling, director of the U.S. Trek brand, one of the world’s largest bicycle manufacturers.
European and US producers say it has taken 400 days to place orders and deliver in the case of high-end components made by Shimano, highlighting tensions in the industry that is trying to increase demand for pandemics-driven bicycles.
Some suppliers have given longer lead times for some parts, such as hydraulic brakes or wheels.
The tightness of the supply chain has also hit major bicycle manufacturers, such as Taiwan’s Giant and Merida.
Osaka’s Shimano, which produces fishing components and rowing equipment and bicycle parts, has kept up with the demand for a pandemic that is pushing millions of cyclists around the world.
The shortage is expected to continue, although Shimano’s plants are operating at full capacity.
The problems are more serious for small bicycle manufacturers, but they have added challenges for those who have just entered the market for a very long time.
Trek said it was ‘time to get out of our comfort zone’ © Sandy Huffaker / Bloomberg
Greg LeMond, who won the Tour de France three times, said that launching LeMond was delayed by four months due to supply delays and, among other things, an 80% reduction in Shimano’s first half of the year.
“We were told it would be December in the summer, then January. In March, except for two ingredients, we have everything. Unfortunately, if I don’t have it all, I can’t build a bike, ”said CEO Dean Hendrickson.“ That caused the cash flow problem as a start-up. ”
Antonio Dus Cicli Pinarello, the leading Italian manufacturer specializing in high-end bicycles, said the main question for companies like his is whether demand will continue in the long run.
Some component manufacturers are concerned that orders may cause problems when the stockpiles that are immersed are replenished.
Davide Campagnolo, the company of the same name, has increased production capacity to meet the needs of gear assemblies in Europe’s efforts to supply Shimano, warning: “This huge demand cannot last forever”.
It is expected to fall in the summer of 2023, as indoor sports are making a complete comeback and the market is gaining a huge volume of bikes.
For Shimano, despite increased revenue from bicycle components, tensions are clearly showing up, said Morten Paulsen, an analyst covering Japanese industrialization at the CLSA in Tokyo.
The company delayed the launch of several products to mark its 100th anniversary this year. Pauls said it was probably because engineers had to deviate from the challenge of increasing capacity.
Cicli Pinarello’s Dus has warned that Shimano needs to raise its game, even though he believes the company’s leadership in the supply chain is secure due to the quality of its parts and major barriers to access.
“The key to the future is to connect with Shimano brands in a faster and faster way, knowing in advance what the trends are in planning the necessary adjustments,” he said.
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