So are you looking for some good news in the economy? Look no further than the bicycle business. Step right this way! There are many signs that the bicycle industry is doing very well, thank you. And it looks to be continuing.
There are lots of reports popping up now about last year and how the cycling industry fared. The term, "record year" keeps popping up, all without the drastic falling off in the latter part of the year that the rest of the economy suffered. I know the bike shop I work for did really well last year too. But that was last year, what of the future, what about now?
Well, I think that the signs I'm seeing point to a healthy year. Maybe not better than last year, but certainly on par with it. For one thing, the shop I work for has been busy. We experienced upticks for every month so far this year over last, and this month is going really well too. In fact our road bike selection, which was busting at the seams just a month ago, is decimated and we had to re-order to fill in inventory already. Repairs have been steadily increasing too.
So, that's just one shop, right? Of course, there are several areas that are not doing as well on the retail level, and I've heard about that too. Certainly there will be some shops that struggle and some will close their doors for good. So why all the optimism?
Well, the company reps I have talked to all seem cautiously optimistic. The over riding attitude seems to be one of "it looks okay, but we aren't sure yet". I think that a collective sigh of relief is going to be the next thing I hear in the industry. Again, maybe not a growth year, but certainly a steady one.
Then there may be more instances of companies caught being cautious, like the one I heard about last night. I received an e-mail in regards to some questions I had about an upcoming product, but I found the other news I received to be rather intriguing. The e-mail stated that the company in question was so busy that every shipment of product received in was already pre-sold and there was little to no inventory left in their warehouse to ship to orders coming in. The comment was something to the effect that they couldn't believe their sales performance in the face of this recession. "Slammed" was how the e-mail described their business now.
While I'm no economic expert, I can stick my head out the window and see what the weather is like with the best of them. I think it is looking pretty fair out there, with peeks of sunshine breaking through. I suspect the cycling industry is in for some fair weather sailing in 2009.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
Friday, March 13, 2009
Economic Stimulus, Bicycle Style
So are you looking for some good news in the economy? Look no further than the bicycle business. Step right this way! There are many signs that the bicycle industry is doing very well, thank you. And it looks to be continuing.
There are lots of reports popping up now about last year and how the cycling industry fared. The term, "record year" keeps popping up, all without the drastic falling off in the latter part of the year that the rest of the economy suffered. I know the bike shop I work for did really well last year too. But that was last year, what of the future, what about now?
Well, I think that the signs I'm seeing point to a healthy year. Maybe not better than last year, but certainly on par with it. For one thing, the shop I work for has been busy. We experienced upticks for every month so far this year over last, and this month is going really well too. In fact our road bike selection, which was busting at the seams just a month ago, is decimated and we had to re-order to fill in inventory already. Repairs have been steadily increasing too.
So, that's just one shop, right? Of course, there are several areas that are not doing as well on the retail level, and I've heard about that too. Certainly there will be some shops that struggle and some will close their doors for good. So why all the optimism?
Well, the company reps I have talked to all seem cautiously optimistic. The over riding attitude seems to be one of "it looks okay, but we aren't sure yet". I think that a collective sigh of relief is going to be the next thing I hear in the industry. Again, maybe not a growth year, but certainly a steady one.
Then there may be more instances of companies caught being cautious, like the one I heard about last night. I received an e-mail in regards to some questions I had about an upcoming product, but I found the other news I received to be rather intriguing. The e-mail stated that the company in question was so busy that every shipment of product received in was already pre-sold and there was little to no inventory left in their warehouse to ship to orders coming in. The comment was something to the effect that they couldn't believe their sales performance in the face of this recession. "Slammed" was how the e-mail described their business now.
While I'm no economic expert, I can stick my head out the window and see what the weather is like with the best of them. I think it is looking pretty fair out there, with peeks of sunshine breaking through. I suspect the cycling industry is in for some fair weather sailing in 2009.
There are lots of reports popping up now about last year and how the cycling industry fared. The term, "record year" keeps popping up, all without the drastic falling off in the latter part of the year that the rest of the economy suffered. I know the bike shop I work for did really well last year too. But that was last year, what of the future, what about now?
Well, I think that the signs I'm seeing point to a healthy year. Maybe not better than last year, but certainly on par with it. For one thing, the shop I work for has been busy. We experienced upticks for every month so far this year over last, and this month is going really well too. In fact our road bike selection, which was busting at the seams just a month ago, is decimated and we had to re-order to fill in inventory already. Repairs have been steadily increasing too.
So, that's just one shop, right? Of course, there are several areas that are not doing as well on the retail level, and I've heard about that too. Certainly there will be some shops that struggle and some will close their doors for good. So why all the optimism?
Well, the company reps I have talked to all seem cautiously optimistic. The over riding attitude seems to be one of "it looks okay, but we aren't sure yet". I think that a collective sigh of relief is going to be the next thing I hear in the industry. Again, maybe not a growth year, but certainly a steady one.
Then there may be more instances of companies caught being cautious, like the one I heard about last night. I received an e-mail in regards to some questions I had about an upcoming product, but I found the other news I received to be rather intriguing. The e-mail stated that the company in question was so busy that every shipment of product received in was already pre-sold and there was little to no inventory left in their warehouse to ship to orders coming in. The comment was something to the effect that they couldn't believe their sales performance in the face of this recession. "Slammed" was how the e-mail described their business now.
While I'm no economic expert, I can stick my head out the window and see what the weather is like with the best of them. I think it is looking pretty fair out there, with peeks of sunshine breaking through. I suspect the cycling industry is in for some fair weather sailing in 2009.
Friday, December 26, 2008
On The Wrong End Of The Stick?
Looking around, its hard not to see that we are witnessing a huge contraction in our economy. Call it what you want- recession, depression, or even a huge sucking sound, it's there and it is for real. There are indications that sales for the holiday season are way off. Folks either don't have the money, or are unwilling to let go of it, even though retailers are "giving away the store" to get them in to spend it.
So, if you recall, the bicycle industry warned us all throughout 2008 that prices were going to go up.....way up! Things like tires were supposed to end up being astronomically expensive due to oil and materials prices. We saw early '09 bicycle releases go up as much as 15% over '08 pricing. Now there is an economic downturn. I think it's time to revisit the situation in terms of bicycles.
In my opinion the market I see isn't going to support these price increases the bicycle industry instigated over the course of the latter part of '08. If the "whatever ya callit" economic situation continues, (I'm favoring depression these days) I just don't see folks buying into where the industry has set the pricing. (Pun intended) At this point, I think the high end will suffer the worst of it.
It seems as though the bicycle industry has found itself on the wrong end of the stick economically. In a time where, if anything, prices should be staying the same, or even going down, we find prices going up. Not a good scenario for keeping sales, or increasing them in this sort of economic climate. Not as far as I can tell it isn't.
I know a lot of folks in the cycling industry are optimistic, saying cycling will be okay through these times. That the depressed oil and gas prices won't affect the consumers motivation to cycle. I'm saying that, while that may be true, increasing pricing on bicycles isn't helping the bicycle industry weather the storm. And the thing is, a lot of these prices are locked in. There isn't much, if anything, that can be done in the short term.
Time will tell, but I think the situation is a bit more serious than the cycling industry pundits are letting on.
So, if you recall, the bicycle industry warned us all throughout 2008 that prices were going to go up.....way up! Things like tires were supposed to end up being astronomically expensive due to oil and materials prices. We saw early '09 bicycle releases go up as much as 15% over '08 pricing. Now there is an economic downturn. I think it's time to revisit the situation in terms of bicycles.
In my opinion the market I see isn't going to support these price increases the bicycle industry instigated over the course of the latter part of '08. If the "whatever ya callit" economic situation continues, (I'm favoring depression these days) I just don't see folks buying into where the industry has set the pricing. (Pun intended) At this point, I think the high end will suffer the worst of it.
It seems as though the bicycle industry has found itself on the wrong end of the stick economically. In a time where, if anything, prices should be staying the same, or even going down, we find prices going up. Not a good scenario for keeping sales, or increasing them in this sort of economic climate. Not as far as I can tell it isn't.
I know a lot of folks in the cycling industry are optimistic, saying cycling will be okay through these times. That the depressed oil and gas prices won't affect the consumers motivation to cycle. I'm saying that, while that may be true, increasing pricing on bicycles isn't helping the bicycle industry weather the storm. And the thing is, a lot of these prices are locked in. There isn't much, if anything, that can be done in the short term.
Time will tell, but I think the situation is a bit more serious than the cycling industry pundits are letting on.
On The Wrong End Of The Stick?
Looking around, its hard not to see that we are witnessing a huge contraction in our economy. Call it what you want- recession, depression, or even a huge sucking sound, it's there and it is for real. There are indications that sales for the holiday season are way off. Folks either don't have the money, or are unwilling to let go of it, even though retailers are "giving away the store" to get them in to spend it.
So, if you recall, the bicycle industry warned us all throughout 2008 that prices were going to go up.....way up! Things like tires were supposed to end up being astronomically expensive due to oil and materials prices. We saw early '09 bicycle releases go up as much as 15% over '08 pricing. Now there is an economic downturn. I think it's time to revisit the situation in terms of bicycles.
In my opinion the market I see isn't going to support these price increases the bicycle industry instigated over the course of the latter part of '08. If the "whatever ya callit" economic situation continues, (I'm favoring depression these days) I just don't see folks buying into where the industry has set the pricing. (Pun intended) At this point, I think the high end will suffer the worst of it.
It seems as though the bicycle industry has found itself on the wrong end of the stick economically. In a time where, if anything, prices should be staying the same, or even going down, we find prices going up. Not a good scenario for keeping sales, or increasing them in this sort of economic climate. Not as far as I can tell it isn't.
I know a lot of folks in the cycling industry are optimistic, saying cycling will be okay through these times. That the depressed oil and gas prices won't affect the consumers motivation to cycle. I'm saying that, while that may be true, increasing pricing on bicycles isn't helping the bicycle industry weather the storm. And the thing is, a lot of these prices are locked in. There isn't much, if anything, that can be done in the short term.
Time will tell, but I think the situation is a bit more serious than the cycling industry pundits are letting on.
So, if you recall, the bicycle industry warned us all throughout 2008 that prices were going to go up.....way up! Things like tires were supposed to end up being astronomically expensive due to oil and materials prices. We saw early '09 bicycle releases go up as much as 15% over '08 pricing. Now there is an economic downturn. I think it's time to revisit the situation in terms of bicycles.
In my opinion the market I see isn't going to support these price increases the bicycle industry instigated over the course of the latter part of '08. If the "whatever ya callit" economic situation continues, (I'm favoring depression these days) I just don't see folks buying into where the industry has set the pricing. (Pun intended) At this point, I think the high end will suffer the worst of it.
It seems as though the bicycle industry has found itself on the wrong end of the stick economically. In a time where, if anything, prices should be staying the same, or even going down, we find prices going up. Not a good scenario for keeping sales, or increasing them in this sort of economic climate. Not as far as I can tell it isn't.
I know a lot of folks in the cycling industry are optimistic, saying cycling will be okay through these times. That the depressed oil and gas prices won't affect the consumers motivation to cycle. I'm saying that, while that may be true, increasing pricing on bicycles isn't helping the bicycle industry weather the storm. And the thing is, a lot of these prices are locked in. There isn't much, if anything, that can be done in the short term.
Time will tell, but I think the situation is a bit more serious than the cycling industry pundits are letting on.
Wednesday, December 03, 2008
Cycling Is Poised To Thrive In These Tough Times
Out of the tons of things I am grateful for, one of them is that I work in the cycling industry. Have you seen the news lately on some of the companies that are cycling related or full on in cycling? It's amazing to say the least.
Just this morning I read that Giant is poised to give its Taiwan based employees a year end bonus equal to 23 months salary! Dude! That sounds like a nice little bonus deal to me!
Then you have Dorel Industries, which owns Cannondale Sports Group, a sub-division that encompasses Cannondale, Schwinn, GT Bikes, and Mongoose. They aren't scaling back, oh no! They actually added six executive positions to monitor a cycling division that they see growing- not shrinking- in sales to become what they hope to be, the #1 cycling company in North America.
I also know of several other smaller companies that are adding on. Heck, Salsa Cycles just posted on their blog recently that they are looking to add on an engineer position. Even the shop I work at is experiencing a potential record year after a record year last year.
Doesn't sound like your typical economic news now, does it? And what's more, experts and industry folk expect the cycling economy to hold its own, and maybe even grow, throughout 2009. Amazing when you look around at the rest of the daily news these days.
Like I said, I am really glad I work in the cycling industry! Besides.....I like to ride bikes! So, why wouldn't I like it!
Just this morning I read that Giant is poised to give its Taiwan based employees a year end bonus equal to 23 months salary! Dude! That sounds like a nice little bonus deal to me!
Then you have Dorel Industries, which owns Cannondale Sports Group, a sub-division that encompasses Cannondale, Schwinn, GT Bikes, and Mongoose. They aren't scaling back, oh no! They actually added six executive positions to monitor a cycling division that they see growing- not shrinking- in sales to become what they hope to be, the #1 cycling company in North America.
I also know of several other smaller companies that are adding on. Heck, Salsa Cycles just posted on their blog recently that they are looking to add on an engineer position. Even the shop I work at is experiencing a potential record year after a record year last year.
Doesn't sound like your typical economic news now, does it? And what's more, experts and industry folk expect the cycling economy to hold its own, and maybe even grow, throughout 2009. Amazing when you look around at the rest of the daily news these days.
Like I said, I am really glad I work in the cycling industry! Besides.....I like to ride bikes! So, why wouldn't I like it!
Cycling Is Poised To Thrive In These Tough Times
Out of the tons of things I am grateful for, one of them is that I work in the cycling industry. Have you seen the news lately on some of the companies that are cycling related or full on in cycling? It's amazing to say the least.
Just this morning I read that Giant is poised to give its Taiwan based employees a year end bonus equal to 23 months salary! Dude! That sounds like a nice little bonus deal to me!
Then you have Dorel Industries, which owns Cannondale Sports Group, a sub-division that encompasses Cannondale, Schwinn, GT Bikes, and Mongoose. They aren't scaling back, oh no! They actually added six executive positions to monitor a cycling division that they see growing- not shrinking- in sales to become what they hope to be, the #1 cycling company in North America.
I also know of several other smaller companies that are adding on. Heck, Salsa Cycles just posted on their blog recently that they are looking to add on an engineer position. Even the shop I work at is experiencing a potential record year after a record year last year.
Doesn't sound like your typical economic news now, does it? And what's more, experts and industry folk expect the cycling economy to hold its own, and maybe even grow, throughout 2009. Amazing when you look around at the rest of the daily news these days.
Like I said, I am really glad I work in the cycling industry! Besides.....I like to ride bikes! So, why wouldn't I like it!
Just this morning I read that Giant is poised to give its Taiwan based employees a year end bonus equal to 23 months salary! Dude! That sounds like a nice little bonus deal to me!
Then you have Dorel Industries, which owns Cannondale Sports Group, a sub-division that encompasses Cannondale, Schwinn, GT Bikes, and Mongoose. They aren't scaling back, oh no! They actually added six executive positions to monitor a cycling division that they see growing- not shrinking- in sales to become what they hope to be, the #1 cycling company in North America.
I also know of several other smaller companies that are adding on. Heck, Salsa Cycles just posted on their blog recently that they are looking to add on an engineer position. Even the shop I work at is experiencing a potential record year after a record year last year.
Doesn't sound like your typical economic news now, does it? And what's more, experts and industry folk expect the cycling economy to hold its own, and maybe even grow, throughout 2009. Amazing when you look around at the rest of the daily news these days.
Like I said, I am really glad I work in the cycling industry! Besides.....I like to ride bikes! So, why wouldn't I like it!
Subscribe to:
Posts (Atom)