Bike Parts Shortage - any light at the end of the tunnel?
#1
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Bike Parts Shortage - any light at the end of the tunnel?
Does anyone have any insight into the bike parts shortage? I know bikes have been selling like hot cakes but many local shops seem to be sorta catching up on getting some new bike inventory. But the availability of parts like group sets, brakes etc seems to be piece meal at best. This is not just an observation for looking at various online places (don’t tend to buy much online myself) but also from two local bike shops I go to regularly one of which I’m having build up a bike for me but sourcing parts is a big problem. Any insight into if things might eventually hopefully get better or ?
#2
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Rumor has it that the major bike manufacturers (Specialized, Giant, Merida, and many others) have made significant investments to assist Shimano in expanding their production capacity, especially for the mid-tier components spec'd on most bikes. No idea what this means...added facilities? lines? more working hours? Also, consider how the bike industry actually programs it's supply...it has to do it by the bike manufacturers first looking out 18-24 months due to the complex supply chains it deals with for sourcing components. Is current demand projected to remain at the levels we witnessed through most of 2020?
Here's the reality. Without Shimano increasing it's capacity, we will simply have to wait for demand to return to "before times" levels. And, rumors aside, that might be the plan, because prior to COVID, Shimano seemed able to provide all the parts required to build/sell new bikes and keep the market generally able to support replacement part demands. If Shimano were to build new facilities or lines, those are significant capital investments that may not come on line for many months, and if demand goes down, would be wasted capacity. In the short term, ramping up use fo their existing capacity to 100% use makes the most sense, and has probably already been handled.
That all said, these things have a way of getting better, because markets. The manufacturers will adjust their production as required to maximize their profits. Consumers will adapt their demand to the supply available, and pricing (anyone notice that multiple bicycle companies boosted prices at the end of November by up to 10% on most available stock?). Once those happen the system returns to equilibrium unit the next "upset."
Here's the reality. Without Shimano increasing it's capacity, we will simply have to wait for demand to return to "before times" levels. And, rumors aside, that might be the plan, because prior to COVID, Shimano seemed able to provide all the parts required to build/sell new bikes and keep the market generally able to support replacement part demands. If Shimano were to build new facilities or lines, those are significant capital investments that may not come on line for many months, and if demand goes down, would be wasted capacity. In the short term, ramping up use fo their existing capacity to 100% use makes the most sense, and has probably already been handled.
That all said, these things have a way of getting better, because markets. The manufacturers will adjust their production as required to maximize their profits. Consumers will adapt their demand to the supply available, and pricing (anyone notice that multiple bicycle companies boosted prices at the end of November by up to 10% on most available stock?). Once those happen the system returns to equilibrium unit the next "upset."
#3
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Shimano can split the difference on growth estimates. Surely growth will cool after the pandemic, but human population is expanding and so is the integration of cycling into transportation plans.
I also wonder about how easily certain facilities could be re-purposed. Some surgical parts are manufactured in a way that's similar to some bike parts - it'd have to be easier to repurpose a bike part factory for that than start from the ground up?
I also wonder about how easily certain facilities could be re-purposed. Some surgical parts are manufactured in a way that's similar to some bike parts - it'd have to be easier to repurpose a bike part factory for that than start from the ground up?
#4
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shipping problems
There are also some odd shipping problems to deal with (and wait on). The last two shipping company deliveries to my house came by RENTED Uhaul box trucks. Covid concerns is causing driver and delivery chain gaps. Two local drivers/truck for hire that usually handle odd lot runs for large companies told me they were not taking runs which required crossing certain state lines which require Covid testing and then a quarantine or lockdown time stranding them or locking them out of work for two weeks.
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Considering the vaccine rollout plans here and abroad and the challenge of administering to so many people, including factory workers, as well as the factors mentioned above, it might take until Fall of next year for stocks to be replenished. Not to mention factories don’t want to overbuild for a bump in demand which will no doubt level off and most likely recede a bit. We are living in an unprecedented time, excluding the 1918 pandemic, and it will take time for life to resume the old normal.
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It will get better once COVID-19 is over and we figure out the new normal and can kind of settle back in. There is no good time line for anyone yet because everything is up in the air. Thanks to the U.S. government's abhorrent handling of this pandemic it is making it a lot harder to get stuff as people don't want to ship stuff to us. A lot of these companies are also having to fulfill OEM orders and are probably doing those first. For shops you have to get the stuff right away and some shops aren't always ordering as soon as something comes in stock and usually by the time they get to it, it is out.
#7
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This is not so good news for major manufacturers who would hopefully use these events as an opportunity to better manage their shipping and cooperative manufacturing networks. Not so good news for an industry focused on producing lots of new bright and shiny stuff at all quality and price levels for a market that's not always there. Not so good for the people repairing newish bikes with parts that should probably have been better quality to begin with. It's better news for the whole secondary market that is keeping older bikes and parts up and running and in circulation which benefits the people who want the bikes instead of throwing them away and more directly benefits the people who get their hands dirty fixing them up who get to see their good work valued and maybe make some much needed money.
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It has definitely gotten better. Depends on your needs. Probably be a couple of years before everything gets totally back to normal. I recently tried to order a rim brake rim and it was a real pain to find anything at all.
#9
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Does anyone have any insight into the bike parts shortage? I know bikes have been selling like hot cakes but many local shops seem to be sorta catching up on getting some new bike inventory. But the availability of parts like group sets, brakes etc seems to be piece meal at best. This is not just an observation for looking at various online places (don’t tend to buy much online myself) but also from two local bike shops I go to regularly one of which I’m having build up a bike for me but sourcing parts is a big problem. Any insight into if things might eventually hopefully get better or ?
EDIT: Does it have to be a new part, if a used part will work?
#10
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No problem getting parts for any upgrades on my vintage bikes.
You need a friction shifter in your quiver.
Tires from UK in days.
Even the Delta cleats from China (for cheap) came 2 weeks early.
Winter riding shoes were on back order about 3 weeks.
You need a friction shifter in your quiver.
Tires from UK in days.
Even the Delta cleats from China (for cheap) came 2 weeks early.
Winter riding shoes were on back order about 3 weeks.
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