Bicycle Manufacturers Rant
#26
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Giant is an interesting story.
Before there were Giant bicycles there was a state of the art factory in Taiwan building bicycles for Schwinn. One day Schwinn decided they could get their bicycles made more cheaply in mainland China and took their business over there. So what were the Taiwanese to do? They started the Giant brand just to have an outlet for their production. In a sense, Schwinn actually financed their own competition.
Before there were Giant bicycles there was a state of the art factory in Taiwan building bicycles for Schwinn. One day Schwinn decided they could get their bicycles made more cheaply in mainland China and took their business over there. So what were the Taiwanese to do? They started the Giant brand just to have an outlet for their production. In a sense, Schwinn actually financed their own competition.
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I wonder if the measurement of a company's design abilities is related to the number and uniqueness of their patents.
#28
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This company still builds their own for a niche market
Cargo Bikes, Industrial Bicycles and Industrial Tricycles from Worksman Cycles Factory Direct Store
Cargo Bikes, Industrial Bicycles and Industrial Tricycles from Worksman Cycles Factory Direct Store
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I was talking with an acquantance of mine yesterday and he kept using the phrase Trek builds a mean bike. this repeated statement was driving me nuts! I just need to put it out there that Trek does not build much of anything. Nor does Specialized, Cannondale, Focus, Blue, KHS, Jamis, etc. etc. etc. These companies are marketing companies. Some literally build nothing for the mass market, but have it built for them by another company contracted to do the work. Some design work is handled by the marketing company, but the physical manufacture of the product is not done by them. I must also add that much of the design work is handled by the contract manufacturer, for obvious reasons.
One caveat here, Giant is a manufacturer, and does build the product they design and market other than the Giant branded accessories and tools. So, please, when talking about the company of choice be it bicycles, lawn mowers, or even autos, make sure when you say "They build a mean widget" that the company actualy builds the widget.
Thank you.
Ti
One caveat here, Giant is a manufacturer, and does build the product they design and market other than the Giant branded accessories and tools. So, please, when talking about the company of choice be it bicycles, lawn mowers, or even autos, make sure when you say "They build a mean widget" that the company actualy builds the widget.
Thank you.
Ti
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It's just a rant so you know there's always a germ of truth in it but never enough to make it true.
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Mean? I only buy nice bikes.
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My greatest fear is all of my kids standing around my coffin and talking about "how sensible" dad was.
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2010 Cannondale T2 touring bike. The last year that Cannondale made their bikes in the U.S., and the last year they made a "real" touring bike.
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No different than the business model used by Apple or most other tech companies as well as car companies. Many parts or assemblies are contracted out to other companies. Bike companies are better off focusing on their strengths, design and marketing, and leaving the manufacturing to other companies with a different focus. It's more efficient and results in a better product at lower cost for end users. Not sure what there is to complain about.
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In Waterloo, Wisconsin, a passion for 'Made in USA' bicycles
So, in my book the rant stands are accurate since he clearly states, "Trek does not build much of anything". 1% isn't much of anything in my book, LOL!
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Whether your Trek is made in the USA or not varies by price point, with some of the top end stuff being made here. But that wasn't always the case. At one time most of Trek's production was in the USA. That was in the early days when they were growing the company. However once they hit the big time, they started source ever increasing numbers overseas.
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#43
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Whether your Trek is made in the USA or not varies by price point, with some of the top end stuff being made here. But that wasn't always the case. At one time most of Trek's production was in the USA. That was in the early days when they were growing the company. However once they hit the big time, they started source ever increasing numbers overseas.
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#44
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Like it or not Trek's competition builds their bikes in China, where costs are lower. They can either do the same and compete on a level playing field, or produce here, be uncompetitive, and lose market share. In the end roughly the same number of bikes will enter the country, but fewer will say Trek on the downtube,.
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#45
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Their margin is far higher if they farm out the building, and just paste their head-tube badge on someone else's bike frame....and consumers are so daft they'll pay the exact same price or more, until now. With worsening economic outlooks, they're finding the high times of price gouging are coming to an end as consumers simply can't or won't afford the ridiculous prices.
Which brings us to the problem of offshoring....it is corporate foot-shooting when systemic and long-term large-scale, as it has become.
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LOL, you appear to be part of the "elite" According to this CNBC news article, Trek makes about 1% of there bikes in the USA and that's only 4 models.
In Waterloo, Wisconsin, a passion for 'Made in USA' bicycles
So, in my book the rant stands are accurate since he clearly states, "Trek does not build much of anything". 1% isn't much of anything in my book, LOL!
In Waterloo, Wisconsin, a passion for 'Made in USA' bicycles
So, in my book the rant stands are accurate since he clearly states, "Trek does not build much of anything". 1% isn't much of anything in my book, LOL!
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Sorry for being Elite! Waterloo W has quiet a few people employed making those Elite bikes for us Elite cyclists. The OP also rants about design and product research all being done overseas as well. Not the case with Trek as all R&D done in Wisconsin. Last but not least, Trek makes good bike - for the Elite of course.
Now, if I had smooth pavement it might be a different story.
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No....it isn't as *profitable* for them to make their own product. Tons of operations succeeded over the years DIYing their own work.
Their margin is far higher if they farm out the building, and just paste their head-tube badge on someone else's bike frame....and consumers are so daft they'll pay the exact same price or more, until now. With worsening economic outlooks, they're finding the high times of price gouging are coming to an end as consumers simply can't or won't afford the ridiculous prices.
Which brings us to the problem of offshoring....it is corporate foot-shooting when systemic and long-term large-scale, as it has become.
Their margin is far higher if they farm out the building, and just paste their head-tube badge on someone else's bike frame....and consumers are so daft they'll pay the exact same price or more, until now. With worsening economic outlooks, they're finding the high times of price gouging are coming to an end as consumers simply can't or won't afford the ridiculous prices.
Which brings us to the problem of offshoring....it is corporate foot-shooting when systemic and long-term large-scale, as it has become.
The alternative is to shut down the borders at the state and federal level, eliminate or drastically reduce imports and exports and force companies to do everything themselves. Brazil employs this strategy. Imported goods face duties and taxes on the order of 100%. Not sure it's working too well for their economy.
Do you have an example of a country where this strategy is effective?
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It's all part of being in a competitive and global economy. The US economy is strong because it provides the freedom to fail. Companies with poor business models don't last long.
The alternative is to shut down the borders at the state and federal level, eliminate or drastically reduce imports and exports and force companies to do everything themselves. Brazil employs this strategy. Imported goods face duties and taxes on the order of 100%. Not sure it's working too well for their economy.
Do you have an example of a country where this strategy is effective?
The alternative is to shut down the borders at the state and federal level, eliminate or drastically reduce imports and exports and force companies to do everything themselves. Brazil employs this strategy. Imported goods face duties and taxes on the order of 100%. Not sure it's working too well for their economy.
Do you have an example of a country where this strategy is effective?
Companies selling goods require consumers. Consumers require income and therefore jobs in order to be consumers, IOW consumers need to be employees. Companies need employees to have consumers. Companies sending their jobs elsewhere are destroying their own consumer market. And everyone is looking at everyone else expecting them to do the employing, while they themselves don't. It is already falling apart, and if you think the "economy is strong" I got a platinum bridge to sell you.
The result? What we have now. Consumers barely getting by with lots of part time jobs soon to be replaced with automation. A time where everything more expensive than a big mac has a purchase-on-credit scheme available from the retailer.
The alternative? How about we start invalidating patents and trademarks of companies that don't want to make their patented/trademarked goods here and/or reverse-incorporate? The parasites prevent competition here with patents, send their own jobs elsewhere, and then use and abuse our legal system in their patent wars.