Industry Analysis & Industry Trends
The industry is highly influenced by the prosperity of US consumers; as such, the recession caused steep declines in industry revenue as consumers held back on discretionary purchases. An increase in cheap imports has also caused manufacturers to close facilities or relocate abroad to compete. Over the next five years, the industry is expected to double down on creating high-quality products that consumers are willing to pay a premium for. In addition, concerns over the environmental impacts of motor vehicles are expected to promote greater use of bicycles.... purchase to read more
Industry Report - Industry Investment Chapter
The Bicycle Manufacturing industry carries a low level of capital intensity. For every dollar spent on wages, the average industry firm will invest roughly $0.31 in capital. In general, capital investment has grown over the past five years, with increasing import competition and a growing trade deficit leading industry companies to invest in laborsaving technologies that produce greater cost efficiencies.
Capital intensity varies according to the scale of the operation. Many of the smaller operators in this industry rely more heavily on labor, such as family-owned businesses, where financial limitations can inhibit capital investment capacity... purchase to read more