During Economic Crisis, No Recession for Bicycle Makers
October 16, 2008 · Print This Article
It’s a good time to own bike stock. And, according to Stephen Colbert, soup stock. But we digress. Though the current state of the economy has hit carmakers hard, it certainly hasn’t put a dent in the profits of bicycle makers – not even close. Bicycle makers are unsurprisingly selling more than ever, with demand up so high that in some areas, there are bicycle shortages. “Giant Manufacturing, the world’s largest bicycle-maker, sold a record 460,000 units last month and is heading for its best year ever.”
From The Economist, via Treehugger:
After a slow 2006, sales took off last year in Europe and America as fuel prices shot up. Suddenly a bicycle seems like the remedy for many modern ills, from petrol prices to pollution and obesity. Each market has its own idiosyncrasies. Europeans mainly use bikes for commuting, but have the odd habit of ignoring models made explicitly for that purpose in favour of sleeker, faster models which are then expensively modified. Americans prefer off-road BMX trail bikes. Taiwanese demand is led by racing-style bikes used for exercise.
Treehugger notes that, looking back on Giant Manufacturing’s stock performance over the years, they’re actually up by 5.65% right now whereas the market as a whole is way down over the same period of time. Maybe it’s a good time to open that bicycle shop you’ve been mulling over, or work on that design you’ve had in the back of your mind for years. Bikes FTW!
Link [Treehugger]
Photo credit: Flickr user Bitpicture
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I assume that sales shot up in major cities, not “America” as a whole. With suburban sprawl, and many people living in rural areas, bikes only benefit city dwellers, and only during certain times of the year. This is a very interesting topic nevertheless!