Liberacci was that? That one I didn’t see coming was something I had never expected.
~AustinPowers
Although I wouldn’t say the news was unexpected, it still hurts. According to Carlton Reid’s story on www.BikeBiz.com Dorel, the parent company of Cannondales, said today that only one brand in America can claim that it manufactures its bikes here. Cannondale will be leaving the US and abandoning its proud history of manufacturing. Instead, it will become a design and warehouse operation.
Dorel and Cannondale gave a positive spin to the announcement. They underlined that the new organization will be a global model and that Cannondale’s off-shore-built bikes have been competitive performers. Its unique design philosophy has contributed to a lot of the brand’s mystique. However, experience has shown that offshore production results in more similarity than originality.
Trek is also in this same situation. Trek is in a similar situation, with most of its production outsourced to Asia and high-tech Chinese accessory and frame makers poised to surpass its once-heralded OCLV Composite operation. Trek’s decision-makers must take a hard look at the Wisconsin manufacturing facilities.
The draw-and-develop strategy for bike manufacturing has been the most successful over the past 30 years. However, the fact the US dollar is falling against the currencies of other countries should be a warning sign for big-brand bike manufacturers in this country. Cannondales announcement suggests otherwise.
Bicycle manufacturers may be more affected by the cost of outsourcing bicycles than they anticipated. Big brands could find themselves in serious trouble due to skyrocketing prices for bicycles from foreign suppliers and the difficult sales in an economy that is not recovering. This could mean that there is little to no money left for new factories. Trek and Cannondale might regret not sticking with domestic production for a while longer. Time will tell.
