An Amusement & Diversion for The Genteel Cyclist. Daily.

Monday, December 3, 2007

A weak dollar: Good for US bikes?


You were surely way too busy this weekend putting your studded tires on and getting your steel frames winterized to realize that the "Intlbike Conference" was going on in Shenzhen, China.

The buzz? Whereas China has been catching up to Taiwan as the world's largest producer of bikes, the weakness of the US dollar and the cost of petroleum-based distribution could cause the market for Asian bikes to flatten or decline.

That's good news for US bike-builders, probably -- because handmade local bikes may end up being cheaper than mass-produced Chinese rides. But the mid-range quality bikes will be hit hard: the Surlys of the world that are welded across the Pacific, and offered here at that delicate $1000 price point.

The difference between a $900 bike and a $1200 bike is far greater than between a $1200 and a $5000 bike, and it comes down to more than just wheelsets and drivetrains. It's a huge cognitive leap for bike buyers who are innocent in the ways of the world.

1 comment:

Unknown said...

yea, but i also heard they got ACs in the sweat shops now.