No matter your business, you have undoubtedly been hit with supply chain problems. Over the past two years, many companies responded to supply chain problems by ordering more than we might need, pushing out lead times, and overwhelming manufacturers.
Whether it was steel, gaskets, bolts, hand sanitizer, or in this case, bikes, supply chains went topsy-turvey.
Last week’s Wall St. Journal reported that these problems are roiling the bicycle industry, which experienced a surge in demand during 2020 as consumers confined to their homes sought exercise or escape.
Why it matters: Peleton believing that this demand would remain elevated for years, spent hundreds of millions moving its production of stationary bikes in-house to avoid overseas supply logjams. But when consumers emerged from lockdowns, they lost interest.
At Bicycle Habitat in New York City, lines formed down the block for whatever was available on a given day in the early stages of the pandemic, said owner Charlie McCorkell. Sales for 2022 are expected to be lower than in 2019. Now he has roughly 2,000 bikes in stock, and some customers are willing to walk out the door over a bike’s color.
Our thought bubble: Sounds like a good time to help even out the supply chain and buy a new bike!