Industry Digest: Schwalbe Consolidates Production in Vietnam, Scott Sports' $176 Million Loan & More

Jan 19, 2024
by Ed Spratt  
What's going on in the cycling industry this month? Industry Digest is a peek behind the curtain and showcases articles from our sister site, Bicycle Retailer and Industry News. You might find patents, mergers, financial reports, and industry gossip in each instalment.

Curious about the inner workings of the bike industry? Bicycle Retailer and Industry News publishes two weekly newsletters, one on the industry in general and one devoted to e-bike news. You can subscribe free at https://www.bicycleretailer.com/newsletter


Schwalbe, citing a 'tense situation' in industry, consolidates production in Vietnam
By: Bicycle Retailer and Industry News

Schwalbe, which historically has split tire and tube production between its factories in Indonesia and Vietnam, says it is focusing on Vietnam exclusively at least for the time being.

"Schwalbe is strategically realigning its production and will manufacture all tires and tubes exclusively in Vietnam in the future. Thanks to bundled production, the state-of-the-art site there offers volume and logistics advantages for all Schwalbe customers," the company said this week.

Schwalbe will retain mold making, mixing operations, research & development and administration in Indonesia and said it retains the option to resume manufacturing there.
photo

(Read more.)



Scotts Sports owner Youngone loans company $176 million
By: Bicycle Retailer and Industry News

South Korean apparel brand Youngone Corp., which acquired a majority share in Scott Sports in 2015, has loaned its subsidiary 150 million Swiss francs ($176 million).

In a filing with South Korean financial regulators, Youngone said it made the investment in the form of a 4.6% loan at the end of 2023. "SCOTT SPORTS SA plans to use this money loan for the company's working capital, etc., and will appoint a person designated by the company as the Financial Controller to manage and supervise the process," the filing said.
2023 Scott Genius

(Read more.)



MADE handmade bike show expands with Australia event
By: Bicycle Retailer and Industry News


The MADE handmade bike show, which held its first show last year in Portland, will add a second this June in Australia. The Made Australia show will be June 28-29 at the Darebin International Sports Centre in Thornbury, Victoria, near Melbourne. The second MADE show in Portland will be held Aug. 23-25.

The MADE Australia show will be held in conjunction with the 17th annual Melburn Roobaix, a non-competitive ride around Melbourne. The show is being coordinated by Andy White of FYXO (an Australian cycling apparel brand) and Portland's ECHOS Communications.
photo

(Read more.)



Eminent Cycles auctions remaining inventory three years after Chapter 11
By: Bicycle Retailer and Industry News

Almost three years after the brand filed for Chapter 11 bankruptcy, Eminent Cycles' remaining frames, bikes and parts are being auctioned this month.

Eminent's initial Chapter 11 filing showed debts of $1.4 million and assets of $139,000. At the time the company said it planned to continue operating and servicing customers during a reorganization.

Fischer Auction Co. Inc. is listing about 400 lots available in an online auction starting Jan. 17. The lots include individual bikes, frames and crates containing multiple Fox suspension parts.
photo

(Read more.)



Vosper: Compared to last year, 2024 doesn't look so bad after all
By: Rick Vosper // Bicycle Retailer and Industry News

It's been a tough year for a lot of people, both suppliers and retailers. If you're one of the businesses that did well in 2023, congratulations and more power to you. As for the rest of us (you know who you are), there's some relief to be found in knowing 2023 is finally behind us.

To get a sense of what happened on a nationwide basis, I reached out to Patrick Hogan, senior research manager for the PeopleForBikes Coalition.

"2023 (consumer bike) sales have been at an all-time low for 20 of the last 24 months," as measured through Circana (formerly NPD), Hogan told me. "We've seen a steady decline in unit sales for adult non-electric bikes. Units have historically ticked down, while dollars tick up as the price tags get higher every year. This is especially true as more and more e-bikes enter the product mix."
photo

(Read more.)



Furgerson named Colnago America CEO
By: Bicycle Retailer and Industry News

Colnago named Brandt Furgerson CEO for Colnago America, which serves the United States, Canada, and parts of Latin America.

With an extensive background in the cycling industry, Furgerson brings passion, experience, and a track record for building brands, according to Colnago. Based in San Diego, Furgerson will run the Colnago America business with the existing team at the brand's Chicago office.

"We welcome Brandt Furgerson to the Colnago family as our new CEO for Colnago America with high hopes," said Nicola Rosin, Colnago global CEO.
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(Read more.)



Amer Sports officially files for US IPO
By: Bicycle Retailer and Industry News

Amer Sports, parent company of ENVE Composites and other outdoor brands, officially announced the filing of a U.S. initial public offering.

Amer Sports made a confidential filing for an IPO in the U.S. in September that would value the company as high as $10 billion, according to Bloomberg. Amer Sports also owns Wilson Sporting Goods, Arc'teryx, Atomic, Armada, Louisville Slugger, DeMarini, Sports Tracker, and Luxilon, a racquet string maker.
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Olive Manufacturing Group's domestic alloy rim production making strides entering 2024
By: Dean Yobbi // Bicycle Retailer and Industry News

After producing alloy rims about 15 minutes away from the Boyd Cycling facility since May, Boyd Johnson is convinced that U.S. domestic manufacturing is gaining momentum as 2024 begins.

"My mission is all about making stuff here," Johnson told BRAIN on Thursday about Olive Manufacturing Group that he co-founded with wife Nicole Johnson. "I feel like we can make a lot of stuff here. And for those companies thinking about moving here, especially with the rims, we want to be a partner for that. We want to make that step easier for them."
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(Read more.)



Industry Nine develops online store for European consumers
By: Bicycle Retailer and Industry News

Industry Nine created an online store designed to benefit European consumers and provide faster shipping and service turnaround.

The website offers flat-rate small-package shipping fees for EU consumers of 10 euros ($10.95) and 25 euros for wheelsets. For other countries, shipping rates are based on the consumer's location.
photo

(Read more.)



United Wheels consolidates Niner Bikes in Ohio
By: Bicycle Retailer and Industry News

United Wheels is moving its Niner Bikes business from Colorado to its company headquarters in Miamisburg, Ohio.

United Wheels, which also owns Huffy, VAAST, Batch and Buzz Bicycles, bought Niner out of bankruptcy in 2018.

The company expects the integration to be complete by next fall.

“As we navigate the current economic landscape, we must make strategic decisions to ensure the long-term sustainability and success of the United Wheels company and our brands,” said Bruno Maier, the president and COO of United Wheels.
photo

(Read more.)




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92 Comments
  • 15 0
 Cost of engineering through headset cable routing: $50,000.00. Actual cost of engineering through headset cable routing: $169,000,000.00
  • 10 0
 the Eminent Cycles auction had some great potential....looking at final prices, could have had a FS carbon frame with Fox suspension and fork and a second duplicate "part out" frame for when stuff breaks for about $1.4k total
  • 14 0
 But you've gotta pick it up
  • 2 0
 @icanreachit: always a catch
  • 2 0
 @icanreachit: im local, how much? lol
  • 7 0
 some of it went loony though. people paid 4-500 for ebike frames with no motor or ecu. going to cost $1200 to make it a functional ebike before another $2500 in fork, wheels, drivetrain,etc min to make it a functional bike. so you are 4000+ into an unsupported bike. silly.

now, some of the components went damn cheap! you will see some KS Rage droppers going for hella cheap on here and ebay very shortly. lol
  • 1 1
 Calm yourself young one
  • 1 2
 Some poor sap paid $450 for a 3 year old base model fork. You can get a much nicer and newer model for ~$50 more online right now.

www.proxibid.com/lotinformation/81893878/fox-performance-29in-suspension-fork

www.jensonusa.com/Fox-34-Float-SC-Factory-FIT4-29-2022-7?loc=usa&gad_source=1&gclid=Cj0KCQiA2KitBhCIARIsAPPMEhLSuDsccQzUE1WxwJS6vyKeEVEgrIiEE0bQMVT62YCHVU4pDyo4mD4aAnTbEALw_wcB
  • 4 0
 @joecrosby: The second photo in the linked auction does actually show a lot of 8 for that item.
  • 1 8
flag joecrosby (Jan 19, 2024 at 14:53) (Below Threshold)
 @davidrobinsonphoto: yep, look at that, that’s pretty neat. You can tell it’s 8 because of the way it is.
  • 14 7
 has i9 fixed the durability issues that have been widely reported on the hydra hubs?
  • 20 13
 "widely reporting" on a few people's problems does not make it a wide spread "issue." I love mine, 4k+ miles and haven't touched them once and I personally don't know of any other riders that have had an issue.
  • 6 1
 I've read of a couple of issues. A handful of big strong dudes apparently manage to damage the ring gear but I sure haven't. The most common issue was the hub axle cracking. I think it's very bike and rider specific, some combinations just seem to flex them more. I broke two on my Guerilla Gravity but the Hydra on my Nicolai hasn't given up the ghost yet. Anyway my GG made it through all of last season on their updated axle with the stress washer without any issues. So to me they've fixed the problem.
  • 19 1
 @SATN-XC: I, and half the people I ride with, have replaced multiple axles. I do not ride i9 hubs and more.
  • 6 0
 Not fixed on my hubs. Ratchet mechanism degrades over time and bearings didn’t last as long as I hoped.
  • 3 1
 I have had great luck with I9 hubs. I am a heavier rider and a pedal masher. I ride relatively hard (drops up to 6-7 feet and rough trails. I have had zero issues with the hydras I have owned for almost five years. Swapped out the bearings once but I ride in winter and wet conditions a lot. Might be I just got lucky with two sets.
  • 7 0
 Not the cheapest but definitely a solid solution that you'll only have to buy once:

pinnermachineshop.com/en-us/products/forever-axle-for-industry-nine-hydra-rear-hub
  • 9 0
 @Takaya94: are the stock axles alloy? I had a Reynolds one snap and they replaced with steel.
For those saying they don’t know anyone with i9 hydra issues, I know of several. I’d say it’s fairly widespread if we’re here talking about it.
  • 1 0
 @shredddr: yes, they are alloy.

I personally don't think material is the major issue, lots of hubs with a reputation for reliability use alloy.

But that steel axle will certainly be bomber. I have one in my box from a couple of seasons ago when my Hydra axles were snapping. But I haven't managed to break I9's latest alloy axle design.
  • 3 0
 @shredddr: I believe its alloy. For this reason alone I'd stick with the 1/1 hub as its got plenty of engagement for me.

Its a pretty shitty and well known issue but at least it sounds like I9 has been taking care of most people experiencing it. though if you wanna skip the warranty process I think this aftermarket axle is the way to go.
  • 1 0
 @jdejace: Yeah I though I remembered reading somewhere that they redesigned it and its helped significantly reduce that issue. Did they supply you with the new one for free?
  • 3 0
 Issues I've had over 5 years of aggressive hardtail/trials riding on the Hydra:
-1 snapped axle (just please make it steel already!)
-Hg cassette digging into freehub body (steel again, please!)

Otherwise, they are incredibly easy to service, the customer support is phenomenal, and it's really great buying domestically manufactured products from a company that gives a damn. The few issues I've had have been super easy to fix with their customer service. The fact that they have instant engagement is a massive bonus on top of everything else.

While they may not be for everyone, it's very easy to recommend. I'd say the biggest downside is the price, but that's easy to justify since they have now lasted twice as long as previous hubs I've tried from Raceface and DT-swiss.
  • 1 0
 @Takaya94: yes, they sent me the axle and replacement bearings (that I didn't ask for or need) for free, they paid the shipping too if I recall.
  • 2 0
 @jdejace: Dope, I havent had to ask them for anything yet but sounds like just about everyone is super stoked on their customer service. Glad to hear that.
  • 8 0
 @SATN-XC: it's widely reported. I've had 3 sets of i9 Hydra hubs and I've had issues with every single one, and in some cases multiple bearing replacements within a few months of each other. I've ovalized driver bodies, bent axles, and had to replace bearings on all of them. Glad you have a set that's lasted you forever without service, but given what myself and folks I know have had to deal with, I think you're in the minority.
  • 2 0
 No
  • 4 2
 @trialswithdillon: HG cassettes digging into alloy FHB are pretty much always due to inadequate torque spec on the locking. It's a very high spec that most people 1. dont use a torque wrench for and 2. dont get tight enough. That said....Ive got a buddy who broke 3 I9 axles before switching over to e13 hubs which have an option to run a steel axle at only a 20ish gram weight penalty. He's been on those with no probs ever since.
  • 4 0
 @SATN-XC: this rider has and his mates. Failed axles a major one. Bearings lasting 6months… tolerance issues are the cause due to poor design.
  • 1 0
 I haven't had recurrent issues with my Hydra setup. Been on em since their debut. I broke one (rear) axle, covered under warranty (I buggered the drive mech so badly that it required a full wheel rebuild, which i9 covered quickly and at no cost.) No issues whatsoever since the repair. Would buy again.
  • 1 1
 @pisgahgnar: They have redesigned that issue making it more robust. It's not necessarily bad if there are failures with something, because it just lends to true refinement and better product. A company will have to take multiple warranties before redesigning something, to make sure it's not just a bad batch or something of those sorts, before retooling and machining. Although i will say, I can't stand the loud freehub noise of my I9's TBH!
  • 2 0
 @jdejace: I broke a hub axle a couple of years ago. i9 sent a new axle, and all replacement bearings. 0 issues since, but if anyone’s really worried about it you can get 3rd party axles now that are supposed to last forever for a lot less than a new hub

pinnermachineshop.com/en-us/products/forever-axle-for-industry-nine-hydra-rear-hub?variant=40029158867041
  • 5 0
 The Eminent auctions actually ended yesterday, ended up with two of their frames. Pretty stoked to just build one up cheaply and see what happens with it. Only thing I don't like is lack of internal dropper post routing
  • 1 0
 that's going to be a fun build! wish I'd gotten in on the auction.
  • 3 0
 How much were you able to snag them for? What did they include if you do not mind me asking?
  • 1 0
 i guess you'll have to spend a bit of that saved cash on some wireless droppers!
  • 1 0
 @chillrider199: you can google the auction site and search items that show final price and everything included. Some frames, some completes, some parts, etc.
  • 10 1
 Well no warranty so I suppose get the drill out for the dropper cable
  • 1 0
 Nothing a drill and 5 minutes wont fix!
  • 2 0
 @justanotherusername: that's my plan
  • 3 0
 Keep your eyes out for the Olive Manufacturing Group and Boyd Cycling! I have been testing MTB wheels for them for years now (DH and Enduro) and have multiple Carbon and Aluminum wheelsets I currently use. One of my pair are the original 27.5 Ridgeline Carbon Test Sets that are 7-years old. I still push hard on them with complete confidence. I have also been testing their new US-made aluminum rims and am very impressed with the quality and performance.
  • 6 1
 I hope Niner is able to weather the storm. I've been so pleasantly surprised by my WFO. Some of the most fun I've ever had on a bike.
  • 3 35
flag jdejace (Jan 19, 2024 at 9:13) (Below Threshold)
 Don't worry you can always get a similar plastic bike made in the same communist factory (VIP). Yeti, Pivot, Ibis, Devinci, Intense etc..
  • 3 0
 Keep an eye on Mexico for prodUction. I know one big company thAT has joint investments with their China manufacturers to build a manufacturing facility there. Smart money says a lot of companies haven't recovered from covid and tariffs, I suspect quite a few companies solely relying on China will perish.
  • 2 0
 agreed, one of our biggest global customers is going from global to Mexico
  • 11 9
 Shout out to industry nine for having excellent customer service. They just sent me a wheels worth of new spokes and nipples for free on a wheel I bought second hand and didn’t ask me for a receipt or anything.
  • 4 0
 "2023 (consumer bike) sales have been at an all-time low for 20 of the last 24 months,"

I dont know what this means.
  • 1 0
 Looking at auto sales, the service department of a dealership makes the lion share of money. Looking at modern bicycles, with proprietary stuff hanging off them, and major parts requiring special tools and qualified techs, add in warranty type work...and a bike shop performing service as the primary rather than sales looks to be an excellent situation. An excellent situation for the type of person who gets their vehicle serviced by the dealership.
  • 1 0
 There's a reason they are referred to as Stealerships.
  • 1 0
 Yeeesh. This post paints a bit of a rough picture for the state of the industry at the moment, not to mention all the goings on with the DH teams for 2024 as well.
  • 4 4
 UDH now a huge plus for any bike brand on shaky ground... It wouldn't be great if the bike or frame you got for a killer deal was rendered useless by a broken, proprietary hanger.
  • 10 0
 North Shore Billet would like to have a word...
  • 3 0
 @delta5: I get that there are 3rd parties making hangers...wheels manufacturing, NSB, etc. But I don't think that they cover everything out there. It doesn't make business sense to do that.

Just picked up a Nukeproof Scout...NP not listed for NSB
  • 1 0
 @ReformedRoadie: During COVID NP was chronically out of mech hangers and I was able to find a couple 3rd party somewhere. Could dig up the manufacturer possibly.
  • 1 0
 @schu2470: Thanks for the heads up! How about frame grommets for adding a dropper? LOL. Bought the base "Race" model since I had a bunch of parts to instant upgrade...and adding the dropper is now going to force some creativity with the frame holes.

FYI - Colorado Cyclist had insane deals. Got mine for $800. Not sure what is left now.
  • 1 0
 Hey Bloomberg, Amer Sports also owns Salomon just FYI. Also I'm bummed to see Eminent go. Seemed like they were making some cool and unique stuff.
  • 3 1
 they ride really well, but they just werent attractive bikes. That was the largest issue.....the Owner would never let go of that super chunky, squared off shape. You have to make some attempt to meet customer demand, even if it compromises your vision a bit.
  • 2 0
 @Mtbdialed: I personally liked the look of their bikes but can see how others might not. My main issue was that they were pretty pricey and there was no where for me to test one nearby. I've actually purchased a good few bikes online without riding it first but this one had a pretty unique design so I felt pretty clueless to how it would feel on the trail.
  • 1 0
 Amer also has Arcteryx Armada, Peak Performance and Wilson and I think DeMarini.
  • 1 0
 @ToddW1: Yeah they mention those brands in the article, they just didnt mention Salomon.
  • 1 0
 @Takaya94: yeah my bad just read the paragraph and mentioned to wife who rang off all the names as they were former customers of hers before being excorporated after 32 years !
  • 2 3
 There are a couple of brands out there that have been stabbing people in the back that would not be missed. I had the CEO of one of them call me to apologize for stabbing me in the back. Of course, they did not reverse their actions, the company still stabbed me in the back. Simply, the newly minted CEO simply called to tell me they were sorry about that. The knife is still stuck in there.
  • 3 1
 Scott bikes are way too expensive.
  • 2 12
flag trashpander275 (Jan 20, 2024 at 5:30) (Below Threshold)
 Personally, I do not want to ride a bike named Scott... What do you ride? I ride Scott..Kinda sounds like I love musicals and Taylor Swift...If ya know what I mean.
  • 9 0
 @trashpander275: what if your other bike was a Ridley, though?
  • 1 0
 @trashpander275: Great Scott!! Lol. I get what you mean, but the name kinda starts to become less relevant if the bikes are good. I used to not care for the Canyon name much (kinda generic), but their bikes are really good, so now I'm ok with the name.

Scott doesn't bother me either because Scott has been around for decades. I have known their name for a long time from skiing. However, don't particular like the Rossignol name for bikes, yet. Go figure, lol. I think it is because they haven't made any really good bikes, yet.

There are much worse names on the market.
  • 2 0
 @trashpander275: One word, Fezzari.
  • 1 0
 If you are going to brag about making stuff here, maybe have some workers in the picture making your product(s)…?
  • 2 0
 Arcteryx going public will be interesting
  • 2 0
 Right? No doubt product quality will suffer in a swap for revenue. Arcteryx has taken a downturn in my opinion. Their newer stuff just does not feel as special as the gear 10 years ago.
  • 1 0
 Scott should make a flip lock lever for my pants zipper.
  • 1 0
 Oh yeah, that'd be amazing fun. Wireless as anything these days, right? Perfect, you go for a pee, I'll hold your flip lock lever for you.
  • 1 0
 @vinay: the flip-c_ck lever!
  • 1 0
 Is that eminent bike a robocop police bike from
The movie?
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