Bicycle Supply Chain Article

The pandemic has created a bicycle boom – and a shortage.

 World’s largest bike maker, Giant, expects its supplies to remain tight for some time to come.
 After President Trump started his trade war with China in 2018, Giant moved some of its
manufacturing for the American market from China to the company’s home base in Taiwan to
avoid the added tariffs. The next year, the European Union imposed antidumping duties on
electric bikes from China, so Giant began making those in Taiwan, too.
 Taiwan facility is under strain/make bikes in China regardless of the tariffs
 The Trump administration this year temporarily lifted tariffs on a variety of Chinese-made goods
that are deemed strategically unimportant. Bicycles made the list, which made it easier for Giant
to go back to producing some of its bikes for the U.S. market in China.
 But the tariff pause for certain types of bikes expired this month, meaning Giant may need to
adjust its supply arrangements yet again
 The company runs five factories in China, accounting for 70 percent of its output.
 Giant closed its Chinese plants for one month due to the pandemic and when Europe and the
United States began locking down, importers canceled orders.
 Now they opened again and American sales started picking up again in March. Today, all of
Giant’s factories are running nearly at full steam, to make up for production lost earlier in the
pandemic.
 She is not worried that Chinese rivals might try to capitalize on lockdown-driven demand by
pushing out cheap bikes en masse. QUALITY + PRICE.
 When it comes to China, is maintaining Giant’s work force there. Young people’s interest in
factory jobs is declining. Hiring in China still seems tough at the moment, despite widespread
layoffs.
 Business ties are strong between Taiwan and China
 Opened a factory in Hungary and aims to produce 300,000 bikes there next year
 Many manufacturers have set up in Vietnam, but Southeast Asia doesn’t make sense for Giant
since there is not enough local markets for bikes.
 In America if there were robots; automation would provide opportunities.
 European governments are accelerating investments in biking infrastructure and bicycle
promotion programs.