On The Pedals
By Jason Giacchino

Following the Trends

While our niche’ has very little in common with the automotive industry on the surface, looking to the happenings on Detroit is often an accurate precursor to the state of future mountain bike affairs. How so you ask? Well in its simplest form, the auto industry is a representation of domestic trends. Back when gas was 99 cents a gallon, consumers started demanding larger vehicles and why not? Paying a slight premium during fill ups was a small price in exchange for a commanding view of the road ahead, increased interior room, four-wheel-drive, and the ever-critical status symbol boost. Now that we find ourselves in a time of recession with unstable oil costs and a falling dollar value, the demand for fuel efficiency has suddenly become a top priority among consumers. So fast has this turning of the tides struck the nation that the big three automakers were caught off guard. To help get them up to snuff right away with retooled assembly lines and new powertrain options designed to lessen our nation’s dependency on foreign oil, they need capital and quick! That’s where we, the taxpayers, come in. They’ve asked the Fed nicely to deliver $25 billion in low-interest government loans to keep them afloat. And it appears that the government sympathizes.

Of course we all realize that regardless of how unstable the times become for our favorite domestic mountain bike brand, odds of a governmental bailout aren’t too good. For one thing, despite the bicycles potential as a transportation device, our sport is classified as recreational in the eyes of the powers that be. Additionally the steep cost of production here in the US has (just like in the auto industry) caused many companies to source out parts production overseas and in the process left only custom and boutique builders behind who cater to individuals with disposable income. Why should the country give a hoot what happens to them? I can think of a few reasons: For starters these companies represent the very notion of the American dream. They paid their startup fees, taxes, and dues to set up shop here in the States and despite the potential ease and cost benefits, have resisted the trend of outsourcing. They still pay taxes every year and when a consumer happens to purchase one of their products, they also just so happen to be pumping funds right back into our own economy; didn’t we hear about the benefits of this very thing back when the government was writing out economic stimulus checks?

At the end of the day, however, small businesses (just like individuals) are feeling the crunch of hard times. Unfortunately many won’t survive the turmoil although its quite unlikely you’ll hear their names mentioned on the evening news. We’re already hearing rumors of 20% cost hikes on bikes and components in the upcoming year due to the factors stated above and increased cost to ship (thanks to the increased cost of fuel). It’s sad to even consider how many individuals, already feeling the economic crunch themselves, will be forced to hang up their bike to prioritize their budgets. Hopefully these rumors prove to be just that: rumors.

In the mean time, several companies who have worked with MBT all along have written in to express hope that the new president will usher in some positive economic changes. We certainly hope so because if things continue the way they’ve been going, a lot more people are going to be riding bicycles to work! Maybe then we could hope for a government bailout.

Questions? Comments? Love letters? Send 'em to Editor@mountainbiketales.com.