1) Labor Costs in Taiwan are Continuing to Increase
Labor costs for bike construction are on the rise due to a significant minimum wage increase in Taiwan. The wage increase of 5.21% will allow workers and families in Taiwan to have a more livable wage benefitting up to 2.1 million households. However good for the Taiwanese families, this means the cost of labor to manufacture new bikes is going up. This will increase the value of new and used bikes. RideWrap is here to protect the investment you made in buying a new or used bike. Now that bike prices are rising, it is more important than ever to protect your bike. The use of RideWrap’s protection kits will also help retain the value of your bike for resale.
2) Raw Material Costs are Increasing
In addition to labor increases, raw material prices are on the rise as well. The excessive lumber costs we are seeing in Canada are not the only raw materials on the rise. Materials such as aluminum, magnesium, cardboard, and steel have hit all-time highs.
These trends will trickle down to bicycles and bicycle parts. Leading to increased prices and scarcity of products. This price and demand increase will lead to fewer available bikes for the rest of the population. This lack of products and increase in cost will push many consumers to retain their current bikes for longer. Forcing them to ride their current bikes far into the future. The importance of bike maintenance and frame longevity is extreme in the current market. The use of RideWrap’s protection kits can insure your frame and forks will be protected until the time comes and your new bike is available.
3) Shipping Rates are Still High
The cost of shipping globally has been at an all-time high since July 2020. There has been a steady increase in shipping costs since the start of the pandemic. With rates per 40′ container from Shanghai to Los Angeles reaching a $20,600 high in august of 2021. These shipping prices, even with the slight decline in recent times, are still up to 500% higher than years previous. These shipping prices will inevitably take their toll on bike brands. This will force them to raise their prices to remain a profitable business.
The rise in bike prices has been affected not only by shipping rates, but also, material costs, and labor wage increases. These factors contributing to bike price increase reinforce the need for RideWrap protection kits. Installing a RideWrap Protective kit ensures your bikes are protected and maintain their value. Allowing you to get the best value when it’s time to sell and trade up.
4) Lead Times are Still Very Long
Due to manufacturing delays, shipping delays, and material shortages, some lead times for bicycle manufacturers are up to 600 days. This is a culmination of the time it takes for raw materials to arrive at manufacturers, OEM parts to be made and the delay of bikes and parts being shipped from Asia to Europe and North America. All of these factors increase the time it takes for bikes to get on your local bike shop’s floor. This means there will be added time between now and when you anticipated getting a new bike. This reinforces the need for your current bike to last up to a year after you anticipated replacing it. RideWrap can help keep your current bike looking mint while you wait for your new steed to arrive.
5) There’s a Lot of Pent Up Demand
In the current purchasing climate there are a lot of people getting into the sport of mountain biking in addition to the prior ridership. The added ridership combined with the parts and bike shortages has created a surge in demand. In a supply and demand economy when the supply cannot meet the demand prices increase. This is precisely what we are seeing in the mountain bike industry now. Through 2022 we can expect to see prices remain the same or increase; it is very unlikely for prices to diminish. This means protecting your current and future rides is even more important to ensure the best purchasing, selling, and riding experiences.