Quality Bike Products moving production to the US

[mtnbkr]

QBP, a major bike (and bike parts) distibutor, is moving bike production to Minnesota.  This is a big deal as the trend is for many companies to move production from the US to Taiwan or China.

QBP owns such brands as Surly (I've owned two Surly bikes), Salsa, and several others.  They aren't a boutique builder who caters to rich yuppies and can afford to charge high prices for US production.  They've been known for years as a Taiwan-jobber and not a domestic producer. 

Here's a related article that talks about bike-related Minnesota manufacturing in general: http://blogs.mprnews.org/statewide/2013/08/how-minnesota-became-a-heavy-weight-in-the-bicycle-industry/

Chris

[MillCreek]

That is interesting.  I have bought a lot of QP parts over the years, and until now, I did not know that they also made entire bikes.

[charby]

I think you are going to see more of this. China isn't the cheap manufacturing spot anymore for some items.

[TechMan]

I think you are going to see more of this. China isn't the cheap manufacturing spot anymore for some items.

Ayup, I would agree with that.

[charby]

Ayup, I would agree with that.

Google is even looking at American made devices, there is only a few dollars difference in being made there or here.

[lee n. field]

So we are turning into China?

[brimic]

QBP owns such brands as Surly (I've owned two Surly bikes), Salsa, and several others.  They aren't a boutique builder who caters to rich yuppies and can afford to charge high prices for US production

Sweet!
If I buy a new bike, I won't have to buy trek/gary fischer to buy locally and somewhat US made.

[zahc]

I heard someone is making a cell-phone assembly plant somewhere in Texas. I believe that would be a first.

[lee n. field]

I heard someone is making a cell-phone assembly plant somewhere in Texas. I believe that would be a first.

Motorola had one in Harvard, Illinois for a few years.

[drewtam]

I think you are going to see more of this. China isn't the cheap manufacturing spot anymore for some items.

Yup. Its not just rising wages, but also transportation cost, lead times, tariffs, import/export regulations, quality control, and finding honest business partners. The wages don't have to reach parity, just half way so that the other issues take up the rest of the gap.

Of course, there is Indonesia, Malaysia, Philippines, Thailand, Vietnam, Bangladesh and India for low cost production. But they have even more gov't issues and infrastructure limitations.

I still think long run (starting in ~7yrs and lasting ~20yrs) the US will see a bull run in economic growth again. As long as we can hold it together politically and socially.

[AJ Dual]

Also makes me wonder if some of China's economic chickens are coming home to roost, (well, they will, eventually) or at least some corporations think they will soon.

China's got some double-jeopardy in their economy, in that they've got U.S.-style robber-baron ponzi-esque speculation going on, AND the post-quasi Communist/Authoritarian command economy manipulations and cover ups.

They've got entire cities that are empty, malls bigger than Mall of America that are empty. And real-estate speculation/flipping has infected the middle class too, mortgaged to the hilt on apartments/condos as "investments" that nobody can afford to live in.

http://www.zerohedge.com/news/2013-07-25/how-deep-real-economic-problem-china

http://www.ritholtz.com/blog/2013/08/chinas-real-estate-bubble-2/

http://www.policymic.com/articles/50451/17-haunting-images-of-china-s-ghost-cities

[Harold Tuttle]

One does wonder what this does to the bottomline:
http://www.diversityinbusiness.com/dib2008/dib20802/Recalls/Recall_TrekBikes.htm

Consumers should take the recalled bicycle away from children immediately and return it to a Trek dealer for a free replacement MT220 girl's bicycle or a $100 discount on a different size Trek bicycle.

[White Horseradish]

QBP, a major bike (and bike parts) distibutor, is moving bike production to Minnesota.  This is a big deal as the trend is for many companies to move production from the US to Taiwan or China.

This is an even bigger deal to me, as I am in Bloomington right this minute. Something like this might do some interesting stuff for area economy..

[Scout26]

Do note that that are moving to a business friendly state, and not one of the more "progressive" states like Illinois, California or Massachusetts.

[charby]

Do note that that are moving to a business friendly state, and not one of the more "progressive" states like Illinois, California or Massachusetts.

I wouldn't exactly call MN business friendly, but it is a lot better then the three you mentioned.

[mtnbkr]

Do note that that are moving to a business friendly state, and not one of the more "progressive" states like Illinois, California or Massachusetts.

They're moving to where their home office is located.

Somehow, I managed to not include the original article about this project:
http://blogs.mprnews.org/statewide/2013/08/pride-profit-drive-bike-builders-minnesota-made-dreams/

Apologies for that. 

Chris