You probably already knew that good times in the aerospace industry has caused a shortage of carbon fiber. Given the ol' law of supply and demand, that means the price of carbon fiber bikes has gone up.
But did you know that the carbon fiber makers are slammin' the bicycle makers in deference to aerospace giants? This isn't a level playing field.
The Wall Street Journal reported Tuesday (D1) that Zoltek Companies, based in St. Louis, is keeping its prices down for its big aerospace customers by raising prices for its smaller customers, such as bicycle makers. Says CEO Zsolt Rumy:
“We really jack up the price” for smaller companies.
In other words, it sounds like such companies as Boeing are causing the shortage but Trek and other bike makers are paying for it.
What does that mean for bike makers? Titus Cycles CEO Pat Hus told the Journal that whenever he hears there's carbon fiber for sale, he buys it, sometimes paying three-times what he paid last year.
The aerospace boom also is causing shortages in titanium. Three US titanium manufacturers told the Journal that they're ramping up, but not too fast. They're growing conservatively just in case the titanium market slumps.
Generally, the Journal says, costs of specialty materials for bike makers has gone up 25% and some, if not all, of that cost is passed along to the consumer. No wonder Calfee is making bikes from bamboo.
The bicycle market is still strong. The Journal quotes the National Bicycle Dealers Association that the 19.8 million bikes sold in the US last year is 8.2% higher than in 2004. Also, bike sales topped $6 billion last year, compared to $5.7 billion the year before.
As for high-performance bikes, bicycle manufacturers told the Journal that some 30,000 cyclists a year spend $3,000 and more for a new bike.
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