"Made in Germany": Bicycle companies stick to production in Germany
Author: pressedienst-fahrrad
Thomas Bernds has been manufacturing bicycles under his own name on Lake Constance for more than 30 years. He favours handmade steel frames, which he welds and paints himself. For him, a lack of knowledge about production processes is a key reason why Germany is currently crumbling as a business location: "German companies were successful when they produced in their own country," says Bernds, referring not only to the bicycle industry, which has shifted more and more production and therefore knowledge abroad over the decades.
As a result of this relocation, a lot of expertise was lost in frame production, which now has to be built up again by bringing it back. For his company, Bernds is convinced that production in Germany can be achieved at almost the same cost and offers advantages such as quality, planning security and flexibility. "It makes no sense for us personally, or for our economy, if we produce abroad," says Bernds.
"Made in Germany - made by diversity"
Despite the vertical range of manufacture in Germany, Thomas Bernds does not use the slogan "Made in Germany" in his advertising. The reason: "The current political situation shows that an unreflective approach to the topic can quickly go in the wrong direction."
The "Made in Germany - made by diversity" campaign, which Ortlieb and Busch & Müller, for example, have joined, therefore wants to set an example for diversity and tolerance, because the commitment of all people, regardless of their origin, is decisive for the economic success of German family businesses.
Sales arguments abroad
Children's vehicle specialist Puky also manufactures some of its products in Germany - and has done so for more than 75 years. The company, based in Wülfrath (NRW), was able to achieve double-digit sales growth in 2024 despite a reluctance to buy in Germany, reports Managing Director Marc K. Thiel. He cites the growing foreign market as the reason for this - where the long-established company scores with quality, brand awareness and production in Germany.
"Consumers also respectfully regard Germany as a challenging business location," says Thiel. There is "respect because we are sticking to production in Germany." Relocating to Asia is out of the question, even though it would be more favourable. "When it comes to quality and flexibility, we are best positioned here," says Thiel, adding: "As a traditional company, we are committed to strengthening the domestic economy."
Positioning for the future
Around 70 kilometres to the south-east, in Meinerzhagen in the Sauerland region, the lighting specialist Busch & Müller is another company with a long tradition. The focus is on headlights and rear lights for bicycles and e-bikes, as well as motorbike products. The company's history goes back 100 years and Managing Director Guido Müller is the third generation to run the family business. For him, one thing is clear: "We are preparing for the future - and of course at the Meinerzhagen site."
He sees the current problems on the bicycle market as global and not specific to Germany: "There are many Asian products for bicycles and parts. They have the same problems as products that are manufactured in Germany." The company is therefore investing in new staff in the areas of development, quality management and administration. The aim is to improve structures in order to be ready when demand picks up again. Müller is convinced that this is the case: "We are well positioned with the bicycle product in the medium and long term." Although the bicycle industry is currently in crisis, the signs for a recovery are good. The bicycle "solves many problems in terms of mobility, climate protection and health. It's an appealing means of transport," says Müller.
Investments also thanks to reshoring
Another traditional Sauerland company with over 100 years of company history is looking to the future: mudguard and air pump specialist SKS Germany, which manufactures in Sundern. And according to Marcel Spork, Sales Manager Aftersales, this is set to remain the case in the future: "We are investing heavily in Germany over the next few years. There can be no question of deindustrialisation." This goes hand in hand with the promise of quality that comes with "Made in Germany", but also the challenge of setting the right price points.
"It's our job as a company to make sure that we don't run out of money and lose credibility and an advantage," says Spork. He holds politicians responsible for creating reliable framework conditions and more predictability through firm decisions: "There is nothing worse than a lurching course." Spork believes the bicycle industry is on the right track. "The trend is towards more production in Europe. This step also opens new doors for us because we are working with new partners," he says confidently.
Investing more in education
Reshoring, i.e. bringing production back to Europe from Asia, has been an issue in the bicycle industry not just since the coronavirus pandemic and the resulting impact on transport routes. With the establishment of frame production facilities, e.g. in Portugal or Bulgaria, and the construction of e-bike motors in Europe, the topic has become increasingly relevant in the last decade. Around 80 per cent of customers - i.e. bicycle and e-bike manufacturers - of the gearstick and e-drive manufacturer Pinion are now based in Europe. For Managing Director Thomas Raith, this is a positive sign: "I think that the bicycle industry is currently giving a lot of thought to the issue and drawing the right conclusions."
Pinion has been manufacturing its technically sophisticated products in Germany since it was founded in 2008. "Made in Germany" is an important argument for quality, but also a symbol of where companies invest, create jobs and ensure ecologically sound supply chains. "Customers should once again consider what is involved," says Raith. However, high costs, e.g. for energy, are currently making Germany less attractive as a business location. However, Raith also recognises another issue: "Over the last 30 years, we have made other countries fit with our expertise through our globalisation approach. Now the tide is turning." For him, investment in education and consistent political action are therefore long-term wishes for the next federal government "to enable progress."
Skilled labour shortage?
Although the shortage of skilled labour is an issue for manufacturers, the bicycle industry does not appear to be as badly affected as other sectors. Employees from the automotive industry are currently switching to the bicycle sector and can fill vacancies, as some manufacturers report.
Ensuring innovative strength
Porsche E-Bike-Performance is another e-drive manufacturer that produces in Germany. More specifically, the Fazua brand motors are currently manufactured in Ottobrunn near Munich. Shorter transport routes, reliable supply chains and a close exchange between development and production are the main advantages, according to Co-CEO Dr Jan Becker.
Porsche has therefore made the fundamental decision not to start production in China. "Porsche is associated as a luxury brand and with the label 'Made in Germany'," says Becker. Innovative strength and quality are crucial for production in Germany and the company wants to continue to adhere to this. That is why the right structures and space for research and development are needed. "Without innovative strength, 'Made in Germany' will be undermined," says Becker.
Back to Germany
With the opening of a production plant in St. Ingbert (Saarland) at the end of 2022, the topic of "Made in Germany" came into focus for the compact e-bike manufacturer I:sy. Although the frames are still imported from Asia, the rest of the production and development is carried out entirely in Germany. Managing Director Jessica Schumacher cites the close dialogue between product management and production, which is fundamental to the quality assurance of the bikes, as the reason for this measure.
"That wouldn't happen so quickly outside of Germany," says Schumacher. For her, it is therefore important that the bicycle industry, which employs a six-figure workforce, is listened to more by politicians. "We would benefit from more support from politicians," says Schumacher. The expansion of a cycle-friendly infrastructure is a key requirement: "I would like to see a cross-party political consensus to strengthen cycling." She also believes that a reduction in VAT on bicycle products and services would be an important signal.
Competitive advantage - but too expensive?
For component manufacturers such as the saddle and grip specialist Ergon, reshoring and "Made in Germany" also bring competitive advantages, as Managing Director Franc Arnold confirms. Especially in the highly competitive original equipment market, they can score points against the cheaper competition from Asia. "Optimising supply chains is a huge issue for every manufacturer," says Arnold. Ergon has some of its preliminary products, such as foams for saddles or rubber compounds for grips, manufactured in Germany.
Arnold intends to maintain this in the future, but sees problems due to high prices: "Competitors from Asia make good products at prices that we couldn't match with purely German production. In order to remain competitive, we therefore had to relocate parts of our production to other European countries." The company has production facilities in Italy and Eastern Europe, for example, where energy prices and therefore production costs are significantly more favourable. There is also a lack of production infrastructure and expertise for gluing saddles in Germany, for example.
Creating aha effects
The bag specialist Ortlieb has been proving for more than 40 years that almost 100 per cent production can also work in Germany. "From the very beginning, it was always in the interest of our owner Hartmut Ortlieb to create and secure jobs," says Managing Director Martin Esslinger. However, companies are "increasingly getting obstacles in their way", referring to the growing bureaucratisation, e.g. in the area of sustainability.
"New regulations are fundamentally correct and important, for example to reduce the issue of greenwashing, but the way in which they are now so extensive is sometimes impractical," says Esslinger. Nevertheless, the company will remain based in Heilsbronn in central Franconia: "Our production will always be in Germany." "Made in Germany" remains a strong sales argument, as at Ortlieb it stands for high-quality, repairable products. "It's attractive in sales talks and triggers an 'aha' effect," says Esslinger.
Return wanted, but still fails
Textile production in Europe and Germany is a challenge. Philipp Elsner-Krause, Managing Director of accessories supplier Fahrer Berlin, knows this only too well. For many years, the company had its products manufactured in Germany and Europe, but now around 60 per cent of its range is produced in Taiwan - although the company would like to return to Europe. "For competitive textile production, it is no longer possible to manufacture in Europe - at least in our sector," says Elsner-Krause. In accessories, the growing competition from low-cost suppliers such as Shein or Temu is noticeable.
"Suppliers are currently flooding the market with cheap goods that do not comply with European regulations," says Elsner-Krause. Product tests and material tests are often incomprehensible. "This violates existing laws, but is still allowed to be sold. That doesn't make sense to me," says the entrepreneur. Fahrer Berlin's production site in Germany, where primarily small parts are manufactured, therefore remains extremely important. "We can act flexibly here, produce small quantities and try things out. That's why we continue to see if we can find something suitable in Europe," says Elsner-Krause about his company's plans for the future.
