First of all, the good news: the showrooms of bike shops are no longer as empty as they were at the height of the coronavirus boom, and the warehouses of bike mail order companies are also slowly filling up again. So the chances of finding your dream bike for 2022 are not bad at all.
However, the bicycle industry is still kilometres away from the normal state it was in before the coronavirus pandemic. Production sites in Malaysia, Vietnam and Cambodia are still suffering from the consequences of the lockdowns or can only produce to a limited extent. Factories in China are also only running at significantly reduced capacity.
Depending on the manufacturer and model, there may therefore still be delivery problems and long waiting times. Although many manufacturers have significantly increased their production in the last two years and almost all bike manufacturers are producing significantly more bikes, the demand for frames, components and add-on parts cannot currently be met. Manufacturers are still struggling with faltering supplies from the Far East, increased raw material and transport costs and above-average demand.
According to scene insiders, it is mainly components from Shimano that many manufacturers are missing. The problem is that, unlike with add-on parts, it is difficult to replace a groupset with another brand. But it's not just Shimano parts that are in high demand, central components such as suspension forks, brakes and drivetrains from Sram, Fox or Rockshox also have delivery times of a year or more.
This has already led to Increased prices for bikes in 2021. And also our Outlook for 2022 six months ago should prove to be true: The situation will not ease this year either. Many companies are still working through their backlogged order lists. In addition, prices for bikes will rise again in 2022 - and across the board! Some manufacturers are increasing prices significantly, while others - who had already increased prices significantly in 2021 - are doing so moderately.
Specialized has also increased its prices for the second time in six months. An Epic Expert cost 6999 euros a year ago (Test in BIKE 3/21), with the same equipment you now pay 8100 euros for the Race-Fully - a whopping 1100 euros more. "Despite massive countermeasures - such as opening new factories, diversifying suppliers or alternative transport routes - we don't see any easing. Products are still in very short supply and costs are rising," says Juliane Bötel from Specialized.
3 bikes that illustrate the price increase in 2022
Price drivers: the reasons for rising bike prices
Whether it's food, electricity, motorhomes or other consumer goods, you are currently confronted with sometimes drastic price increases with almost every purchase. In addition, the Inflation rate as high as 5.3 per cent than it has been for almost 30 years. However, the biggest price drivers in the bicycle industry are the increased prices for the Raw materials and production, as well as the exploded freight and transport costs.
Between October 2019 and 2021, sea freight for a China container alone became 988 per cent more expensive. Asian manufacturers and suppliers are also taking advantage of the high demand to gradually increase their prices. At the same time, producers themselves are struggling with sharp increases in raw material costs: whether crude oil, plastics, rubber or aluminium - everything has become more expensive.
Large manufacturers, who work with many different suppliers, are confronted with price increases on an almost weekly basis in addition to the gruelling delivery deadline situation. The Production costs for frames in the Far East have risen by up to ten per cent in some cases. "In addition to an inflation rate of around five per cent, raw material prices have risen by around 25 per cent and will continue to rise. On top of this, container costs have risen eightfold. This quickly adds up to a price increase of 5-10 per cent per bike," explains Günther Schoberth-Schwingenstein from Corratec.
At the same time, we have noticed in our discussions with manufacturers that many are reluctant to significantly raise prices in the entry-level, affordable and children's segment - even if it would be necessary from an economic point of view. "We have borne the exploding purchase prices since the start of the pandemic for more than a year from our own margin and have not passed the price increases on to our customers," says Annika Strölin from Storck.
Which bikes and brands will be more expensive?
To give you an overview of which manufacturers are increasing their prices for 2022 and which bikes will be more expensive, we have put together a brief 50 bike manufacturers asked: Do consumers have to expect a price increase for 2022 or have you already increased the 2022 prices? And how high is the price increase likely to be?
Around half of the companies responded to our enquiry. Some manufacturers (including Focus, Merida/Centurion, Bulls, KTM, Cannondale, Rocky Mountain) deliberately did not want to comment on the topic or were unable to provide specific answers. Here is an overview of the manufacturers who have already increased or will increase their bike prices for 2022:
And what happens next?
Bikes will be more expensive than ever in 2022, but is that it? Some manufacturers have told us that they are not sure whether the current price list will last until the end of the year. If prices for raw materials, production and logistics continue to rise rapidly, they will have to make improvements. Bikes would then become even more expensive.
A significant and rapid easing of the supply situation or falling freight and raw material costs cannot (yet) be expected this year - on the contrary. Instead, the global production machinery could come to a standstill again due to new lockdowns in the Far East and tear up the rusty supply chains. Discounts are also likely to be very sporadic in the foreseeable future, as demand is too high for the limited supply. So if you want to buy a new bike soon, you shouldn't hesitate too long.
In BIKE 02/2022
