WASHINGTON — The Coalition for a Prosperous America (CPA) today released a new economic report outlining a comprehensive plan to re-shore the U.S. bike and e-bike industry, which would create thousands of new U.S. manufacturing jobs, reduce U.S. dependence on China, and generate economic growth in an industry that is increasingly using advanced technology. The report titled, “The Global Bicycle Market: A Comprehensive Plan to Re-Shore the U.S. Bike & E-Bike Industry,” documents the current state of the U.S bike industry, including the recent and unprecedented boom triggered by the COVID-19 pandemic, and the rise of the e-bike which promises to double or triple the size of the U.S. industry. Read the full report here.
“Today, 86% of the bikes purchased in the U.S. come from China. This is bad for the U.S. economy, bad for the environment, bad for consumer safety and terrible for shoppers who are often being told to wait 12 months for the bike they want,” said Jeff Ferry, CPA Chief Economist and author of the report. “In this report we outline a simple plan where the federal government can, at modest cost, begin the process of re-shoring this industry to bring back jobs, revive depressed communities, and restore Made in USA pride.”
Over the last 25 years, the U.S. has lost virtually its entire bike manufacturing industry, while China has become the world’s dominant manufacturer of bikes, e-bikes and bike parts. The loss of those companies and jobs hit communities hard in parts of Chicago, Ohio, Mississippi, Pennsylvania and elsewhere. Minorities often suffered the most as they were strongly represented in the workforces of these companies. The U.S. has an opportunity to rebuild this industry today, at a modest cost.
A Ten-Point Plan for Re-Shoring Bike and E-Bike Production
The report’s ten-point plan for re-shoring the bike and e-bike industry provides a strategic guide for policymakers to rebuild U.S. bike manufacturing, leading to a 30% market share of locally produced bikes and e-bikes within five years, and a 50% share in ten years. This will attract the support of eight U.S. bicycle manufacturers, including Kent International, the largest U.S. bike manufacturer today, with a plant in South Carolina. The CPA Economic Team’s model calls for the U.S. to reach 5 million bikes assembled domestically within five years, creating 5,000 direct jobs and another 5,000 – 8,000 indirect jobs. The vast majority of these jobs will be in depressed U.S. regions and many jobs will go to people of color, at wage and benefit packages superior to most of the jobs currently available in those regions.