Guardian's USA-made children's bike is still evolving. (Guardian graphic via WSJ) |
Moving bicycle component production to the United States will still be tough partially because China has dominated the sector for decades. Riley knows the challenges and is still moving in that direction. Khan explains, "For now, components from China represent about 90% of the total cost of Guardian’s parts. By the end of next year, Riley hopes that figure will be about 20%. Guardian is starting production of its own bike frames. . . . As a result of Guardian’s new manufacturing, American-made parts could represent about 60% of the cost."
One of the reasons Riley moved his company to the United States was to build a "safer bike that could prevent the kind of head-over-heels braking accident that had injured his grandfather years earlier," Khan reports. "Many bikes sold at retailers such as Walmart or Target aren’t fully assembled when they are shipped to the retailers from overseas, so manufacturers don’t have oversight on the final assembly. Riley told Khan, "By controlling every aspect of production, we can guarantee the quality of every bike that rolls off our assembly line."
Riley admits that opening a U.S. factory was expensive and time-consuming. "At first, workers were slow to build the bikes, putting together 100 a day. It took time and constant tweaking of the assembly line to improve their speed and efficiency," Khan writes. Riley told her, "We had to bite the bullet. We had to be willing to lose money for a while to get to the other side of the strategy.”
The creation of Guardian's USA-made bike is evolving. "Guardian plans to begin making bike frames at the factory this year, using American steel. . . . Guardian is also considering making rims itself," Khan reports. "The bike maker has approached U.S. suppliers that could provide grips and reflectors."
Riley told Khan, "Everyone says making bikes here is impossible." Kahn adds, "His factory shows it isn’t."
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