Scotland has “opportunity” for circular economy bicycle manufacturing

An Edinburgh Napier University-led study into the supply chain of bikes has found that increased participation in cycling will offer new opportunities to suppliers in Scotland.

Commissioned in 2021 alongside Cycling Industries Europe (CIE), ‘Bridging the Gap’ aims to evaluate the state of supply chains in the European cycling market after the effects of the Covid-19 pandemic. Demand for bikes soared during lockdowns, highlighting the physical and mental health benefits of cycling.

The project developed a set of strategic actions that companies, governments, investors and associations can take to ensure a sustainable supply of bicycles – and allied products – to European markets. In June of this year CI.N revealed a plan in motion to start up a manufacturing hub in Scotland under the guidance of a company called Route Assembly.

The Bridging the Gap consortium includes researchers from Edinburgh Napier University (among them Dr Eoin Plant O’Toole and Prof Christof Backhaus), MotionLab in Berlin, and Sporting Insights (formerly Sports Marketing Surveys), London. They analysed supply chain order and sales data obtained from manufacturers and component suppliers in the cycling industry, as well as conducting anonymous interviews with supply chain managers and senior executives.

The project also involves a large-scale consumer study with more than 6,200 respondents from six European countries, with this part of the project having received financial support from Cycleurope, Trek, Accell Group, PON and Specialized.

Outlining some of their findings at last week’s Scottish Mountain Biking Conference in Aberdeen, Dr Backhaus said: “Supply chain pressures have partly been caused by external factors such as long supply chains due to the concentration of bicycle manufacturing in the far east, Covid-induced shortage of logistics capacity, and shortages of raw materials.

“However, the study also highlights several structural issues within the industry, which make it less able to respond to the challenges than comparable sectors. These include a multitude of actors, little integration, lack of information sharing, and a past tendency to react to challenges by ordering further and further ahead, rather than exploring ways to re-design the supply chain.”

Dr Plant O’Toole added: “We have included recommendations to improve collaboration and transparency, which will be key to reforming supply chain effectiveness in Europe”

At the conference, the Edinburgh Napier University researchers shared a platform with Edward Shoote from South of Scotland Enterprise. They discussed the specific opportunity for Scotland to adopt a circular economy approach to bicycle manufacturing, with support from its enterprise agencies.

The separate consumer demand study examined six large and representative markets, analysing how consumer behaviour and demand changed during the covid pandemic and getting an early view on buying predictions for coming years.

Kevin Mayne, chief executive of CIE said: “We anticipate more demand from younger cyclists, more female cyclists, and an increase in the consumer base for e-bikes,”

“The EU Commission will publish a new cycling declaration in early 2023, and this presents an opportunity for the industry to build international cooperation and improve both reliability and sustainability around its supply needs.

“Ultimately, CIE aims to contribute to reaching EU goals on road safety, public health, and the sustainable growth of mobility. “Bridging the Gap” has created for us a set of strategic recommendations that will support the expected growth in bicycle sales in Europe over this decade.”