BA working to address logistics costs and quality issues faced by trade

The BA is working across the industry to find a solution to the rising logistics costs and quality issues faced by the cycling trade.

Over the past year, the cycling market has experienced ‘unprecedented’ growth, with the BA projecting a £1 billion increase in the UK cycling market.

The cycling industry has worked hard to ensure that prices across all categories remain accessible to anyone who wants to cycle. Unfortunately, along with the sector growth, there have also been rising transport and logistics costs and quality issues, said the BA. It has therefore sought advice from members and appointed specialist procurement firm JMCL Consulting.

“COVID has added £1 billion to the cycling market,” said Steve Garidis, BA executive director. “Accelerating the re-emergence of cycling as a strategic industry for transport, health and environment. We know that this growth is set to continue so we need to find efficient solutions to ensure bikes and components get where they need to be for people to access them.”

Jonny Michael, CEO of JMCL Consulting, added: “This is a classic, yet complex procurement issue. We consider that the eventual solution will not only yield significantly improved value for the cycling industry but also provide social and environmental benefits.

“We’re using our enlightened procurement approach to build for the short, medium and long-term. We’re involving logistics and transport industry providers, in collaboration with BA members and other key stakeholders to develop a creative and sustainable solution. Logistics and transport providers who would like to be involved should contact JMCL using the contact details below.”

Current cycling market snapshot (figures from BA’s Market Data Service):

– Cycling market valued at £2.31 billion in 2020, an increase of 45% vs 2019
– E-bike sales share to nearly double by 2023
– Major online shift in cycling sales, from 60:40 to 40:60 (retail:online) over last 12 months
– Double-digit growth maintained across all main cycling categories throughout 2020 and into early 2021

Read the April issue of BikeBiz below:

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