This piece first appeared in the June edition of BikeBiz magazine – not subscribed? Get a free subscription.
Rebecca Bland visits Lyon Equipment to find out how the company has evolved over the years. From becoming employee-owned to working across several different industries. They may be relatively small in the cycling space, but have many strengths that stem from how the business operates.
Lyon Equipment isn’t like other cycle distributors. In fact, it’s not like any distributor, and to call it such would do the company a disservice. Instead, it’s a multi-faceted operation which offers not only distribution within the cycling industry, but across the outdoor industry, as well as housing the UK branch of Petzl. Alongside this, Lyon Equipment HQ, situated just off the M6 near Tebay services, also manufactures and sells equipment for mountain rescue and emergency services.
It’s an interesting company, and not just because it’s hard to pin down exactly what it is or does. It is employee-owned, as of 2022, which means the board of directors isn’t driven solely by profit. Instead, they must answer to a board of employee trustees, which ensures the company isn’t going to be sold for parts or make any big decisions without consulting the employees first.
Lyon Equipment’s approach to business isn’t just about profitability. That is, of course, the bottom line – it’s a business after all – but it’s so versatile, it makes a great case study for other companies both in and out of the cycle industry.
Steve Larking, Assistant Marketing Manager, and Ed Braithwaite, Cycle Market Manager, showed BikeBiz around the Lyon Equipment HQ to learn more about how the company operates – and where it began.
“Lyon equipment is over 50 years old, founded by Ben Lyon, who was originally in caving and manufactured caving ladders,” says Braithwaite. “He met Fernando Petzl out on a caving trip, and they started the distribution and trade between cave ladders and rope climbing equipment.
“That was originally in Dent, but then progressed to more products, and they started to look at how they could train people in using those products safely. This led to them setting up IRATA (Industrial Rope Access Trade Association), which is essentially about accessing building structures safely on ropes, which is very popular in the oil industry and wind farms.”
IRATA is still in operation, with an entire space in the Lyon Equipment HQ dedicated to training. In addition, Lyon has purchased a local gorge, where the team offers dynamic IRATA training.
“We still manufacture ladders and equipment here at Lyon and sell them internationally,” continues Braithwaite. “We’ve got a training area where we still train people at IRATA, and we also train rescue services or individuals looking to do IRATA courses.”
That’s the IRATA side of the business, but there’s also the distribution side – which isn’t limited to cycling.
“So division-wise, we’ve got the distribution side, where we have an outdoor department, water sport department and the cycle department,” adds Braithwaite. “All have their own teams and own marketing support, but they also work in combination when needed.
“We’ve then got a division that looks after the work and rescue, which is working with trainees delivered by the trainers. And then they also have a work and rescue retail side where they sell product into the work and rescue world.
“The final department is the product and manufacturing department, where they design things from the ground up for specific tenders or rescue teams throughout the UK, from the Coast Guard through to mountain rescue or emergency services.”
However, the company doesn’t just manufacture; as part of their efforts to be more sustainable, they also do a lot of repairs. This includes dedicated spaces for Ortlieb, Exbed and La Sportiva.
Currently, Lyon isn’t a ‘big player’ in the cycle distribution world, counting just seven brands in its portfolio. But that doesn’t mean Lyon doesn’t have leverage – the team can afford to be picky about who they work with. When asked what bike brand they’d really like to welcome into the fold, Braithwaite remained tight-lipped but said it would have to be someone special. So, is there something here that other cycle-focused distributors could learn from?
“We’ve not got the biggest portfolio, but we punch way above our weight in terms of who we are,” adds Braithwaite. “That’s due to our stability from working in different industries, being employee-owned and not being in debt.
“We’ve done it for 50 years, and we’ve done it pretty well. We’ve been through foot to mouth, economic downfall, and everything’s changing in the world now, but we’ll just do it differently again. We have got strengths in other areas, and we’re not relying on just the cycle industry now.
“I think other companies will look sideways at us, and think, ‘How are they doing such a good job? And also, the bigger companies that are driven by investors might start looking at things differently, or more realistically, because it’s still a tough market.”
Larking agreed, “I guess for other distributors, it’s not like they can go out tomorrow and say, right, we’re going to branch out into outdoor as well. But because we’ve always been spread across so many different areas, that gives us the opportunity to learn what other industries are doing.
“And we can take what La Sportiva or Exbed are doing in the outdoor world, and initiatives they’re taking with their retailers, and ask how we can take some of those benefits and bring them into cycle, and what we do with Ortlieb or HydraPak?”
Alongside its diverse portfolio and general day-to-day operation, Lyon Equipment HQ also houses a dedicated showroom space, which the team is keen to encourage more dealers and retailers to make use of.
“Having that showroom space, there are a handful of distributors that have got it, but I don’t think many that are Lyon cycle size have got that in-house space,” adds Larking.
“It’s so useful, like when we took on Uvex at the start of this year, being able to get retailers here and show them the entire range, not just from a catalogue or a dozen samples that the reps can carry, it really makes a big difference.
“That space is set up there permanently, and we’re trying to encourage more retailers to drop in, either by appointment or even if they’re just passing on the M6.”
It might sound strange to say that a company’s HQ, situated just off the M6, is actually in a really lovely part of the world. The views from the office are of the fells, the Lakes in the distance and the Dales on the other side. Lyon Equipment hasn’t always been here, but it’s not been far away.
The company moved into the Penrith site just over 10 years ago, and they’ve just taken over another warehouse on the same ‘estate’. Tebay services are literally a walk over the road, and it’s easily accessible for wagons, cars, and of course, cycles.
And it’s not just the HQ that’s been designed with employees in mind, as Braithwaite explains.
“Lyon equipment had to look after the future of the business. They didn’t want to sell it out to someone who was going to take it on, ruin it and sell it. They’ve always been very staff-driven.
“It was decided the best way was not to sell shares, but to sign the whole business over to the employees. That was done in 2022, and there is a Board of Trustees: two employees and one independent. We still have a managing director in place, but he must report to the trustees.
“It’s successful in that it works from the ground up. People are invested in the company, from turning off lights to closing doors in winter, there is a noticeable difference within the business.”
It sounds ideal for employees, but what does the business get out of this arrangement?
“The benefit is that it is secure for all the employees. They get a tax-free bonus at the end of the year, which is in the employee’s interest. And we’ve got control. We can’t just be sold out or told that we’re going to move our company to Brighton.”
Larking was enticed back to Lyon Equipment after a short hiatus with another distributor, and said this initiative was part of the reason.
“There’s not an investment group that the Board of Directors ultimately have to answer to because they want to get a return on their investment,” Larking continues. “They’re just looking at the numbers and nothing else, whereas our board of directors must answer to the employees, essentially, which means that they’re thinking more about the staff than the numbers.
“I’m not saying they’re not thinking about the numbers and the day-to-day running of the business, but ultimately, every member of staff has a vested interest in how the business is performing, and it’s knowing that there’s longevity there.”
It’s clear from a brief tour of the business that people appear to be proud of where they work. There is a sense of pride, and many of the staff have worked for Lyon for over 10 years – staff retention is high, even as the company expands. Over 100 people are working for Lyon now, many of them local to the Penrith site.
So, while we won’t be seeing Lyon stocking ‘gimmicky’ products, the careful and considerate approach to distribution and business growth is something to be admired. Particularly in the current economic climate, with uncertainty and seemingly every day a new company becoming a victim of the modern era, perhaps a diverse portfolio and a breadth of knowledge across several industries is what the cycle market and other distributors should look to.
