Cycling Industries Europe (CIE) has reported an “extremely positive” picture of the cycling sector in 2021, with companies reporting that their finance and investments are in good health.
CIE has reported its overview of 2021 based on company submissions made in March 2022, with comparisons to 2020 and pre-pandemic years.
There are still notes of caution emerging for 2022, with the number one issue being supply chain challenges. 86% of companies reported continuing problems and little confidence that the situation will be resolved in 2022.
The most noticeable change in the cause of delay was a 27% increase in electrical components shortages, said CIE, linked to global delays in the microchip supply chain.
Consumer demand expectations also calmed down last year. At the end of 2020, 76% of companies were “very confident” and 18% were “confident” about consumer demand. At the end of 2021, 90% of companies overall were still confident, but the breakdown shows that “very confident” has reduced to 34%, with 56% just “confident”.
This result matches other announcements in the sector that 2021 bicycles sales have dipped below 2020 levels, but continue ahead of 2019 numbers in many sectors.
The areas for new investments in 2022 are led by capacity increases, European production and staff acquisition, followed by product development.
CIE chief executive Kevin Mayne said: “Today the cycling industries of Europe are one of the most positive segments of European industry and that shows in the positive news about revenues and investments in our sector.
“However we must not be complacent, the severe impacts of supply chain pressures are dampening demand and we are in a competitive fight with other industries and other parts of the world to secure raw materials, components and shipping.
“We will be using the information from our business survey to tell the EU institutions about our members’ opportunities and needs. Microchips and batteries are good examples of where one industry like automotive can suck up resources which put other successful European industries at risk, therefore we need to be part of EU strategies for supporting future supply.”
Read more: Canyon to show latest range of bikes at this month’s Cycle Show with demo rides available
CIE’s Summit on 12th May in Brussels and a special Members’ Day on 11th May will be tackling the opportunities and challenges that emerge from this study and CIE’s Strategic Plan for the next few years. EU policymakers and company leaders will give greater insights into the opportunities for the industry and how EU policies can support industrial transitions.
Extracted highlights of the latest CIE Business Impact Survey can be found here, with CIE members able to get additional information through CIE’s Market Impact and Intelligence Expert Group.