Mountain Biking - The beginning of the end for Rocky Mountain?

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Maelstrom
05-05-04, 12:29 PM
http://209.11.49.239/bicycleretailer/headlines/article_display.jsp?vnu_content_id=1000501806

RM has always been independant of its parent owner pro-cycle. Procycle (2 years ago I think) bought balfa and brought in all production to their parent factory. Balfa now seems to be at the end of its life. As much as I have never liked RM I hope the same doesnt happen to them. But I could see this being good for 2 reasons...

Move the production to a cheaper market and begin mass production of their lower end frames. Right now in vancouver they are paying prime rent for a factory handmaking most of their frames. They could save a lot of money dropping a lot of the handmade and moving into a cheaper factory out east.

Hunter
05-05-04, 11:01 PM
Well I am mixed on this. We are making far east companies alot of money by sending buisness there way. I think the u.s. and Canada would be alot better off just keeping production in their respective countries. Alot of jobs are lost thatway and the respective countries have to flip the bill for the unemployed usually at thier citizens expense.
Maelstrom
05-06-04, 12:08 AM
Hunter,

While in my heart I agree...I wouldn't be able to afford to ride if that were the case. Most of my friends wouldn't either. Its a catch 22...

math2p14
05-06-04, 12:19 AM
It is a sad fact that many factories move from Western countries to eastern ones for profit reasons. RM already had some low-end frames made in taiwan. Jobs are indeed lost, and of course we all get the respective consequences.
To be honest with you... bike companies are tiny companies in comparison with financial organizations and banks. I am saying this because, most major banks where i live (UK), have moved their telephone-customer-service departments to eastern countries for the shake of profit. WOA, banks? Yes banks, the companies with the BIGGEST profit margins are doing this... so this sounds perfectly normal for me...with respect to bike companies.

We bikers always want cheaper prices, bike builders desire higher wages, prices of raw materials have gone sky high, the only solution in order to strike a balance again, is to move east. Unfortunately the trend to day is not "go west" as the song says (pet shop boys),...but GO East.