Shimano posted some remarkable numbers in its 100th year of trading
Mountain bikers who have attempted a new build in the last year will have experienced the reality of limited component choice. And surging prices.
With government incentives and changes in exercise preference, cycling has enjoyed one of its most remarkable growth phases, in parallel with the pandemic.
For Shimano, the last year has seen some terrific revenue numbers. During its centennial year, Shimano experienced enormous demand for its components.
The Japanese component supplier experienced an 82.7% rise in income through its cycling division, with sales up by nearly half (49%), totalling £2.8bn.
Smashing the previous best
Shimano’s previous income record was back in 2015, when the company’s bike division posted £2bn in sales, a figure that has now been bested by £750m.
As one of mountain biking’s core suppliers, Shimano has excellent data sourcing and forecasting insights.
Product planners know what is happening to the mountain bike market, which has suffered through a perfect supply-and-demand storm for the last two years, trying to balance huge demand with disrupted supply.
Things are getting better for Shimano supply – slowly
Although Shimano attracted criticism for ballooning lead times last year during the pandemic, it is rolling through an investment of £130m. This will see a new facility in Singapore, augmenting Shimano’s four-decade presence on the island.
The new Shimano Singapore asset will produce premium drivetrains. It is expected to become fully operational during 2022.
According to Shimano, new bike demand remains high in Europe, with low inventories and waiting lists – something customers will attest to.
With Shimano’s EP8 mid-drive motor becoming the default standard for many new trail and enduro e-bikes, the Japanese company has warned that microprocessor supply remains a problem.