How COVID-19 Affects Bike Production

Oerus is actively monitoring the Coronavirus (COVID-19) situation in Taiwan and China. As we near March, bicycle manufacturing in several regions throughout China are still shutdown. Meanwhile in Taiwan, factories have already been active for weeks following the Chinese New Year holiday.

Brands with supply chain reliant on Chinese production need to expect heavy delays from manufacturers, sub-suppliers, and logistics. While some bike and bike component factories in China are preparing to resume production, retaining their work force in spite of government curfew, lockdown, and travel restrictions continues to be a challenge. Factories must also follow strict guidelines designed to ensure worker safety from COVID-19. Half of China’s bike production industry remains shut down, while the other half is operating at half capacity.

Taiwan bike production is literally at full capacity. The COVID-19 problem exists in Taiwan, but very much controlled by the government at less than 35 cases. The banning of Mainland Chinese tourists is helping prevent new infections, but it is likely that COVID-19 will continue to pose as a potential problem down to road. Many Taiwanese bike factories have some supply chain connected to China and therefore delays are inevitable. Expect disruptions to production schedules for many products, even though they are “Made in Taiwan.”

For bicycle and e-bike brands looking for short term solutions, it is best to check out Taiwan and Indonesia. Taiwan is operating at full capacity so lead times can be quite long. Indonesia on the other hand have significantly low COVID-19 cases and is perhaps the best choice right now for bicycle production in terms of capacity, quality, and lead time. Oerus advises all clients to refrain from travel to Asia until the COVID-19 situation improves. If you do visit, be sure to bring masks due to the massive shortage across Asia.