Thok news release on Covid Supply problems (To the industry as a whole)

[Zimmerframe]

Not sure how this will appear for everyone as it's translated then copy and pasted, so I might see images and you might not ... Hopefully the wording will work ..

THOKers! Given the relationship that binds us to you, in wishing you healthy laughter, fruitful work and good health for 2021, it seemed necessary to clarify and update you on how Covid-19 has affected and affects the bike industry with lucidity and honesty.

​

During the pandemic, what led to collapses in sales, cost reductions and serious problems in many industrial sectors, caused the bicycle sector to grow exponentially . The time is ripe to stop and reflect on the meaning of the things that have happened. Let's try to understand, from the point of view of the cycle industry, what is happening, how we got there, where we are headed.

​

It is the beginning of 2020 when the Covid emergency explodes in the East, in conjunction with the Chinese New Year celebrations. In China and in other areas of Asia (manufacturing nerve centers of all bike factories) the production of bike frames and accessories ceases . Europe and America still think they are safe, but the long-term consequences of the pandemic have begun. In fact, after a few weeks, in turn, all Western countries are experiencing the first general block. A shock. Suspended work activities: factories, shops, public administrations… for more than two months the world slows down, almost to a stop. People cannot leave the house except for proven needs, masks and disinfectants make their appearance, lockdown and social distancing become terms of daily use. We no longer meet, we no longer share, the virus lives in people's breath.

​

But leaving aside the course of history that we all know, it is precisely in the moment of the easing of the first restrictions that the cycling industry experiences a sudden change of direction. Because, in a new distant world, everyone is starting to see the bicycle as the best solution for physical activity, for moving around and for occupying free time. Thus sales and demand increase unexpectedly. In the Far East, however, production lines were interrupted for several months. Some migrant workers have been laid off in the pandemic, while others have fled home and, in large part, never returned to their old workplaces due to the difficulties of returning due to travel restrictions and the need to face quarantines. New workers have been recruited to fill the gap in the missing manpower, but it takes time to retrain the line .

​

For all these reasons, demand, which grows very rapidly, cannot be satisfied by producers, who are struggling to compensate for the production deficit caused by the block and the difficulty of full recovery. The suppliers, who normally ensured delivery times of up to 90 days, now reach 18 months , also due to the difficulty of finding aluminum, the raw material necessary for most of the components. Bike shops are stormed, but out of stock manufacturers and suppliers can only offer long or uncertain delivery times due to manufacturing overrides. The situation is also complicated from the point of view of transport : e-bikes are sent by sea. Many goods are shipped from Asia to Europe but relatively less in the other direction. Return journeys with empty containers quadruple costs . Furthermore, full ports are unable to accommodate incoming ships with cargoes, which wait for days before being able to access a quay. Before the pandemic, a container shipped by ship from Taiwan took 4 weeks to arrive in Italy. Today the times have lengthened to more than two months. The costs, as we said, four times as much.

​

What can we expect for the next few months? It is advisable to be informed about the consequences that all this will bring, to be prepared and accept them with serenity. Due to the reduction in production efficiency, new logistics costs and higher coordination and transport costs, producers of all brands will find themselves forced, in order to survive and adapt to the new market rules, to increase prices not only of new products, but often also of orders in progress. For the whole of 2021 (and probably for 2022) the planning of delivery times will be very complicated if not impossible : the availability not only of the frames, but of some components, has now reached 500 days of waiting. A manufacturer during the year may be able to build their own frames but have no brakes, shifters, seatposts or stems to fit, making delivery of the bikes impossible. There will be more and more tendency to build robust and durable vehicles with universal standards. The race between brands will hardly continue to launch new products every 6 months, the concept of model year will be increasingly set aside and, probably, the choice of components for each production batch will depend on the availability of supply at the moment.

​

2021 and 2022 will be years of transition: companies will reorganize themselves by inventing new rules and drawing on new strategies and resources. All of us, manufacturers, suppliers, retailers and end customers, will have to adapt to a new normality: price increases, bike components change on the go, very long delivery times. We at THOK have been working for some time to prepare for these changes. The company's goal will be to preserve its philosophy and principles, while adapting strategies to the new situation in respect of customers and limiting their discomfort. The intention is to focus more and more on the performance of our vehicles and on the creation of products that last over time, limiting their devaluation and keeping them current. THOK battery 630Wh and THOKcare kits are born with this purpose: to give the possibility to adapt your vehicle, extending the time in the saddle, without having to change the bicycle (difficult to find these days) and put the used one back under warranty, for limit its depreciation. The advice we would like to give to those interested in buying an e-bike is not to be intimidated by the long delivery times but, on the contrary, to order your own as soon as possible, to be sure to receive it in time for the summer. . In the coming months it will be increasingly difficult to find available bikes.

​

Always focused on the direct relationship with the final customer, today more than ever, we are convinced of our choice. Together with our THOK Points, we remain at your complete disposal for any doubt or clarification: on orders in progress, for new purchases or for any information and reassurance you need. From producer to consumer. At THOK we remain charged and focused, we look forward with optimism and always with a great desire to pedal. Peaceful year to all.

 

[Zimmerframe]

Jesus. That’s a lot of words for:
-COVID fucked everything
-China is making a shit load more money now

Please, it's "ZimmerFrame" on here .. I told you to only call me "Jesus" on religious themed fancy dress BBQ & Beer nights !

 

[steve_sordy]

Jesus. That’s a lot of words for:
-COVID fucked everything
-China is making a shit load more money now

For me, I hope the US and EU return to not being reliant on China. Interesting seeing the effects on the world and this virus - while knowing the origin.

Almost like it was intended.

 

[The Hodge]

Nicely summarised Bambam

 

[paul-g]

Not sure how this will appear for everyone as it's translated then copy and pasted, so I might see images and you might not ... Hopefully the wording will work ..

​ THOKers! Given the relationship that binds us to you, in wishing you healthy laughter, fruitful work and good health for 2021, it seemed necessary to clarify and update you on how Covid-19 has affected and affects the bike industry with lucidity and honesty.

​ ​

​ During the pandemic, what led to collapses in sales, cost reductions and serious problems in many industrial sectors, caused the bicycle sector to grow exponentially . The time is ripe to stop and reflect on the meaning of the things that have happened. Let's try to understand, from the point of view of the cycle industry, what is happening, how we got there, where we are headed.

​ ​

​ It is the beginning of 2020 when the Covid emergency explodes in the East, in conjunction with the Chinese New Year celebrations. In China and in other areas of Asia (manufacturing nerve centers of all bike factories) the production of bike frames and accessories ceases . Europe and America still think they are safe, but the long-term consequences of the pandemic have begun. In fact, after a few weeks, in turn, all Western countries are experiencing the first general block. A shock. Suspended work activities: factories, shops, public administrations… for more than two months the world slows down, almost to a stop. People cannot leave the house except for proven needs, masks and disinfectants make their appearance, lockdown and social distancing become terms of daily use. We no longer meet, we no longer share, the virus lives in people's breath.

​ ​

​ But leaving aside the course of history that we all know, it is precisely in the moment of the easing of the first restrictions that the cycling industry experiences a sudden change of direction. Because, in a new distant world, everyone is starting to see the bicycle as the best solution for physical activity, for moving around and for occupying free time. Thus sales and demand increase unexpectedly. In the Far East, however, production lines were interrupted for several months. Some migrant workers have been laid off in the pandemic, while others have fled home and, in large part, never returned to their old workplaces due to the difficulties of returning due to travel restrictions and the need to face quarantines. New workers have been recruited to fill the gap in the missing manpower, but it takes time to retrain the line .

​ ​

​ For all these reasons, demand, which grows very rapidly, cannot be satisfied by producers, who are struggling to compensate for the production deficit caused by the block and the difficulty of full recovery. The suppliers, who normally ensured delivery times of up to 90 days, now reach 18 months , also due to the difficulty of finding aluminum, the raw material necessary for most of the components. Bike shops are stormed, but out of stock manufacturers and suppliers can only offer long or uncertain delivery times due to manufacturing overrides. The situation is also complicated from the point of view of transport : e-bikes are sent by sea. Many goods are shipped from Asia to Europe but relatively less in the other direction. Return journeys with empty containers quadruple costs . Furthermore, full ports are unable to accommodate incoming ships with cargoes, which wait for days before being able to access a quay. Before the pandemic, a container shipped by ship from Taiwan took 4 weeks to arrive in Italy. Today the times have lengthened to more than two months. The costs, as we said, four times as much.

​ ​

​ What can we expect for the next few months? It is advisable to be informed about the consequences that all this will bring, to be prepared and accept them with serenity. Due to the reduction in production efficiency, new logistics costs and higher coordination and transport costs, producers of all brands will find themselves forced, in order to survive and adapt to the new market rules, to increase prices not only of new products, but often also of orders in progress. For the whole of 2021 (and probably for 2022) the planning of delivery times will be very complicated if not impossible : the availability not only of the frames, but of some components, has now reached 500 days of waiting. A manufacturer during the year may be able to build their own frames but have no brakes, shifters, seatposts or stems to fit, making delivery of the bikes impossible. There will be more and more tendency to build robust and durable vehicles with universal standards. The race between brands will hardly continue to launch new products every 6 months, the concept of model year will be increasingly set aside and, probably, the choice of components for each production batch will depend on the availability of supply at the moment.

​ ​

​ 2021 and 2022 will be years of transition: companies will reorganize themselves by inventing new rules and drawing on new strategies and resources. All of us, manufacturers, suppliers, retailers and end customers, will have to adapt to a new normality: price increases, bike components change on the go, very long delivery times. We at THOK have been working for some time to prepare for these changes. The company's goal will be to preserve its philosophy and principles, while adapting strategies to the new situation in respect of customers and limiting their discomfort. The intention is to focus more and more on the performance of our vehicles and on the creation of products that last over time, limiting their devaluation and keeping them current. THOK battery 630Wh and THOKcare kits are born with this purpose: to give the possibility to adapt your vehicle, extending the time in the saddle, without having to change the bicycle (difficult to find these days) and put the used one back under warranty, for limit its depreciation. The advice we would like to give to those interested in buying an e-bike is not to be intimidated by the long delivery times but, on the contrary, to order your own as soon as possible, to be sure to receive it in time for the summer. . In the coming months it will be increasingly difficult to find available bikes.

​ ​

​ Always focused on the direct relationship with the final customer, today more than ever, we are convinced of our choice. Together with our THOK Points, we remain at your complete disposal for any doubt or clarification: on orders in progress, for new purchases or for any information and reassurance you need. From producer to consumer. At THOK we remain charged and focused, we look forward with optimism and always with a great desire to pedal. Peaceful year to all.

​

dear father christmas
i`ve been a good boy since last christmas
i would like all the boxed presents in the photograph
except 1.
my dear better half would like the other 1
signed
a hopefull good boy
no zimm you`re not father christmas either

 

[R120]

Seems like an opportunity to sell frame sets to me - last year I tried to buy a frame off Thok, but they weren't interested - had quite a bit of communication with them but they wouldnt do it as they said they couldn't warranty just the frame, even though I said I was happy to forgo the warranty.

 

[smtkelly]

I'd place a bet differently. When there's a buck to be made business finds away of making it. I doubt prices will go down but availability by mid summer will probably be ok..

Smaller brands like boxcomponents.com might get the big break they need if they can scale up and aren't located in china (with its current shipping problems).

 

[aarfeldt]

Almost like it was intended.

He thinks the same.....thank god he's soon history.

 

[maynard]

The price these bikes cost they should be made in Germany . Das bicycle

 

[CJaMTB]

Seems like an opportunity to sell frame sets to me - last year it red to buy a frame off Thok, but they weren't interested - had quite a bit of communication with them but they wouldnt do it as they said they couldn't warranty just the frame, even though I said I was happy to forgo the warranty.

About time we started seeing more eMTB framesets, I for one would welcome that with open arms!!!

 

[steve_sordy]

So when my unrepairable motor fails and my battery is down to 35%, I can strip them out, sell off the parts and the frame will be in big demand?

 

[Nasty Nick]

The price these bikes cost they should be made in Germany . Das bicycle

This man. These prices are insane. I'm not saying the margins are huge, but either they are or there is some rediculous inefficiency going on.

 

[Stihldog]

We’ve formed an Emtb gang in my neighborhood for this very reason. We tend to terrorize “stop-signs” and “water-bottles” so watch out but we share parts and knowledge with each other.
The LBS’s are starting to feel the supply dwindling unless you can buy the $10k-$17k EMTB on the floor, which is also getting smaller. Norco, Trek, Santa Cruise, and some Levo’s seem to be the EMTB of choice around here. There’re all taking months to order one in now.
But it’s the consumable parts that that are becoming difficult to get too. I’m starting to hoard brake pads, chains, rotors and cassettes because we/I’m starting to chew through these at a rate that cannot be replaced by the LBS. Even the work-force is shrinking at the LBS’s. The young guys have went back to school or onto better paying jobs. I was offered a job by my LBS last week …”are you kidding me?”.
These are good times for someone …I guess.