Tag Archive: manufacturing

  1. Eovolt increases folding electric bike production capacity at Genas manufacturing center

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    Source: ToutLyon, S. Renard

    Production capacity will almost double from 1,200 units per month to 2,200. This can be attributed to the installment of a second production line and the creation of additional storage spaces.

    After establishing a production facility in Genas in mid-2020, foldable electric bicycle manufacturer, and LEVA-EU member, Eovolt has ridden the two-wheeled wave. In the first year, sales saw an increase from 3,800 units, to 9,500. As growth shows no sign of slowing down into 2022, it is unsurprising that the company continues to upscale its manufacturing presence.

    An investment of €500,000 has secured the additional production capacity. Baptiste Fullen, Eovolt co-founder, shares, “The expansion of our production unit is part of a global company development project. We want to accentuate our local approach in order to lock our production chain and to be more responsive and more flexible.

  2. Global supply chain pressure index at an all-time high due to war in Ukraine

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    Source: Bike EU, Jo Beckendorff

    The Federal Reserve Bank of New York, publisher of the global supply chain pressure index (GSCPI), has revealed the impact of the Russian invasion of Ukraine in its latest release.

    The invasion added additional pressure to a global network that was already under strain. Pressure is now at an all-time high since the index’s creation in 1997. The scenario continues to develop as trade and payments with Russia and Belarus rapidly decrease in line with Western bank sanctions. This turn of events is a stark contrast to early 2022 predictions that pressure was beginning to equalise following Covid-19 disruption.

    The GSCPI summarises 27 variables that impact global supply chain functioning, including measures such as cross-border and manufacturing costs. A score of 0 indicates that pressure is at an average level, and any positive increase indicates how many standard deviations the index is above average value, and vice versa. The value currently stands at 4.

    In the LEV industry, where a product as a whole may be completely dependent on specific, independently sourced parts, this pressure increase could force some manufacturing to a standstill. As the global scenario continues its progression, the impact on the supply chain will be closely observed by many.

  3. Does record price aluminium threaten the bicycle industry?

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    Nieuwsfiets.nu notes that the raw material prices of aluminum have risen to their highest level in 10 years. On top of that, energy prices are increasing. With the bicycle industry heavily reliant on aluminum, will there be knock on effects?

    Thanks to a high demand for aluminium, some environmental factors, and the continued impact on logistics and labour of the coronavirus pandemic, the London Metal Exchange price for aluminium has in a number of months crept up from €1.31 to €2.26 per kg. This price level is not expected to fall in the near term. 

    This is compounded by high energy prices. Niewfiets.nu takes an example from the Netherlands, in smelter Aldel, who has recently had to move to reduced production. The price for a megawatt-hour of gas has risen to €300, compared to before the corona crisis when that price was about €20. The production of a ton of aluminium therefore costs Aldel €4,500 in electricity costs, while the market price for a ton of aluminium is currently €2,500. is. Aldel is of course not the only aluminium smelter facing this.

    Such a situation is already having an impact on manufacturing, and the article considers how this might impact product prices in the bicycle industry, where many frames and components are made of aluminium. With a boom in product demand, and climbing container prices, Niewfiets.nu reached out to the industry to ask if they believe the market suffer another price increase. The replies were few, with the Chinese contacts being the most responsive. There is word that raw frame tube prices have already doubled since April and that this will be noticeable in the market.

    As winter progresses, high energy prices will be more keenly felt. It has also been reported that some factories in China, including those in the bike trade, have experienced shutdowns due to electricity shortages. This will be felt down the line in lead times and availability of components.

    The publisher mentions that the price increases of the raw materials will have a limited effect on the final price of bicycles. It is the very high prices of container transport that has the greatest current influence. Ultimately, the combination of all these factors means that bicycle manufacturing is certainly facing a cost squeeze.

    Source: https://nieuwsfiets.nu/2021/10/21/bedreigt-recordprijs-aluminium-de-fietsindustrie/?utm_source=mailpoet&utm_medium=email&utm_campaign=nieuwsfiets-nu-continental-trekt-stekker-uit-e-bike-divisie-idc-urban-arrow-verdubbelt-bezoekersaantal_269

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