SIC 3751 Motorcycles, Bicycles, and Parts
SIC 3751
This category includes establishments primarily engaged in manufacturing motorcycles, bicycles, and similar equipment, and parts. Establishments primarily engaged in manufacturing children's vehicles, except bicycles, are classified in SIC 3944: Games, Toys, and Children's Vehicles, Except Dolls and Bicycles. Establishments primarily engaged in manufacturing golf carts and other similar personnel carriers are classified in SIC 3799: Transportation Equipment, Not Elsewhere Classified.
336991
Motorcycle, Bicycle, and Parts Manufacturing
After experiencing a downturn in popularity during the early 1990s, motorcycles were back in vogue by the mid-2000s, showing steady and consistent growth in popularity. Sales reached levels not seen since the motorcycle boom of the 1970s, with sales topping the 1 million-unit mark in 2004, up from 278,000 units sold in 1992. Harley-Davidson, the dominant U.S. manufacturer of motorcycles, reported increased production and revenues for 2004, with growth anticipated through 2005.
While Harley-Davidson upheld the motorcycle segment of the industry, U.S. bicycle manufacturers have not been as lucky. During the first half of the 2000s, two industry leaders—Cannondale and Huffy—entered bankruptcy protection as the surge of low-cost competition from China glutted the mass market. The U.S.-based bike manufacturers who manage to survive the brutal price competition from overseas do so primarily by marketing high-end performance and BMX bicycles. Total industry shipments were valued at $5.11 billion in 2003, up from $4.88 billion in 2002. Growth has been spurred by increased sales in the motorcycle sector, which accounts for approximately 80 percent of the industry's total revenues.
Harley-Davidson Inc. of Milwaukee, Wisconsin, the only remaining major U.S. motorcycle manufacturer, knows it is selling more than "bikes." The image of the Harley as America's motorcycle has become integral to the company's marketing success. Its extensive national dealer network sells motorcycles, parts, and service, and it also promotes Harley-Davidson's own line of "Motorclothes" in "designer stores." The company sponsors a motorcycle enthusiast club, the Harley Owners Group (HOG), and organizes rallies and product demonstrations.
The Asian financial crisis affecting the mid-1990s allowed Japanese motorcycle manufacturers to lower prices because of the favorable exchange rates. The lower prices, in turn, increased production at two Japanese motorcycle makers—Honda and Kawasaki—who have facilities in Ohio and Nebraska, respectively. Like other Japanese and European motorcycle manufacturers, these manufacturers maintain their own dealer networks and generally enjoy a price advantage over comparable Harley models. Even so, the effectiveness of the Harley-Davidson lifestyle marketing campaign has made the "Hog," as the Harley-Davidson is affectionately known, a desirable status symbol in the biking world.
By the mid-2000s the mass market for bicycles was dominated by Asian competitors. The vast majority of low-end bicycles marketed at mass outlets such as Wal-Mart, which sells the most bicycles in the United States, are products of Asian manufacturers. The remaining U.S. segment of the bicycle industry sells much of its product through specialized dealer networks. These dealer networks generally carry the sophisticated, higher-priced models for the cycling enthusiast. Bikes in this category, like Schwinn's Paramount line, can sell for more than $5,000.
Cutthroat competition, especially from China, and rapid innovation in the bicycle segment of the industry forced many firms out of the market. Chicago, once the world's bike manufacturing capital with more than 90 manufacturers, only has Schwinn left, and that in name only. Schwinn, established in 1895, sold 25 percent of America's bikes during the 1960s, earning it the reputation as America's bicycle manufacturer, although it was never the largest. A 1981 labor dispute prompted Schwinn to phase out its U.S. manufacturing operations in favor of overseas facilities. That move created a new competitor, Giant Bicycles of Taiwan, which eventually drove Schwinn out of the market after supplying 70 percent of Schwinn's product in 1984. Schwinn has since been absorbed into Pacific Cycle, of Madison, Wisconsin, which was purchased by Montreal-based Dorel Industries in 2004.
The bicycle originated in France when Paris carriage maker Pierre Michaux fitted cranks to the front wheel of the German designed draisienne, or hobby horse. By 1867, a bicycle craze was sweeping Europe. According to David A. Hounshell, author of From the American System to Mass Production: 1800-1932, the Boston merchant Albert A. Pope deserves credit for introducing the device to America. Pope began importing the British High-Wheel, also known as the "Penny-Farthing," in 1876. By 1878, he was producing his own version at the Weed Sewing Machine plant in Hartford, Connecticut.
The new product tapped a growing demand in America for increased mobility and provided work for the idling American arms industry. Much of the industrial expertise developed for the weapons industry during the Civil War found useful employment in the production of bicycle components. In 1890, 27 bicycle manufacturers produced 40,000 "safety" bicycles, featuring two equal sized wheels.
By 1897 production increased...
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