The Wall Street Journal reported today that prices of high end bicycles were likely to increase in cost from 5% to 25% this Fall as a result of increases in the price of aircraft-grade alumnium, titanium, and carbon fiber. The pressure is coming from increased demand for these materials in the aerospace and defense industries.
According to the article, some manufacturers are trying to hold the cost of these materials down to their largest customers, while passing a disproportionately large part of the increased costs on to sporting goods manufacturers. Bicycle manufacturers are being hit hard, as are golf club, hockey, and lacrosse stick manufacturers, and recreational boat builders.
Bike manufacturer Serotta Competition Bicycles has reportedly increased the price of its bikes by 12% in calendar year 2006, mainly due to increase in materials costs. [ Subscription required to read most articles in The Wall Street Journal ]
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