Made In the U.S.A. vs. Made In China

I was interviewed today by an industry magazine writer. The writer is working on an interesting article that he probably doesn’t want me talking about in any detail—so I won’t.  What I can say is that Seven Cycles was asked to explain why US made bikes are preferable to Chinese made options.  A different interviewee had already defended the position that Chinese and Taiwanese made bikes are superior to US made bikes.

In some ways, this seems like a bit of a silly conversation, or comparison; I believe that most people would agree that US manufactured bike frames are of better quality than the best Chinese frames.  It does seem a bit difficult to argue with that.

Or is it?

However, I guess I‘m wrong because it does appear that people believe Chinese made bikes are significantly better than US made bikes.  This is based on the overwhelming fact that the vast majority of high-end bikes—those selling for over $3,000—sold in the US are made in China.  For example, most of the high-end European frames sold in the US are made in China—the list is very long and surprising.  In addition, a big number of US “frame builders” source their bikes from China.

This seems a bit confusing.  On the one hand, I have never talked with anyone that said to me, “China makes better products” and on the other hand, nearly all high-end sales come from China.  So, what’s going on here?  It appears that one or more of the following must be true:

• a lot of people don’t realize that the vast majority of high-end bikes are made in China;
  
• a lot of people don’t realize that there are some amazing US made bikes available in the $3,000 range;
  
• a lot of people don’t think there’s a correlation between bike ride quality and where--and how--it’s made;
  
• a lot of people don’t really care how the bike rides—or believe that it makes a difference; a lot of people think that the measure of the “best” bike is weight and ‘stiffness’—not so much about how the bikes rides and performs.
  

Shades of Grey

I’ve visited factories all over the United States, throughout Europe, mainland China, and Taiwan.  I’ve lost count of the number I’ve seen—it’s more than 100.  I also have ongoing relationships with a lot of factories around the world—in and out of the bike industry—and I even have a consulting relationship with companies the US, Europe, mainland China, and Taiwan.  I mention this to put meaning to the statement that I know—first hand—exceptionally great companies exist on every continent.  It’s not black and white:  America good; China bad. 

I understand that my view on bikes is a bit different from that of the normal bike enthusiast.  Because Seven Cycles Manufactures bikes, I think disproportionately about how bikes are made.

“How”, Not “Where”

For the record, those that know me know that I don’t really care about the term “US-made”.  The phrase doesn’t mean anything on its own.  I don’t intrinsically care where a product originates.  What I do care about, intensely,is how the product originates: 

• how products are made—techniques and processes
  
• how those processes impact the environment—cradle to cradle
  
• how the people that make the products are impacted—physically and mentally—by the processes employed
  
• how the product impacts the user’s wellbeing
  
• how the entire supply chain integrates with the product and user
  

Of course, all of these “how” factors end up being determined, in no small part, by “where” a product is made.  US-made often fairs better on these measures—the metrics that are important to me.  But, as I stated above, these “hows” can be accomplish in other parts of the world, too.  China is simply, and generally, not as focused on the “how”, yet.

So, I certainly don’t say “Buy American”; I do say Buy Informed.

I will post about a specific example—that came up in my interview today—comparing American to Chinese manufacturing.  Just not tonight… right now I’m too tired to be informed.

Comments

[Yoshi]

I totally agree with you. "How" is one of the most important things. But, usually, we cannot see it in other manufacturers because they do not have a close relationship with the customer directly. I think there are some reasons. One of them is that most manufactures employ mass production. They always have to have general ideas (highest common factor), not for individual. I believe the way of idea of mass production was already over. At least, as a customer, I want to know "how" and "the faces" in the factory, if I buy something. I do not buy a thing, but buy the suitable value of the thing.

[Bill]

Dear Mr. Vandermarke,
Thanks for this informative and inspiring article.
You said that "China is not as focused on the "how" yet." I kind of agree.
From that perspective, generally speaking, how about Taiwan?
Thanks.

Bill
a rider based in Taiwan

[Rob Vandermark]

Bill: Thanks for the question. Sorry for being slow to respond. Ironically, it's the Taipei trade show season so that's my excuse for being slow :) I think your question would be a good topic on which to post. My brief answer is that my experience with Taiwan is very different than China. Although, since you live in Taiwan, it would be great to learn your experience. I think Taiwan as a country is focusing a lot more on the 'how' than China. And, I think there are some cultural elements that impact the 'how' thinking in very different ways than US thinking--not better or worse but very different. I'll post something and then maybe we can talk more?

[Bill]

I appreciate so much your time and willingness to give such a concise answer. As a matter of fact, I do not have much understanding on how manufacturers make their frames in Taiwanese factories, although a friend's friend served as General Manager of C-Tech, GIANT's carbon fiber arm.
While I 100% agree with the idea that geographical locations do not by itself translate into superior or inferior prodocts, I am quite confident in "Made-in-Taiwan" quality when compared with commodities cranked out from China, just like other OEM/ODM consumer goods. And that difference indeed has much to do with cultural, social, economic, and even political backgrounds.
There's recently been a burgeoning local brand beginning to make and sell steel and titanium bikes here in Taiwan. I am not sure how they measure up in the five "how" criteria you proposed here, which I think make great sense when it comes to how we value a bike. I hope that this new brand performs well.
Weeks ago, I built up a new road bike using a titanium frame from one of the most prestigous titanium houses(including your esteemed company, of course) in the States. Theoretically its ride quality would be entirely different from my previous aluminum alloy bike which was made in Taiwan. To be honest, though, I'm not sure if I really feel the improvement, while I believe it's there. Maybe that's partly because I'm not a sensitive kind of guy, and partly because I'm still quite a novice whose mileage is no more than 40,000km after 6 years of love affair with biking.
I hope oneday to have the chance to get fit by SEVEN and lay my hands on your legendary ride. Also, I'm looking forward to reading more of your thoughts on this topic in the future.

Best Regards
Bill