Fox Shifts Production to Taiwan

G

gumpy ol bastard

Cannon Fodder
http://www.bike-eu.com/Home/General...eu|2013-11-19|Fox_Shifts_Production_to_Taiwan

SCOTTS VALLEY, USA –
To shorten lead-times for its OEM customers, US fork manufacturer Fox Factory Holding want to shift the production of its bicycle components to Taiwan from its assembly plant in Watsonville, California.
“In 2014 we want to shift the production of our bicycle components to Taiwan,” said Fox Factory Holding CEO Larry Enterline.

"In 2013 we will complete 700,000 assemblies," said Larry Enterline, the chief executive at Fox. "Next year, the company intends to transition full-fork production to the facility in Taichung. With most of the customers for our premium products based in Taiwan, moving production will allow us to cut lead times and improve our supply chain."

"Getting closer to our customers"
Around 80% of the Fox bike business comes from original equipment manufacturers mainly based in Taiwan. "If this were purely a labor-arbitrage move, we would have invested somewhere else. So, while this will help us to improve margins, it's more about getting closer to our customers," said Fox CEO Larry Enterline.
 
John U

John U

MTB Precision
Given the reduced labour costs surely there'll be an accompanying price reduction. Actually, I highly doubt it. Yeti have been the only company I can remember to reduce their prices when production was shipped offshore.
 
John U

John U

MTB Precision
SlowManiac said:
Yeti's used to be MORE expensive :shocked:
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Prices dropped when they moved manufacturing offshore as could be displayed with equivalent models at that point in time. Not sure on the impact it has now.

In general I think frames purchased as an individual item (not built up) are 'relatively' cheaper than they were 10 years ago. Around $3,250 was a fairly standard price for a well made Al 4" xc dually back then.
 
D

disco balls

Squid
John U said:
Given the reduced labour costs surely there'll be an accompanying price reduction. Actually, I highly doubt it. Yeti have been the only company I can remember to reduce their prices when production was shipped offshore.
Click to expand...
I think Fox answered that in the story.

"So, while this will help us to improve margins..."
 
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