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2022 Brompton P Line Urban Storm Grey - High - riding 4v2.jpgBrompton CEO bemoans "bloody Brexit" for ongoing problems within bike industry
Brompton Bikes' CEO Will Butler-Adams has addressed the issues facing brands in the industry, and points to enduring problems from Brexit, rising energy bills, the pandemic and the cost-of-living crisis for contributing to a challenging time for the folding bicycle manufacturer.
Speaking at length with Raconteur, Butler-Adams noted the hit on the company's pre-tax profit for the year ending March 2022, down 24 per cent to £7.3 million despite revenues rising 40 per cent year-on-year, and puts the fall down to wage inflation and a rise in the cost of materials.
He also raised the issue of ongoing problems caused by "bloody Brexit", the like of which have been well-documented since the end of the transition period in January 2021 and saw many British-based cycling businesses lose sales, suffer due to VAT changes, have to complete time-consuming paperwork and in extreme cases even cease business altogether.
> "It is very difficult to be positive": Brexit lost Cycloc 25% of sales, founder reveals
But it is not just the b-word, of course, and Butler-Adams also outlined a combination of factors, including Brompton's supply chain being affected by the Russian invasion of Ukraine and tensions between China and Taiwan, with both Ukraine and Taiwan producing titanium used in the folding bikes' frames.
On top of that there are the ongoing effects of the Covid pandemic, rising energy bills and a cost of living crisis.
"You can't shuffle your business to offset today's drama," he said. "That's because, as today’s drama disappears, tomorrow's is developing. What you have to do is try and build a business that is resilient to all manner of impacts, including those that haven't even come yet.
"When you're very small, you might have one supplier because you simply don't have the volume to need more. But, when you get to a certain size, you'll want to consider your supply. This might be from Europe, from the Americas, from Asia. You don't want all your eggs in one basket."
> Brompton unveils plans for new eco-friendly factory and HQ in Kent as it aims to double capacity
Addressing the fact customers will be feeling the squeeze also, Butler-Adams accepted Brompton's products represent a premium investment but insisted its target market is anyone who can ride a bike and, more widely, believes "price is not what's stopping people from cycling".
"We can't be all things to all people, but price is not what's stopping people from cycling – I reject that idea. You can buy a basic single-gear bike for £50 second-hand if you want to," he said.
And more specifically on Bromptons, he added: "They're designed to last 25 or 30 years. You're buying into long-term expertise; you can get maintenance and repairs. These aren't things that you buy and then don't use. If people are going to spend their hard-earned money, they'll want a product that really adds value. That's what we aim to do."
"It's not sensible to carry a human five miles in a two-tonne metal box"
Butler-Adams also spoke about urban mobility, saying he is not anti-car and owns a battery-electric Nissan Leaf but does not see the need to drive short distances.
"It is the apparent wisdom of humans, this supposedly apex, super-smart species on Earth, that we have to live in cities. These are often the most unhealthy places to live. The air quality is poor, people aren't active and there are obesity problems. How did we let this happen?" he asked.
Championing cycling as a cost-effective route to cleaner air and a more active population, Brompton's CEO called cars "monstrously inefficient".
"It is not sensible to carry a human five miles in a two-tonne metal box," Butler-Adams said. "People complain that we don't have space in cities. Why not? Because there are thousands of cars taking up space. If you have to get somewhere 100 miles away, then take a car by all means. But just to dash to the shops? It's nuts."
Dan is the road.cc news editor and joined in 2020 having previously written about nearly every other sport under the sun for the Express, and the weird and wonderful world of non-league football for The Non-League Paper. Dan has been at road.cc for four years and mainly writes news and tech articles as well as the occasional feature. He has hopefully kept you entertained on the live blog too.
Never fast enough to take things on the bike too seriously, when he's not working you'll find him exploring the south of England by two wheels at a leisurely weekend pace, or enjoying his favourite Scottish roads when visiting family. Sometimes he'll even load up the bags and ride up the whole way, he's a bit strange like that.
Latest Comments
- Rendel Harris 2 min 33 sec ago
Alternatively just wear reflective bands around your ankles or choose shoes with reflective detailing/stick a bit of reflective tape on the heels....
- chrisonabike 3 min 52 sec ago
NYC has something although for docked bikes. Although apparently now that has set up its own incentives which may not be serving the original...
- chrisonabike 8 min 5 sec ago
Neighbourhood: you can't change anything because we have a disabled resident! Also driving children to schools! People power!...
- chrisonabike 59 min 21 sec ago
But... the last is only not the case with drivers on normal roads because driving on the cycle path / footway / rolling a vehicle up there is seen...
- mdavidford 1 hour 37 min ago
I think you're missing an opportunity to pack even more tech into it - add accelerometers that can detect whether they're pedalling or stepping....
- chrisonabike 2 hours 2 min ago
Thanks. I guess the question is "need". If the road is busy, it sounds like it is a desired route between places? In which case (given this an...
- mdavidford 2 hours 9 min ago
Don't know what you mean. I thought my suggestion was entirely practical.
- mdavidford 2 hours 12 min ago
...and a square of faux sheepskin for the back of your saddle.
- Rapha Nadal 2 hours 44 min ago
I'd buy a motorbike fo rthat kind of money!
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47 comments
They've literally spun one word in the original article into the headline and the basis of the entire road.cc article. Standard tabloid nonsense.
The amusing thing is that the original article is reporting a huge increase in sales which is where you'd expect brexit to actually have an effect.
Yes, they have chosen their headline based on two words from the original article. However, Raconteur clearly also thought those two words ('bloody Brexit' rather than just 'Brexit') were noteworthy because they also quoted him on it. Headlines can never be representative of the whole piece that follows - Raconteur's own headline ('Price is not what's stopping people from cycling) is only a snapshot of a wide-ranging discussion. This article says a little more about Brexit in order to link to other pages on the topic (and keep readers in front of advertisers), but to say it forms the basis of the entire article is not supportable - the article clearly cites other aspects of the original interview.
The only factor there which differentiates the UK from any other market is...Brexit. So it's hardly surprising it's highlighted.
I know it's annoying and most likely none of us here voted for it, but at some point you have to get over it, businesses included. Can't spend every day complaining about something that a majority of voters wanted, especially since it won't change anything
If something is a bad idea, change it.
Brexit is now obviously a bad idea.
Well, Leavers complained for forty years about the result of the 1975 referendum that came out Remain 67-33...
The majority of those who voted wanted it in 2016. Current polls (Statista, January 2023) show that 54% of the electorate think it was the wrong thing to do with 34% thinking it was a good thing. Why shouldn't something be changed as the will of the people changes, isn't that how democracy works?
It's not that easy though, is it? We can't simply say, sorry can we cancel it? We have left, we would have to apply to join, just like any other country. And the terms would be much different, I think to punish us for having the temerity to leave. It's just not that simple.
Let's remind ourselves on the lies the Brexit vote was sold on.
£350 million a week for the NHS
"We hold all the cards"- Govee
"There will be no non-tariff barriers to trade" — Boris Johnson.
I could go on. Even with a vote in favour of leaving we didn't have to shoot ourselves in the foot with this ridiculous hard Brexit. We could & should have negotiated to remain in the Single Market or a version thereof.
I'm never getting over the current Brexit. Why accept stupid?
This isn't a hard Brexit. A hard Brexit was exiting without an agreement.
There is no way to remain in the single market without being beholden to EU rules.
We're currently negotiating a free trade agreement with India and negotiating to joing the CPTPP.
Either would be hugely significant and neither would be possible within the EU.
That would be true if the EU and India weren't currently negotiating their own free trade agreement. But they are so it isn't.
My two favourites are:
Alexander Boris de Pfeffel Johnson's 'Oven Ready Deal' (it wasn't)
And,
Lord Frost committing to 'Get Brexit Done' (he didn't)
I'm sure the Suffragettes and the US Civil Rights movements could have said the same mealy-mouthed rubbish about their situation.
Don't you remember that section in Anne Frank's 'A Diary of a Young Girl' where she makes peace with the fact that the Nazis are persecuting and murdering the Nazis in their millions because Hitler and the wider party was democratically elected, and the 'will of the people' should be done?
I have to agree. It's happened, stop complaining years after it happened. We need to get over it and make it work. And we will, as long as everyone gets behind it, and we don't have people trying to make it fail so they can say 'told you so'.
I won't be getting over it any time soon. The widespread losses (see every major economic indicator) and personal losses around FoM are too great.
Brexiters try to taunt "so you want to be ruled by Brussels then?" In preference to what we've got now, that will do nicely.
Next, it will be the ECHR, so do keep waving that white flag at what is happening in this country.
The call has gone out to, "The defenders of the faith" that is Brexit. David Frost, a renowned resident of Bell End made the call today.
Well, I'm not about to give up my tangible benefits from Brexit any time soon
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