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Brompton CEO warns of raw materials shortages hitting bike industry

Will Butler-Adams says supply chain issues hitting sector could take 18 months to resolve

The CEO of folding bike maker Brompton Bicycle has warned that a shortage of raw materials is hitting the cycling industry, and that it could take a year and a half for the sector to recover from the supply chain problems that have hit it since the beginning of the coronavirus pandemic.

Speaking at the Financial Times Future of Manufacturing event this week, Will Butler-Adams said that sourcing raw materials had now surpassed shortages of components as an issue for the industry.

“Over the past 18 months, the supply chain has retrenched further and further back and now the problem is you simply can’t get hold of aluminium, you can’t get hold of steel, you can’t get hold of these raw materials,” he said.

Butler-Adams believes that it will take around 18 months for the situation to be resolved, and outlined some of the problems the company has encountered, such as suppliers requiring payment in advance, or lead times for saddles rising to two years, as well as parts being held up in transit.

“Suddenly our cash has just gone and then the cost of goods has gone through the roof,” he said.

While the coronavirus pandemic has boosted Brompton’s global sales by 20 per cent, it has also resulted in huge increases in shipping costs.

That is exacerbated in the case of the UK – where the bikes are made at the company’s factory in West London – by Brexit, with the shortage of lorry drivers now leading to massive backlogs at major container ports.

https://www.independent.co.uk/news/business/news/ports-congestion-hgv-dr...

In response, Brompton has sought to circumvent those problems by raising its spend on air freight, which stood at £45,000 prior to the COVID-19 crisis to £1.7 million.

The company had already warned at the end of last year, just ahead of the end of the transition period of the UK’s departure from the EU of problems associated with delays at ports, and also warned that parts it had stockpiled in anticipation of potential disruption due to Brexit had already been used up due to the pandemic.

> UK port delays hit Brompton production as parts for its bikes get held up or cancelled

Meanwhile, the company is also looking to reduce its reliance on suppliers based in Taiwan as tensions escalate between that country and China, whose President Xi Jinping has pledged to “fulfil reunification.”

Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.

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53 comments

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hawkinspeter replied to Rich_cb | 3 years ago
0 likes

Yeah, it's meant more as an indication of how skewed the world is. Realistically, you don't divvy up resources completely evenly, but according to where it's needed (e.g. metals going to factories), so you'd presumably want higher wages were the cost of living is more expensive. The important point is that development can then happen in areas that are currently neglected due to the people there not being considered important.

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Gimpl replied to hawkinspeter | 3 years ago
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No.

But you explain why it is solely Brexit's fault.

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Steve K replied to Gimpl | 3 years ago
5 likes

Gimpl wrote:

No.

But you explain why it is solely Brexit's fault.

I don't think he claimed it was, did he?

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Gimpl replied to Steve K | 3 years ago
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He tried to change the agenda away to what the benfits of Brexit were - it's not about that but other, more contributing factors. 

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hawkinspeter replied to Gimpl | 3 years ago
2 likes

Gimpl wrote:

No.

But you explain why it is solely Brexit's fault.

I don't think you've bothered actually reading what I wrote about driver shortage being caused by poor pay and conditions - maybe you have some kind of reading difficulty?

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Gimpl replied to hawkinspeter | 3 years ago
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hawkinspeter wrote:

Gimpl wrote:

No.

But you explain why it is solely Brexit's fault.

I don't think you've bothered actually reading what I wrote about driver shortage being caused by poor pay and conditions - maybe you have some kind of reading difficulty?

I'm replying directly to your question to me, 'If you're getting tired of people moaning about Brexit, then rather than moaning about moaning, you could highlight the early benefits of Brexit instead.' Nothing about driver shortages in that, just you trying to change the agenda to suit yourself. 

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hawkinspeter replied to Gimpl | 3 years ago
1 like

Gimpl wrote:

I'm replying directly to your question to me, 'If you're getting tired of people moaning about Brexit, then rather than moaning about moaning, you could highlight the early benefits of Brexit instead.' Nothing about driver shortages in that, just you trying to change the agenda to suit yourself. 

You do seem to have a problem with reading and interpreting comments here as my reply to you was not a question, nor was it trying to change any agenda, but an attempt to change your simplistic complaining into something more useful and positive.

If you read my other comments on this page, you may see that I don't ascribe lorry shortages purely to Brexit - not everything is a simple black and white issue, you know, despite your attempts to polarise the issues.

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brooksby replied to Gimpl | 3 years ago
10 likes

Gimpl wrote:

Getting very, very tired of the continual 'it's all Brexit's fault'. Stirred up by the media all the time - remember it's little more than clickbait and yes I am most definitely pointing my finger at you Simon MacMichael.

FFS - can people not see what's going on around them or think for themselves? 

Lazy, lazy journalism backed up by lazy, ignorant readers.

You're absolutely right.

It is a consequence of Brexit, but you can't say it's Brexit's fault.

It's the fault of Johnson, Gove, Cummings, and of all those people who believed the lies peddled by them.

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Rich_cb replied to brooksby | 3 years ago
3 likes

The problem is that articles like this just add on the Brexit angle when it's largely irrelevant to the content.

If there's no aluminium available how is this anything to do with Brexit?

If there's a 2 year lead on saddles how is that anything to do with Brexit?

The only part of this story that can be blamed on Brexit is the lorry driver shortage and even that is largely pandemic related.

13,400 lorry drivers have left after Brexit, 40,000 HGV tests were cancelled due to the pandemic. The pandemic effect is 3x larger than the Brexit effect.

Source: https://www.theguardian.com/politics/2021/aug/29/food-beer-toys-medical-...

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chrisonabike replied to Lance ꜱtrongarm | 3 years ago
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This debate is great for historians. The landscape has now changed so simply saying "this wouldn't have happened before" OR "we wouldn't have been able to do this before" is beside the point - it's "what now?"

However I'm sure 10 years later it'll be: "problem x is because of Brexit" from Remainers * and "thanks to Brexit we are free from the shackles of EU regulation so can deal with this problem more effectively" from Leavers.

* which might well be true - some experts estimated the time to work through all the consequences as decades.

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Gimpl replied to Rich_cb | 3 years ago
1 like

This exactly!

Simply ignoring the much wider issues and focusing in on one thing becasue it suits their political agenda. 

Ignorant!

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brooksby replied to Gimpl | 3 years ago
3 likes

Gimpl wrote:

This exactly!

Simply ignoring the much wider issues and focusing in on one thing becasue it suits their political agenda. 

Ignorant!

Yeah, because Brexiteers don't have any political axe to grind... 

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Gimpl replied to brooksby | 3 years ago
0 likes

Try and open your mind - it's much bigger than simply Brexit. 

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brooksby replied to Gimpl | 3 years ago
1 like

You're right of course - its (arguably) our civilisation which is on the slippery slope to us all fighting it out in the Thunderdome...

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IanGlasgow replied to Gimpl | 3 years ago
4 likes

Gimpl wrote:

Getting very, very tired of the continual 'it's all Brexit's fault'. Stirred up by the media all the time - remember it's little more than clickbait and yes I am most definitely pointing my finger at you Simon MacMichael.

FFS - can people not see what's going on around them or think for themselves? 

Lazy, lazy journalism backed up by lazy, ignorant readers.

The irony is that at no point in this article does anybody claim 'it's all Brexit's fault'.

The only lazy one was the reader who chose to believe that claim had been made, that was you.

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Gimpl replied to IanGlasgow | 3 years ago
0 likes

Just to help you out:

'That is exacerbated in the case of the UK – where the bikes are made at the company’s factory in West London – by Brexit, with the shortage of lorry drivers now leading to massive backlogs at major container ports.'

That's the only reason mentioned - not the myriad of others that are more appropriate. 

For the record, I believe Brexit has an influence certainly, my issue is the way things are being reported and the influence that has on the wider public. It's exactly the same as the way cyclists are portrayed in the negative (see the excellent Close Passes In Cardiff article yesterday).

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mdavidford replied to Gimpl | 3 years ago
5 likes

Gimpl wrote:

That's the only reason mentioned

No it isn't. You've just ignored all the paragraphs before that cite other reasons. The phrase 'that is exacerbated' wouldn't even make any sense if there weren't other factors mentioned first.

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IanGlasgow replied to Gimpl | 3 years ago
4 likes

Like I said.

"That is exacerbated in the case of the UK –...– by Brexit" is NOT  'it's all Brexit's fault'.

Brexit is undoubtedly a contributory factor in many of the problems UK businesses are currently experiencing. The only one here claiming those problems are entirely caused by Brexit is still you. It's an accurate and honest piece of reporting that you chose to misinterpret and misrepresent.

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Sriracha | 3 years ago
3 likes
Quote:

That is exacerbated in the case of the UK – where the bikes are made at the company’s factory in West London – by Brexit, with the shortage of lorry drivers now leading to massive backlogs at major container ports.

A more nuanced view from primary sources:

“Fundamentally … drivers are worn out, they’re tired and fed up with being treated the way they are,” said Adrian Jones, national officer of the British and Irish trade union Unite.

A similar dynamic is driving workers away in the EU.

"This job is not appealing," said Pantelimon Octavian Tetileanu, a long-haul trucker from Romania. "You cannot be with your family. There's no time for lunch, no time for breakfast, or for dinner. You go to sleep in sweat because we are not taking a shower on the highway every day. You don't wash your clothes. You're mostly dirty and you smell."

Security issues also make the job dangerous, he added, citing attacks by migrants trying to get to Britain and fuel theft as major concerns.

Tetileanu, an ex-teacher, has driven a truck for the past decade. Now he's counting the days until he can quit the trade. "I'm doing this job another two years, and goodbye industry — goodbye. This is not a place where I want to get old."

Increasingly, the only people willing to put up with the worsening conditions are drivers coming from outside the EU, including Russia, Ukraine and Kyrgyzstan, said Cristina Tilling, political secretary for transport workers’ federation ETF.

The problem starts with the rates that road freight companies charge for their services, she said, which aren't high enough to cover "a legal labor cost," including salaries and driver accommodation.

https://www.politico.eu/article/europes-looming-truck-driver-shortage-tr...

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geomannie 531 replied to Lance ꜱtrongarm | 3 years ago
7 likes
Nigel Garrage wrote:

From 2018 - https://www.bifa.org/news/articles/2018/dec/truck-driver-shortage-crisis....

But yeah Brexit - chimes in with the rest of the fake news.

Of course the answer is to raise terms, conditions and pay for truck drivers and train more home grown drivers - but all those things go against the modus operandi of middle class Remainers who are addicted to cheap Eastern European labour.

As was famously campaigned for by a Remainer back in 2016: "Vote Remain, otherwise who is going to serve my Pret sandwiches every day?"

If ever there was an over-simplified response to a complex situation, this is it.

Brexit is here, its ramifications are kicking in & are only going to get worse. Yes the ability to import goods should improve long term, but whether the improvements compensate for the loss of European free trade & movement is highly unlikely.

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AlsoSomniloquism replied to geomannie 531 | 3 years ago
6 likes

I was told by someone in Ireland that they have now opened lots of haulage routes from Ireland direct to France, bypassing the UK so any deliveries to or from there don't have to worry about border checks. Of course this means drivers who used to do multi stops, including to the UK along the old routes now don't bother. So like with the current energy price crisis, the issue might not be a UK one alone and is happening elsewhere, but the UK decided to double down on the effects by having Brexit. 
 

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Legin replied to Lance ꜱtrongarm | 3 years ago
8 likes

Nigel Garrage wrote:

From 2018 - https://www.bifa.org/news/articles/2018/dec/truck-driver-shortage-crisis.... But yeah Brexit - chimes in with the rest of the fake news. Of course the answer is to raise terms, conditions and pay for truck drivers and train more home grown drivers - but all those things go against the modus operandi of middle class Remainers who are addicted to cheap Eastern European labour. As was famously campaigned for by a Remainer back in 2016: "Vote Remain, otherwise who is going to serve my Pret sandwiches every day?"

Oh do FO you twonk.

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Eton Rifle | 3 years ago
11 likes

Brexshit - the gift that keeps on giving.

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