MANNING, S.C. (BRAIN) — Bikes rolling out of Kent International's Bicycle Corporation of America factory will be badged "Made in USA with domestic and imported parts" according to a recent ruling by U.S. Customs. Previously the bikes were labeled "Assembled in USA with parts made in China."
"I'm very excited about Customs' ruling. I don't think customers are willing to pay 20 or 30 percent more to buy a 'Made in USA' bike, but I think they will when it's only 10 percent more," said Arnold Kamler, chairman and CEO of Kent International.
Bicycle labeling has a storied history in the U.S., with bikes being called "Made in USA" while assembled with Asia-sourced components. Or frames imported from China and painted in the U.S. being labeled "Made in USA." Kamler was unsure if the South Carolina-assembled bikes would qualify for the new label but applied anyway.
"We are not receiving bikes almost complete from China and then slapping a few final parts on them. We are pushing in headset and bottom bracket cups and assembling the wheels and bikes from components and setting up the brakes. When Customs investigated our factory and saw the amount of work we were doing to assemble a bike they agreed to the new labeling," Kamler added.
Even though BCA imports hubs, spokes and rims, the wheelset assembly and truing done at the factory qualifies BCA wheelsets to receive the same "Made in USA with domestic and imported parts" label. The wheel labeling is an important change for the company as it considers whether to enter the private label wheel building business.
Over the next few years as BCA's frame, fork and handlebar manufacturing in Manning rolls into production, the company will investigate receiving the straight "Made in USA" label, which requires all, or virtually all of the product to be of domestic origin.
"As we add higher levels of automation at the factory, we are looking to bring our pricing on par with Chinese-sourced bikes, and maybe even cheaper as we do not have transportation costs to tack on. In the Midwest, the 'Made in USA' label is very persuasive," Kamler added.
