A Bet on High-End Bikes in Portugal

Frame maker Carbon Team says speedy delivery times give it an edge over Asian rivals

During the pandemic, people worldwide rediscovered biking, relishing any chance to get out of the house during lockdowns while avoiding sniffles and sneezes on subways and buses. As bicycle sales in Europe jumped more than 10% in 2020, retailers that had grown dependent on Asian suppliers struggled to meet demand. For Emre Ozgunes, that presented an opportunity.

Ozgunes, general manager of Carbon Team Lda., a manufacturer of high-end bicycle frames in Portugal, is betting he can gain an edge over producers in Asia whose transport costs have been rising, with delivery times sometimes stretching to more than a year. In his niche market of carbon-fiber frames for bikes that cost €5,000 ($5,400) and up, he figured he could appeal to riders seeking homegrown cachet. “Until now, they didn’t have another option,” Ozgunes says. “With Carbon Team, they do.”

Supply bottlenecks and delivery delays during the pandemic raised awareness of Europe’s dependence on Asia for goods ranging from face masks to pharmaceuticals. That’s spurred manufacturers such as Carbon Team to expand in hopes that faster delivery times can offset the prices they must charge given Europe’s higher wages—even in a relatively inexpensive country such as Portugal. “Growing production of some goods like motorcycles, bicycles or jewelry—which had been falling substantially through the 2000s—points to some small pockets” of manufacturing returning to Europe, says Maeva Cousin, a senior economist at Bloomberg Economics.