Latest news with #GuardianBikes
CNBC
08-08-2025
- Business
- CNBC
Why it's so difficult to manufacture in the U.S.
At a 540,000-square-foot facility in Seymour, Indiana, Guardian Bikes is pulling off a unique challenge: making children's bikes in America. The company says it produces about 12,000 bikes per week, a manufacturing feat that has become increasingly uncommon in the U.S. "All the way back to World War II era, pretty much every bike sold in the United States was made in the U.S.," said Guardian Bikes co-founder and CEO Brian Riley. "By the time you get to the '70s, '80s, '90s, it all evaporated." Over the last four decades, many American factories have shut down as production moved overseas in search of cheaper labor and larger supplier networks. Between 1997 and 2023 the number of U.S. manufacturing firms and plants dropped by 25% as global trade barriers fell, according to the World Resources Institute. Now, as companies like Apple, IBM and Johnson & Johnson pledge billions towards U.S. manufacturing and politicians call for reshoring, Guardian offers a glimpse into the possibilities and difficulties of being "Made in America." "It wasn't easy," said Riley. "It even took kind of getting into losing money for a little bit." Guardian Bikes used to rely on a Chinese original equipment manufacturer (OEM) to build its product based on specifications provided by Guardian. But long shipping times and quality concerns prompted a pivot. Starting in 2022, Guardian opened its own plant in the Midwest with the help of $19 million in financing from JPMorgan. Riley said the higher cost of producing domestically is offset by automation, lower inventory costs, and in some cases, tariffs. "With the most recent tariff environment, we're starting to get either cost parity or in some cases, the domestic parts are cheaper than what you can get out of China," said Riley. But building a domestic supply chain from scratch isn't easy. Many parts, like bicycle chains and reflectors, are no longer made in the U.S. at scale. Experts say finding input suppliers is one of many challenges companies face in bringing manufacturing back to the U.S. Meanwhile, countries like China and Vietnam have become manufacturing powerhouses, investing billions more in factories and training. Even with new tariffs and federal subsidies under the CHIPS Act, some economists remain skeptical of a true U.S. "manufacturing renaissance." "Think about how much a pair of sneakers would cost if they were made here in the United States, or a phone or any number of the items that you go to a retail store to purchase. It would be a lot more expensive," said Colin Grabow, associate director at the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies. "So we should all welcome the fact that goods are being produced in the most efficient ways possible, because that lowers prices for us and allows us to raise our standard of living." To learn more about how Guardian Bikes is pulling off "Made in America," watch the video above.
Yahoo
22-04-2025
- Business
- Yahoo
GOP lawmaker touts $19M Trump tariff success story in her district: 'New model for American manufacturing'
FIRST ON FOX: An Indiana lawmaker is celebrating an American bicycle company opening a new manufacturing plant in her district after President Donald Trump launched his aggressive tariff campaign against China. Rep. Erin Houchin, R-Ind., told Fox News Digital that Guardian Bikes is starting with a new $19 million investment in Seymour, Indiana to expand their operations there – which she said will create new local jobs. "The number of job opportunities that are available, the investment right here in southern Indiana, that's money that's staying right here at home and not going outside the country. And certainly away from China," Houchin said in her first interview on the topic. Trump Shreds Biden, 'Radical Left Lunatics' In Easter Message The Indiana Republican, now in her second term, said she first visited Guardian Bikes shortly after being elected to Congress. At the time, they had just 16 employees, she said. "At the time, they talked to us about their desire to become a 100% made in the USA bicycle factory," Houchin said. "Currently, over 97% of bicycles are made outside of the United States. Many are assembled in the United States, but their component parts mostly come from China." Read On The Fox News App Guardian Bikes specifically relied on Chinese imports for 70% of its production, she said. After Trump's election in November 2024, however, she said "they have been slowly working toward being 100% made in the USA." "They just announced $19 million in financing with JPMorgan Chase to launch the first large-scale bicycle frame manufacturing operation in the United States," Houchin said. "This has been made possible by President Trump's trade policies…it's just pretty incredible that we have a president right now that is focused so much…on creating a level playing field for American companies." Houchin said the company is aiming to increase its "mass market" bicycles manufactured in the U.S. from 100,000 to over 1 million. "That's just very, very exciting," she said. Guardian Bikes also currently has locations in California and Pennsylvania, with two more expected in Texas and Georgia this year, according to the company's website. The site also touts the company's plans to manufacture its bike frames in Indiana, and vows to be "rapidly" moving toward being made entirely within the United States. "We brought Guardian Bikes production to the U.S., because we believe the future of manufacturing is local, fast, and data-driven. Indiana, and specifically Seymour, offers the perfect combination of workforce, infrastructure, and proximity to our customer base," Guardian Bikes CEO Brian Riley told Fox News Digital. "It's not just about making bikes – it's about building a new model for American manufacturing." What The Financial Markets Are Screaming About Trump's Tariffs It comes as critics of Trump's sweeping tariff plans have accused him of upending the global economy. Supporters of the plan, however, have hailed it as both a potent negotiating strategy and a long-needed solution to jobs moving overseas. A cornerstone of Trump's policy has been a 10% tariff on all imports to the U.S. Plans for additional reciprocal tariffs, which Trump announced earlier this month, were dropped against countries that have not retaliated against the U.S. However, Trump has levied a massive 145% base tariff across all of Beijing's exports in a bid to crack down on the U.S.'s growing reliance on Chinese manufacturing. When reached for comment by Fox News Digital, White House spokesman Kush Desai told Fox News Digital, "Trillions in historic investment commitments from industry leaders – now including Guardian Bikes – since Election Day only reinforces what President Trump has been saying all along: if you make your product in America, you don't have to worry about tariffs."Original article source: GOP lawmaker touts $19M Trump tariff success story in her district: 'New model for American manufacturing'
Fox News
22-04-2025
- Business
- Fox News
GOP lawmaker touts $19M Trump tariff success story in her district: 'New model for American manufacturing'
FIRST ON FOX: An Indiana lawmaker is celebrating an American bicycle company opening a new manufacturing plant in her district after President Donald Trump launched his aggressive tariff campaign against China. Rep. Erin Houchin, R-Ind., told Fox News Digital that Guardian Bikes is starting with a new $19 million investment in Seymour, Indiana to expand their operations there – which she said will create new local jobs. "The number of job opportunities that are available, the investment right here in southern Indiana, that's money that's staying right here at home and not going outside the country. And certainly away from China," Houchin said in her first interview on the topic. The Indiana Republican, now in her second term, said she first visited Guardian Bikes shortly after being elected to Congress. At the time, they had just 16 employees, she said. "At the time, they talked to us about their desire to become a 100% made in the USA bicycle factory," Houchin said. "Currently, over 97% of bicycles are made outside of the United States. Many are assembled in the United States, but their component parts mostly come from China." Guardian Bikes specifically relied on Chinese imports for 70% of its production, she said. After Trump's election in November 2024, however, she said "they have been slowly working toward being 100% made in the USA." "They just announced $19 million in financing with JPMorgan Chase to launch the first large-scale bicycle frame manufacturing operation in the United States," Houchin said. "This has been made possible by President Trump's trade policies…it's just pretty incredible that we have a president right now that is focused so much…on creating a level playing field for American companies." Houchin said the company is aiming to increase its "mass market" bicycles manufactured in the U.S. from 100,000 to over 1 million. "That's just very, very exciting," she said. Guardian Bikes also currently has locations in California and Pennsylvania, with two more expected in Texas and Georgia this year, according to the company's website. The site also touts the company's plans to manufacture its bike frames in Indiana, and vows to be "rapidly" moving toward being made entirely within the United States. "We brought Guardian Bikes production to the U.S., because we believe the future of manufacturing is local, fast, and data-driven. Indiana, and specifically Seymour, offers the perfect combination of workforce, infrastructure, and proximity to our customer base," Guardian Bikes CEO Brian Riley told Fox News Digital. "It's not just about making bikes – it's about building a new model for American manufacturing." It comes as critics of Trump's sweeping tariff plans have accused him of upending the global economy. Supporters of the plan, however, have hailed it as both a potent negotiating strategy and a long-needed solution to jobs moving overseas. A cornerstone of Trump's policy has been a 10% tariff on all imports to the U.S. Plans for additional reciprocal tariffs, which Trump announced earlier this month, were dropped against countries that have not retaliated against the U.S. However, Trump has levied a massive 145% base tariff across all of Beijing's exports in a bid to crack down on the U.S.'s growing reliance on Chinese manufacturing. When reached for comment by Fox News Digital, White House spokesman Kush Desai told Fox News Digital, "Trillions in historic investment commitments from industry leaders – now including Guardian Bikes – since Election Day only reinforces what President Trump has been saying all along: if you make your product in America, you don't have to worry about tariffs."
Yahoo
20-04-2025
- Business
- Yahoo
Small business CEO talks tariff impacts & reshoring efforts
Uncertainty around US President Trump's tariff policies is making it difficult for businesses to plan. Guardian Bikes CEO Brian Riley joins Asking for a Trend with Josh Lipton to discuss how tariffs are affecting small business owners. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Sign in to access your portfolio
