UP

niche industries

From businesses such as Nutcase Helmets to Bike Friday,

Oregon’s bike madness fuels a $150 million industry.

GEARED
Not to mention that there’s an organized bike ride every 27 minutes.

BY BEN JACKLET

L
ast summer, when gas prices were hovering around $4.50 a gal-
lon, the owners of Clever Cycles in Southeast Portland had a
business problem. Their new bike shop was proving so popular
that they couldn’t keep up with demand. They had to shut down
their business at the peak of the season to restock the family-
friendly utilitarian bicycles selling like crazy in bike-crazy Portland.
A few miles away, Sacha White of Vanilla Bicycles is faced with a simi-
lar challenge. Anyone hoping to order one of his hand-built bikes will
have to wait at least five years to get it.
It’s a familiar scenario for Jonathan Maus, the Portland-based en-
trepreneurial blogger who covers the local culture, sport, business and
politics of bicycling for his red-hot website, bikeportland.
From left: Ruben org. Maus has had to hire journalists to keep pace with all
Markstrom,AndrewFiore
the news as the bicycle culture evolves and the industry
andAaronBlanchardman
grows larger and more complex, in a metro region where
the shop at Bike Gallery in
downtown Portland. an organized bike ride takes place every 27 minutes on
average, where the wild mud-worshipping sport of cyclo-
cross has gone big-time, where bicycle documentaries sell out on opening
night, and where the legion of bike commuters includes Portland Mayor
Sam Adams, Congressman Earl Blumenauer and key members of the Met-
ro Council and the Oregonian editorial board.
The market for anything connected to bicycles in Portland runs rich and
deep, and entrepreneurs are sprinting to create new ways to tap into it. About
50 new bike-related businesses have sprung up over the past two years here, and
while some are destined to remain forever fringe if they survive the downturn at
all, others have tremendous potential.
Add up the revenues for retailers such as the Bike Gallery, manufacturers such as
Chris King Precision Components, organized rides such as Cycle Oregon and pro-

PHOTOS BY ANTHONY PIDGEON

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niche industries | geared up

fessional services firms such as Alta Plan- facturers hit the skids, but they do generate cle industry, it remains relatively small, sur- says between sips of coffee at a cafe with a
ning and Design, and you get about $90 excitement for yet another Oregon niche prisingly immature and deeply fragmented. bike-through window. “I was blown away
million in annual sales, in Portland alone. industry with a dreamy upside, in the tra- Even if statewide sales total $150 million, by the response, and by how much was go-
That figure would likely grow to well over dition of solar power, craft brewing and that is less than a quarter of the annual rev- ing on, this outpouring of creativity that is
$150 million statewide if you factor in bike organic farming. Market share is tiny but enues of the Wisconsin-based Trek Bicycle constantly evolving.”
sales in Ashland, Sisters and Hood River; growing explosively. As big as biking has Corporation, which employs 1,200 people. The more rides, gatherings, policy plans,
repairs and rentals in mountain-bike-mad gotten here, for all of Portland’s accolades Despite the well-publicized proliferation police incidents and startup businesses
Bend and Oakridge; the cyclical wanderings as the nation’s best city for cycling, only 8% of Oregon frame builders trained at the Maus covered, the more came to his atten-
of students and faculty in Corvallis; the cre- of downtown workers commute by bicycle. United Bike Institute in Ashland and show- tion. His blog started drawing huge reader
ations of Eugene-based Bike Friday, Burley That number can and no doubt will grow cased with a special exhibit at the Portland response, dozens of comments for each new
Design and Co-Motion Cycles; and the far- much larger, sooner rather than later. It isn’t International Airport, the vast majority of post, a constantly updated conversation that
ranging economic impact of Cycle Oregon. difficult to imagine an immediate future the bicycles sold in Oregon are built else- extended well beyond rides and events and
The jobs generated by all of this activ- where homegrown bike businesses out- where. So are the helmets, rain gear and ac- into the future of transportation, energy use
ity are unlikely to offset the thousands that number tech start-ups. cessories marketed by Oregon startups such and the American city. Advertisers from in-
have been lost in Oregon’s motor vehicle But let’s not get carried away. For all of as Nutcase Helmets, Showers Pass and Bike side and outside of the industry, including
industry as dealerships close and RV manu- the diversity and creativity of Oregon’s bicy- Buddies. The bike builders who benefited Oregon icons such as Powell’s Books and
the most from the crazy run on the Clever New Seasons Market, recognized the value
Cycles shop in July were all European com- of his site, and advertising revenue enabled
panies. “If we could have found a viable him to run his blog as a business and even
option locally, we would have gone for it,” buck the trend by hiring journalists.
says Martina Fahrner, a co-owner of Clever “It is certainly the best blog in Portland,”
Cycles. “But no one could deliver bikes in says writer Jonathan Nicholas, a former col-
the volume that we sell them.” umnist for the Oregonian and founder of
Still, while the manufac- Cycle Oregon. “It’s a textbook
MartinaandToddFahrner turing base for the nation’s case of how to build a blog.” Former bike messenger
opened Clever Cycle in bicycle industry may not be It’s also a window into a Natalie Ramsland used
Portland with another in Oregon, the brain trust business world with enor- her wedding cash to help
family in June 2007. increasingly is, and so are the mous potential. At last count startSweetPeaBicycles.
riders. Five years ago it would Maus’s site contained links
have been unusual to see an adult in work to 26 local frame-building companies, 42
clothes commuting to their job with a child bicycle shops and 40 Portland bike-related
pedaling along in tandem. Today that sight businesses such as the Rose Pedals Pedicab
is as commonplace as the latest horde of Company and SoupCycle, a company that
cyclists taking over the Hawthorne Bridge delivers soup by bicycle. Many of these busi-
and the East Bank Esplanade during the nesses have made their debuts since Maus
morning commute. first began blogging regularly in the spring
Even the wet, dark months of Oregon of 2005. Over that same period, 2005-2008,
have not kept the wheels from spinning bicycle traffic crossing Portland’s four bike-
because the cyclo-cross phenomenon has friendly bridges has shot up from 10,192
encouraged demand for a whole new type trips per day to 16,711, a 64% increase.
of $3,000 bike that gets beat up during each Maus thinks the growth and evolution
race and requires expensive repairs and of the bike culture will continue even as the
upgrades. The bike craze accelerated as gas larger economy slows, due to a steady influx
prices rose, but it does not appear to have of new talent moving into the scene, new
abated as prices have plummeted. Bike- bike builders and designers opening shop
crazy newcomers continue to pour into the or joining established teams to feed the de-
city, boasting car-free lifestyles with “zero mand.
mpg” bumper stickers on their rides. They “It’s all growing like crazy, and a lot of it
spend the $5,000 or so that they might have is within three miles of where we’re sitting,”
spent on cars each year on coffee, food, beer, he says. “We’ve got 8% of downtown work-
and anything that has to do with bicycles. ers commuting by bike. If this keeps up we
will see 25% and more businesses will keep Hopkins University, served as Portland’s land-based Alta Planning and Design, the

J
onathan Maus moved to Portland from opening. We’re going to see equipment first bicycle coordinator. In collaboration nation’s largest bicycle planning firm. Alta
Santa Barbara to become a part of the makers, roadside service stands. It’s going with then-City Commissioner Earl Blu- compiles bicycle and pedestrian plans for
bike culture. Now he is at the center of to happen. This is not some weird phase. It menauer, she completed the city’s first bi- small Oregon communities such as Man-
it and to a certain extent, its spokesman. will be sustained. Even in the winter.” cycle master plan in 1996 after a tour of 18 zanita and bustling global cities such as
He started with a blog on oregonlive.com, European cities. At the height of the city’s Dubai.

A
and then set out on his own to build bike- bout a half mile away from Maus’s program she oversaw a staff of five and a Birk’s view is that the most cost-effective
portland.org, one of Oregon’s most suc- bike-through cafe, Mia Birk has budget of $1.5 million, building a network investment a community can make toward
cessful blogs. converted a historic building in of bike lanes, trails and boulevards that has a sustainable future is to build smart bicy-
“I could see the value of connecting all Portland’s Central Eastside into a bicycle- grown to nearly 270 miles, setting the stage cling infrastructure. She also encourages
these things going on in the community planning factory. Birk, who holds a degree for the bike explosion of the past decade. businesses to encourage bike commuting
and putting them together in one place,” he in international economics from Johns Now she is doing similar work for Port- for physical and mental health — and to

38 • Oregon Business • JANUARY 2009 JANUARY 2009 • Oregon Business • 39

niche industries | geared up

bike scene. Sutphin also has high hopes BY THE NUMBERS

about improving cohesion and savviness Oregon’s bike industry
within the industry as a whole.
“Bicycles have been around for at least 1: Oregon’s rank among states, bike riders
100 years, but it is one of the most imma- per capita
ture industries out there,” he says. “There 100 billion: Decrease in miles driven by
are no industry standards, no trade groups. Americans, 2007-2008
We are just way behind when it comes to 144%: Increase in bicycle use in Portland,
taking ourselves seriously enough to get to 2000-2008
the next level. One of the reasons is it has 48: New bike businesses created in
Portland, 2006-2008
been run by enthusiasts who have had a
hard time learning to be profitable and con- $90 million: Estimated value, Portland
bicycle industry
sistent enough to actually employ people.”
1,235,219 miles: Combined distance
Jerry Norquist agrees. Norquist is the ride logged, Bicycle Transportation
organizer for Cycle Oregon who has made Association’s 2008 Bike Commute
that annual ride legendary for its logistical Challenge
efficiency. He started his career working for 20%: Percentage of vehicles crossing the
Trek in Wisconsin and worked his way up Hawthorne Bridge that are bikes
Thousands of bicyclists of all ages and sizes 270: Miles of bike paths, lanes and
to manager of bicycle brands before mov-
participated in Portland’s 2008 Bridge Pedal. boulevards in Portland
PHOTO BY DYLAN HOWLETT ing on to Specialized Bicycle Components
in California and then Cycle Oregon. Sources: VeloNews, Alta Planning, BTA, Wall Street Journal,
Portland Office of Transportation
AVERAGE COMBINED Norquist has been trying to build enthu-
DAILY BIKE TRAFFIC OVER ing a significant role. “In Oregon people and established Sweet Pea Bicycles. She and siasm for his plan to redevelop the Memorial
4 PORTLAND BRIDGES start up businesses based on what they love her husband, Austin, took the cash gifts from Coliseum into the Portland Bike Box, with
(Burnside, Broadway, Hawthorne, Steel) to do,” she says, “and then they figure out a their wedding and bought welding tanks headquarters for bicycle groups and busi-
17500 way to make money off it.” and torches. He handled the marketing end nesses, frequent track and BMX races and to build new sports facilities and gathering open for three months and make money
Some companies, such as Clever Cycles of the business, the blog and the website, shared tools and resources for frame build- places. “Then there’s all the money spent by when they would have been sitting on their
15000 and Vanilla Bicycles, have figured out the while she honed her craft. She started by ers. Norquist would like to see the industry 2,000 people tearing through Oregon on thumbs in the winter,” Ross says.
business end quite quickly. Others have designing bikes for friends and family, im- get to the next level. He acknowledges that bikes every year,” adds Nicholas. Economic It remains to be seen how well the discre-
12500
flailed, partly because they lack the knowl- proving with practice and benefiting from attracting a top-tier manufacturer such as development and fun were the twin moti- tionary spending that fuels cyclo-cross will
10000 edge necessary to run a business. Jennifer Portland mentors who taught her the fine Trek or Cannondale to Oregon would be vators behind Cycle Oregon when Nicholas hold up during a serious economic down-
Nolfi, creative services industry manager points of custom fitting and fabrication. a long shot. “They employ thousands of wrote the newspaper column that spurred it turn. Another broader question involves
7500 for the Portland Development Commis- Ramsland honed in on the largely un- people where they are, and they have social 21 years ago. “We started with the idea that how prepared bike startups are for the com-
sion, has worked closely with local frame tapped market for custom bikes for women, obligations,” he says. “At the same time, the 50 people might show up,” Nicholas recalls. ing storm. Oregon’s bicycle industry is so
5000
builders to encourage the industry to orga- studying a rider’s biomechanics and range next Trek is out there, and we have a good Instead the ride drew more than 1,000 peo- diversified that it may hold a stronger posi-
2500 nize, grow and build jobs. “Getting them to of motion and then designing a bike to fit opportunity to attract the next big thing, ple and has been a hit ever since. tion than other sectors. But to call bicycles
agree on anything can be a challenge,” she the individual. Orders grew steadily, and with all that’s going on in Portland and in recession-proof would be a stretch.

A
0 says. “The other challenge is helping them then took off after Bicycling Magazine pro- Oregon.” similar show of enthusiasm has “It’s a scary deal for everyone,” says Mi-
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08
SOURCE: Portland Office of Transportation
to learn the business side of things.” filed her as an accomplished woman bike Portland already has attracted Chris King propelled cyclo-cross from the chael Morrow, a former creative director
PDC has sponsored cyclo-cross races, builder breaking into a field long dominat- Precision Components, a company legend- fringe to the main stage. at Nike who founded Nutcase Helmets in
a “bike manifesto” in the Pearl District, a ed by males. Now her backlog of orders is ary for its well-designed, expensive parts. Brad Ross, who founded Cross Crusade 2005. Nutcase has sold 20,000 bike hel-
handmade bike exhibit at the Portland In- up to a year and a half. She is building cus- Ever since the company moved from Cali- 16 years ago, says it began as a side sport to mets in Denmark alone over the past 15
save money on health-care premiums. “The ternational Airport and the North American tom bikes for customers from Boston and fornia to Northwest Portland rumors have fill the gap between the summer bike rac- months, at 68 euro a pop. Morrow hopes
bicycle is a simple solution to a whole host Handmade Bicycle Show. But when the city California and thinking about expanding circulated about its plans. The company has ing season and the winter skiing season. The to sell 100,000 more next year globally, but
of complex problems,” she argues, from organized classes to teach frame builders into a larger workspace. grown to 75 employees and is hiring frame- sport evolved quickly into its own thing, with he’s keeping his forecast conservative due to
obesity to global warming to stress. the basics of bookkeeping, attendance was Her goal is not to crank out as many bikes building experts, but has not announced specialized bikes and riders, and Portland the financial crisis, hoping that bike helmets
Birk says Portland’s bicycle industry has so sparse that the program was canceled. as possible, but to make the best. “We want specific plans regarding its bike-building has been the epicenter from the beginning. aren’t something people will stop buying.
been long underrated economically. Alta’s the Oregon bike to be like the Maine lobster future in Oregon. Participation is growing by 20% each year, Other bike businesses are hoping the

A
most recent report, released in September, bout 120 of the 500 or 600 stu- or the California avocado. We want to make Other medium-sized companies are also says Ross. The 2008 season featured eight same holds true for their products, whether
found that the value of the industry grew dents who go through the United Portland the place to go if you want to buy prospering. The Bike Gallery has expanded races and 10,000 participants, followed by they are the stylish bike bags of Portland-
by 38% from 2006 to 2008 and expanded Bike Institute (UBI) of Ashland a custom bike.” to six locations throughout Metro Portland. the season finale at Portland International based Queen Bee Creations, the functional
from 95 to 143 businesses, including 12 new each year study the art of frame building. To a certain extent, that is already hap- In Eugene, the folding-bike experts at Bike Raceway. Racers range from heavily spon- bike racks of Eugene-based CETMA or the
small-scale bike builders. Another number As the only school in the world with a pro- pening. So many independent frame build- Friday and the tandem cycle specialists at sored elite specialists to C-category riders custom frames of Grants Pass-based Keith
in the report seemed too large to be true, gram dedicated to custom bike building, the ers are migrating from the Ashland bike Co-Motion are both well positioned, and looking to spin around in the mud and then Anderson Cycles. It remains to be seen how
so Birk and her team re-counted and cross- school cranks out a lively mix of graduates school to the Portland bike scene that UBI while Burley Design LLC has downsized in drink beer with their friends. “Our attitude many niches the bike industry can support,
checked before publishing: Portland holds eager to get their creations on the road. president Ron Sutphin is considering set- recent years, it saw demand for bike trailers is all about inclusion and fun,” says Ross. “I but for now the opportunities outweigh the
nearly 4,000 annual rides, races, events and One example is 32-year-old Natalie ting up a satellite campus in Portland. He rise when gas prices spiked last summer. think that contributes to the bike culture as risks, especially in comparison to the econ-
tours. That’s an average of one ride every 27 Ramsland, who worked on and off as a has been working with the PDC to find a While Cycle Oregon operates as a non- a whole. The vibe from cyclo-cross has defi- omy as a whole. And while the ongoing col-
minutes. Portland bike messenger for about 10 years good Portland location and was close to profit rather than a business, its economic nitely rubbed off.” lapse of the nation’s auto industry is deliver-
Birk compares the bike industry to the before enrolling in a frame-building class at pulling the trigger at press time. reach is substantial, with $150,000 in an- The sport’s surge also has created a signif- ing a painful blow to the U.S. economy, it’s
craft brewing industry in that it is part cul- UBI. Bringing her new skills back to Port- Such a move would strengthen the con- nual payments to the small towns that host icant new source of income for bike shops. not hurting the outlook for Oregon’s bicycle
tural and part economic, with ideals play- land, she rented an inexpensive workspace nection between the UBI and the Portland the rides, plus $100,000 in annual grants “Cyclo-cross gives shops an excuse to stay industrial complex.

40 • Oregon Business • JANUARY 2009 JANUARY 2009 • Oregon Business • 41