Another day on Wall Street, another few hundred points in the red. The economic decline is getting to the point where it seems that finding a stock that’s only down ten percent is something of a miracle. But for Taiwan’s Giant Manufacturing, the world’s largest bicycle manufacturer, the 31% decline in the DJIA makes its 5% increase in stock price all the more satisfying.

 

It’s no secret that high oil prices do a fantastic job of getting people out of their cars. Bicycles, along with mass transit, car pooling, and plain old walking, got a tremendous boost from the $150-a-barrel oil of earlier this year. But with the world-wide recession—possibly the worst economic downturn since 1929—looming, oil prices have fallen.  Despite this, though, bicycle companies continue to flourish. 

Giant, which earned a profile in the September issue of The Economist for its gains in the face of collapse, isn’t the only one profiting. While Lance Armstrong drove interest in the sport and in racing equipment during his seven-consecutive Tour de France victories, small-town shops have profited even more from renewed interest in cycling as a form of transportation instead. Additionally, the rising trendiness of fixed-gear and other urban-oriented bicycles has fueled the growth of a cottage industry around converting old frames and reselling them to eager patrons.

 

With oil prices well below their heights earlier this year, some might anticipate a drop-off in sales. But as the Economist article points out, the bicycle “seems like the remedy for many modern ills, from petrol prices to pollution and obesity.” Other benefits include reduced wear on road surfaces, less productive work hours lost to congestion and fewer barriers between residents and the communities they live in.  Plus, as one of the many “sweeteners” added to the recent bailout bill, employers of bicycle commuters will now receive a tax credit. 

 

Most importantly, though, the flourishing of the bicycle industry is coming during an especially trying period for the automotive industry. After dominating American transportation for decades, American auto manufacturers took too much advantage of the credit available to consumers and focused on producing large, expensive and inefficient light trucks and SUVs.  The glut of cars that are essentially unsellable in the current economy has lead to massive losses for car makers, which in turn may weaken their lobbying, allowing more accommodations for cyclists on city streets. 

 

While few—if any—industries are recession-proof, it’s clear that as long as consumers are conscious of both their own health and the health of the world around them, bicycles will continue to sell. Limits on consumer spending during any upcoming recession will certainly help draw more riders to the road, but as the economy turns around, it will be the benefits of riding that keep them there.

Photo by Flickr user Tanakawho