The SBT mentions the Greek tragedy as a way to summarize the
epic collapse of American bicycle manufacturing. By now, many of you, dear readers, have
uncovered the SBT crew’s love of old Schwinns and we are talking about the
Schwinn before the outsourcing to Asia--the Schwinn of Chicago.
In a previous Schwinn-themed post we decided not to outline the history of the company's decline. In this post we are simply trying to find the source of the decline and we think we can trace it back to a Schwinn-championed technology: "electro-forging." But first...
Schwinn is a Greek tragedy; its greatest
strength was its fatal weakness. From
Ignaz Schwinn’s first bikes to the company that bore his name, the machines he and
his workers created were hand-built. Mr.
Schwinn put his name on the line and on his bikes, the company left behind the
conventional wisdom of building bikes for the large department store chains and
branding the bike with the name and logo of whatever store was selling the machine. Instead, Mr. Schwinn decided to sell “Schwinn”
and the bikes would be sold through hardware stores or bike shops that would be
Schwinn-specific retailers. During the company's ascent
of the 1950s, Schwinn grew stronger and secured more and more market share.
The company seized upon the derailleur quickly and a variety
of “ten-speeds” came out of Chicago and into the suburban garages and streets of
the United States throughout the 1960s.
Later, the idea of electro-forging allowed the company to build more
bikes faster and cheaper and it is at this point we begin to see the decline.
Since the earliest uses of fire, the forge was part of the
building process of just about anything.
The heating of most metals will lead to the material changing
composition. These molecular changes
allow products to be created from raw material or allows the
modification of an existing product.
Later, coal permitted forges to burn hotter, longer and the coal-powered
forge helped usher in the Industrial Revolution. Schwinn took the fire from the forge and replaced it with electrical current.
The electro-forge technology used by Schwinn was a process
of sending high-heat current through the tubing and into the joints
in order to seal the parts together. It
was a form of soldering almost. What it
did was eliminate welding. That welding was
done by hand and by humans. In the 1960s
and for decades hence Schwinns were electro-forged by machines. Schwinns were now massed-produced on one of
the grandest of scales--cheaply. Later,
the company realized that electro-forged technology could be outsourced to
Bridgestone in Japan and Panasonic in Taiwan and the cost per-unit dropped yet
again. At the same time in the United
States, Schwinn’s American manufacturing plants did not change with modern updates
and processes. It was now too late, Schwinn’s
great ascent into technology was forgotten and old methods were killing the
company.
The bicycle boom of the 1970s brought lightweight bikes
built with a human touch to the global market.
New bike builders were using alloys and aluminum while Schwinn was still
electro-forging steel. Schwinn was one
of the first large manufacturers to grasp new technology early on, yet when new
technologies were required later, Schwinn failed to capitalize on the evolution of skills, people
and machinery.
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