Outdoor recreation accounted for more than a half-trillion dollars of economic activity throughout the United States in 2022, according the U.S. Bureau of Economic Analysis (BEA). The BEA reports that the value added of the outdoor recreation economy accounted for 2.2% ($563.7 billion) of current-dollar gross domestic product (GDP) that year.
As defined by BEA, which began tracking the data around outdoor recreation in 2018, these activities fall into three general categories:
- conventional activities such as bicycling, boating, hiking, and hunting
- other activities such as gardening and outdoor concerts
- supporting activities such as construction, travel and tourism, local trips, and government expenditures.
During the pandemic, bicycling regained popularity as many people sought the great outdoors. The U.S. DOT’s Bureau of Transportation Statistics reported in May 2023 that from March 2020 to March 2023, bike spending increased 620%, adjusted for inflation. While these numbers have leveled out, participation in the activity remains high.
In 2022, 97% of bikes purchased in U.S. were imports — more than 80% from China. Oregon Congressman Earl Blumenauer sees an opportunity to bring this positive economic impact to the United States. Having biked to his job at the U.S. Capitol for nearly 30 years, Blumenauer is an advocate for biking for his district in his home state — and the nation overall.
In June 2024, Congressman Blumenauer introduced the Domestic Bicycle Production Act, which is legislation aimed at reinvigorating bike manufacturing in the United States.
“Domestic manufacturing is the missing piece of the bike revolution. My legislation would give bike manufacturers the foothold they need to establish a thriving industry here in the United States,” said Blumenauer in introducing the bill last month. He is founder and co-chair of the Congressional Bike Caucus and ranking member of the Ways and Means Subcommittee on Trade.
The Domestic Bicycle Production Act legislation establishes a three-pronged approach to reshoring bike manufacturing:
- Institute a 10-year tariff suspension on imports of bicycle components (i.e. electric motors, frames, wheel rims, hubs, brakes, saddles, pedals, gears, etc.) to incentivize bicycle assembly operations in the United States.
- Create a transferrable electric bicycle production tax credit for bicycles manufactured in the United States to encourage companies to utilize domestic manufacturing.
- Establish a U.S. Bicycle and E-Bicycle Manufacturing Initiative to make low-interest, 12-year loans to purchase capital equipment toward establishing or increasing capacity of domestic bicycle manufacturing facilities.
According to Grand View Research, the U.S. e-bike market size was valued at USD 1.98 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.6% from 2023 to 2030. Rising demand for electric-bikes (e-bikes) not only for recreation, but also for daily commutes and environmental concerns, are among the key factors driving the market growth.
In 1996, Blumenauer founded the Congressional Bike Caucus to bring members of Congress together in support of federal investment in bike and pedestrian infrastructure. The Caucus has secured a $2.25 billion increase in federal funding for biking and walking and created a tax benefit for commuters biking to work.
Guardian Bikes Opens Shop In Seymour, Indiana
In 2022, Guardian Bikes, a maker of children’s bikes with a patented brake system to prevent head-over-handlebar accidents, decided to bring its assembly and manufacturing to the U.S. with the opening of its first manufacturing facility, in Seymour, Indiana. Featured in 2017 on the television show Shark Tank, the company’s founders attracted the interest of investor Mark Cuban.
Read more about the Guardian Bike decision to move its production to the U.S.
