Guardian Bikes is reinvigorating the American manufacturing industry. Each week, they churn out upwards of 12,000 kids bikes from their giant 540,000-square-foot factory in Seymour, Indiana. CEO Brian Riley might well have written the playbook—he co-founded the company, grew it like topsy as CEO. In 2022, they commissioned their plant with $19 million financing from JPMorgan. This redirection seeks to bring back local manufacturing and strike at the underbelly of challenges that have long haunted the industry.
Even with their success, Guardian Bikes is still swimming upstream to find components that can be made in America. All sorts of other crucial components, from bicycle chains to reflectors, are parts that we don’t make in this country anymore—at least not at any appreciable scale. Riley underscored the challenge of this effort, saying flat out at one point, “This wasn’t easy.” The company’s experience speaks to daunting obstacles in the U.S. manufacturing terrain. Over the last few decades, we have seen an exodus of firms and plants.
Between 1997 and 2023, the total number of U.S. manufacturing firms declined by a quarter. The loss occurred right as global trade barriers fell and production largely moved overseas. China and Vietnam have taken the baton from them, fueling their industrial ascendance with billions in investment into factories and training a skilled workforce. This change has sent companies like Guardian Bikes scrambling to secure back-ups for their predictable, core inputs.
Riley pointed out that new tariffs and federal subsidies—for domestic semiconductor production—under the CHIPS Act have been enacted. Lots of economists aren’t being fooled by a possible renaissance in U.S. manufacturing. He remarked on the long-term consequences of this trend, stating, “By the time you get to the ’70s, ’80s, ’90s, it all evaporated.” In this environment, Guardian Bikes is attempting a unique challenge: producing children’s bikes in America.
Here domestically, we have to understand that manufacturing has a premium. Riley pointed out that consumers may not understand what producing locally means for price. Just consider what the cost of an individual pair of sneakers would be if they were produced right here in the United States. A phone and just about any other retail product would similarly be much higher,” he added.
A few shifts in the economic landscape are providing inspiration. Riley mentioned that due to recent tariff adjustments, “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.” This change will make it easier for more companies to explore local manufacturing alternatives.
Guardian Bikes is a real success story in a tough manufacturing environment. As they continue to navigate these complexities, their efforts may inspire other companies to explore the possibilities of American-made products.