| Author | Message | ||
     Froggy |
Article by Erik Buell! http://www.forbes.com/2009/05/27/motorcycles-sport bikes-manufacturing-business-buell.html Reposting it here just in case it gets deleted off Forbes site
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| Bill0351 |
"Riders appreciate the personal influence that brought forth their bike from start to finish." To me that is a huge part of the Buell attraction. That's a great article from a guy I respect a lot. Bill | ||
| Hughlysses |
Very cool. I will definitely be forwarding that link to a few people. | ||
| Buellinachinashop |
"I'm Placing My Bet On American Manufacturing" ....but I'll keep buying Austrian manufactured motors. | ||
| J2blue |
Amen. Maybe most of us on here share a lot in common with Erik, and that is why he and his bike resonate with us. I hope his article is read by doctors, lawyers, insurance agents, and many other non-motorcycle types who become inspired to rewrite American economic history within their own domains. | ||
| Pepperk496 |
What a great read! Simple, yet powerful writing. I wonder what some other manufacturer would think to himself about what Erik has to say....? | ||
| Court |
Nice. Nothing has changed since 1983 and everything has changed since 1983. | ||
| Wolfridgerider |
The truth is we are dreamers, who dream of a positive, exciting future I can't wait to see what comes next! | ||
| 12x9sl |
+1 on what J2Blue said. What is appealing to me about Erik (never having shook his hand or talked to him) is that he seems to be one of us. Just a normal guy, passionate about his ideas and product. | ||
| Darthane |
Having been lucky enough to shake his hand and talk to him, that he most certainly is. Great find, and thanks for sharing! | ||
| Buelltours |
+1 J2. Great article! | ||
| Court |
>>>>is that he seems to be one of us. Just a normal guy, passionate about his ideas and product. That's an accurate statement. Dude . . . at his advanced age . . . . was working at midnight last night! . . . I guess the "normal" may be pushing it.  | ||
| Socalbueller |
"I'm Placing My Bet On American Manufacturing" ....but I'll keep buying Austrian manufactured motors. Don't forget the Japanese swing arms and Chinese wheels. Sorry I didn't drink the Buell-aid. In the last 25 years Buell motorcycles have become more ASSEMBLED in America and less manufactured. | ||
| F_skinner |
freeing yourself enough to imagine new ideas is easier if you aren't burdened by replication equations and trying to prescribe a product that you think the market will take. That is Buell!!! Something other companies have missed. Mr Socalbueller, is it important for you to buy a bike made with parts only the USA? When you find that company let me know. My Chinese wheels work very well. I do not know what that has to do with "drinking the Buell-aid". I bet you think Buell is about bikes and bikes alone. If you do you would be wrong. | ||
| Socalbueller |
Mr Socalbueller, is it important for you to buy a bike made with parts only the USA?In a way yes. Buell is the closest we got and one of the reasons I bought my Buell. My Chinese wheels do their job also but when Erik is talking up American manufacturing and racing a bike with an Austrian engine I find that a little hypocritical. Yeah so maybe one wasn't available from a US supplier. I also heard this excuse why they out sourced the frames for the XBs then the 1125R came out with a US produced frame. Maybe that company didn't have the resources in 2003 but Buell could work on bringing the manufacturing to the US for the XB frames. They were able to switch suppliers for the swing arms so it is not impossible. A lot of jobs have been lost recently would be nice to create some more by making frames and wheels for motorcycles  . | ||
| Davegess |
Buell uses the best stuff. When americans make it they buy it. Look at the frames. The motor comes from Austria 'cause no one in the US can do them. Even the H-D motor has parts from over seas, heck every H-D has a ton of foreign content. The majority of the value-cost- in a Buell comes from the design work and the assembly work and that is all from the USA. The total cost of the non US parts is less than that cost. I am guessing here as I have no actual numbers but I am pretty confident I am correct. | ||
| Socalbueller |
The motor comes from Austria 'cause no one in the US can do them.can't or won't? | ||
| Xlcrguy |
Socalbueller, CAN'T is the proper word to use here. Sure, Buell could source 100% of the parts in the good ol' US of A, but then, 99% of the customers couldn't afford a Buell. This would drive down production volumes, then costs could not be controlled at a level to penetrate the marketplace. As I understand, BMC went to some of the best suppliers of components from around the world and challenged them to make parts better, lighter, more durable. Perfect? Nope, but better than ever. And certainly some brands are still scratching their collective heads, wondering how the elves in East Troy did it! Perhaps, some day, when Buell is making 100,000 bikes per year, the supply base in the USA will be mature enough to support it. | ||
| Ducxl |
Sure, Buell could source 100% of the parts in the good ol' US of A, but then, 99% of the customers couldn't afford a Buell. THere's something extremely wrong with that statement.We can't AFFORD to support our fellow Countrymen? And supporting COMMUNIST CHINA (N. Korea's best friend) is more enticing? WTF!! Perhaps, some day, when Buell is making 100,000 bikes per year, the supply base in the USA will be mature enough to support it. THis AMERICAN (manufacturing/machinist) citizen certainly hopes so.I'm partially unemployed.Typing this on my unemployment day(fridays),down 1/5 income. I resisted and resisted all night responding to this thread.Erik Buell is a remarkable American citizen.I know his heart is in it.Outstanding read too.Too bad there's another side to the coin. | ||
| Buellinachinashop |
"Socalbueller, CAN'T is the proper word to use here." I disagree with that, there's plenty of engine builders here. Harley being one of them, but that shouldn't give EB license to tout American manufacturing. The most major component of Buell bikes is the motor. If its not American made, its not an American bike imo. No wonder Buell is going with the slogan.."Engineered in East Troy, WI". Even they know thr 1125s aren't American manufactured bikes. And this is what leads me to believe that we'll be seeing more Rotax. If this article was about engineering in the US, I'd be all for it, but like Socal said, it is sorta hypocritical. | ||
| Court |
>>>Don't forget the Japanese swing arms and Chinese wheels. There are parts on Buells from over 10 countries. It's a matter of both simple and complex economies and markets. I'd love for someone, perhaps one of you, to open a business, make top quality wheels that equal or surpass what Buell designs, specs and has built in China, and start selling them to Buell. Buell has a amazing system for qualifying and sourcing vendors. Price matters, but it is about 6th on the list of criteria. For those of you with calculators, work up the cost of leasing and tooling a factory to make wheels. Some of you here are in the fabrication business and can supply input about how many square feet, how much the machinery would cost and the size of the staff. Let, for our example, assume you can make wheels in a 100,000 square foot facility with a $10,000,000 investment of machinery and 85 folks at at average of $45/hr +40% burdens and 20% overhead. Now . . . let's say you have ALL of Buells business and have a standing order for 30,000 wheels a year. Your investors require a 4% return on their investment. It's 8th grade math . . . . TEST QUESTIONS: 1) Is this a viable business model? 2) Would your place your families savings in this investment? 3) What are the risks? 4) Would you quit your job to start and run this business? I'd count myself among the most patriotic folks I know. But I also hold a degree in both Economics and Accounting (from a college) and a degree in real world (from starting and managing businesses). There are certain things that are facts of life in the world of business. In the world of motorcycle manufacturing $10,000 is a HUGE number. It sounds pulled out of the air but the fact is it's real. In order for a company to grow (note that Buell is one of the only motorcycle companies in the world that is currently growing) it needs to be able to create demand. This is done through advertising, events and, in the case of Buell, word of mouth. One of the business model risks is to be able to control a firms costs. If the firm is producing, from scratch, every piece of the motorcycle (like Cushman did when my scooter was built) they are at tremendous risk in the event of a market fluctuation. Imagine . . . . that you answered YES to the wheel question above . . . . you are merrily making wheels, selling them at a profit and them POOF . . . Buell goes all spoke and your 2011 order is ZERO. What now? Think of the Elves (this is a HUGE thing to Erik) . . . there are about 200 now. The model allows for fluctuation without the need to pare the workforce, seasonally or as a result of sales fluctuations. In the event of 2 months of non-producing, say for model change over, the folks now can be re-tasked. If, for our example, Buell were making their own wheels, motors, forks and so forth and this added 500 employees those folks would be laid off, just like all other industries do, when they weren't producing. Now say you are raising a family in gorgeous rural Wisconsin, nestled a mere 30 miles from Milwaukee. CURRENT ELVES: Can be secure that they will be coming to work on Monday and working through Friday each and every day of each and every week and get that great holiday vacation for which Harley-Davidson became famous. OUR SCENARIO: Your hours, wages and therefore income fluctuate as demand of wheels does. You may be working 60 hours for a couple months but we laid off for 3 months. Now . . . . let's cross-dress for a moment. . . . imagine you are the SCU of a Buell employee . . . . Current Elves: Have a secure job with a steady income and a huge sense of pride. Each person makes a valuable contribution to the finished product from Donna to Scot. Scenario Employee: Are a human commodity. You work when we need wheels, you go home when we don't. Tell me who's home life, family life, kids, community events and the whole palette is happier? We spend over 75% of our waking hours at work. The idea that a person can be unhappy at work and not feel "needed" and be happy at home is preposterous, it can't happen. Guess what kind of work folks with a constantly unhappy home life do? . . . life is a science of balance. It's unlikely that anyone who feels unhappy and unneeded in their vocation will be much different at home . . .vice versa. When I ran C. L. Canfield Constructors, Inc, I made damn sure my employees were thrilled. I demanded a lot. But, I made them go on vacations, in fact we gave "vacation allowances" sometimes up to $2,000 and on a couple occasions gave employees airline tickets. I submit that I made money on the deal. Secure employees who feel needed and part of the product are the people who, in a collaborative environment do absolutely amazing things. Americans, to be frank, properly managed in such a situation can do things other folks around the world can only dream of. . . it's what is responsible for stories from the start of General Motors and the Railroad to Microsoft, Google and Buell. If you have not read Organizing Genius, you might want to. Bottom line is that Flick and Erik walk a fine tight rope . . . . they are suspended above a sea of sharks that include companies like Honda that spent more on racing last year than Harley-Davidson has in their 100+ year history. Honda has more marketing folks than Harley-Davidson has employees worldwide and Honda's race budget exceeds Harley-Davidson's annual revenue. Jon and Erik are like cattle in a mine field as they navigate . . . accountable to Harley-Davidson, aware that you need to spend money (Homecoming, free giveaways, racing bling, etc) to make money but also living in fear of that meeting where they have to explain all the fun they had at the races while loosing money for the year. It's management. Not all the decisions are easy. Some hurt. Some require sacrifice. As one of the few folks in the world who has ever sat in Erik Buell's office at night and seen him cry I can tell you that some hurt so much that normal folks would throw up their hands in disgust and frustration. Nobody at Buell, not Erik the tinkerer farm bot from Gobsonia, PA who put the Corvette motor in his Mother's car and was quit a job as a mechanic after the owner had a gun pulled on him . . . . or Jon Flickinger who's late Father, an avid rider in his own right, instilled both a love of riding and adventure while seeing his son evolve to a keen manager makes a decision to "buy non-American". They make decisions to make a product that is so good, a product that actually shows the heart and soul of everyone who touches it and a product that allows their company to grow in this economy . . . the decisions may not always be the easiest or the most comfortable. Jon Flickinger, and I've seen many $2M/yr managers in my life, is among the best I have ever seen at making the tough and wise decisions while never loosing sight of and respect for every person in the equation. But . . . each and every one is made staring at that plaque on the wall that says BUELL VALUES. I may have to give my own tour at East Troy next week . . . . and make a few jaws drop. The Elves at Buell are 2nd to no manufacturing team in the world. Companies from China and Japan have come to tour and always comment "how do you build these by hand and yet have such high quality? . . only robots can build with such precision". Robots, in the management environment I've described, are no match for passion. I want Buell Motorcycles and Buell the company to be the best it can be. But then . . . . I am a construction worker. Court P.S. - By the way . . . Erik Buell, the current Chairman of Buell . . the one that you'll find in the workshop in sneakers with a hole and blue jeans . . . has had opportunities to walk away a wealthy man who'd never have to do anything the rest of his natural days but play guitar, lay on a beach and ride motorcycles. Sometime . . . remind me to tell you why he's laughed at every offer and was working until midnight this week. (Message edited by court on May 29, 2009) | ||
| 4cammer |
Wonder if the BMW, Ducati, Bimota and Triumph boards are loaded with posts as to where exactly every component of a particular bike is made. Where exactly is the Bonneville made? Stop. It is a pointless exercise to hope and dream that a 100% US made bike (that is afforadable) becomes a reality as it will not happen. Erik Buell should be given credit that he was able to source an up to date, cost competitive engine to power a line of bikes coming out of Wisconsin. Do I wish that I could point to my wheels, wiring loom and switchgear and say they were all made by hard working Americans? Sure. But that does not alter the satisfaction that I get when someone asks if my bike is Italian or German and I say "nope, she came from Wisconsin". | ||
| Elvis |
Some simple facts: Buell has done more to create American Jobs related to the manufacture of American Sport-motorcycles than any other company since the idea of a "Sport-Motorcycle" came into existence. Buell currently sells 8 models with Amercan engines and 2 with Austrian engines. Buell clearly made an effort to increase the American content of their bike when they brought production of the most unique and important component of their bike (the frame) to the US for 1125R. Complaining that Buell's bikes aren't American enough is like bitching that Tiger Woods doesn't win enough tournaments. They're putting in an effort greater than anyone else and that should be commended rather than taken to task. When my mom made a "home-made" apple pie, I didn't bitch to her: "Damn it mom, you claim this is 'home-made', but you bought the apples from the farmers market, the flour from the grocery store etc. etc. etc. . . . start grinding your own wheat and then we can talk about it being home-made." (Message edited by elvis on May 29, 2009) | ||
| Court |
>>>.Buell clearly made an effort to increase the American content of their bike when they brought production of the most unique and important component of their bike (the frame) to the US for 1125R. There's a story that DESERVES to be told someday! The Apple Pie is the PERFECT example. | ||
| Buellinachinashop |
"Buell clearly made an effort to increase the American content of their bike when they brought production of the most unique and important component of their bike (the frame) to the US for 1125R." I guess the MOTOR in motorcycle isn't all that important to you. And since you brought up how important that frame is and current numbers of Rotax to HD motors...that means there's 8 bikes with the ALL IMPORTANT frames that AREN'T made here and two that are. But these are current numbers, those will be changing. (Message edited by Buellinachinashop on May 29, 2009) | ||
| Boliver |
Buellinachinashop, Two big thumbs up here in Tulsa.I feel the same way. I wouldn't care if the bikes were the slowest or not.Stop using Austrian motors if you want to sing American praises. hail hail USA | ||
| Xl1200r |
Waahhhh wahhhhhh wahhhhhhhhhhhh!!! My bike is fast as shit, handles better than anything I've ridden, and puts a bigger smile on my face than any other inanimate object. The fact that a LOT of the bike came from the U.S., that is was built from a U.S. company, and the profits STAY in the U.S. are icing on the cake. | ||
| Too_tall_ss |
You want American Made? http://www.polarisindustries.com/en-US/Victory/Pag es/Home.aspx Not 100% but more like 80-90%, the Most "American Made." Just across the river in Minnesota  | ||
| Davegess |
I have no problem with the Rotax built motor. It is assembled in a fully union factory with very well paid and well treated workers. They have a better deal than most American factory workers so it is not built there because the cost of labor was lower. It is cheaper than what could be done here but that is a result of doing it more efficently not by paying slave labor. Much of what is sourced overseas is done so simply because the stuff is not made here in any sort of a mass produced way. Find me a manufacturer of MC turnsignals in the USA. Sure a samll job shop could make them but at what cost? The folks who make the signals for the car guys are not interested in making stuff in such small volumns. I am reminded of the story of H-D trying to get a US shock absorber manufacturer to make shocks for them. The company was interested and capable of meeting price and quality targets UNTIL they realised that the quantity number being tossed around represented a years worth of orders not a monthly delivery. Off to Japan H-D went. | ||
| Buellinachinashop |
"The fact that a LOT of the bike came from the U.S., that is was built from a U.S. company, and the profits STAY in the U.S. are icing on the cake." Where are the profits going for the motor....the XB frames...the swing arms, the rims? Sure profits that Buell makes stay here, but what about all those companies who are making a profit FROM Buell?? You know? The folks who are actually MANUFACTURING Buell parts?? |
