Economic implications

Bicycle manufacturing proved to be a training ground for other industries and led to the development of advanced metalworking techniques, both for the frames themselves and for special components such as ball bearings, washers, and sprockets. These techniques later enabled skilled metalworkers and mechanics to develop the components used in early automobiles and aircraft. J. K. Starley's company became the Rover Cycle Company Ltd. in the late 1890s, and then the Rover auto maker. The Morris Motor Company (in Oxford) and Škoda also began in the bicycle business, as did the Wright Brothers.[10]

In general, U.S. and European cycle manufacturers used to assemble cycles from their own frames and components made by other companies, although very large companies (such as Raleigh) used to make almost every part of a bicycle (including bottom brackets, axles, etc.) In recent years, those bicycle makers have greatly changed their methods of production. Now, almost none of them produce their own frames.

Many newer or smaller companies only design and market their products; the actual production is done by Asian companies. For example, some sixty percent of the world's bicycles are now being made in China. Despite this shift in production, as nations such as China and India become more wealthy, their own use of bicycles has declined due to the increasing affordability of cars and motorcycles. One of the major reasons for the proliferation of Chinese-made bicycles in foreign markets is the lower cost of labour in China.[11]