The lack of components from Asia triggers the growth of Rotor

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Rotor commemorates this 2022 the twenty-eighth anniversary of its foundation.

(12-4-2022). Rotor has started this 2022 with great dynamism. The Spanish company has grown by 35% in the first quarter, in relation to the same period of the previous year, thanks to the supply problems of components from Asia, according to the CEO of the company, José Luís García Alegre.

Rotor’s turnover in the first quarter of 2022 has been at the gates of 6 million euros, with a growth of 35% compared to the same period of the previous year. The company has especially improved its results in the OEM (Original Equipment Manufacturer) category, which shot up 300%. In this regard, the CEO of the company, José Luis García Alegre, considers that “the situation of Shimano, which continues to have problems with deliveries, and the tendency of European brands to move production from Asia to Europe is benefiting us.”

Rotor has also improved its billing to stores, with an average increase of 15% in all geographies. García Alegre points out that there has been a significant increase in Spain, above-average growth in the United States and below-average growth in Asia.

RECORD RESULTS IN 2021

The company experienced in 2021 the best year in its history with a turnover of 18 million euros. Its initial growth forecast for 2022 was 30%, but after the results of this first quarter it has raised the amount to 40% or 45%. The manager assures that he remains optimistic about the evolution of the rest of the year, but it would help to have more certainty in the face of the turbulent circumstances we are experiencing.

The manager points out that the war situation in Ukraine, high inflation, rising energy and fuel prices are making “people prefer to have money in their pockets instead of spending it and they delay non-essential purchases while waiting to see the evolution that may to have”. García Alegre adds that the second part of February and, especially, the month of March have been characterized by little traffic in stores and a drop in demand.

SLOW AWAKENING

The CEO recalls that normally in the month of March the strong season for the cycling market awakens and the second quarter is usually the best of the year. On the other hand, this Rotor season is showing that this awakening has not yet come: “orders are not being canceled but they are being delayed”.

García Alegre maintains that “if the good months were March, April, May and part of June, now it seems that it is going to move a little, everything may be delayed a month or more”.

Growth could have been higher

The CEO of Rotor describes the results of those first three months of 2002 as “very good”, but explains that they could have been better had different negative factors not been present.

Apart from the drop in consumption during the month of March, the manager assures that in the OEM market the delay in deliveries of Shimano and SRAM has also had a negative impact on Rotor sales. García Alegre explains that “we could have sold more but there are customers who have delayed orders because they wait until they receive parts from Shimano or SRAM to be able to assemble the complete bike”.

Advantage of ‘Made in Spain’

Rotor continues to bet heavily on national manufacturing: after the recent purchase of additional machinery, the objective is to increase production capacity by around 250% compared to last year.

García Alegre indicates that manufacturing in Spain is currently assuming an advantage, especially at European level. The company is experiencing significant growth in OEMs in Central European countries, such as Germany and the Netherlands, and in Italy.

72% of Rotor’s income comes from the foreign market. Its main clients include the USA, Germany, France, England, Japan, China and Australia.


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