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Local businesses still feeling effects of port slowdown Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Mar. 2, 2015 at 6:25 PM Updated Mar 3, 2015 at 9:19 AM By Greg Stiles Mail Tribune Posted Mar. 2, 2015 at 6:25 PM Updated Mar 3, 2015 at 9:19 AM » Social News West Coast dockworkers reached a settlement last month, but the fallout of their slowdown may take weeks or months to run its course for local businesses that rely on parts and products that come into the United States through those ports. In the case of Ashland's Piccadilly Cycles, which marks its first anniversary this month, the upheaval led owners Gus Janeway and Blaine Pickett to rethink their business plan — at least for the short term. "With limited floor space, we choose to stock a narrow selection of what is available," Janeway said. "Typically, we rely on manufacturers being able to supply the right color and size within a week. Because we can call and have a bike shipped up from California, we don't have to have a warehouse." That hasn't necessarily been the case of late. Bikes, like everything else from dry goods to commodities and cars, are backed up at ports, upsetting timelines around the country. "You can do all the careful planning with spreadsheets and forecasts, but you have to have flexibility to roll with the punches," Janeway said. Lean inventory was one way Piccadilly's owners had hoped to manage cash flow. But broader market forces have altered the approach. The shop sells German-designed and engineered Bosch electric bikes, which are assembled in China and other assembly plants and then shipped to America. The Bosch mid-drive motor system, a big hit in Europe, is quickly gaining traction in the U.S. "There is a great deal of interest in these bikes," Janeway said. "The question is how much do we bring in? Once they start becoming available, will other dealers snatch them up?" With dockworker activity still in flux, the supply and demand equation isn't easy to solve. "We're going to take the risk and invest in more inventory than we normally would have because we expect a scarcity of supply," he said. That leap of faith won't be limited to electric bikes. The shop has 58 standard bicycles, and that inventory will grow into July, as well. "What we're looking at now is scarcity," Janeway said. "We're going to pick up as many bikes as we can afford to pick up, and hopefully if someone comes in and wants a different size or color, we can get it for them. The supply stream is supposed to be staggered so all of the dealers won't be competing with each other for one pile of bikes." Although suppliers are promising a return to normalcy in the near future, it isn't exactly clear how long that will take, said Darryl Rasmussen of Northwest Outdoor Store in Medford. From just before Christmas until recent days, the trend has continued. "Several companies just weren't delivering product when I needed it," Rasmussen said. "It went from a back-up of three, four days or a week to 'I don't have it and won't have it until July.' We were finally getting things, but it took six weeks instead of one." That outlook has improved, he said. "My companies are saying things should be getting back to normal pretty soon," Rasmussen said. "We're just not sure when." The good news is that the prime outdoor gear sales season doesn't kick in for another month. Reach reporter Greg Stiles at 541-776-4463 or  [email protected] . Follow him on Twitter at  www.twitter.com/GregMTBusiness , on Facebook at  https://www.facebook.com/greg.stiles.31 , and read his blog at  www.mailtribune.com/Economic Edge .     By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Mar. 2, 2015 at 6:25 PM Updated Mar 3, 2015 at 9:19 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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