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TECH NEWS
Mosaic RT-1 - Campagnolo Record 11 ChainsetCampagnolo strike threat as 1 in 5 jobs cut at Vicenza HQ
Campagnolo, one of the most famous names in Italian cycling, could be facing strike action after it revealed plans to make almost one in five of the employees at its Vicenza factory redundant.
The company says the redundancies are necessary due to tougher competition squeezing its margins and causing it to lose market share, but unions claim production will shift to Romania, diluting the firm’s ‘Made In Italy’ cachet.
In a statement issued on Wednesday, the business said the Vicenza facility (which road.cc visited in 2011) is becoming increasingly uncompetitive and the company could no longer rely on its brand strength or high-performance products alone.
The firm, founded in 1933 by Tullio Campagnolo and still family-owned, plans to focus on innovation and new product development in Vicenza, with production shifting elsewhere. Its statement made no specific reference to Romania.
But in a joint statement, the trade unions FIM-CISL and FIOM-CGIL said that the company had confirmed in a meeting last week that it planned undertake a heavy restructuring, including relocating production to the eastern European country, reports Il Gazzettino.
Campagnolo already has two factories there, with a November 2011 Bicycle Retailer article noting that production, including more labour-intensive processes, has been gradually switched to that country, where labour costs are three and a half times less costly than in Italy and in line with those in Taiwan.
That meant Campagnolo could keep production in the European Union without having to outsource to the Far East, which also has advantages for protecting its intellectual property against counterfeiting or copying.
But union leaders have objected to the company’s new restructuring plan, and the relocation of production in particular, condemnng it as a “shortcut that leads nowhere.”
They say it should instead invest in making the Vicenza facilities more efficient and competitive to meet “the new challenges of the global market.”
“Moreover," they addeed, we are talking about a firm with positive financial statements and a prestigious ‘Made In Italy’ brand that makes a distinction of its quality in both the professional and amateur sports markets.
“We wouldn’t want it to become, in more or less the short term, substantially ‘Made in Romania’,” they added.
While Campagnolo continues to be respected for its technical innovation and the build quality and performance of its products, in recent years the cycling components market has become a much more competitive place.
Besides rival Shimano, SRAM has become a major player, particularly in the original equipment market for new bikes, from which Campagnolo has been all but ousted.
The Italian company has also seen its position as the once dominant player in the pro peloton significantly eroded in recent years with Shimano now the dominant player by number of teams. For the 2015 season three WorldTour teams out of 17 will line up using their groupset - Europcar who lost WorldTour status just before the season began will also continue to ride Campagnolo. Shimano account for 13 of the rest, while SRAM's sole representative amongst road cycling's elite teams for 2015 is AG2R.
That’s reflected by the fact that in the three decades to 1998, cyclists including Eddy Merckx, Bernard Hinault and Miguel Indurain won a combined 25 editions of the Tour de France riding Campagnolo-equipped bikes.
By contrast, only two of the 16 editions of the race since then have gone to riders using Campagnolo – Oscar Pereiro in 2006, and Vincenzo Nibali last year; not good when victory in cycling’s biggest race can be used by your rivals in their marketing materials.
While the performance of its 11-speed mechanical groupsets is much admired, Campagnolo’s EPS electronic groupset has probably not been the hit it hoped it would be, partly because Shimano’s Di2 has proved so resolutely dependable and the Japanese company seems set on a process of continuous innovation coupled with competitive pricing.
Quietly over the past decade Shimano has replaced Campagnolo as the benchmark against which other company's groupsets and components are measured against.
The Italians have also been late to the party when it comes to road disc brakes - their offering should launch later this year, by then both Shimano and SRAM will have had many years head start - even allowing for last year's calamitous hydraulic brake recall by the latter.
Translation of Campagnolo statement dated 27 January 2015
The Campagnolo business, manufacturer of high-end components for racing bicycles, has decided to open a redundancy procedure for 68 of the 399 staff at the production site in Vicenza.
This decision results from necessity to put in place a business plan presented to the trades unions and staff organisations, necessary to ensure the continued production at that site, which also houses group functions and activities related to new products and new technologies.
The business plan aims to recover market share and margin which have been eroded in recent years due to the decline in competitiveness of the manufacturing carried out at the Vicenza site.
Changed market conditions on the one hand and ever more intense competition on the other risk forcing the business out of the market, since it cannot rely alone on the strength of its brand and high performance products.
It is now necessary to regain competitiveness by restructuring the Vicenza site, giving it a mission focused on innovation and product development, on which the business has the firm intention of implementing and concentrating all necessary investment.
Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.
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68 comments
Shimano have ran out of 10 speed di2 parts, including the rear derailleur. They come with the Japanese culture of disposability and aren't even interested in their own heritage.
Campag have field service, old and new parts.
No point in saying Campag have lost the OEM market - as they never had any real penetration here as they have always been too expensive.
Shimano works, but doesn't really reward any fettling, and they do need some one to keep them honest.
Sorry, but this kind of cheap throwaway comment is the kind of thing that some Campag users resort to and it reflects very badly on them.
Since when does Japan have any kind of culture of disposability?
Since when is Shimano not interested in their own heritage?
Ooh look, a Shimano museum...
http://www.headsetpress.co.uk/feature/shimano-bicycle-museum/
Campagnolo? Er, some kind of virtual museum/website to publicise an anniversary groupset...
1921: Shozaburo Shimano establishes Shimano Iron Works and begins production of the original Shimano freewheel.
1930: Campagnolo patents the quick-release hub
Windbags.
Yes, that would be because they're POPULAR and have sold many hundreds of thousands of units worldwide.
And you can programme 11sp Di2 to work on 10sp so if you trash a 10sp rear mech and don't want to upgrade your entire groupset, you just buy an 11sp rear mech, re-programme it to 10sp mode and carry on.
It doesn't really matter if Campagnolo is making the absolute best parts or not. They've clearly made a series of bad business decisions and have managed themselves into a bind. You can stick to design and tradition all you want but if you can't build and sell product profitably, keep up with the market, and grow year over year, you're in trouble. All the Italian soul in the world doesn't excuse you from having to run a smart business. Increasingly, they're becoming quite simply irrelevant. It wouldn't be surprising if Campagnolo faced a takeover scenario within the next 10 years. The market is too competitive and changing too quickly, and the Italians too stuck in their ways, for a company that is falling behind to keep standing. Which is a shame because the parts are beautiful.
I don't care where it's made, I'll still buy it and use it as long as it works and looks nice.
Whilst I have 105 on my turbo bike and have had Ultegra in the past (perfectly fine just functional and ugly) I had Dura ace once, after the cassette exploded and the left shifter ratchet gave up that was all the experience I needed to finally give up buying Shimano for ever.
Sram on the other hand I have had only positive experiences with other than I don't really like double tap. I'm sure I could get used to it though and that's where I'd head if Campag went to the wall.
However, Campagnolo will survive and I'll keep buying it. If it does die I have enough of a stockpile of parts to see me through the apocalypse. I keep picking up spares, problem is it simply doesn't break and I'm a sucker for the shiny.
Shimano is popular for sure. But popular doesn't mean good, people still buy Vauxhalls and Take That albums.
Anyway, isn't some Sportful and Castelli made in Romania? They seem to still be doing ok for an 'Italian' brand.
Nobody seems to mind that Shimano is made in Malaysia, why should they mind if Campagnolo is made in Romania?
the market needs all three to keep eachother on their toes, thats the truth of it. altho i do i like dropping out of shape middle aged posers riding Super Record though i must say. spend more time looking at their bike than riding them
Sad to see the slow death of Italian manufacturing, but the rest of their cycle industry has been quick to adopt the offshore model and Campag can only resist the economic reality for so long. As recently as the 1980s c.25% of the workforce in Vicenza were classified as "artisans", with a tradition of metal working (silversmithing) that goes back to the middle ages, and this has long been reflected in Campag's craft based approach to finishing and presenting their goods (have a look for the Bora video on YouTube). It's happening all over Italy, for example most of the "Murano" glass sold in Venice is manufactured in China - you can still get the real stuff, but it's too expensive for most consumers. At least Italy can fall back on tourism to help pay its way in the world (though sadly while it was difficult to find a bad meal there 30 years ago, that is no longer the case). All very, very depressing.
It's most likely not that the workers get such high wages. Instead, it's probably the high taxes and red tape that most if not all Italian businesses face. The country is struggling through the economic crisis, and so are its people - except for the happy few obviously. Sad to hear the news. I love Campagnolo. Used Shimano before and still do on commuter bike. It works, but that's it. Campy makes me happy. It looks better to me and I love the ability to shift several cogs with one movement. And to me it's a way to connect with and support Italy.
The key statement here is:
"This decision results from necessity to put in place a business plan presented to the trades unions and staff organisations, necessary to ensure the continued production at that site, which also houses group functions and activities related to new products and new technologies."
No one is talking about a closure of the main site at Vicenza. What is being suggested is that some assembly and production operations are expanded in two plants already up and running in Romania whilst Vicenza continues to do the great bulk of what it does now - R and D, proprietory-process manufacture and the design and manufacture of the machinery that Campagnolo need to allow them to follow those proprietory manufacturing processes.
This is absolutely *not* about who is better - a Ford Modeo or a Vauxhall Sigma or, for that matter a 25 year old Mini or a brand new Aston Martin do basically the same job, but they are at different price points and each has there adherents - and it's the same with Campag, Shimano and SRAM.
Shimano and SRAM are head to head competitors in that their business models are focussed on an across-the board offering, from (almost) entry level OEM to high-end aftermarket. Campagnolo are competitors at a slight tangent to the other two - they are focussed on mid level OEM and after-market.
Different philosophies produce different solutions and different ways of working - what Campagnolo are doing is something that should be applauded - keeping manufacturing and innovation in Europe where possible - why? Because once we loose these things in Europe, getting them back is going to be very, very difficult.
That says more about you than it does them.
Spot on. For me, it's the design (aesthetics and ergonomics) that mean more than anything.
Anyone bought the new Campag 11 speed chain tool?
http://www.totalcycling.com/en/Campagnolo-UT-CN300-Ultralink-11-Speed-Ch...
Requires real dedication...
Nope, I use KMC.
Shimano also sell an 11speed chain tool at £110...
I like campagnolo, I like the history, I like the way it shifts, I like the quality, i like the durability of most parts, I like the ergo levers, I like shiny alloy, I like beautiful looking chainsets, i like the fact its not shimano. I have nothing against shimano like I have nothing against a honda, but I'm not going to go out of my way to use it, tried it, just not for me.
Wonder if Campag could improve their efficiency in their distribution side, and find cost savings there?
If you look at the UK, they have 5 different distributors, as well as a sales agent office. This is not uncommon in other territories.
Seems strange, compared to Madison with Shimano, or Fisher with SRAM
Margins are also terrible on Campag for retailers, which does not help shop promote the brand.
Campag looks the prettiest.
Lock the thread.
With you on that one. I've always been a Campag fan even though it's blindingly obvious that other components work just as well. But nothing looks as beautiful as Campagnolo so that is the differentiating factor for me.
Shallow? Absolutely, and proud of it
If Campag go to the wall it will be a sad, sad day in the cycling world, no matter where it ends up being made.
The main difference to me between shimano and campag is I can fix my campag stuff.you can still buy cups and cone sets for 70's hubs also the spares for ergo shifters are easy to get hold of, for me campag is use, maintain carry on using. Where as shimano is use , break throw away replace
You see, that's another of the popular sayings that's trotted out verbatim:
Oh you can fix Campag, you can't fix Shimano.
Hm, my experiences as workshop manager in the past don't back that up at all but don't let facts gets in the way of some good old internet mythology.
Maybe that's part of Campag's problem? It can't be cheap stocking all those widgets and grommets and thingummybobs on the off-chance that someone, somewhere will break one, pop into their friendly LBS and get them to order the whatsit for their 2007 Campag Chorus ergolever...
In spite of the above, I'm not anti-Campag, I don't want to see them fail and I don't think their kit is any better or worse than any other groupset. But the examples above about exclusivity - someone mentioned expensive brands like Aston Martin... That'd be the Aston Martin that's been through bankruptcy in the past and has for years been run as a part of Ford. When you've got a backer like Ford, you can have a luxury offshoot as a loss-leader and make it pay by selling Mondeos and Fiestas.
Campag doesn't have any of that.
Shimano has a huge market share but also makes fishing gear as an investment in a different market - not sure why that is used as an insult by some Campag fanbores?
SRAM owns Avid and Rockshox and has huge corporate backing.
Campag. Mmm, nope, just makes some nice bicycle groupsets and wheels.
It's a really limited market, they've just lagged massively on innovation and marketing and it means they can't run super high end gear as a loss-leader while pulling the cash in from other parts of the business - because there are no other parts.
I like the 'Campag have done other stuff' above. It is a nice counterpoint to the usual 'Shimano make fishing reels' quote...
I like Campag too, but not for the usual reasons; I like Campag because there needs to be a market for groupsets, and without Campag it's not a real market. They have a well deserved reputation for quality and for adding design to well engineered kit. I admire their attempts to maintain a workforce who are well paid and who work in Western Europe; the move eastwards seems inevitable, but at least they have tried.
I like Campagnolo.
I have had a couple of bikes that wear Campagnolo.
Some of this Campagnolo kit is still going strong after 16 years.
I am happy to pay a premium for Campagnolo.
The last bike I bought was specced with Campagnolo for less than the equivalent Shimano (see above).
I also have a bike that wears Shimano, it works, it's relatively hardwearing but it just doesn't feel the same.
My next bike is likely to be specced with Campagnolo unless they join this market of producing cheapness, then I'm open to offers.
My mtb has SRAM, so I've tried them all.
campagnolo have done the disc brake thing before anyway.
and a few other unusual things
Anyway, one of the most important innovations of recent history belongs to Suntour, the slant parallelogram rear mech.
And look what happened to Suntour when they didn't innovate....
Yes but my point was shop floor.
Like it or not, most bikes are sold by Halfords. That's where your new cyclist is going, not some boutique German website.
Their new bike will therefore have Shimano or SRAM. And Campag are off to a losing battle already.
This thread isn't supposed to be about which is "better", in fact I've been trying to steer it away from that tribal "I love my Campag therefore it's better than Shimano" shite that people keep coming up with. Although while I'm here...
You can programme Di2 to do whatever you want with whatever shifter you want.
Bottom line is that Campagnolo, Shimano and SRAM all work - certainly more than well enough for mere mortals. But that's kind of irrelevant for Campag right now. They've clearly got their fans - a few of them right here on this thread - but it's not helping them stay in business is it? And it would be a great shame for the sport if they went out of business.
That comment about the gear dumping - of course you can on Di2...
For sure - on electronic you can programme it. Record EPS can shift more than one - so can Record mechanical. Dura-Ace Di2 can be programmed. Dura-Ace mechanical can only down shift one gear per throw. This is a statement of fact.
This was made to counter the plethora of Campy are s**te comments, no innovation - shimano is better and does more etc etc.
I love this debate it's great all the talk of fishing tackle etc love it
I agree wholeheartedly, I think Campag are an important part of cycling and I would be disappointed if they become less of an influence.
I wasn't making the point Campag had invented all that stuff.
But that there are more than the big few, and how smaller guys who had the good engineering to get ideas off the ground have got forgotten.
Shimano hasn't invented as much as people like to think, more that it's evolved others ideas and tried to better them.
2: Not Campag then.
3: Not Campag then.
4: Shimano actually.
6: Not Campag then.
7: Not Campag then.
8: More important than you can imagine...
9: Not Campag then.
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