The Industry Nine and We Are One Merger

News just broke that Industry Nine acquired the Canadian carbon manufacturer We Are One. These companies have been doing business for a few years, with We Are One sourcing hubs from I9 while at the same time supplying I9 with white-label rims.

This merger makes a lot of sense; they are two of the most universally loved brands in the mountain bike community. Additionally, the expertise of each of these companies is complementary to each other. After all, carbon rims need nice hubs, and nice hubs go well with carbon rims.

Combining the strengths of each of these companies will likely provide an outcome that's greater than the sum of each individual part. Just by combining the efforts of the teams at each company to focus on collaborative goals, there could be a lot of potential for cool new innovations that could build on their already good products. From a business perspective, there are some strengths to be had by combining forces too, as there are many efficiencies that can be found by being able to operate at a larger scale.

Moving forward, there are many things that I am excited to see from this new era of I9. Primarily, I9’s hubs, spokes, and aluminum rims have always been world-class and well-loved. On the other hand, their carbon rims have never hit the same level of popularity, especially in the road and gravel segments. The I9 road and gravel rims have always felt a little generic to me, and I know this is true in the industry as well because I9 hubs on the road are almost always seen laced to third-party rims. My hope is that with this partnership, using We Are One’s carbon expertise, I9 can develop some truly competitive road rims and find more adoption in doing so.

I do believe that there is a lot of potential for more business in the road segment. Looking at a company like DT Swiss as a comp for a hub, spoke, and rim manufacturer, they do a large proportion of their business with road products. This market is likely the biggest opportunity for I9, first with wheels and rims for aftermarket sales. Then, hopefully, we will get the opportunity to see I9 wheels come spec’d on more mass-market complete bikes too.

The final tidbit that I want to mention is what this merger says about the current state of North American manufacturing in the cycling industry. This merger, I believe, is emblematic of the pressure that many North American manufacturers are feeling from overseas price competition. This leaves the comparatively small manufacturers here looking for ways to save some costs to stay competitive. Merging with another company is one way to attempt to fight these market forces, by using economies of scale to save some costs.

In conclusion, I do think that this merger is positive for I9 and the whole cycling industry. In other words, I9 can compound the expertise and the strength of each company to create value that reaches beyond what either of the companies could provide on their own. I’m excited to watch this story unfold more in the next few years, and hopefully, I9 can continue to be an example that manufacturing in North America can still be viable if done right.