PeopleForBikes reported it took a deeper look into the Bureau of Economic Analysis (BEA) recently released 2022 report that estimated the U.S. outdoor recreation economy contributed $1.08 trillion to the U.S. GDP in 2022.
PeopleForBikes, the bike industry trade association and advocacy group, said the bicycling industry comprised $4.32 billion of the total and only tells a small portion of cycling’s overall contribution to the U.S. economy.
PeopleForBikes said in a recent release that “the BEA’s measurement of the economic contribution of bicycling, and other outdoor activities, to the GDP, captures only the spending on goods produced in the U.S. and, as a result, excludes imports.”
“Because the overwhelming majority of bicycles sold in the U.S. are imported, the money spent on those products does not figure into the BEA’s estimates,” said PFB.
“Retail sales data from The NPD Group estimated that the retail market for bicycles, parts, accessories, apparel, and service reached $8.14 billion in 2022,” said Patrick Hogan, senior research manager of PeopleForBikes. “This number, down only slightly from $8.95 billion in 2021, represents spending at the retail level, which is largely supported by imported products. These sales do not factor into the BEA’s estimates of GDP”.
PFP acknowledged that the bike industry’s impact on the U.S. GDP in 2022 did not match the highs of the first two years of the pandemic.
“However, the overall economic influence of the outdoor recreation industry has seen substantial growth, reaching a value of $1.08 trillion and supporting nearly 500 million U.S. jobs. This growth has outpaced the growth of the overall U.S. economy, as more Americans are spending money and time pursuing outdoor activities,” the assocation wrote.
Photo courtesy of PeopleForBikes
