This Colorado Bikepacking Company Sources All of Their Material from the U.S. Why Are They Struggling?

Oveja Negra, a bikepacking bag manufacturer in Salida, Colorado, is facing significant challenges due to tariffs affecting its supply chain. Despite sourcing 98% of their materials from U.S. companies, Oveja Negra's costs are rising as these suppliers face increased prices for foreign materials. As a result, they've seen a 30% drop in sales, forcing layoffs and a cut in employee hours. The bikepacking community has largely supported the brand, but rising bike prices at local shops have pressured their wholesale purchases, impacting Oveja Negra's financial health.

"About 98 percent of everything we buy to make our bags comes from the U.S., but those U.S. companies have to get their materials from overseas, and they're getting hit hard by the tariffs."

"We're a luxury brand. Bike shops are already working on such thin margins. So when they have to pay $500, $1,000 more per bike, they have to cut costs somewhere. We're it."

Read at Bikemag