Cycling revolution speeds the wheels of industry

People using “pedal power” generate almost three billion pounds a year for the UK economy, with the figure taking into account factors such as bicycle manufacturing, retail and cycle-related jobs.

Manufacturers in the United Kingdom raised more than 51 million pounds from the 3.7 million bicycles sold in 2010, a rise of 28 per cent on the total sold in 2009, according to a report by researchers at the respected London School of Economics.

Another general increase is that about 1.3 million (m) people started cycling in 2010, bringing the total of cyclists to 13m. Of these new riders, some 500,000 are now cycling regularly and they contributed 685m pounds to the UK economy, with existing regular cyclists representing a total market value of 635m pounds of what the report’s authors call “gross cycling product”.

Looking at the advantages of a healthy lifestyle, the London School of Economics (LSE) report also showed that non-cyclists are absent from work for an average of 8.7 sick days, compared with 7.4 days taken off by regular cyclists, saving the economy about 128m pounds annually, with projected savings of two billion pounds over the next 10 years.

In 2010, more than 1.5 billion (bn) pounds was spent on bikes and another 850m on accessories, with the LSE estimating that the cycling industry is now worth 2.9bn pounds a year.

There are now 23,000 people working in cycling, contributing more than 600m pounds to the economy in wages and taxes. A total of 208m cycle journeys were made last year (2010)

The report - called The British Cycling Economy: “Gross Cycling Product” - is published by Dr Alexander Grous, a productivity and innovation specialist in the Centre of Economic Performance at the LSE.

“The good news is structural, economical, social and health factors seem finally to have created a true step-change in the UK’s cycling scene,” said Dr Grous.

The report shows how the growth of cycling over the last five years, with high-profile sporting success at the Beijing Olympics besides, is continuing to pump real money into the UK economy.

The report also says increasing fuel costs, better cycle networks, concern for the environment, and the attraction of the London 2012 Olympic Games & Paralympic Games are all possible factors for the rise in the popularity for cycling.

And it says a 20 per cent increase in cycling levels by 2015 could save more than 200m pounds to the economy in reduced congestion costs, some 70m pounds in lower pollution levels and more than 50m pounds in National Health Service costs by improved health and fitness. And latent demand for cycling could amount to about 516m pounds of economic potential for the UK.

At British Cycling, the governing body of UK cycle sport, Stewart Kellett said: “This report is further evidence that when more people get involved in cycling there are measurable benefits to the individual, their family, their employer, the environment and the economy as whole.”

And UK transport minister Theresa Villiers added: “The government is committed to encouraging cycling as a healthy and enjoyable way of getting around. It helps reduce congestion, gives children more opportunities for exercise, and it can play a part in the fight against climate change.”