Orbea USA*

In 2001, Tony Karklins left the family business of more than 20 years, Chainwheel of Little Rock, and started Orbea USA LLC. But Karklins still helped keep the family business thriving by using the retailer to peddle his new luxury line of Orbea bicycles.

Orbea USA of North Little Rock, a joint venture with Orbea S. Coop. of Spain, also offers cycling clothing, triathlon apparel and wetsuits. Orbea USA, unlike some of its competitors, brings all the parts into the United States, and the production line in Little Rock assembles about 65 percent of the bike, said co-owner Theodore “T.J.” Karklins. The company then sends the bike to the dealer to finish building it. “The key in nice bicycles like Orbea is to make sure they fit well, and that’s really a focus of Orbea,” he said. “And in order for it to fit well, a lot of the components have to be specially sized, plus or minus a millimeter here or there.”

Orbea’s “made to order” business model requires production to be near the target market, which allows more flexibility when it comes to customization. “Our large competitors have to guess on everything six months in advance and get it made in China,” Karklins said. “We can most efficiently serve [the customer] by doing production here in Little Rock.” So Orbea’s steadily climbing revenue is good news for all.

The local operation produces more than 10,000 bikes per year, Karklins said. Karklins attributed much of the company’s success to its Little Rock partners, who have helped shepherd it along the way, calling them “the hand in the small of our back.”

One of the biggest challenges for the company has been managing its rapid growth, Karklins said, and as an international business it also has had to adapt to the strengthening of the euro in relation to the dollar. “Considering our global supply chain and demanding customer base, our attainment is a testament to our incredible team and local business partners,” Karklins said.

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