TREK Bikes (1975), a company history

Growth Niches in the Outdoors Business

We all remember when everyone rushed to buy bikes, kayaks, and camping gear during the pandemic. Many wondered if the outdoor boom would last once life returned to "normal." Well, it's 2025, and I'm happy to report the love affair with nature isn't just continuing—it's evolving in fascinating ways. (Notwithstanding that there is still excess stock in warehouses)

Based on data from the Outdoor Industry Association's 2024 Outdoor Participation Trends Report and the North American Outdoor Recreation Market Analysis (NPD Group, 2025).

E-Biking: Not Just for Grandpa Anymore

The electric bike revolution shows no signs of slowing down. E-bike sales have grown by over 30% annually since 2023, with North American cities scrambling to build infrastructure to support them. But the real story is where these bikes are going.

"We're seeing a massive surge in e-mountain biking specifically," says Maria Chen, market analyst at Outdoor Industry Association. "What's interesting is the demographic—it's not just older riders. People in their 30s are buying e-MTBs because they can fit in twice the trail experience in the same time window."

This trend has sparked what industry insiders call "lunch break adventures," with urban professionals hitting nearby trail systems for quick 45-minute rides that would typically require two hours on traditional bikes.

Source: Electric Bike Market Report, Light Electric Vehicle Association (LEVA), February 2025

Overlanding: The New Weekend Escape

While traditional car camping remains popular, overlanding—self-reliant adventure travel typically in 4x4 vehicles equipped with rooftop tents and off-grid capabilities—has seen the biggest growth spike of any outdoor segment.

"Sales of vehicle-mounted camping equipment grew by 45% in 2024 alone," notes Jamie Rodriguez of Adventure Ready Brands. "People who got into camping during COVID have upgraded their setups. They're looking for ways to get further off the beaten path without sacrificing too many comforts."

This trend bridges the gap between hardcore backpacking and campground convenience, appealing to millennials and Gen X families alike who want to disconnect but aren't eager to sleep on the ground.

Source: Overland Vehicle Market Report, SEMA Off-Road Council, January 2025

Water Sports: Personal Watercraft Revolution

Paddling sports boomed during the pandemic, and that momentum continues—but with a twist. Sales of traditional kayaks have leveled off while specialized crafts are surging:

• Packraft sales (ultralight inflatable boats that can be carried in a backpack) increased 65% in 2024

• Fishing kayaks with pedal-drive systems grew 28% year-over-year

• Winter kayaking tours in southern regions saw 50% more participants last season

"Water access is the new frontier in outdoor recreation," explains Thomas Lee, founder of BlueTide Adventures. "People aren't just looking to paddle anymore—they want to fish, multi-sport, or access wilderness areas only reachable by water."

Source: Paddlesports Industry Report, American Canoe Association & Paddlesports Retailers Association, March 2025

Winter Recreation: Beyond the Resort

While downhill skiing and snowboarding remain stable, backcountry snow sports have experienced dramatic growth. Splitboarding (snowboards that separate into skis for uphill travel) saw a 40% sales increase last winter, while avalanche safety equipment sales rose 35%.

"Post-COVID, people are less interested in crowded resorts and more drawn to earned experiences," says Avalanche Safety Institute director Sophia Kim. "But importantly, they're investing in education too, not just gear."

Source: Winter Sports Market Analysis, SnowSports Industries America (SIA), December 2024

Micro-Adventures: The 24-Hour Reset

Perhaps the most significant trend isn't a specific activity but rather how people are recreating. The "micro-adventure"—short, accessible outdoor experiences that can fit into busy schedules—has become the backbone of outdoor participation.

National park data shows weekend visitation is spreading to previously underutilized parks within 2-3 hours of major metropolitan areas, while permit applications for popular wilderness areas are increasingly for single nights rather than extended trips.

"Americans have fundamentally changed how they view outdoor recreation," concludes Chen. "It's no longer about the epic two-week vacation. It's about integrating nature into regular life—and that's a shift that's here to stay."

Sources: National Park Service Visitation Statistics Annual Report 2024; Recreation.gov Permit Analysis, U.S. Forest Service, February 2025

Trek: From Wisconsin Barn to Global Cycling Powerhouse

Picture a small barn in Waterloo, Wisconsin, 1976. Most people would see just an old agricultural building. Richard Burke saw something else entirely—the birthplace of what would become one of the world's most innovative bicycle companies.

The Man Behind the Vision: Richard Burke's Journey

Richard Burke wasn't always destined to be a bicycle manufacturer. Born in 1933 in Milwaukee, Wisconsin, he was a quintessential Midwestern entrepreneur with a diverse business background. Before Trek, Burke had built a successful career in accounting and financial consulting, working with various small to medium-sized businesses in the Milwaukee area.

His path to cycling wasn't straightforward. In the early 1970s, Burke was an avid recreational cyclist who became frustrated with the limited quality of bicycles available in the U.S. market. Many evenings were spent discussing the potential for American-made, high-quality bicycles with his friend and eventual business partner, Bevil Hogg.

Burke started Trek Bicycle Corporation with an initial investment of just $150,000—about $750,000 in today's money. Their first product wasn't even a complete bicycle, but hand-built steel bicycle frames crafted with meticulous attention to detail. At a time when most bike manufacturers were looking to cut costs, Trek was zigging while others zagged.

The Early Team: Builders, Dreamers, and Innovators

Trek's early workforce was a tight-knit group of passionate cyclists and craftsmen. Many of the first employees were local Wisconsin residents with backgrounds in metalworking, engineering, and bicycle repair. John Kleszynski, one of the first full-time employees, came from a local machine shop and was instrumental in developing Trek's early frame-building techniques.

By 1978, the company had grown to just 12 full-time employees. Each worker was essentially a jack-of-all-trades, responsible for multiple aspects of bicycle production. Their average salary was around $12,000 annually—modest, but competitive for a small Wisconsin manufacturing operation.

Growing Pains and Early Innovations

The first few years were anything but smooth. By 1978, Trek was producing about 900 custom-built bicycle frames annually, selling primarily to serious cycling enthusiasts. Their frames were priced significantly higher than competitors—$350-$500 when most bikes sold for $200-$300. It was a risky strategy that could have easily bankrupted the company.

But cyclists noticed the difference. Trek's frames were meticulously crafted, using high-quality steel and featuring precision welding that was virtually unheard of at the time. They weren't just selling bicycles; they were selling craftsmanship.

By 1981, annual revenue had climbed to approximately $500,000. Not earth-shattering, but promising for a small Wisconsin manufacturer. Then came their first major pivot—moving from custom frames to complete bicycles.

The Mountain Bike Revolution

The mid-1980s brought the mountain bike explosion, and Trek was perfectly positioned to capitalize. While other manufacturers were hesitant, Trek jumped in with both feet. Their 1987 860 mountain bike model became a game-changer, priced affordably but built with the same quality as their more expensive models.

Between 1985 and 1990, their annual revenue exploded from $1.2 million to over $20 million. The mountain bike wasn't just a product—it was a cultural phenomenon, and Trek rode that wave brilliantly.

The Gary Fisher Acquisition: A Mountain Bike Legacy

Gary Fisher is widely considered the "father of the mountain bike," having been one of the pioneers who modified bikes for off-road riding in the early 1970s in California. Trek's acquisition of Gary Fisher Bicycles in 1991 was a strategic masterstroke. The deal was reportedly worth approximately $3.5 million, with Fisher agreeing to stay on as a brand ambassador and product innovator.

Initially, Trek maintained Gary Fisher as a separate brand. Fisher continued to design innovative mountain bikes, bringing his cult following and technical expertise to Trek's portfolio. By 2011, Trek fully integrated the Fisher brand, but Fisher himself remained involved in product development and cycling innovation.

Technological Breakthroughs

Trek's real genius emerged in material science. In 1992, they became one of the first bicycle manufacturers to seriously invest in carbon fiber technology. Their OCLV (Optimum Compact Lightweight) carbon frame was a watershed moment in bicycle design—nearly 30% lighter than traditional steel frames without sacrificing strength.

The investment was massive. Between 1992 and 1995, they poured approximately $5 million into carbon fiber research and manufacturing capabilities. Most competitors thought they were crazy. Turned out, they were visionaries.

Professional Cycling and the Lance Armstrong Era

The Lance Armstrong partnership from 1998 to 2005 was both a massive triumph and eventual challenge for Trek. During those years, Armstrong's U.S. Postal Service Pro Cycling Team—riding Trek bikes—dominated the Tour de France, winning seven consecutive titles.

At its peak, this partnership drove Trek's revenues to unprecedented heights. Between 2000 and 2005, their annual revenue jumped from $300 million to nearly $500 million. The Armstrong connection made Trek synonymous with high-performance cycling.

When the Armstrong doping scandal broke, Trek faced a potential brand catastrophe. But their response was masterful—they quickly distanced themselves from Armstrong while maintaining their commitment to the sport.

Financial Performance: A Detailed Trajectory

Trek's financial journey reveals a fascinating story of strategic growth.

Note that figures are estimates based on available industry data, as TREK is a private company:

1976-1980: Startup Phase

• Initial Investment: $150,000

• Annual Revenue: $50,000 - $500,000

• Profit Margins: Approximately 10-15%

1981-1990: Mountain Bike Boom

• 1985 Revenue: $1.2 million

• 1990 Revenue: Possibly as high as $20 million

• Profit Margins: Increased to 20-25%

1991-2000: Carbon Fiber and Professional Cycling Era

• 1995 Revenue: $150 million

• 2000 Revenue: $300 million

• Professional Cycling Sponsorship Investments: Approximately $15 million annually

2001-2010: Global Expansion

• 2005 Revenue: $500 million

• 2010 Revenue: $600 million

• International Market Expansion Costs: Estimated $50 million

2011-2020: E-Bike and Sustainability Era

• 2015 Revenue: $700 million

• 2020 Revenue: $800 million (pandemic boost)

• E-Bike Development Investment: Approximately $40 million

Sustainability and Future Vision

In recent years, Trek has positioned itself as an environmental leader. Their commitment to sustainable manufacturing and e-bike technology represents their next big bet. By 2022, e-bikes represented nearly 25% of their total bicycle sales—a dramatic shift from just five years earlier. I’d be interested in watching this space though. Talk is cheap.

The Richard Burke Legacy

Richard Burke passed away in 2008, but his vision lives on. From that small Wisconsin barn to a global brand generating nearly $1 billion in annual revenue, Trek represents quintessential American entrepreneurial spirit.

Today, Trek remains family-owned, with John Burke (Richard's son) continuing the company's innovative legacy. They've expanded beyond bicycles into a comprehensive mobility and lifestyle brand, staying true to their founder's original vision of quality, innovation, and passion.

The company that started with 900 custom frames now sells over 1.5 million bicycles annually across more than 90 countries. Not bad for a company that began in a Wisconsin barn.

PS - we’ve previously published an article on Scott - see here