Fundamentally, aluminum is one of the primary materials used on a bicycle. The reason is it's very light, very strong, reasonably priced. It's not a super exotic metal.

We're a small company. We're not Boeing, so we don't get to say Kaiser send us 10 truckloads of aluminum. We buy our aluminum through suppliers locally and those suppliers will source that from various suppliers around the world.

When prices of aluminum or raw material go in, we can't necessarily just raise our prices right away. Raising prices upsets your customers, puts you at a disadvantage to your competition, and it's a lot of work. Initially, we just eat it, it comes right out of our bottom line.

The biggest peak was right when the Russian war started, just went crazy high. Then tariffs came in and then the Strait of Hormuz was closed. The biggest thing people are talking about is the AI build out is actually one of the big impacts for aluminum prices going up right now. Those data centers use a ton of raw material and a lot of it is aluminum. We're seeing a triple whammy now.

There's really no viable alternative to aluminum in our case. You'd hear the same thing if you ask Boeing, they're still going to use tons of aluminum in the airplanes no matter what the price is and the price of those airplanes will just go up. Same with our bicycle parts.

Near term we're going to be able to mitigate most of the aluminum prices. Longer term if it stays this high, there has to be some sort of increase. If aluminum goes up 20% again this year, our prices aren't going to go 20%, they're going to go up like 3 or 5 percent.