View full sizeA custom bike build by Confederate Motorcycles of Birmingham, Ala. (The Birmingham News file)BIRMINGHAM, Alabama -- Confederate Motorcycles has decided to keep its headquarters and motorcycle factory in Birmingham, ending a year-long flirtation with New Orleans to move the boutique bike business back where it started.
The decision to stay in Birmingham means the company can focus on expanding and filling a growing slate of back orders for the its high-end road bikes known for their unique, industrial design.
"The main thing is that most of our staff is from Birmingham and we've come to consider this our home," said Clay Morrison, spokesman for Confederate. "To uproot our operation now with the new Hellcat starting production just did not make good business sense."
That new motorcycle, the X132 Hellcat, already has 39 orders waiting to be filled.
At $45,000 each, the new model is priced at less than half what some of Confederate's other models cost, with some approaching $100,000. The company's two high-end models now in production are the P120 Fighter and the B120 Wraith.
As impressive as the price tags the motorcycles carry is the list of owners of Confederate bikes. Actors Tom Cruise, Brad Pitt, Ryan Reynolds and Nicolas Cage own the motorcycles as do musicians Bruce Springsteen, Steven Tyler and Tim McGraw. Soccer star David Beckham is an owner as are several business leaders and members of the royal family in Saudi Arabia.
While the Hellcat may still be too steep for the typical motorcycle customer, Confederate officials are anticipating it will lead to a rise in volume production for the company, giving it another market segment to go along with its high-end bikes.
"We really have no competition in the very high-end designer market," Morrison said. "With the new Hellcat, we're entering into the middle high-end segment where there really isn't much competition and should boost our overall production."
That boost in production already has Confederate looking around Birmingham for larger, more efficient factory space than the building it operates in at 2222 Fifth Ave. South.
"We're not just looking to stay in Birmingham, we're looking to grow in Birmingham," Morrison said.
With growing orders, Confederate could look to add to the 13 employees it now has.
That's a far cry from the 100 employees the company had hoped for when it announced its move to Birmingham in December 2005 after Hurricane Katrina destroyed its operations in New Orleans. The economy soured the demand for luxury items like the Confederate bikes.
Birmingham Mayor William Bell said Friday the Magic City is glad to have a company of Confederate's resiliency decide to remain here.
"I do not know of many companies that have endured difficulties that can compare to Confederate Motorcycles -- from having their original New Orleans building destroyed by a hurricane, to the challenges of relocating, to surviving one of the worst recessions in the nation's history," Bell said. "This is a very resilient company that embodies the spirit of American enterprise and of Birmingham. I am very pleased that Birmingham will continue to be their home."
With the launch of the new, more affordable bike, Morrison said Confederate is on track to have one of, if not its best year, ever in the company's 20-year history.
Orders for motorcycles are coming in from Brazil, Germany, Taiwan, China and Switzerland in addition to the United States, Morrison said.
Though New Orleans was offering the company $750,000 to return, Morrison said there were enough intangibles to make staying in Birmingham a better deal.
"We have a number of local vendors and suppliers we've developed a good relationship with," Morrison said.
He said the presence of the Barber Motorsports Park with one of the largest motorcycle museums in the world and what many consider one of the greatest road tracks is another plus. Birmingham upstart motorcycle company Motus Motorcycles is also adding clout to the industry here, Morrison said.
"Birmingham is becoming the motorcycle capital of the Southeast," he said.
To celebrate its decision to stay in Birmingham, Confederate Motorcycles is hosting a fundraiser for Kid One Transport, a Birmingham charity that carries children and expectant mothers with limited or no transportation to medical care.
BlueFire Mobile is doing public relations work for Confederate and is helping organize the event. BlueFire's Steve Russell said the event is slated for July 8 at Sweet Bones Alabama restaurant at The Summit.
"It's going to be called 'Sweet Rides' and we will have some of the Confederate Motorcycles there for people to see up close," Russell said.
He said keeping Confederate in Birmingham is going to be significant as the motorcycle maker grows and is even better known around the world.
"I think the fact that we've kept a company in Birmingham that is expanding is going to be a big deal going forward," Russell said. "The fact that they're doing so much business internationally can only be positive for Birmingham's reputation."
Dave Rickey, spokesman with the Birmingham Business Alliance, said the business community is happy it can still count Confederate among its ranks.
"Any time a company recognizes the value of being in this market is wonderful news," he said.
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