A year later, Trek expanded into foreign markets, opening subsidiary offices in the UK and in Germany. In 1988, Trek introduced "Trek Wear," marking the company's entry into the cycling apparel business. That same year, to keep up with rapidly growing sales, Trek added another 75,000 sq ft (7,000 m 2) of manufacturing space to its Waterloo headquarters. Thus began Trek's foray into carbon fiber. A year later, Trek followed up the success of the 2000 with a 3-tube carbon composite model, the 2500.
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Manufacturing ground to a halt as Trek worked to figure out how to build bonded frames in a production environment. The introduction of bonded aluminum to Trek's production line proved very problematic for a company that had built itself on hand-brazed steel frames. In 1985, borrowing technology from the aerospace industry, (and bike companies such as Alan and Vitus), Trek introduced its first bonded aluminum bike frame, the 2000. In 1984, Trek ventured into the aftermarket parts and accessories business, launching its Trek Components Group (TCG) department. In 1981, Trek entered the steel road racing bike market, introducing the "Pro" line, including the 750 and 950 models, and in 1983, Trek built its first mountain bike, the 850. Company co-founder Dick Burke would later recall that "it wasn’t until we built the new factory that we became a business." With more factory space available, Trek expanded its manufacturing to include complete bikes. Recognizing the need for expansion, in 1980 Trek broke ground on a new 26,000 sq ft (2,400 m 2) corporate headquarters on the outskirts of Waterloo.
In just a few years Trek had outgrown its original "red barn" manufacturing facility-a former carpet warehouse. Hampered without additional manufacturing capacity, Trek sales plateaued in the late 1970s. Within three years, Trek sales approached $2,000,000 in 1979.ġ980–1984 - Trek becomes a business In 1977, Penn Cycle in Richfield, Minnesota became the first Trek retailer in the world. Later that same year Trek Bicycle was incorporated. Trek built nearly 900 custom hand-brazed framesets that first year, each selling for just under $200.
In early 1976, with a payroll of five, Trek started manufacturing steel touring frames in Waterloo, Wisconsin, taking aim at the mid to high-end market dominated by Japanese and Italian made models. In December, 1975, Dick Burke and Bevil Hogg established Trek Bicycle as a wholly owned subsidiary of Roth Corporation, a Milwaukee-based appliance distributor. 1.5 1997–2005 - The Armstrong years and further expansion.
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