2014 Economic Impact Awards 6-15 Years in Operation Finalist: Kuat Innovations LLC

Kuat Innovations LLC is in growth mode. Co-owner and co-founder Luke Kuschmeader says he’s added four new employees to the Kuat team this year, and he’s expecting revenue growth of over 50 percent in 2014.

CEO Kuschmeader says the Springfield-based bike-rack company is growing thanks to the drive of its employees and the eye-catching products it creates and sells around the world.

“Everyone is pretty passionate about what we do. We service a pretty cool sector in the outdoor market,” Kuschmeader says. “We make good products. People tend to talk about them. They look different, so people ask questions.”

Though he declined to disclose revenues, he says Kuat – pronounced “koo-at” – has seen its revenue grow by 50 percent or more each of the past three years. The company sells into at least seven countries and hundreds of bike shops across the country.

Locally, hitches such as The Sherpa and The NV and racks such as The Vagabond are selling at stores including A&B Cycle, Cycles Unlimited, Sunshine Bike Shop and Queen City Cycles.

“You can’t maintain that growth forever. Eventually, it will be more manageable, but right now, we are still small, so it’s easier to absorb,” he says.

Before he started Kuat, Kuschmeader owned and operated a small siding and remodeling company during the housing boom. But facing an uncertain economy, he knew he would need to blaze his own trail.

“I wanted to do something that got me closer to doing what I love doing, which is riding my bike,” he says.

The company was founded in 2007 between Kuschmeader and Brian Atkisson – hence the name Kuat – and investor Guy Mace Sr.

“Initially, the emphasis was on aluminum, light-weight, stylish bike racks,” Kuschmeader says.

“But, we have morphed into more product categories. We are now entering cargo; we have three cargo baskets, and we are looking to break into the ski and kayak markets.”

Today, Kuschmeader and Mace own Kuat Innovations after Atkisson transferred his interest to Mace about a year after the company started.

Kuat began in a pole barn, but now operates in a 17,000-square-foot industrial warehouse in west Springfield.  

Kuschmeader says the company designs its products and accessories in-house before they are manufactured in China and then shipped out of Springfield. He says designing has become his favorite part of the job.

“It’s something I’ve developed a love for. I didn’t know I’d love being a product designer, but I think I have a knack for it,” Kuschmeader says, adding the company hired two more designers in June, bringing its total to 12 employees companywide. “It’s a huge part of our company.”

Kuat impacts the local economy by creating new jobs from money largely coming in from other areas and taking opportunities to give back to the community whenever possible, Kuschmeader says. The company supports Ozark Greenways and recently had a staff trail-building day for nonprofit Trail Spring’s new trail system.

Through websites such as BackCountry.com, Web sales comprise more than 10 percent of revenue, Kuschmeader says. Moving forward, he expects both online and retail store sales to continue to climb.

“Our penetration is growing. I’d say we are in 300 bike shops across the country now,” he says.[[In-content Ad]]