Ohio facility will open in 2023
Riding a wave of strong sales thanks to the pandemic, Peloton announced plans to open its first factory in the U.S. The at-home exercise equipment and app provider said it will invest $400 million in a production facility in Troy Township, Ohio, that will bring 2,000 jobs to the area and should be running by 2023.
“We had planned to do this for years, but I think the pandemic put an exclamation point on why it’s going to be awesome,” Peloton co-founder and CEO John Foley said in an interview. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”
Delivery delays from third-party facilities in Asia have left Peloton struggling to meet demand as gyms have been closed and people largely staying at home through the COVID-19 pandemic. Its $420 million purchase of Precor has given Peloton access to factories in North Carolina and Washington, but the Ohio plant will be its first purpose-built facility in the U.S.
In addition to its popular exercise bikes, Peloton makes high-end treadmills and will launch additional products when the Ohio factory opens. The company recalled all treadmills and delayed release of new lower-end Tread machines after child safety problems came to light. Those will be back on the market once additional safety features are added.
Though its stock price is down 35% this year, Peloton posted $1.26 billion in revenue in the first quarter of 2021, up 141% from the first quarter of 2020.
“We believe that working out at home is the future,” Foley said. “That is why we’re investing in this facility.”