Peloton invests $400 million in first US manufacturing facility in Ohio

Peloton Ohio

Ohio has always been for lovers… but now, The Buckeye State is also for fitness equipment manufacturing. Peloton announced it will be breaking ground this summer in Troy Township, Ohio, for its first manufacturing facility in the US. The $400 investment in the facility should help the fitness giant expedite production and shorten its supply chain.

Previously, Peloton has built its fitness equipment through third-party manufacturers in Asia, particularly Taiwan. However, as the COVID-19 pandemic put huge strains on customs and shipping ports into the US, Peloton saw major delays in delivering its products to consumers.

Last February, Peloton invested $100 million to tackle these logistical challenges and get deliveries back to reasonable wait times. This meant shipping by air instead of sea, which is much more costly but worth it to a company that has seen tremendous growth year over year, despite a global pandemic.

Last December, Peloton announced plans to acquire competitor Precor for $420 million. As of April 1 of this year, the deal had been finalized, allowing Peloton to absorb Precor’s US manufacturing facilities in North Carolina and Washington State. With today’s announcement, Peloton will now set up shop in the Midwest, too, significantly growing its US footprint.

Peloton to build facility in Ohio

According to a report from CNBC, Peloton has selected a 200-acre plot in Troy Township of Wood County, Ohio, to erect a 1-million-square-foot facility for manufacturing and offices. After an exhaustive search process, Peloton will now call Ohio home and plans to break ground as early as this summer.

The completed facility is expected to open its doors by 2023, providing an estimated 2,000 jobs to the area. Peloton’s CEO John Foley spoke about the news in a recent interview:

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. Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.

According to Peloton, the future facility will allow residents and visitors of Ohio to tour the grounds and see how the Bikes and Treads are made up close. As a leader in connected fitness and a household name in health and wellness, Peloton is also planning a fitness center within the Ohio facility for its employees to utilize.

For now, Peloton will focus on ramping up its US production at the aforementioned Precor facilities. It has plans to begin cranking out Bikes and Treads by year’s end. The Bike and Bike+ should face no issues with assembly and delivery in the States, but it may be a minute before we see any Treads roll out. The US debut remains delayed due to safety issues.

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