Peloton preparing to construct its first US factory

Peloton, the leading exercise equipment company, revealed its decision to build its first factory in the U.S. Based on the report, it will be investing around $400 million for its construction and it will rise in Ohio.

The new Peloton facility

It was added that Peloton is targeting the year 2023 for the start of production in the facility. Apparently, the company is one of the few firms who made it through the pandemic and in fact, it did so well as people are staying home and one of the activities that they could do while stuck at home is to workout.

Nevertheless, home exercise has become popular and more Americans buy equipment so they can work out just like they are in a gym. Thus, Peloton’s earnings have gone up during the pandemic. In other words, the firm is one of the winners at the height of the lockdowns.

Now, Reuters reported that with the growing business, the new factory in Ohio is also meant to be for the company’s expansion since it is also growing globally and not just in the U.S. Peloton has been selling its exercise equipment through third-party affiliates in Asia.

One of the best things about Peloton’s new facility is that it will be creating at least 2,000 additional jobs in the next few years. In any case, it was shared that the factory will be built in Troy Township, Wood County and it will mainly produce Peloton’s flagship Bike+ and Peloton Tread.

As per CNBC, the company chose Troy Township after considering a number of locations. The factory will be built on a 200-acre lot and the building itself will measure over 1 million square feet and it will house the production facility, office and area for amenities.

“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,” John Foley, the company’s chief executive officer, said. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”

Treadmill recall

Prior to the announcement of the new factory, Peloton just faced criticisms for its Peloton treadmill model that caused injuries and one death. It was only last month when the company finally recalled the affected treadmills after a series of call-outs.

After the recall, Peloton also works on resolving the issues and has recently released an update for the equipment’s software. It is believed that things have been resolved already and the company will now focus on its expansion and development of its equipment.