Peloton plans $400M manufacturing facility in Ohio

High-end products currently produced in Asia, but subject to delays

National /
May.May 24, 2021 04:00 PM
Peloton CEO John Foley. (Getty)

Peloton CEO John Foley. (Getty)

High-end exercise equipment producer Peloton is planning its first U.S. manufacturing facility.

The company announced on Monday that it will break ground this summer on a 1 million-square-foot facility in Troy Township, Ohio, which is about 17 miles from Toledo.

The complex, due to rise on a 200-acre site, will include manufacturing space, offices and various amenities for employees, CNBC reported. Peolton aims to open the facility by 2023.

Peloton was founded in 2012 and is headquartered in New York City. It’s the anchor tenant at Hudson Commons, owned by Cove Property Group and Baupost Group.

Peloton currently manufactures its high-end home exercise equipment in Asia. The company said it has faced delays related to the coronavirus pandemic and in February announced a $100 million investment meant to speed up shipments, according to CNBC.

The company’s share value has dropped 35 percent so far this year. Peloton CEO and co-founder John Foley said the company planned to open a U.S. facility “for years.”

“But I think the pandemic put an exclamation point on why it’s going to be awesome,” Foley said. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”

The brand’s popularity has grown since the onset of the pandemic as more people sought ways to exercise at home. Total revenue nearly tripled from $524.6 million to $1.26 billion between 2020 and 2021.

Landlords and agents are even using the company’s name in marketing materials. StreetEasy found that the number of listings containing the word “Peloton” increased 170 percent between March and September.

[CNBC] — Dennis Lynch 


Related Articles

arrow_forward_ios
Zumper's Jeff Andrews (Zumper, iStock) Miami, Pricing
Miami overtakes Boston as third-priciest city for renters
Miami overtakes Boston as third-priciest city for renters
A photo illustration of "Foreclosure" signs (iStock)
Foreclosures surge 181% to highest levels since March 2020
Foreclosures surge 181% to highest levels since March 2020
CP Capital co-head Paul Doocy and managing director of CBRE Land Services Group Steve Lehr (LinkedIn, CBRE)
No lots? No problem: Developers turn retail into rentals
No lots? No problem: Developers turn retail into rentals
14 major metros now rent-burdened; Miami leads pack
14 major metros now rent-burdened; Miami leads pack
14 major metros now rent-burdened; Miami leads pack
Airbnb's Brian Chesky (Getty/Illustration by Kevin Rebong for The Real Deal)
Airbnb to offer housing for 100K Ukrainian refugees
Airbnb to offer housing for 100K Ukrainian refugees
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Homes facing foreclosure up 31% after Covid relief ends
Homes facing foreclosure up 31% after Covid relief ends
(iStock/Illustration by Kevin Rebong for The Real Deal)
Nationwide housing inventory plunges to historic low
Nationwide housing inventory plunges to historic low
Inventory is lighting a fire under rents (Getty)
Eviction bans squeezed supply, bringing rents to boil: report
Eviction bans squeezed supply, bringing rents to boil: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...