Peloton Is Shifting Manufacturing to US

Peloton says it will soon have jobs as well as exercise equipment for Americans. The company announced Monday that it is spending around $400 million to build its first manufacturing facility in the US, Cleveland.com reports. The northern Ohio factory, which will make Peloton's bikes and treadmills, will bring around 2,000 jobs to the region, the company says. Construction at the Wood County site will began later this year and the plant is expected to open in 2023. "We are thrilled to bring a good portion of our manufacturing to United States soil," said CEO John Foley.

The company currently makes most of its equipment at third-party facilities in Taiwan, but the pandemic caused supply chain issues, along with a huge increase in demand for Peloton products, the BBC reports. "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,” Foley tells CNBC. "Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine." The company has also bought exercise equipment manufacturer Precor for $420 million and hopes to start making bikes and treadmills in its Washington and North Carolina plants before the end of this year. (The company had to recall its treadmills earlier this month. New models will have added safety features.)