Peloton, manufacturer of high-end, wi-fi enabled exercise bikes and treadmills that have built a culture and community around connected at-home fitness, announced this week that it will be building its first U.S. production facility in Troy Township, Ohio. The $400 million factory will be constructed on a 200-acre site, offering more than 1 million square feet of manufacturing, office, and amenities space, CNBC reported.
Currently, the company has been manufacturing its products at third-party facilities in Asia, and, as a result, has run into shipment delays and supply chain issues stemming from the pandemic, CNBC said. In February, the company vowed to spend more than $100 million to accommodate faster shipments for customers via air and expedited ocean freight.
However, a stateside factory will further curb supply chain concerns, while creating more than 2,000 American jobs, CNBC said.
“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 told CNBC. “Having more flexibility in running a global supply chain is also going to allow us to sleep better, as you can imagine.”
The new space will, additionally, allow Peloton to manufacturer additional products and ship them faster to U.S.-based customers. The facility, set to open in 2023, will also be open for customer tours. The company will name the facility the Peloton Output Park, says Investors Business Daily, noting that construction will begin this summer.
Is Peloton Stock a Buy?
Peloton stock dipped more than 1% Monday but recovered some of those losses to close at $101.16 on Monday. Supply chain woes coupled with the recall of its treadmills after the Consumer Products Safety Commission (CPSC) announced that people with small children and pets should not use the treadmill after a child had died, have not done any favors for Peloton stock prices.
However, the company had gained 440% in 2020 as a leader in at-home fitness during the pandemic. Investor’s Business Daily rates the stock at 62 out of 99 on its IBD Composite Rating, which means that it is performing better than 62% of stocks.
However, IBD experts say it is not in a buy zone right now, as it is facing a downward trend and is 12% below its 200-day moving average. IBD recommends watching the stock, as the fundamentals are strong and the company is working to reduce delivery times and release new products.
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This article originally appeared on GOBankingRates.com: Peloton Creating 2,000 Jobs, Investing $400 Million in First US Factory