First US-based Peloton factory announced in Wood County, Ohio – Peloton Output Park (POP)

Peloton has officially announced plans for their first US-based production factory. The factory will be called the “Peloton Output Park (POP)”, and be based in Troy Township in Wood County, Ohio.

The factory will have more than one million feet of manufacturing space – and is expected to add more than 2,000 jobs to the area. Peloton plans to have the factory up and running by 2023.

Peloton Output Park is expected to sit on over 200 acres and have more than one million square feet of manufacturing, office, and amenities space, making it one of the largest connected fitness manufacturing plants in the world. The facility will be built from the ground up in the center of Troy Township and house the latest in industrial technology and automation to make products more efficiently and to ensure quality unit assembly. On campus, Peloton plans to incorporate renewable energy sources to power its operations.

To start off with, the factory will be producing the Peloton Bike, Bike+ and Peloton Tread. The Peloton Output Park will be more than just a factory – “Peloton has plans to build ample office space for new team members including a fitness center with the latest connected fitness equipment and a team lounge with plenty of room to collaborate.”

Peloton plans to allow Peloton members, and anyone who is curious, access to the factory through tours and showrooms

Peloton Output Park will also be open to the Troy Township and larger Midwest community. The company plans to host facility tours and open an on-site showroom. Customers will also have the option to check-out Peloton products first-hand.

Peloton’s president William Lynch shared some details in a press release

The POP is also going to be an important part of the global Peloton team, too, as a new hub for some of our Logistics and Product teammates, and beyond. We are hiring all levels to join our corporate, manufacturing, assembly and quality assurance teams. As we continue to work towards one of our team goals of making Peloton the best company to work for, we’re confident that Peloton Output Park will be an extension of the high quality talent, culture, and environment felt in all of our Peloton work locations.

Peloton had already gained access to production facilities in the US through their acquisition of Precor. They hope to start have some small level of production up and running by the end of 2021 through the Precor factories. In addition to boosting Peloton’s output with the extra factories, it could possibly help alleviate issues related to shipping & cargo delays that were seen the past few months.

Additional factory capacity would also allow them to ramp up for new products, whether it ends up being a strength-based device or a Peloton rower, or something else altogether.

Image Credit Peloton Press Release

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Chris Lewis
Chris Lewis is the creator & founder of Pelo Buddy. He purchased his Peloton in 2018, and uses all the different devices: Peloton Bike, Tread, Row, and Guide. He has been involved in the fitness industry for more than a decade - previously co-founding the websites Mud Run Guide & Ninja Guide. You can find him on the leaderboard at #PeloBuddy.

2 Comments

  • Andrew Wilhelm says:

    Not the best timing, when Bike Sales are expected to drop significantly.
    When you take the time to investigate, use a little ingenuity, and you know how to do math, you will discover just how much PTON Bike sales are expected to Decline sequentially.
    1) We look to the PTON CFO’s statement found in the latest earnings call transcript, for guidance:
    “We expect Global Bike and Bike+ unit sales in Q4 fiscal ’21 to be over three times higher than they were in Q4 of fiscal ’19, TWO YEARS prior.”
    2) Being that we do not have access to a 10-K filing for Q4 fiscal ’19, we will access other filings that do in fact reference numbers from fiscal ’19…
    A) 10-K filing dated 9/11/2020
    B) 10-Q filing dated 5/6/2020
    3) On page 85 of the 10-K, you will find TOTAL Revenue of $223.3M under Three Months Ended Jun. 30, 2019 (i.e. Q4 of fiscal ’19)
    But, that is TOTAL Revenue; we need to find out what % of TOTAL Revenue is Bike sales…
    4) To calculate what % of TOTAL Revenue is Bike Sales, we can use numbers from neighboring Q3 (i.e. Three Months Ended March 31, 2019)…
    A) On page 6 of the 10-Q, you will find Revenue of “Connected Fitness Products” (aka Bike Sales) to be $261.6M
    B) On page 85 of the 10-K, you will find TOTAL Revenue of $316.7M
    C) % of Bike Sales per TOTAL Revenue: $261.6M / $316.7M * 100 = 82.6% {“Connected Fitness Products” Revenue (aka Bike Sales)}
    5) Apply 82.6% to the TOTAL Revenue $223.3M for Three Months Ended Jun. 30, 2019 (i.e. Q4 of fiscal ’19): $223.3M x 0.826 = $184.45M {Bike Sales for Q4 of fiscal ’19}
    6) Per the CFO, “We expect Global Bike and Bike+ unit sales in Q4 fiscal ’21 to be over three times higher than they were in Q4 of fiscal ’19, TWO YEARS prior.”:
    $184.45M x 3 = $553.35M

  • Andrew Also says:

    @Andrew Wilhelm – This assessment has aged like fine wine, ha!

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