LOGAN — ICON Health & Fitness announced Tuesday that it will be shutting down part of its production lines and shift the manufacturing overseas. According to ICON officials, an announcement was made at the Logan facility Tuesday afternoon that approximately 400 positions, primarily in home treadmill manufacturing, will be cut.
“We had individual department meetings and then distributed materials so everyone would have a copy for themselves and for their families,” says ICON spokesperson Colleen Logan.
Logan City Police confirm they were called to ICON Health & Fitness Tuesday afternoon to be on hand for the announcement.
Logan City Police Chief Gary Jensen said officers were asked to be stationed at the plant for security purposes following a meeting about the future of the plant. Logan says the police were asked to be there as a precaution and to prevent any potential vandalism to property or tools.
“These decisions are tough, but important to ensure continued long-term profitability and competitiveness for our employees and the company,” said Scott Watterson, Chairman and CEO in a prepared statement. “We have kept as much manufacturing here as long as we could.”
The elimination of 400 jobs will take effect October 31 and the manufacturing of home treadmills will take place in China.
“The company thanks all our employees for their dedication and years of service,” Watterson continued. “We especially wish to express our appreciation to those who are affected by this decision. As such, the company will provide a severance and incentive package for employees who stay through the end of the production period.
“In addition, these employees will receive assistance in finding jobs inside and outside the company.”
Logan says that ICON will be renovating the production facility to accommodate future growth in other departments.
“In general, our business is growing,” Logan explains. “The company is the leader in home fitness (ellipticals, treadmills, stationary bikes and strength training). We also have an excellent commercial fitness equipment division that is staying here in our Smithfield plant.
“We also have our growing footwear business for the running market in our Altra brand name. And then we have our iFIT brand which has our fitness services and a booming brand of fitness wearables.”
She says that as the end of October gets closer, and that manufacturing space becomes vacated, ICON will take a look at its growing lines and determine which department will move in to that facility.
When ICON was founded in 1977, the design and engineering for fitness equipment happened in Logan but the manufacturing took place out of the country. As the company continued to grow, 10 years later it opened the manufacturing facility in Logan. In recent years, ICON has shifted the greater majority of its production overseas as it continues to become a global company.
ICON employs more than 1500 non-manufacturing employees in Logan. They have 277 patents and have 190 patents pending.