Core Health and Fitness, Vancouver, Washington, is shifting the focus of its Virginia plant from manufacturing to customization as its president and COO, Dustin Grosz, leaves the company, Core Health announced in two separate media releases.
Core Health and Fitness markets and distributes Star Trac, StairMaster, Nautilus and Schwinn products.
On Dec. 12, the company shared that during the next six to nine months, Core Health will shift more of its manufacturing to its facility in China while its plant in Independence, Virginia, will focus on custom powder coating, upholstery, assembly and light manufacturing. The company will continue to operate its East Coast Distribution from the Virginia facility. In 2014, Core Health purchased Nautilus from Med-Fit Systems Inc., acquiring the Virginia plant in that transaction. At that time, Core Health said it would move some of its Star Trac strength business from its China plant to the Virginia plant.
The move of more manufacturing back to China is being made to capitalize on the global need for customized product and personalized fitness experiences, according to the announcement. Core Health has not yet responded to Club Industry about whether the tariffs that the United States has imposed on products from China and that China has imposed on products from the United States also played a role in the decision.
The shift will require organizational changes that include the elimination of 50 positions at the Virginia facility, according to Core Health. Those employees will be offered enhanced severance benefits and outplacement services.
In late December 2018, Core Health announced that Dustin Grosz was resigning as president and COO after nine years with Core Health and its predecessor companies. His resignation was effective Dec. 31, 2018. The announcement did not tie Grosz’s departure into the organizational changes, instead saying that Grosz resigned to pursue other interests.
“We wish Dustin well and thank him for his service of many years,” said Michael Bruno, chairman and CEO of Core Health and Fitness. “We are fortunate to have built a great team of dedicated employees, distributors and partners at Core, and look forward to continuing to build on our foundation of iconic brands, innovative products, and great service for our customers and fitness enthusiasts.”
In the past several years, Core Health has made several additions to its executive team. That team will continue to lead the organization fulfilling their various roles and responsibilities accordingly and with greater collaboration and involvement from Bruno, according to the company.