Moving: It Isn't That Simple

"Why don't firearm manufacturers in the Northeast simply pick up and move considering all the horrible gun laws passed up there recently?” Such is typical of the letters I have received from many NRA members, particularly in light of oppressive laws passed recently in Connecticut and New York. And it’s a good question.

Firearm companies are in business for a reason, and that is to generate profit for their owners or investors. Unlike our government, which endlessly borrows money when it spends more than it takes in, when a business spends more than it earns or has on hand (or what banks will lend in promise of future profits), it closes.

Some companies have made plans to move, for both principle and good business reasons. Kahr Arms will move its headquarters and engineering operations to Pennsylvania, and JLD Enterprises (makers of the H&K-based PTR rifles) is relocating to South Carolina. Magpul has boldly made the commitment to move after Colorado’s legislators rammed an anti-gun-owner law with an arbitrary magazine capacity limit down its constituents’ throats—and the accessory and magazine maker’s prime vendor is going with it. But Magpul does take a risk and an interruption in production to do what its CEO, Richard Fitzpatrick, believes is the right thing for his company, his workers and his consumers.

Mark Malkowski of Stag Arms in New Britain, Conn., is weighing numerous attractive offers to move to another state. As a matter of fact, while the “American Rifleman Television” crew was recently in his facility shooting a television show (airing Wednesday, Oct. 2), we were scheduled between the visits of Texas Gov. Rick Perry and others trying to recruit Stag and its high-end manufacturing jobs to their local and more politically friendly economies. Stag Arms is a modern facility, with many new machines, and one that can move. Malkowski’s home state’s governor’s office declared the illusory “public safety” benefit of more gun control laws more important than the jobs provided by the lawful firearm makers of Connecticut.

Other companies that are not as flexible simply cannot move and remain profitable. It’s complicated to pick up and move a large, “heavy” manufacturing operation—and gunmaking is indeed heavy manufacturing. In addition to the need to make sure you have a fully trained workforce in place when you get there, some machines, especially older ones, do not respond well to being moved. I’m not even sure Smith & Wesson could move its century-old forge. Also, some companies have fairly complicated labor agreements in place, and the penalties for moving would be financially damaging, even ruinous, for them.

It appears that many makers will be limiting or eliminating expansion in their existing locations with onerous gun control laws rather than moving. Ruger, for example, has acquired property in North Carolina, and Colt already has land in Florida. Remington has a huge plant in Kentucky, and Beretta has had a facility in Virginia for some time. O.F. Mossberg & Sons does most of its assembly in Texas already, while its North Haven, Conn., plant concentrates on cutting metal. And Kahr has plans to eventually expand manufacturing into its new Pennsylvania location. Movement may come, but it needs to be done with business sense. And it appears that is the case so far.

 

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43 Responses to Moving: It Isn't That Simple

Bobby Wise wrote:
September 04, 2013

STAY AWAY FROM WILD GUNS LEATHER. the same people who run this place ran LAWMAN LEATHER. I was ripped off back in 2011.

Nile Strohman wrote:
August 05, 2013

I have been a life member since 1962 and have seen a lot of ups and downs in the firearms industry. I agree with the moving in a good business manner, from those anti-gun states. However what about all the firearms coming in from Japan, themost anti gun COUNTRY around. We continue to see lots of these.

Thomas Glynn wrote:
July 28, 2013

I suppose that for anyone to truly understand the dynamics of firearms, in regards to the United States of America, one must truly understand, not only the nation's history, but world history and human behavior. What we as a nation consider today, will have grave consequences in the next 30 to 40 years, should we get it all wrong. I doubt very seriously we would even be having this discussion, had our federal, state, and local governments embraced years ago, the subject of crime, punishment, and mental health. The citizenry sleeps, while the power brokers malign..........

John wrote:
July 27, 2013

I have to throw in my two cents for the state of Arizona, the gun friendliest state in the nation. Want to carry open? concealed? Go ahead. No restrictions. If you can legally own a firearm you can carry. In fact the most restrictive law we have is if armed in a bar, no drinking allowed. Sturm Ruger had the foresight many years ago to open a facility in Prescott AZ. Mountain views, mild summers,mild winters, and clean air. Allow your employees a single visit and they will burn rubber to relocate. Just saying.

Bill wrote:
July 25, 2013

I believe that the govenor of Co has bitten off more than he bargained for many of his constituents are not happy with his legislation concerning firearms especially when it will do nothing to fix the problem. its just window dressing he's on his way out then Co will hopefully go back Republican and we can get rid of the stupid laws

chuck jennings wrote:
July 24, 2013

Load the wagon hitch the team and come on down to the S.W. corner of Missouri, good folks, hunting, fishing, Branson, Mo in this area. We are So. of K.C., Mo. S.W. of St. Louis, Mo. many of you already have met the folks around Joplin, Mo. after the tornado. I would say it is just purty friendly around these parts, good schools, walk down the street and not get shot at or shot. I have been to every state in this Great Republic and I have something good to say about them all, but I sure do feel at ease and home here in S.W. corner of Mo.

Wade wrote:
July 24, 2013

Parhaps the best solution to to remove those politions from office that support these restrictive policies

Captain William Morgan wrote:
July 23, 2013

Florida will be proud to take all of the firearms companies. Bring them on! We already some great companies down here now.

Red Scholefield wrote:
July 23, 2013

It would be interesting to take a poll of gun manufacturers employees and see how many would want to give up their cold weather and state income tax to move to a college town with an empty factory in N. Central Floraia

Walt Kuleck wrote:
July 23, 2013

Let's not forget the people. Union agreements aside, it's tough for most people to uproot their lives and families to go to a state that may be not of their choosing and like. Just imagine you, or a friend with a family, being told their job is moving to rural Idaho from, say, Acokeek or Yonkers or Southport. It's a daunting prospect many employers are loathe to inflict on their people.

Joe J Huro Jr,1SG USA RET & NRA Life Memmber wrote:
July 23, 2013

These companies need to stop fooling around & move to TEXAS. Those states will soon make laws to shut them down & put them out of business.

Robert Ando wrote:
July 23, 2013

Well, they need to move whole the gettin's good. They will be rewarded. S&W;s forge could still go on, but move what can be moved out !

Michael Luft wrote:
July 23, 2013

It is not the fault of the gun manufacturers. This political sickness of the attack on our 2nd Immendment rights is happening out here in Oregon so where do they go. They need to stay in place and fight the good fight.

Jeff Traylor wrote:
July 23, 2013

I have been involved in several companies relocation of manufacturing. Moving machinery is not difficult or excessively expensive. The real cost is lost production during the move, and in arms mfg., finding craftsmen to replace those that are unwilling or unable to follow the company to the new location. Moving purely for political reasons cannot normally be justified financially! Smart management will do what those firms are doing and move part of their operations, usually the most labor intensive, to a new location while keeping the more skilled and heavy machine work in place until it does become economically feasible.

Paul Jackson wrote:
July 23, 2013

Weatherby makes their shotguns here in KY. We'd welcome other gun manufactures to the very gun friendly Bluegrass Commonwealth as well.

Ralph Compton wrote:
July 23, 2013

Let them come to Oklahoma or Texas. They are welcome here!

lloyd wrote:
July 23, 2013

any of the companies should look at Indiana we love guns in this state check us out we have republican gov we the people welcome you to ind THE PATRIOT STATE GOD & GUNS MADE US WHAT WE ARE MAY WE ALWAYS BE MIGHTY & STRONG. AMEN

John wrote:
July 23, 2013

But... our manufactures need to keep up the pressure, and NOT support sales or sales orders to federal agencies or State Governments that deny its very citizens the same rights / products they employ and possess Seem's like a whole lot of tail, and not much dog these days !

Lee wrote:
July 23, 2013

Equipment moves easier than you think if you really want it moved. So basically you are saying profit comes before doing what is right. I think most hookers and drug dealers ...and politicians would agree with that stand.

Phil wrote:
July 23, 2013

I beg to disagree with you Mr. Keefe. Companies move all the time for a lot of good reasons. These same states have been after gun manufactures for the last 30 years so this is nothing new. Either keep paying taxes and providing employment to states that would like to put you out of business or move and provide employment in areas of the country that have been supporting you.

Mark Gaunt wrote:
July 23, 2013

In my opinion, of course, we have a gov't (if I can call it that) intent on destroying our 2nd Ammendment rights...

Milton C. Mann wrote:
July 22, 2013

This explanation makes sense. Obviously the position of these States will figure in the plans for the future of all these businesses.

Joe Allen wrote:
July 22, 2013

I live in Texas but have family in New York, and they are just as crazy as Cuomo. It must be something in the water and/or air up there ... ))<: }

Tom wrote:
July 22, 2013

My understanding of Stag Arms is that the impetus to move is coming from the employees. Up to now they as CT residents could buy Stag products at employee discounts but now they can't. The only way they can get this perk back is for all of them to up and move!

Rob wrote:
July 22, 2013

If some of these companies get regulated out of business they'll lose. Also, some gun owners will boycott products made in anti gun states

Nick Jones wrote:
July 22, 2013

I recently spoke with a Remington rep, at a local open house event, and asked him that question. He told me that there were good reasons to move, but that a whole town relied on Remington for employment, and that they had many skilled employees there that they depended on. Even though we'd all like to see them pick up and move, it seems that Remington is doing the right thing, even though it hurts.

Dave Weaver wrote:
July 22, 2013

We in Dayton,Ohio area would be glad to have any of the manufacturers relocate in our area.There is a lot of machinists with high quality skills that could be put to work.,after the automotive business left.

Brian wrote:
July 22, 2013

Here is hoping that we will support these companies so when they do move it will have less of a financial impact. Their current locations do not deserve to have these companies payroll and tax base. So, the sooner they can go the better off we will be.

Doug Moore wrote:
July 22, 2013

Good article, a good point to make clear, business sense is necessary to stay in business, unlike some of our debt ridden states, and federal government.

Chuck wrote:
July 22, 2013

One of the reasons cited to me why so many businesses moved out of California after the Northridge earthquake was: 'Well, I had been thinking of moving the plant before the quake, but when it hit and I had to load everything up anyway, I just decided that now was the time to head on out to (Arizona)(Nevada). At least five of my suppliers suddenly had a Nevada or Arizona address after the quake.

Jay Melton wrote:
July 22, 2013

Sound reasons for a manufacturer to stay put or delay moving until a new facility can be located and set up. As emotionally satisfying as it may be to thumb one's nose at anti-gun state/local government, a business cannot afford to act on impulse, not if the business wants to remain viable... In MagPul's case, I recall reading that they were in production in the new location prior to closing the Colorado factory. Of course, making magazines and accessories is far less complex than manufacturing complete firearms...

Clifton Douglas wrote:
July 22, 2013

Looks like more than one company is moving--at least out of the most anti-gun states. Henry Repeating has moved from NY to NJ, the Kahr Arms group is moving to PA, and don't forget Para Ordnance moving from Canada To The US.

James Detweiler wrote:
July 22, 2013

If I have to wait a few weeks extra for one of Magpul's products I will gladly do so.

A. Bersani wrote:
July 22, 2013

The market place will dictate how long these companies will stay in business. As for myself, I will take my business to companies not located in those states as I do not want any part of my money going as taxes to those state coffers. Not one penny. There are plenty of quality gun makers all around this great country. I’m sure I will be able to find what I want from these companies. It’s a real shame because I hate to think the Mossberg’s, Remington’s, and S&W I own may be the last I’ll buy, but it is the only real way I can stand and fight.

Kevin wrote:
July 22, 2013

Please keep in mind that neither NY or CT are really representative of most of the 'northeast'. Maine, Vermont, and New Hampshire (The real Northeast) are rather gun friendly and would welcome these businesses. NY, CT, and most of MA resemble CA more than they do New England. Us Yankees are proud and fiercely independent. Them folks ain't Yankee.

Jon Streeter wrote:
July 22, 2013

Maybe these companies could solicit donations and volunteers? Independent and independence-minded truckers could handle shipping at cost?

John Aiello wrote:
July 22, 2013

Mark Righ on target. My company supplies parts to all the companies you mentioned. It is not just the machinery and the labor it is the sub-contractors and suppliers. Moving means finding new suppliers closer to the plant. That requires gun testing which the manufacturers figure costs $1.00 per round. Qualifying a news supplier can cos upwards of $20,000. John Aiello PSE Associates, LLC

Herb Bailey wrote:
July 22, 2013

Get answer and article gun are a business something people forget as they imposes gun laws aimed at law biding citizens... When you punish the guns you punish company's and their workers

Larry L. Wolfe wrote:
July 22, 2013

Y'all come on down to Ennis,Texas. We love our Guns & God,an have good work ethic too.

Todd Hurley wrote:
July 22, 2013

Makes dollar sense!

Bob wrote:
July 22, 2013

While I would love to see all manufacturers move out of the anti-gun states.., you mentioned but a few factors. You also need to consider your workforce..., both skilled and unskilled. A company cannot just relocated.., AND move all of their employees. They will need their skilled workforce for sure. A company cannot just recreate that skill set. For nonskilled workers.., those too are an asset and cannot be replaced so easily. And keep in mind that many workers may not want to, or cannot reolcate. Then there is your supply base.., but that's another issue.

Tom wrote:
July 22, 2013

Thanks for sharing this enlightening info. Wish I had the gazillion $$ to move any manuf. that wanted to move. Keep On Keep'in ON...

Juan Marcano Endowment Member wrote:
July 22, 2013

Good for them, budinesses like that should do whats best for them...nevermind politics...