They say no. Other sources say that they are going to move a lot of jobs from their Ilion, New York plant to an expansion in Huntsville, Alabama.
I imagine that the answer is kind of close to "maybe". There is probably equipment in the Ilion plant that can neither be economically duplicated or moved. Smith & Wesson, for instance, might want to move from Massachusetts, but their factory has a massive hammer-forge that is reportedly very large and has been in use for a century. They likely don't need that sort of old equipment to churn out "modern sporting rifles", which Remington now makes in Ilion, so look to that line to move.
Laws and political posturing have consequences. Which is why Beretta is opening a new plant in Tennessee (instead of Maryland), PTR is moving from Connecticut to South Carolina, Colt is opening a plant in Florida, Magpul is pulling out of Colorado and Kahr chose to open a New factory in Pennsylvania instead of New York.
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Sunday, February 16, 2014
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A simpler reason for them to move out of Ilion is simple: that plant is older'n shit and laid out in a way that won't accept modern assembly line technology. It's a bunch of narrow red brick buildings, when modern factories are giant warehouse looking things that put everything under one roof for easy reconfiguration and easy movement of products from one stage to the next.
ReplyDeleteThe notion that they're moving because of New York's gun laws doesn't pass the laugh and giggle. Remington is owned by Cerberus Capital. I've encountered those assholes before. They care about one thing, and one thing only -- extracting as much money out of the company as possible before cutting it loose to collapse on its own. Any CEO they appoint has been told that one thing, and one thing only, counts: maximizing profits. Gun laws? Don't matter a thing to them. If Remington's CEO proposed moving out of Ilion because of gun laws, he'd be shitcanned by Cerberus within hours. Because they don't give a shit about gun laws. They're about dollars and cents, pure and simple.
As for Huntsville Alabama, if looking to replace the Ilion factory, a new factory would get built there for dollars and cents reasons -- cheap land, massive subsidies, building codes lax (no need to handle New York snow loads for one thing), and Alabama is a Right To Work For Less state so it's cheaper to have a workforce there than in a state where unions are legal. And transportation isn't blocked by blizzards near as often as in upstate New York. I know I wouldn't build a new factory in upstate New York. It would make no sense, regardless of New York's gun laws.
Laws may have consequences, but the laws in this case are the laws of physics (which state that upstate New York is going to have snow problems multiple times per year) and the Right To Work For Less laws that outlaw unions, and nothing to do with gun laws. Any CEO who lets ideology outweigh dollars and cents gets shitcanned in today's economy. That's just how it works.
Gotta agree w/ Tux on the economocs.
ReplyDeleteBaretta - here near the GWTP - would never get a "tax incentive " now here in thisarea (corporate welfare, but none dare speak it).
The union at the plant seems to disagree with you guys.
ReplyDeleteNorth Alabama here..
ReplyDeleteno need to build a new plant.. Remington is going into existing buildings that were vacated by Chrysler some years ago (hope there is no omen there).
Madison county (Hsv) and surrounding counties chipped in the dollars to get them to come here.
And there is also the little thing of the Redstone Arsenal here... might want to do a bit of background work on looking into that. :)
Glad they are coming.
Agree with the comment about policy has consequences - Magpul openly said that's why they are moving.
ReplyDelete