The gun industry has some big news. Smith & Wesson (S&W), today announced that it will relocate its headquarters from Massachusetts to Tennessee. A large portion of S&W’s manufacturing operations in Massachusetts will be moved to Tennessee, which is Second Amendment-friendly. In connection with the Tennessee relocation, Smith & Wesson will also close its facilities in Connecticut and Missouri. Recent anti-gun legislation in Massachusetts was the main reason for the move. Fox News reports that Smith & Wesson would be prohibited from manufacturing products that accounted more than 60% of its revenue in the future if the legislation is enacted. Particularly, the pending bill SD. 2588 (“An Act to Stop Mass Shootings”) would prohibit the manufacture of “any assault weapon and large capacity feeding device”. S&W will be left with three manufacturing and distribution facilities in the USA after the process is completed. S&W will still make revolvers in Massachusetts. However, S&W Operations will continue in Holton, Maine. After the move, approximately 1000 S&W jobs in Massachusetts will remain. But 750 jobs will be re-located to the new S&W headquarters/production center in Maryville, Tennessee. The move is scheduled to occur in 2023 at an estimated $138,000,000 cost to build new facilities and transfer machinery/tooling.
Massachusetts will see the end of the manufacturing of most S&W semiauto rifles and pistols. Fox Business reported that Massachusetts’s Democratic Party-sponsored legislation is causing S&W to move: “Gun maker Smith & Wesson Brands Inc. plans to relocate its headquarters to Tennessee next fiscal year because of proposed firearms legislation in Massachusetts. If the legislation is passed, Smith & Wesson would be prohibited from making products that accounted more than 60% of its revenues last year. Smith & Wesson was established in Connecticut in 1856 and has had its headquarters in Springfield, Massachusetts for the majority of its 165-year history. Smith & Wesson was established in 1856 by Horace Smith, Daniel B. Wesson, as the “Smith & Wesson Revolver Company”. These key factors were cited in a S&W press release: 1. Support for the Second Amendment
2. A business friendly environment
3. Employees’ quality of life
4. Cost of living and affordability
5. Access to higher education institutions
6. 6.Availability of qualified labor to support its operations and headquarter functions
7. Favorable location for efficient distribution Mark Smith, S&W CEO/President, stated: “After an extensive and thorough analysis, we feel that there is no other option for the continued strength and health of our iconic company. These bills would prohibit Smith & Wesson’s manufacturing of firearms that are legal in almost all states in America. They are safe used every day by tens to millions of law-abiding citizens, who are exercising their Constitutional Second Amendment rights, protecting their families, and enjoying shooting sports. We are optimistic that this arbitrary, damaging legislation will not be passed in this session. However, these products accounted for more than 60% of our revenue last fiscal year. This led to a review of the best way forward for Smith & Wesson. Smith also praised Tennessee’s leaders, saying that “the strong support we have received… combined with the high quality of life and outdoor lifestyle in the Greater Knoxville region has left no doubt about Tennessee being the ideal location to establish Smith & Wesson headquarters.” We want to thank Governor Lee and the entire Tennessee legislature for their decisive contributions and for creating an environment that is welcoming and business-friendly. Construction of S&W’s Tennessee headquarters and factory will begin in the fourth quarter of this year. It is expected to be completed by mid-2023.
