Smith & Wesson announces $120M move to Tennessee from Massachusetts - where it has been headquartered since 1856 - because of Bay State ban on production of assault rifles that account for 60% of revenue
Famed gunmaker Smith & Wesson will leave its historic 165-year-old headquarters in Massachusetts for a new home base in gun-friendly Tennessee, saying proposed legislation in the deep Blue state to ban manufacturing of assault weapons would devastate its bottom line.
The company announced Thursday that it will build a new $120million facility in Maryville by 2023 and eventually shutter the Springfield location that forged famed firearms like the .357 magnum - used by Clint Eastwood in the Dirty Harry movies.
However, anti-gun sentiment in the state - sparked by mass shootings involving assault weapons - has been on the rise. The purchase of military-style assault rifles in the state has been banned since 2004, but the manufacturing and distribution of the weapons - which account for 60 percent of sales, according to the company - has remained.
Several lawmakers introducing the assault weapon bill in April described the ability to manufacture and sell the weapons across state lines as a 'loophole' in the existing ban, and hoped that if passed, it would help reduce mass shootings elsewhere.
Smith in his release described the push for a ban as 'arbitrary and damaging legislation,' and said he was confident it would be defeated this session, but 'the unfortunate likelihood that such restrictions would be raised again led to a review of the best path forward for Smith & Wesson.'
'These bills would prevent Smith & Wesson from manufacturing firearms that are legal in almost every state in America and that are safely used by tens of millions of law-abiding citizens every day exercising their Constitutional 2nd Amendment rights.'
With the announcement the company said it will retain its revolver making business in Massachusetts, along with 1,000 jobs
Forging and pistol and revolver making would remain in Massachusetts, however, other manufacturing and distribution would move to Tennessee
Smith & Wesson's current HQ in Springfield Massachusetts, where it has been based since its founding in 1856
Smith & Wesson announced Thursday that it was moving its headquarters from Massachusetts to Tennessee in 2023 (pictured a mockup of the new HQ)
The site in Maryville Tennessee, where the new HQ is slated to be built. Construction is scheduled to begin later this year
In addition to the shuttering its Massachusetts headquarters, and moving 550 jobs out of Springfield, it will also close facilities in Connecticut and Missouri as part of a consolidation plan.
Specifically, the company's plastic injection molding, pistol and long gun assembly and distribution will be moved to the new Tennessee facility, while its metal forging, machining, finishing and revolver assembly capacity will remain in Massachusetts.
The Smith & Wesson Revolver Company was founded in 1856 by Horace Smith and Daniel B. Wesson in Springfield after the duo's failed endeavor to develop a lever action rifle company in Connecticut.
The Tennessee deal came after about six months of talks between the company and the state of Tennessee, and Tennessee Gov. Bill Lee celebrated the announcement on Twitter.
'We're proud this company has chosen to relocate from Massachusetts to Blount Co. Thanks for creating 750 jobs & your significant investment,' he wrote, citing the total number of jobs Smith & Wesson will be relocating to the state.
Bob Rolfe, commissioner of the Tennessee Department of Economic and Community Development, said the company had initially contacted him about potentially expanding its manufacturing presence in the state, but that he then pitched the idea of the company moving its entire headquarters during a dinner meeting with executives, the Boston Globe reported.
'That’s a decision that nobody takes lightly,' he told the outlet. 'Do we always convert an expansion for manufacturing into a new headquarters? I wouldn’t say our batting average is close to 1,000 percent . . . but if you win one, that is one more than you had the day before.'
Tennessee Gov. Bill Lee lauded the announcement, which came after six months of talks with the state
Smith & Wesson's cartridge revolvers would first come into popular demand during the Civil War, and after, the company would forge a role in America's westward expansion, providing firearms for the frontier.
In 1899, it would develop the .38 revolver, which became the standard police firearm in the US for much of the 20th century.
But anti-gun sentiment has in the state has been on the rise. In 2018 students from across the state rallied outside Smith & Wesson's headquarters to protest gun violence and demand stricter laws, the Boston Globe reported.
The proposed bill has so far not had a hearing before the state's Legislature, and party leadership in both state houses did not issue public statements upon its filing, the Boston Globe reported.
Massachusetts House Speaker Ronald Mariano was skeptical of the stated reasons for the move.
'Prudent businesspeople don’t make major decisions, especially a decision that puts hundreds of people out of a job, based on one of the thousands of bills filed each session,' he told the Globe.
State Representative Marjorie Decker, who was a sponsor of the assault weapon manufacturing bill, speculated on the real reason behind the decision.
Smith & Wesson rose to prominence with its cartridge revolvers in the latter half of the 19th century, and expanded its production during the Civil War
Smith & Wesson's factory in around 1908, after it had introduced the .38, which became the standard police firearm in the US
'Smith and Wesson’s statement today is filed with as many holes as a target range. While their press release is politically convenient for them, it’s disingenuous,' she said, according to the Globe. 'This is about cheaper labor.'
Smith & Wesson's fortunes began to decline in the 1980s, when police departments began using European-made pistols instead of their revolvers. The company's fortunes changed in recent years with the explosive popularity of the assault rifle.
This year, the company's net revenue surpassed $1billion for the first time in its history.
In its release, Smith & Wesson listed cheaper cost of living, and an 'outdoor lifestyle' in Tennessee among the factors behind the move, in addition to a 'business friendly environment' and 'favorable location for efficiency of distribution.'
The annoucement of the move came amid pending legislation banning the manufacture of assault weapons in Massachusetts, which now accounts for about 60 percent of the company's revenue. (Pictured: A Smith & Wesson M&P 15)
Tennessee is offering the gun maker a FastTrack Economic Development Grant as an incentive, the details of which will be made public in 30 days, and Rolfe said the state's low taxes were likely a major factor.
'We're going to continue to attract companies from around the country that are saying, I'm tired of being taxed, you know, and I'm looking for a higher quality of life,' he said, according to WBIR.
With the decision, Smith & Wesson joins fellow gunmaker Troy Industries in moving operations out of Massachusetts. Troy announced a few months ago that it was relocating to Clarksville, Tennessee, along with 75 jobs, citing a 'changing climate' for gunmakers in the state it said in a statement.
Groundbreaking for the new Smith & Wesson facility is scheduled for the fourth quarter of 2021, and is expected to be complete in 2023. For employees who do not wish to move to Tennessee, Smith said, the company will offer enhanced severance and job placement services.
'We are deeply saddened by the impact that this difficult decision will have on so many of our dedicated employees, but in order to preserve future jobs and for the viability of our business in the long term, we are left with no choice but to relocate these functions to a state that does not propose burdensome restrictions on our company,' he said.
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