Topic: Remington opening new factory in Alabama; union blames NY SAFE Act

[Glock32]

So you've probably heard that Remington is opening a new factory in Huntsville, Alabama and will employ up to 2,000 people there. At this point, the official line is that the new factory is merely additional capacity and is not intended to replace the company's existing factory in New York. A NY state senator even came out and claimed that Remington's expansion into Alabama will not cost NY jobs. Well what about those 2,000 new jobs in Alabama, senator? They could have gone to Remington's home turf but for some reason the company put them in Alabama instead. Wonder why?

The president of the United Mine Workers Local 717, which represents most of Remington's employees in New York, sings a different tune. He categorically blames the NY SAFE Act, stating that it has no doubt soured the company on New York. Between that and the NY Governor literally telling gun rights people they aren't welcome in his state, it's not a hard one to figure out. And how much you want to bet at least half of those union workers are automatic Democrat voters? Just like all the fools in West Virginia who keep electing Democrats to the Senate, even when that party makes no bones about its hostility to coal.

At some point the Left's panoply of interest groups will have to disintegrate. How can you have radical environmentalists, open borders advocates, and gun grabbers under the same umbrella as organized labor?

Anyhow though, good for Remington. I also read that Beretta is opening a factory in Tennessee. I hope both of them ditch their anti-liberty states as soon as possible.

[Libertas]

Good.  In round two of the war between the states this time around the south could use some industrial base, and in a critical industry for success.  So the liberal states get a double-whammy...good.  Hope there is more of this!

 

Don't forget to flash your backyside to NY!!!   

[trapeze]

Two things:

First, I haven't heard exactly what this new Remington plant will be making. I am personally pulling for ammunition production. Perhaps later they will begin to move some of the firearms manufacturing out of NY if that is not what the plant is going to be doing in the near term.

Second, I don't believe that Remington is making this decision based on the new NY gun laws. At least, not primarily on the gun laws. My belief is that this move is all about money. NY is a high tax place and AL is a low tax place. NY is a big union place and AL is a low-to-no union place. If you are going to expand it makes more sense to base a location decision on money than it does on politics.

Just my opinion and conjecture.

[Libertas]

Kinda makes the economic reason easier to make though.  Could have been they've been planning this move and the timing seemed right.

[trapeze]

I am thinking that Remington has decided that the ammo shortage is real and that the best way to deal with it (and profit from it) is to expand production. They can expand in NY or somewhere else. NY seems like a stupid place to expand. It is the same thinking that goes into auto manufacturers not expanding or building new production facilities in Detroit. Seems kind of stupid. Just saying.

[Libertas]

Well, they've all been in libiot states in the northeast for a long time, just because that's where they started doesn't mean that's where they should stay, for economic or regulatory reasons.  I guess I am kind of surprised many even stay at all.

[John Florida]

Well, they've all been in libiot states in the northeast for a long time, just because that's where they started doesn't mean that's where they should stay, for economic or regulatory reasons.  I guess I am kind of surprised many even stay at all.

  The big reason they just don't up and leave is because those companies have a huge investment in buildings and land. Buildings that aren't going to be sellable and till their plants in the south are up running and making enough to make it worth while to donate the buildings to the state and kiss them goodbye.

[Libertas]

Well, they've all been in libiot states in the northeast for a long time, just because that's where they started doesn't mean that's where they should stay, for economic or regulatory reasons.  I guess I am kind of surprised many even stay at all.

  The big reason they just don't up and leave is because those companies have a huge investment in buildings and land. Buildings that aren't going to be sellable and till their plants in the south are up running and making enough to make it worth while to donate the buildings to the state and kiss them goodbye.

I guess I would have to know their property ledger to know for sure what has been added/improved and when, it is possible that most of their fixed assets are fully or near fully depreciated.  And if they are financially strong (and I don't know why they wouldn't be...their cashflow has to be fairly strong and their debt ratio pretty darn low) they could at some point find it very financially viable to move.  We just don't know where they are at to know for sure.  But there is this expansion into Alabama so they could be on the first phase of a planned migration/expansion that could be on a 10-15 year schedule.

[John Florida]

Well, they've all been in libiot states in the northeast for a long time, just because that's where they started doesn't mean that's where they should stay, for economic or regulatory reasons.  I guess I am kind of surprised many even stay at all.

  The big reason they just don't up and leave is because those companies have a huge investment in buildings and land. Buildings that aren't going to be sellable and till their plants in the south are up running and making enough to make it worth while to donate the buildings to the state and kiss them goodbye.

I guess I would have to know their property ledger to know for sure what has been added/improved and when, it is possible that most of their fixed assets are fully or near fully depreciated.  And if they are financially strong (and I don't know why they wouldn't be...their cashflow has to be fairly strong and their debt ratio pretty darn low) they could at some point find it very financially viable to move.  We just don't know where they are at to know for sure.  But there is this expansion into Alabama so they could be on the first phase of a planned migration/expansion that could be on a 10-15 year schedule.

  Building wrtten off or not it has a value that has to be dealt with. It's give it away or try and dump it when it makes sense.I doubt that they would be expanding in NY any time soon.

[richb]

I am guessing they are doing the slow move.    They take less heat for it and they don't break the bank replacing all their buildings all at once.   It may take 20 years,  but the motion has begun and won't stop.   

Most additional hires will likely be in Alabama (only replacements in NY),  most large investments will be there too. 

Jay's potato chips did the same in Chicago too.    A number a years ago they built a new construction  "second" plant in downstate Indiana.   Ran both that plant and their ancient plant in a crappy neighborhood on the south side for a while.

When the Obama depression began and the anti-snack food stuff heated up,   low and behold,  the Chicago plant closed.   Probably took about 5 seconds to make that pick.  Plant 1.  Old building,  union workforce,  high taxes.  Plant 2.  New building,  non-union workforce, lower taxes,   hummmmmmm.    But they said don't worry we will keep the warehouse in the city.   

New owners took over and the warehouse is getting used less and less (maybe closed now,  looked pretty vacant the last time I drove by).      They don't have a front office in Chicago anymore since the new owners didn't need it. 

Liberal just never get it.

If anything,   the gun control law was the straw that broke the camels back.

   

[Libertas]

I agree Rich, I think this is likely part of a phased plan, I think they saw the financial and regulatory handwritting on the wall long ago.  And they probably feel a lot better about their plan seeing how idiots keep doubling-down on stupid.  When the final move happens they won't care what they get for the land and buildings, just as long as they get out from under the regulatory and tax budens, that'll bring the floor price down enough to where somebody will get it for a deal.

[oldcoastie6468]

Looks like they'll manufacture both ammo and firearms in Alabama.

Remington Sends Cuomo A Message With Alabama Announcement
February 17, 2014 by Ben Bullard 
 
Gun maker Remington announced a plan to invest $110 million in a manufacturing facility in Huntsville, Ala., today — a clear signal to the ruling class in its home State of New York that it’s setting down roots in a political climate that values the 2nd Amendment.

At the start of its lengthy, 24-State search for a new facility, Remington made it clear that its growing base of operations won’t affect its New York employees. But the company also made it clear that New York Governor Andrew Cuomo’s enthusiastic embrace of knee-jerk gun control legislation signaled a need for firearms companies to begin looking out for the future.

A union official representing Remington employees admitted as much, telling The Post-Standard over the weekend the gun-grabbing political atmosphere in New York “can’t be good” for the company’s future there — even though it’s been a fixture in New York since 1816.

http://personalliberty.com/2014/02/17/remington-sends-cuomo-a-message-with-alabama-announcement/

[Libertas]

 

[fordguy_85]

Good for Remington.  About time if ya ask me