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Manufacturing Special Coverage

The Shot Heard ’Round the Region

Smith & Wesson’s recently announced plan to move its Springfield operations to Tennessee came as a shock to many — the 165-year-old company has been part of the city’s fabric, and the region’s rich manufacturing history, for generations. Amid questions about the gunmaker’s reasons for moving — the company cites proposed state legislation targeting its products, while some elected officials say it’s more a case of corporate welfare and a better deal down south — the most immediate concerns involve about 550 jobs to be lost. The silver lining is that, with some concerted effort, most of those individuals should be able to find other work locally in a manufacturing landscape that sorely needs the help.

 

In the wake of the announcement that Smith & Wesson will be moving its corporate headquarters from Springfield to Maryville, Tenn., questions and discussions have arisen on many levels.

These concern everything from how and when this decision came about to how aggressive Tennessee was in courting this major employer, to whether there were any major deciding factors in that decision beyond what has been stated repeatedly by the company — specifically, proposed state legislation that would ban the manufacture of most of the automatic weapons now made by Smith & Wesson.

But as the dust settles from that bombshell announcement, the lingering questions concern just what the region and the state have lost from the relocation of this company, one that can trace its roots back to 1856.

And the answers to that question don’t exactly come easily.

Western Mass. will lose roughly 550 jobs, according to the information released by the company — a significant number, to be sure, but economic-development leaders are quick to point out that just about every manufacturer has a ‘help wanted’ sign on the door, either figuratively or quite literally, and that any one of those Smith & Wesson employees who doesn’t want to relocate to Tennessee can find employment in the 413 quickly and easily (much more on that later).

“The reason they’re here, and the reason a lot of the jobs will remain here, is that you have a high-quality workforce. And that is probably the biggest issue companies are looking at right now. As a region, and as a state, we’re still a good place to do business.”

Meanwhile, the region will also lose a number of C-suite-level employees from the company that were involved in the community, sat on area boards and commissions, and engaged in philanthropic activity.

“They’re tied to the community,” said Richard Sullivan, president and CEO of the Western Massachusetts Economic Development Council (EDC). “And I think that, sometimes, those aspects of what it means to have a headquarters, the CEOs, and the team at any company get lost; it’s the tieback to the community, because they’re truly vested in the community and want to see it be the best it can be.”

Meanwhile, even though Smith & Wesson handguns and other products will still be made here, and we’re told they will be stamped ‘made in Springfield, Mass.,’ or words to that effect, the region will lose a certain amount of civic pride, if that’s the right term, that comes from having a large employer — and one of the most recognizable brands in the world — headquartered in the City of Homes. Indeed, many would say this company is part of not only the history, but the very fabric of the city.

State Sen. Eric Lesser

State Sen. Eric Lesser says Smith & Wesson’s decision to relocate its headquarters and some operations may actually be a blessing in disguise on some levels.

However, those we spoke with said the region and city are unlikely to lose momentum when it comes to attracting employers and jobs, or its reputation as a manufacturing hub.

Indeed, Sullivan used the phrase “one-off” to describe Smith & Wesson’s decision, drawing a distinction between this pending departure and a much larger exodus, headlined by General Electric, that befell Connecticut several years ago.

“The reason they’re here, and the reason a lot of the jobs will remain here, is that you have a high-quality workforce,” he explained. “And that is probably the biggest issue companies are looking at right now. As a region, and as a state, we’re still a good place to do business.”

State Sen. Eric Lesser, who represents Springfield and several neighboring communities and serves as chair of the state’s Manufacturing Caucus, agreed, and then went further, noting that, amid some obvious losses, there are also some possible benefits to Smith & Wesson’s decision. He even used the phrase “potential blessing in disguise,” mostly to reference opportunities that other area manufacturers may have to stabilize and grow their ventures by hiring displaced S&W workers.

“Sometimes, when one door closes, another one opens, and this may be one of those times,” he told BusinessWest. “We have a very real economic challenge in terms of making sure that those 550 families are taken of. But this is a long-term horizon — they’re not doing this until 2023. Luckily for those families, the manufacturing sector is very hot, and really, almost every company in that sector, including companies right in that immediate neighborhood where Smith & Wesson is located, are looking for people.”

Lesser is one of many elected leaders who are not buying into Smith & Wesson’s contention that it’s moving its headquarters because of the pending legislation. He echoed comments from Massachusetts House Speaker Ronald Mariano, who told the local press that “prudent business people 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.”

“The politics of Massachusetts have been the way they are for a very long time, and at the very same time that they announced a move in Springfield, they also announce they’re closing operations in Missouri, a state that has very lax gun laws.”

Lesser, noting the very attractive deal offered to Smith & Wesson by Tennessee, said the company’s motivation for relocating probably has little to do with Bay State politics. “This is more of a classic corporate-welfare story than it is anything else.”

Which is why it shouldn’t impact Springfield’s reputation as a manufacturing hub or its long-term potential to become more of one, noted Tim Sheehan, the city’s director of Planning & Economic Development.

“In this type of industry, Springfield has had a long history, and the skill levels in this area of manufacturing have been noted throughout the Connecticut River Valley,” he said. “I don’t think this sends a message about the city of Springfield — it’s a broader message.”

 

Targeted Response

The press release arrived in the inboxes of media outlets in this region — and well beyond — at 9:05 a.m. on Sept. 30. The headline over the top read “Smith & Wesson to Relocate Headquarters to Tennessee,” followed by the subhead, “Move includes headquarters and significant portion of operations due to changing business climate for firearms manufacturing in Massachusetts.”

The release went on to quote Mark Smith, president and CEO of the company, saying, “this has been an extremely difficult and emotional decision for us, but after an exhaustive and thorough analysis, for the continued health and strength of our iconic company, we feel that we have been left with no other alternative.”

He specifically cited legislation recently proposed in Massachusetts that, if enacted, would prohibit the company from manufacturing certain firearms in the state. “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 Second Amendment rights, protecting themselves and their families, and enjoying the shooting sports. While we are hopeful that this arbitrary and damaging legislation will be defeated in this session, these products made up over 60% of our revenue last year, and the unfortunate likelihood that such restrictions would be raised again led to a review of the best path forward for Smith & Wesson.”

The path taken — to Tennessee’s Blount County, which proudly describes itself as a “Second Amendment sanctuary” — is similar to the one taken by Troy Industries, the West Springfield-based maker of a wide array of guns and related products, which announced a move to Tennessee back in May.

So while there is precedent and the relocation sounds like part of a movement, many elected officials, including Lesser, were not exactly buying the company’s stated reason for leaving.

In fact, he referred back to that same press release for some evidence. In it, the company said it was also relocating its distribution operations in Columbia, Mo. to the new, $120 million facility in Maryville.

“I don’t believe their rationale why they’re leaving,” he went on. “The politics of Massachusetts have been the way they are for a very long time, and at the very same time that they announced a move in Springfield, they also announce they’re closing operations in Missouri, a state that has very lax gun laws.”

The bill calling for a ban on the manufacture of certain assault weapons, Lesser noted, “has been filed for years and years. And 6,000 bills are filed every year on every conceivable topic; as the speaker said, for a company to make a decision of this magnitude off of one filed piece of legislation doesn’t make any sense.”

Sullivan said there’s no doubt that Tennessee, and probably other, more gun-friendly states and regions, aggressively pursued Smith & Wesson because … this is what they do.

“The states are actively working every day to get companies to move to their state,” he said. “They offer big incentives, and I have no idea what their package was or wasn’t, but they can show a business-friendly attitude, and in this case, they can show an atmosphere that is more comfortable around Second Amendment issues.”

 

Another Shot at Employment

While the company’s reasons for leaving have come into question, the loss of 550 jobs locally is real, and that has become the focus of attention for many elected officials and area agencies, who have pledged to help secure new employment opportunities should these individuals decide not to relocate to Tennessee.

“Our first issue of concern is for the employees, enduring that they have a landing spot, in either a job performing the same task or something that’s similar,” Sheehan told BusinessWest. “A number of manufacturing businesses have reached out already, to MassHire and the mayor’s office, about recruitment of those folks.”

It helps, he added that no one is losing their job immediately, with the move not scheduled to be complete until 2023.

“It’s not happening tomorrow, so we have time to plan for this,” he added. “But it’s an unfortunate situation, obviously — they’re good manufacturing jobs that are housed in Springfield, and we would have liked them to stay in Springfield.”

Like others we spoke with, Sheehan said this is a conducive market to find new employment in manufacturing, he doesn’t want the fate of hundreds of workers left to the whims of that market, so a coordinated effort is in order, involving MassHire Hampden County, the EDC, and city officials, to coordinate a response that helps people identify, train for, and succeed in new jobs.

“With any type of upheaval like this, it’s distressing,” he noted. “Our focus is to try to ensure as little economic uncertainty as possible for these employees.”

Dave Cruise, president and CEO of MassHire Hampden County, said his agency is treating Smith & Wesson’s announcement as a reduction in force, or RIF, and not a plant closing, because the plant isn’t closing — 1,000 jobs will remain here in Springfield.

But it’s an unusual RIF in that the jobs won’t officially be lost for roughly two years, until the company builds and moves into its new facilities in Tennessee. At present, Cruise’s agency is awaiting more information from Smith & Wesson on the specific nature of the jobs to be moved before putting in place a formal plan of action to assist those employees impacted by the decision.

“We have a team of people that we deploy whenever we have this type of situation,” he explained. “Right now, we’re looking to gather a little more information — we don’t much more than what we read in the papers — and whenever they sort that out, I’m sure we’ll be able to work with them and see how we come at this.

“It’s hard for us to move forward because it’s still pretty raw,” he went on. “And I’m sure they’re working hard to determine exactly who is being impacted by this. When we know more, we’ll be able to put in motion what we normally do in these situations.”

 

Loaded and Locked

While elected officials and economic-development leaders have voiced concern about the jobs to be relocated and have made assisting those workers their top priority, S&W’s announcement comes at a time when companies across every sector, and especially manufacturing, are struggling to find qualified workers.

In fact, many are already sending inquiries to Lesser’s desk, Cruise’s office, and other destinations about when and how such workers might be become available long before Smith & Wesson departs for Tennessee.

Indian Orchard-based Eastman Corp., a maker of car windshields and a host of other products, issued a statement through Springfield Mayor Domenic Sarno’s office announcing it is ready, willing, and able to hire some of those being displaced.

“We appreciate the opportunity through Mayor Sarno and his administration to begin to discuss the possibility of members of Smith & Wesson’s skilled labor force considering positions at Eastman in the future,” wrote Plant Manager Shawn Pace. “When those workers and Smith & Wesson are ready, we want them to know that we are here and want to be helpful. Eastman continually reviews its business and workforce strategies to remain competitive and to ensure our long-term success. Like many, we are still learning about Smith & Wesson’s announcement. Eastman stands ready to offer any assistance that Mayor Sarno, his administration, and Smith & Wesson deem appropriate.”

Many other companies are similarly positioned to absorb workers whose jobs are being relocated to Tennessee, said Lesser, reiterating his thoughts about this possibly being a blessing in disguise for the region and especially its precision-manufacturing base.

“I got a lot of inquiries from people all over the state who are in the private sector who are eager to expand and eager to hire people, including some very fast-growing industries like life science, biotech, and robotics,” he told BusinessWest, adding that, while 2023 is two years away, many of the companies looking for help are on a strong growth trajectory, and still will be two years from now.

Elaborating, Lesser cited the tone set the state’s recent Manufacturing Mash-Up event in Worcester late last month, a day-long gathering of those in precision manufacturing.

“We had hundreds of companies from across the state, including a lot from Western Mass.,” he noted. “And they were all saying that they’re busier than they ever have been, business has never been better, and they’re all looking to hire people. And a lot of these companies are in really fast-moving, high-growth areas — robotics, life sciences, medical devices, clean energy.

“We have to react swiftly and make sure those 550 families are taken care of,” he went on. “But it’s also important for people to see the big picture.”

Sullivan agreed.

“I understand that not every manufacturing job can be plug-and-play,” he noted. “But right now, any company that does any kind of manufacturing work is looking to hire. I’m optimistic that everyone who chooses not to move with Smith & Wesson will be able to find a job. That won’t mean that their lives aren’t interrupted, but there are opportunities within this region for them.” v

 

George O’Brien can be reached at

[email protected]

Opinion

Editorial

 

As we absorb the news that Smith & Wesson will be packing its bags — some of them, anyway — and leaving Springfield for Blount County, Tennessee, a self-proclaimed ‘Second Amendment sanctuary,’ we are left with a number of questions.

Ironically, most of them don’t involve whether more could have been done, and should have been done, to keep the company here, which is usually the case when a corporation decides to headquarter itself somewhere else. Despite CEO Mark Smith’s insistence that the company left because of proposed legislation that would  ban the manufacturing of many of the company’s products (specifically assault weapons), it seems clear that Blount County made the corporation an offer it couldn’t refuse. And didn’t refuse.

No, most of the questions the day after the announcement was made concern just how big a loss this is for the city and the state. And those questions are certainly hard to answer.

On the surface, it’s certainly a big loss when the corporate brand most identified with your city (most people couldn’t tell you MassMutual is headquartered here) is lost to somewhere else. There’s also the history; Smith & Wesson was founded in Springfield in 1856, and the company has been a big part of the city’s manufacturing tradition.

But having one of your city’s largest employers be a manufacturer of weapons that kill people has long been somewhat of a public-relations problem. The jobs are good, but many have chosen not think too long and hard about what the people employed there are making and what they’re used for.

Aside from losing a big piece of Springfield’s history, we’re also losing roughly 550 jobs. That’s not insignificant, certainly, but let’s not forget that every manufacturing operation in Western Mass. has a help-wanted sign outside its doors, either figuratively or quite literally. For many years now, there has been a huge imbalance between the number of people these plants could hire and the number they have hired, because there just hasn’t been enough qualified people in the labor pool.

So … if you were ever going to lose 550 manufacturing jobs, or 550 jobs of any kind, this would be the time to lose them.

Which brings us to state Sen. Eric Lesser’s comment that this development with Smith & Wesson might be actually be some kind of blessing in disguise.

That’s an odd choice of phrase — and he was quick to note that he was obviously concerned about the 550 families to be impacted by this — but in many ways, it works.

Smith & Wesson is not leaving Springfield completely. It will maintain many of its operations and employ 1,000 people. That’s certainly good news. But no later than 2023, a good number of skilled workers — how many, we don’t know because some of those currently employed will follow the company to Tennessee — can take skills to other area companies that desperately need them.

The depth of this need is evidenced by the number of manufacturers who have already reached out to Lesser, other elected officials, the MassHire agencies, and even those employees themselves, letting them know that they are ready and willing to take them on.

It’s possible, that’s possible, that Smith & Wesson’s decision to relocate its headquarters and some operations to Tennessee might provide the means for some area companies to grow and perhaps open the door to additional employment opportunities.

This bombshell announcement by the company certainly represents a loss. But in some ways, it may also represent opportunity.

Daily News

SPRINGFIELD — Smith & Wesson Brands Inc., one of the nation’s oldest firearms manufacturers, announced today that it is moving its headquarters and significant elements of its operations to Maryville, Tenn. in 2023. Smith & Wesson has been based in Springfield since the company was incorporated in 1852.

“This has been an extremely difficult and emotional decision for us, but after an exhaustive and thorough analysis, for the continued health and strength of our iconic company, we feel that we have been left with no other alternative,” said Mark Smith, president and CEO.

He specifically cited legislation recently proposed in Massachusetts that, if enacted, would prohibit the company from manufacturing certain firearms in the state. “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 Second Amendment rights, protecting themselves and their families, and enjoying the shooting sports. While we are hopeful that this arbitrary and damaging legislation will be defeated in this session, these products made up over 60% of our revenue last year, and the unfortunate likelihood that such restrictions would be raised again led to a review of the best path forward for Smith & Wesson.”

Smith indicated that the company vetted a number of cities and states and, after careful consideration, made the decision to relocate 750 jobs and its headquarters to Maryville, Tenn. The key factors in the decision included support for the Second Amendment, a business-friendly environment, quality of life for employees, cost of living and affordability, access to higher-education institutions, availability of qualified labor for its operations and headquarters functions, and a favorable location for efficiency of distribution.

“The strong support we have received from the state of Tennessee and the entire leadership of Blount County throughout this process, combined with the quality of life, outdoor lifestyle, and low cost of living in the Greater Knoxville area, has left no doubt that Tennessee is the ideal location for Smith & Wesson’s new headquarters,” Smith said. “We would like to specifically thank Governor Lee for his decisive contributions and the entire state legislature for their unwavering support of the Second Amendment and for creating a welcoming, business friendly environment.”

Smith & Wesson will also close facilities in Connecticut and Missouri as part of consolidating in Tennessee. This process will result in the company reducing the number of locations it maintains from four to three and will significantly streamline its manufacturing and distribution operations.

The company emphasized that the move will not begin until 2023 and will not have an impact on employees’ jobs until then. “Our loyal employees are the reason for our success and are always our number-one priority,” Smith said. “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.

“We are making this announcement now to ensure that each employee has the time to make the decision that is right for them and their families,” he went on. “We are firmly committed to working on an individual level with each and every one of those who will be affected. We will assist any affected employee who is willing and able to move with financial and logistical relocation assistance. However, we also fully realize that this is simply not feasible for some. Therefore, for any affected employee who cannot move with us, we will offer enhanced severance and job-placement services. We understand that this announcement will be very difficult for our employees, and we will do everything we can to assist them during this transition.”

Some key points from today’s statement:

• The facility in Springfield will be reconfigured but will remain operational.

• Smith & Wesson will keep some of its manufacturing operations in Springfield, including all forging, machining, metal finishing, and assembly of revolvers, and will continue to have over 1,000 employees in the state.

• The new facility in Maryville, Tenn. will comprise the company’s headquarters, plastic injection molding, pistol and long-gun assembly, and distribution.

• Total investment in the project is estimated at $120 million, will be funded from cash on hand, and is expected to be accretive to EPS by $0.10 to $0.12 per year once fully operational.

• Construction in Maryville is expected to begin in the fourth quarter of 2021 and be substantially complete by the summer of 2023.

• About 750 jobs will move from Springfield; Deep River, Conn.; and Columbia, Mo. to Maryville.

• The company’s plastic injection molding facility in Deep River, which services both Smith & Wesson as well as a significant number of external customers, will be sold. The Smith & Wesson portion of the operations will be moved to the new facility in Maryville; however, the external customer business will remain in Connecticut and will be divested.

• The company’s distribution operations in Columbia will be moved to the new facility in Maryville, and the Columbia facility will be marketed for sublease.

• The relocation will have no impact on the company’s operations in Houlton, Maine.

Daily News

SPRINGFIELD — Smith & Wesson is once again lending its support to the children and families served by Square One. The company recently committed $20,000 in corporate giving, in addition to funds donated by employees as part of their commitment to social responsibility.

The gift marks the latest addition to a long list of contributions made over the years. The company has supported the agency’s early-education and care initiatives and programs to support victims of domestic violence. It was also among the first businesses in the region to fund Square One’s response to the COVID-19 crisis.

“Smith & Wesson and its employees are proud to support Square One’s efforts to offer tools and resources to local families,” said Mark Smith, president and CEO of Smith & Wesson. “We recognize that a strong foundation is the key to the development of all children. Through their programs, the staff at Square One has enhanced the lives of many children and families in our community. We’re happy that our partnership makes a difference.”

The funds will support Square One’s Campaign for Healthy Kids, a multi-year fund-development initiative focused on the agency’s commitment to providing healthy meals, physical fitness, social-emotional well-being, and a healthy learning environment.

“Square One has long relied on support from Smith & Wesson to support our programs and services,” said Kristine Allard, vice president of Development & Communication for Square One. “They are quick to recognize and respond to the changing needs of our community and take responsibility to support our work whenever possible. We are truly grateful to have them as our community partners.”

Daily News

SPRINGFIELD — Springfield-based Smith & Wesson is once again lending its support to the children and families served by Square One. The company recently committed $20,000 in corporate giving, in addition to funds donated by employees as part of their commitment to social responsibility.

The gift marks the latest addition to a long list of contributions made over the years. The company supported Square One’s early-education and care initiatives and programs to support victims of domestic violence. It was also among the first businesses in the region to fund Square One’s response to the COVID-19 crisis.

“Smith & Wesson and its employees are proud to support Square One’s efforts to offer tools and resources to local families,” said Mark Smith, president and CEO of Smith & Wesson. “We recognize that a strong foundation is the key to the development of all children. Through their programs, the staff at Square One has enhanced the lives of many children and families in our community.”

The funds will support Square One’s Campaign for Healthy Kids, a multi-year fund-development initiative focused on the agency’s commitment to providing healthy meals, physical fitness, social-emotional well-being, and a healthy learning environment.

“Square One has long relied on support from Smith & Wesson to support our programs and services,” said Kristine Allard, vice president of Development & Communication for Square One. “They are quick to recognize and respond to the changing needs of our community and take responsibility to support our work whenever possible. We are truly grateful to have them as our community partners.”

A check presentation will be held on June 30 at 11 a.m. at Square One, 1095 Main St., Springfield.

Square One currently provides early learning services to more than 500 infants, toddlers, and school-age children each day, and family-support services to 1,500 families each year, as they work to overcome the significant challenges in their lives.

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