Move includes headquarters and significant portion of operations due to changing business climate for firearms manufacturing in Massachusetts
SPRINGFIELD, Mass., September 30, 2021 – Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), one of the nation’s oldest firearms manufacturers, announced today that it is moving its headquarters and significant elements of its operations to Maryville, Tennessee in 2023. Smith & Wesson has been based in Springfield, Massachusetts since the company was incorporated in 1852.
Mark Smith, President and Chief Executive Officer, said “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 2nd 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, Tennessee. The key factors in the decision included the following:
- Support for the 2nd Amendment
- 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 headquarter functions
- Favorable location for efficiency of distribution
Smith continued, “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. We would like to specifically thank Governor Lee for his decisive contributions and the entire state legislature for their unwavering support of the 2nd 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. 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.” Smith said. “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. 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,” Smith said. All employees whose jobs are moved will be given these offers.
Key Facts:
- The facility in Springfield, Massachusetts will be reconfigured but will remain operational.
- Smith & Wesson will keep some of its manufacturing operations in Springfield, Massachusetts, 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 will be built in Maryville, Tennessee and will comprise of 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, Tennessee is expected to begin in the calendar fourth quarter of 2021 and be substantially complete by the summer of 2023.
- Upwards of 750 jobs will move from Springfield, Massachusetts; Deep River, Connecticut; and Columbia, Missouri to Maryville, Tennessee.
- The company’s plastic injection molding facility in Deep River, Connecticut, 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, Tennessee, however, the external customer business will remain in Connecticut and will be divested.
- The company’s distribution operations in Columbia, Missouri will be moved to the new facility in Maryville, Tennessee, and the Columbia, Missouri facility will be marketed for sublease.
- The relocation will have no impact on the company’s operations in Houlton, Maine.
The company will host a conference call September 30, 2021, to discuss the relocation. Speakers on the conference call will include Mark Smith, President and Chief Executive Officer, and Deana McPherson, Executive Vice President and Chief Financial Officer. The conference call may include forward-looking statements. The conference call and webcast will begin at 10:00 a.m. Eastern Time (7:00 a.m. Pacific Time). Those interested in listening to the conference call via telephone may call directly at (844) 309-6568 and reference conference identification number 3073758. No RSVP is necessary. The conference call audio webcast can also be accessed live on the company’s website at www.smith-wesson.com, under the Investor Relations section.
About Smith & Wesson Brands, Inc.
Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI) is a U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality handgun, long gun, and suppressor products to the global consumer and professional markets under the iconic Smith & Wesson®, M&P®, and Gemtech® brands. The company also provides manufacturing services, including forging, machining, and precision plastic injection molding services. For more information call (800) 331-0852 or visit www.smith-wesson.com.
If Biden, Pelosi, Schumer et al. succeed in ‘radically altering America’, every state will be Massachusetts on Fentanyl. Your rights will count for exactly nothing.
Secession, divorce or irreconcilable difference…..it doesn’t matter as long as it happens.
You really need to make a S&W M&P 10mm pistol. The M&P series pistols are the BEST polymer hand guns on the market. The four inch barrel length would be perfect. Thanks
If that DA makes office Mass. is finished. She puts criminals before citizens.
I’m considering moving to Tennessee myself. California is a communist wasteland now. I’m gonna kiss the ground as soon as I arrive. I crave freedom with every exultation of my breath.
God bless and protect all of Americas patriotic and freedom loving citizens. We must always cherish and keep the spirit and values that allow us to live and succeed as the greatest Country in the history of mankind. In God We Trust. Semper Fi
Welcome to Tennessee.
I used to live in a People’s Republic of Massachusetts and I left that nasty State because of their primitive gun laws criminals got more rights founded in law abiding citizens the word Taxachusetts going to take on a whole new meaning now
Outstanding, and welcome to Tennessee…adios Massachusetts!
Exactly….should have happened 20 years ago. But, better late than never. I hope many of the employees & families can relocate with the company. Some folks in MA may be under water with their home mortgage.
Way to go, S&W!!!
California produces tons of guns but no one in that state can buy what they produce. What a wonderful state that will produce guns that they have banned for there own citizen, i think you would call that hypocrisy to high heaven. If your a socialist democrat, that word hypocrisy is just a word it has no meaning to them because they have no conscious.
They can run but can’t hide. The libs are also moving and spreading in the red states like cancer.
What took so long?
About time S&W woke up. A divorce is coming in this country- we just can’t live togather anymore. Secession by relocation is happening before our eyes. Those demon controlled states will eventually reach the point where industry will completely flee their states leaving very little for a tax base except for residential property. This will create more tax refugees. Y’all that believe in freedom and liberty come on down. C’mon you know the words…I wish I was in the land of cotton..
it is ironic indeed that the cradle of liberty should be the place where it is extinguished.
I have been saying this for years. Why stay in a State that wants to shut you down. Never made sense. Just common sense. All need to start doing this. Gun and ammo makers.
I have wondered this very reason myself. Why would a company stay in a state that does everything in there power to stop the sale of it’s product? NY is a PRIME example… I believe it is due to the importation. The ports are just off the sea, This would be the only reason I can think of. CZUSA, the list goes on and on.
The example in Comifornia recently, that the Gov GAvin, can stay in power by votes, is amazing to me. But most people are literally insane. I truly believe, that most of the population is so mindless that they believe everything CNN tells them. I did fin the election perplexing though, as the amount Gavin was ahead by when they CALLED IT, was only 60% of votes tallied, and that looked JUST LIKE the 2020-21 election Pres Trump was in the lead by A LOT, and they something very troubling occurred, and well it was ballot dumping… but if the Pres election can be fixed, then a small election like in Cali, can be done up w/o breaking a sweat!…
PTL bout time for everyone who manfactures firearms or ammo to move to red states. thanks SW u are great. hope u have many followers.
One factor Smith did not mention is the one of which we cannot speak.
Tennessee is a Right to Work state and not a Union Shop state like Massachusetts.
I am deeply disturbed by those who believe they are supporters of the 2nd amendment who, seemingly, can only read the last 14 words of the amendment and completely ignore the clauses in the original Constitution for which the amendment was written to support.
It is even more perplexing when you consider companies, such as S&W, that ignore the reasons those who wrote the amendment argued and wrote for their posterity. The reason is obvious as those in the Virginia delegation argued for a Bill of Rights to make it perfectly clear to aspiring tyrants that the Bill represented the necessary functions to curtail an overbearing and tyrannical state.
So, when they wrote “A well regulated Militia being necessary to the security of a free State”, they understood it to mean ALL ABLE BODIED MEN capable of bearing arms to do so as an organized, armed, and disciplined body operating according to State statutes. This meant that on the federal level, all males 18 – 45 would be required to be enrolled in the militia, but that did not prevent the states from requiring a larger body of its citizens to be enrolled.
The question goes out to the CEO’s of every gun manufacturer, ammo maker, and accessories, why wouldn’t you support the instrument that the Founders saw as the means to protect all our rights? Wouldn’t that increase your business model exponentially? And most importantly, wouldn’t it protect all our rights and in particular the right to keep and bear arms?
Nicholas,
While I applaud your fervor, and agree that all men (and women) should be subject to draft, you are imagining intent which is not supported by history. Your comment, “they understood it to mean ALL ABLE BODIED MEN capable of bearing arms to do so” has no event taking place during this time which would support your supposition. If they meant what you suppose them to mean, they would have acted upon that intent at that time. They DID NOT, much to our long-term disappointment.
I think they thought it was self evident that a militia of free men should protect each state from a federal tyrannical governing body.
Agree 1000%
I believe the Founding Fathers’ intend for the 2nd Amendment was to act as a guarantee for the rest of the Bill of Rights. 2A was meant to deter the biggest criminal organization there was (and will be): The Government.
2A is not really intended for local hoodlums or petty criminals (as today’s Politburo members and teachers would have you and your children believe). Those were taken care of expeditiously with ropes as soon as one finds a good tree.
I applaud all individuals and businesses that send message through their tax payments; just wish more would do the same…
Wishing them nothing but the best. Hope this sends a message to other manufactures to relocate to friendly
locations.
Save your Confederate money, boys… the South will rise again !
Best decision for all…. now move ALL S&W out of that communist state… otherwise they will find someway to harass the employees and the Corp. in general. Let the Blue States ROT…they are bringing this upon themselves and who are we Constitution LOVING PATRIOTS to argue with the liberals who know best for nobody.
It seems that S & W has chosen to vote with their feet and wallets when it comes to dealing with those who are trying to destroy American ideals and values. Those state entities who would disarm American citizens from exercising their God-given right to self-defense by attacking the firearm industry deserve to fail and are committing financial suicide by their own hands. S & W should be applauded for taking a solid stand against tyranny and putting their resources where they will do the most good.
Bill, you bring up one line of words which many people, even on this site, do not understand. Self-defense is a natural right, or “God given” right if one believes as you and I. There is no law on Earth needed for all people to defend themselves against harm. The amazing, fantastic, and wonderful thing about our forefathers is that they understood that, and realized that sticks and shovels are not sufficient as defense tools. Therefore, they granted us the right to utilize the one, single, most available and effective means of self-defense…the personal firearm. It is sheer stupidity and naïveté for any person, anywhere, to think that any other means of self-defense is sufficient for all foreseeable personal situations. Firearms are the one and only equalizer when it comes to personal self-defense.
Bravo! Leave all the anti-business blue states in the dust!
As a born and raised man in Georgia, let me be among the first in welcoming you to the South. We love our firearms down here.
The oppressive policies of the communist-based Democrat party will continue to force constitution based businesses out of their failing states and bolster the communities of those who support America! only until these blue states have sunk into the abyss of bankruptcy because of the fleeing populations of their draconian laws will the people finally turn on these domestic terrorists and rebuild the nation that the Democrats have decimated!
Bill Lee will give them whatever they ask for too.
This is long overdue; however, after reading the entire article, I am disappointed that the entirety of the operations were not moved out of the People’s Republic of Taxachusetts.
Memo to management: The authoritarian Fascists and Communists will yet be coming for your business and your livelihoods. The only thing these brute beasts understand is force. Their ignominious and anti-freedom force is funded by the extortion of your productive activity. To negate their nefarious power and destructive force, you must starve the brute beasts. You must deny them the resources they use against free men and women. To do so, you must break ALL ties with the authoritarian Fascist/Communist regime in Massachusetts.
Good Decision!!
Good for S&W, and great for Maryville, Tn. Springfield should follow suit and pull out of Illinois.
Team S&W, welcome to our Volunteer – Gun friendly southeast end of state! Eagerly awaiting what this move brings to your continuing commitment to field mature quality, craftsmanship and industry innovation!!! Thank you for supporting us too👍
they can relocate to nebraska anytime or any firearms company
Why did it take so long and why would any gun manufacturers stay in these communist states?
Great decision! All firearms production should be moved out of New England. Live where you are welcome.
Why? Sig is doing GREAT in New Hampshire. And Maine is neither anti-gun nor anti business.
It’s always amazed me that Firearms Manufacturers clustered in the Northeast, where anti-gun sentiment runs DEEP !
Why are you amazed? Those manufacturers were in the Northeast long before anti-gun (and anti-business) sentiments took hold. There are still people alive today who remember when it was not like this.
I can attest to that.