Another Gun Maker Says Farewell to Tough Restrictions

Yet another gun manufacturer is voting with its feet, and leaving a state because of its overreach on regulation. Instead of opening a new facility in Orange County, N.Y. with 80 to 100 new jobs, Kahr Firearms Group will instead relocate over the Delaware River into Pike County, Penn.

Earlier this year, a number of Connecticut gun makers announced their intention to pick up and move their facilities out of state when politicians there enacted some of the strictest gun laws in the country. PTR Industries announced it was leaving for the more welcoming climes of Myrtle Beach, S.C., as did Stag Arms, which is deciding between South Carolina and Texas.

It's a movement still gaining steam, with manufacturers leaving oppressive states for those offering more freedom. Texas, in particular, has been vocal about welcoming gun makers, and is one of the locations Magpul Industries is considering as it plans to vacate Colorado.

New York's new anti-gun law expands a ban on military-style weapons, requires mental-health professionals to report perceived threats, limits magazines to seven bullets, taxes bullets, and creates a gun registry. New Jersey's Gov. Christie also just signed a group of new gun laws, though the more controversial (and restrictive) ones are still on his desk.

Kahr said it could have stayed in New York and built a new plant, but, "We're looking for a more friendly environment for our business."

Not every firearms manufacturer is pulling up stakes, however, preferring to be more wishy-washy about their feelings. Beretta thought about leaving Maryland, but instead, said that if it created any new jobs, they would be made out of state. Remington Arms, part of Freedom Group, the amalgamation of gun companies that Cerberus Capital Managment dumped after the Sandy Hook shootings, posted on its Facebook page that it still needs to mull over whether it wants to move. While some suspected a quid pro quo after it received an $80 million Defense Dept. contract within days of meeting with a group of state politicians, Remington said the deal was years in the making, and has nothing to do with its decision to stay or go.

Similarly, Sturm, Ruger (NYSE: RGR  ) and Colt Defense have not indicated any intention of leaving Connecticut, while Smith & Wesson Holdings (NASDAQ: SWHC  ) seems content to remain nestled in Massachusetts, despite its restrictive gun laws.

Undoubtedly, the decision to leave a state is not so simple as packing up a few boxes and some furniture. And while some gun makers may disagree with the proliferation of gun-control laws, they're actually doing brisk business because of them. Smith & Wesson reported record sales last quarter as revenues surged 42%, and profits quadrupled from the year-ago period. Ruger's profits nearly doubled, and ammo maker ATK would have had even better results after reporting strong demand in sporting groups demand, but a decline in defense sales led to relatively flat revenues.

While the big name gun slingers have yet to protest the attack on their livelihood, the industry still has a target on its back. But the constant drip from smaller firearm makers does add up until it becomes a torrent that can't be held back when the dyke finally bursts open.


Read/Post Comments (19) | Recommend This Article (7)

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  • Report this Comment On August 09, 2013, at 1:01 AM, hagar2935 wrote:

    The flight from NY, Colorado, Connecticut and other places will continue because it is for the long-term benefit of the manufacturers to re-locate to places that are more friendly to their industry and in some cases fro economic/tax reasons.

  • Report this Comment On August 09, 2013, at 2:29 AM, AUricle wrote:

    Illinois is being GUTTED like a ripe pig.

    STUPID politicians.

  • Report this Comment On August 09, 2013, at 2:37 AM, Alericc wrote:

    Come to KY we need more well paying jobs here.

  • Report this Comment On August 09, 2013, at 2:54 AM, rudolfvs wrote:

    This is what happens when foolish voters elect inept legislators.

  • Report this Comment On August 09, 2013, at 4:33 AM, readfederallist wrote:

    In their rush to be first! New York legislators shoved through bad law. This is just the beginning of the repercussions. The '14 elections will be an eye opener. Between the economy and this issue, Republican moderates will get that extra 5 points in the close contests. The issue has been front and center nationally, thanks to Obama and Bloomberg news, so I look for the Republican gains to sweep the nation.

  • Report this Comment On August 09, 2013, at 5:56 AM, xylotops wrote:

    None of the "restrictions" have anything to do with the federally licensed legal manufacture of arms. These companies are simply making a political statement.

  • Report this Comment On August 09, 2013, at 6:26 AM, mz1xgv wrote:

    I hope the crime numbers go down, I guess it would be interesting to see what happens, NY politians. Good luck on that!

  • Report this Comment On August 09, 2013, at 7:32 AM, turbojoe88 wrote:

    Many of these states are bad for business anyway. Just look at Konnecticut for example. Consistently one of the worst performing states with regard to economic growth. The only thing we have here is the insurance industry and of course we piggyback off the NY financial industry. That's it. Mfg has long since left this state and anyone who is left is dying to get out (UTC.... Sikorsky, Pratt&Whitney, Otis) . They're all being suffocated by the gov.

    I do wish Colt and Stag Arms had the balls to pick up and leave Mao-lloy standing though.

  • Report this Comment On August 09, 2013, at 7:59 AM, SCCWB wrote:

    The guns of those that don't relocate will cost more because of Fees, Taxes and Regulations. The name alone will not generate the sales like days long gone.

  • Report this Comment On August 09, 2013, at 8:08 AM, PatrickHenry2 wrote:

    Feel good legislation is Government interference, With Liberty. We must stand against those who wont stand for Liberty. I will not buy *anything* made in those restrictive states as a protest against those states attack on personal liberty. Those governments, count on taxes from these industries, this counter attack on my part may be small on its own but with others we can force change, and make these want to be King George III back down.

    I will only buy at this time used arms from the non moving manufacture and find ammo and reloading supplies from companies operating in free states.

  • Report this Comment On August 09, 2013, at 8:39 AM, rocketman67 wrote:

    Is this part of "The Change" the President wanted for this country of ours.......divide the American people instead of uniting them?

    While our elected politicians send our men and women abroad to protect America's interest our politicians are busy destroying America back home. How hypocritical can they be!!

  • Report this Comment On August 09, 2013, at 8:45 AM, Damonlee22 wrote:

    Why move it to PA... Not much of an improvement, when talking gun rights.

  • Report this Comment On August 09, 2013, at 8:47 AM, SLTom992 wrote:

    The United States has the third highest murder rates in the world. If you remove Chicago, Detroit, New York and New Orleans we are fourth from the bottom.

    And those four cities have the toughest gun restrictions in the US.

    Liberals and their fear of guns and their belief that even mass murderers should have a nice comfortable life behind bars is what has caused the crime rates.

  • Report this Comment On August 09, 2013, at 8:49 AM, SLTom992 wrote:

    Damonlee22 - tell us the differences on restrictions for gun manufacturing between New York and Penn's woods.

  • Report this Comment On August 09, 2013, at 9:32 AM, Rarbb wrote:

    50 jobs here 75 there,tax money gone....pretty soon those libs will figure out real people don't like their poicies.

    Of coursse I will not hold my breath

  • Report this Comment On August 09, 2013, at 10:09 AM, SunsetEagle wrote:

    Should note that Ruger has manufacturing facilities are out of state, with the newest one going to NC.

  • Report this Comment On August 09, 2013, at 11:29 AM, sogole wrote:

    Stuoid is as stupid does.

  • Report this Comment On August 09, 2013, at 3:49 PM, Cheyenne92 wrote:

    Sad to see them go, but can't say that I blame them. Malloy and Bloomberg keep tightening that choke chain.

  • Report this Comment On August 09, 2013, at 6:17 PM, MR60 wrote:

    OHIO the answer for gun manufacturers and owners

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