When a state becomes too hostile to industry—whether by high taxes, through regulations, or other anti-business laws—the only rational option employers are left with is to leave. We've seen this time and again in California. After analyzing the data between January 2018 and June 2021, researchers determined there were 265 headquarter relocations in The Golden State, Forbes reports, which averages six per month. California isn't alone, of course, and this week, a major gun manufacturer had to pull the trigger on moving out of Massachusetts.
Despite being in Springfield since 1852, Smith & Wesson announced Thursday that its headquarters and a "significant portion of operations" will be moved to Maryville, Tennessee, in 2023.
The decision came after proposed gun legislation that, if passed, would prevent the company from manufacturing a product that accounted for over 60 percent of its revenue last year.
"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," CEO and President Mark Smith said in a statement.
"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," he continued. "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 company will also close its facilities in Connecticut and Missouri to consolidate at the new Maryville location, which was chosen due to the business-friendly environment, pro-Second Amendment values in the state, and quality of life factors for employees, among others other reasons.
"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 2nd Amendment and for creating a welcoming, business friendly environment."
