38 replies to this topic

[Xwing]

TyGuy, on 20 May 2013 - 10:27 AM, said:

Then why haven't they announced where they started moving to two months ago?  Something doesn't sit well with me about it.

I think MagPul is in the process of following through with their promises.  It takes a very long time, and it makes sense they won't announce the new location until they have everything (tax advantages, lease, etc...) in place.  Doing so beforehand would weaken their negotiating.  Even if they have a place 100% picked out, they may not want to let their suppliers & vendors know until they lock in good deals...

[TyGuy]

If they have started moving already, as they have stated, why would they not just state where they are moving to?  Skeptical TyGuy remains skeptical.  Of course I'll keep buying Magpul products.

[richp]

Hi Ty,

If they're negotiating with competing cities/states for relocation incentives, tax breaks, training subsidies for local residents, and so forth, it wouldn't seem to be in their interest to put all their cards out on the table.

FWIW.

Rich Phillips

[TyGuy]

Which is it then?  They haven't chosen a state and are negotiating or have they already started moving to a new location, as they stated, and thus can say "we've moved to _____?"

[richp]

Hi Ty,

I don't have a single piece of inside information -- I'm just going off what they have released.

My guess is they're in the throes of trying to maintain a semblance of production, nail down a new location or locations, negotiate contracts for facilities, find a firm or firms that can move and set up their equipment, and figure out how to deal with all the associated workforce issues.

Maybe they don't have any PR experience, or the extra money to hire a PR firm to make them look good in public. After all, very few small companies would be well equipped to function in the PR vortex they're in right now.

I just can't quite figure out why  the skepticism. I say we take a wait and see approach.

FWIW.

Rich Phillips

[TyGuy]

The skepticism is, as I already stated, they keep saying they are going to release the information on date X, date X comes and they push it off.  It's been months, and they stated that they have begun the move yet we have no information on where they're headed.  Reminds me of how the House plays with Rep Phelps.

I'll support your bill if you include X.
*Phelps includes X*
Oh, I still can't support it.  I'll support your bill if you include Y.

Lather rinse repeat.  I'm going to stay skeptical until they make a more definitive statement.

[StreuB1]

Inside info.........

Magpul relies heavily on a few key suppliers and 2 of 3 key supply shops local to them. Three of the "Job Shops" are also following due to the closeness of their business and what these places do for them. Magpul does high production plastic molding......I will let those that are in mfg take an educated guess at what those few key "Job Shops" do for Magpul. If you understand mfg, you know that if you are going to move.....production is one of the last pieces to make the move.

Key raw material suppliers keyed up
Key functional suppliers and outsource providers keyed up
Begin fit out of new facility while outsource suppliers begin op's
Fully vet new suppliers as well as facility op's of relocated suppliers
Begin test op's at new facility
Begin parallel op's across both facilities
Verify op's and cap's at new facility
Begin shutdown process of old op's

This is also ignoring the move of all the employee's that each company is moving. This is a massive logistical endevour. The people need to get on their feet in the new location and get ready. New hires need to be done. etc.

Magpul is no small operation

[skinnyb82]

Relocating a manufacturing operation period is no small endeavour.  It's the reason why Deere and Cat continue to extort tax credits from Quinn.  They'd relocate in a heartbeat if it wouldn't cost a boatload of cash.  Easier to threaten the Governor.

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[StreuB1]

skinnyb82, on 21 May 2013 - 10:39 AM, said:

Relocating a manufacturing operation period is no small endeavour.  It's the reason why Deere and Cat continue to extort tax credits from Quinn.  They'd relocate in a heartbeat if it wouldn't cost a boatload of cash.  Easier to threaten the Governor.

Sent from my SCH-R530U using Tapatalk 2

You got it!!!!

"Is the juice worth the sqeeze" is the instant sanity check on things like this. Pretty simple.

In the case of Magpul, it is. Them moving will secure customers for the life of the business based on principal alone no matter what happens. It is a business move and a philosophical move. They are a big company yet run small. They are all normal people and their still believe their actions are watched and speak louder than their words.

I wish our government felt and acted the same way.