In early 2013 Colorado legislators succeeded in passing a sweeping anti-gun package that included, among other things, a magazine capacity limit. Magpul, headquartered in Boulder, Colorado — and arguably the industry leader of AR-15 magazines and accessories — made a pledge to leave the state if the state governor signed the bill into law.
Magpul is keeping their promise with the announcement that they are packing their bags, splitting their manufacturing facilities in two and moving manufacturing to Texas and Wyoming. The transition is expected to be complete by early 2015.
“Magpul made the decision to relocate in March 2013 and has proceeded on an aggressive but deliberate path” said Doug Smith, Magpul’s COO, in a press release. “These dual moves will be carried out in a manner that ensures our operations and supply chain will not be interrupted and our loyal customers will not be affected.”
The split will send the manufacturing, distribution and shipping operations to Cheyenne, Wyo., and the headquarters to Texas. The distance from Boulder to Cheyenne is less than a hundred miles away, which will make relocation for employees easier, and moving the headquarters to Texas will makes paying taxes easier for the company.
“Moving operations to states that support our culture of individual liberties and personal responsibility is important,” said Richard Fitzpatrick, Magpul’s CEO. “This relocation will also improve business operations and logistics as we utilize the strengths of Texas and Wyoming in our expansion.”
“Wyoming and Magpul are a great match. The state is looking to expand and diversify its economy. Bringing an innovative and growing manufacturing operation to Wyoming is a significant step for the state. We offer Magpul an attractive tax environment, stable and reasonable regulations, not to mention a firm commitment to uphold the Second Amendment,” said Wyoming governor Matt Mead.
Magpul will be building a new 100,000 square-foot building in the Cheyenne Business Parkway that will be tailored to their needs as one of the biggest and fast-growing firearm accessory manufacturers in the world; until the facility is constructed they will be leasing a smaller 58,000 square-foot building for the transition. Magpul is receiving assistance from Cheyenne Leads, the city’s economic development board.
“Magpul has a core set of values that guides its business plan, its relationship with its employees and how it develops and produces its products,” said Cheyenne Leads’ CEO Randy Bruns. “We are pleased that they will be anchoring that approach to business here in southeast Wyoming. The company’s move to Cheyenne represents a significant expansion of local manufacturing and job diversity.”
The location for their Texas headquarters has not yet been determined. The company is working directly with Texas governor Rick Perry and his office as well as with help from the Texas Economic Development Corporation.
“In Texas, we understand that freedom breeds prosperity, which is why we’ve built our economy around principles that allow employers to innovate, keep more of what they earn, and create jobs,” said Perry. “I’m proud that Magpul is the latest employer to join the ranks of companies that call Texas home.”
“Excessive government regulation undermines a culture based on personal responsibility and creates a detrimental business environment,” added Fitzpatrick. “Texas supports personal freedoms and our company will thrive in that environment.”
The company will maintain limited operations in Colorado. The company is one of several dozen plaintiffs suing the state to overturn the the recently-signed magazine ban and mandatory background check laws.
The move will cost the state of Colorado at least $85 million a year in tax revenue from Magpul alone, not counting the company’s staff.
This is welcome news for the residents of Texas and Wyoming and the move is very well-supported, even, or perhaps especially by, the people Colorado.