Beretta USA

Gov. Martin O’Malley (D-Maryland) is exploring a run for President in 2016. He will be going to Iowa this weekend to appear at a series of Democratic fundraisers. While he may think his positions on gun control will play well with the hard-core Democrats who vote in primaries, I somehow doubt the announcement from Beretta USA below saying that they are moving their entire manufacturing capabilities will add to his reputation with everyone else.

Manufacturing jobs are the ones that states fight over when it comes to economic development. States rarely seek to push out high-paying skilled jobs but Maryland seems to be the exception. I guess its political leaders believe feeding at the Federal trough with all their government workers is more important than encouraging companies that actually make things.

From Beretta USA:

Beretta U.S.A. Corp., located in Accokeek, Maryland, announced today that it has decided to move its manufacturing capabilities from its existing location to a new production facility that it is building in Gallatin, Tennessee. The Gallatin facility is scheduled to be opened in mid-2015. Beretta U.S.A. had previously planned to use the new Gallatin, Tennessee facility for new machinery and production of new products only.

“During the legislative session in Maryland that resulted in passage of the Firearm Safety Act of 2013, the version of the statute that passed the Maryland Senate would have prohibited Beretta U.S.A. from being able to manufacture, store or even import into the State products that we sell to customers throughout the United States and around the world. While we were able in the Maryland House of Delegates to reverse some of those obstructive provisions, the possibility that such restrictions might be reinstated in the future leaves us very worried about the wisdom of maintaining a firearm manufacturing factory in the State,” stated Jeff Cooper, General Manager for Beretta U.S.A. Corp.

“While we had originally planned to use the Tennessee facility for new equipment and for production of new product lines only, we have decided that it is more prudent from the point of view of our future welfare to move the Maryland production lines in their entirety to the new Tennessee facility,” Cooper added.

The transition of production from Beretta U.S.A.’s Maryland facility to the Tennessee facility will not occur until 2015 and will be managed so as not to disrupt deliveries to Beretta customers. Beretta U.S.A.’s production of the U.S. Armed Forces M9 9mm pistol will continue at the Accokeek, Maryland facility until all current orders from the U.S. Armed Forces have been filled.

“We have not yet begun groundbreaking on the Tennessee facility and we do not anticipate that that building will be completed until the middle part of 2015,” continued Cooper. “That timing, combined with our need to plan an orderly transition of production from one facility to the other so that our delivery obligations to customers are not disrupted, means that no Beretta U.S.A. Maryland employee will be impacted by this news for many months. More importantly, we will use this time to meet with every Beretta U.S.A. employee whose Maryland job might be affected by the move to discuss with them their interest in taking a position at our new facility in Tennessee or, if they are not willing to do so, to lay out a long-term strategy for remaining with the Company while our production in Maryland continues.”

Beretta U.S.A. anticipates that the Gallatin, Tennessee facility will involve $45 million of investment in building and equipment and the employment of around 300 employees during the next five years.

Beretta U.S.A. has no plans to relocate its office, administrative and executive support functions from its Accokeek, Maryland facility.