Thanks for nothing, Colorado: Magpul gun firm relocating to Texas, Wyoming
Company denounces state curbs passed by Democrats
At the same time, the company plans to maintain a toehold in Colorado in order to continue to fight the gun bills passed by the Democratic-dominated state legislature and signed in March by Democratic Gov. John Hickenlooper.
“Moving operations to states that support our culture of individual liberties and personal responsibility is important,” said Magpul CEO Richard Fitzpatrick, who started the privately-held company in 1999 from the basement of his home in Longmont, Colo. “This relocation will also improve business operations and logistics as we utilize the strengths of Texas and Wyoming in our expansion.”
Magpul officials plan to split up the company’s corporate and manufacturing arms, both of which are now located in Erie, Colo. The corporate headquarters will relocate to Texas, and a site-selection committee has narrowed the final destination to three locations in the state’s north-central region.
Meanwhile, Magpul’s manufacturing and distribution facility will move about 80 miles north to Cheyenne, Wyo. Company officials say they plan to lease a 58,000-square-foot building for two to three years while they construct a 100,000-square-foot custom facility in the Cheyenne Business Parkway.
Wyoming Gov. Matt Mead, a Republican, said in a statement that “Wyoming and Magpul are a great match.”
“Bringing an innovative and growing manufacturing operating to Wyoming is a significant step for the state,” Mr. Mead said. “We offer Magpul an attractive tax environment, stable and reasonable regulations, not to mention a firm commitment to uphold the Second Amendment.”
The move is a particular coup for Texas Republican Gov. Rick Perry, who openly wooed gun companies based in states considering restrictive gun laws to consider the Lone Star State as a new base.
“As you consider your options for responding to unwarranted government intrusion into your business, you may choose to consider relocating your manufacturing operations to a state that is more business-friendly,” Mr. Perry wrote in an open letter to more than two dozen gun companies in February. “There is no other state that fits the definition of business-friendly like Texas.”
Mr. Perry said Thursday that he was “proud that Magpul is the latest employer to join the ranks of companies that call Texas home.”
In addition, Magpul, which is a plaintiff in the lawsuit filed by 55 Colorado sheriffs against the new state law limiting ammunition magazines to 15 rounds, plans to retain “limited operations” in Colorado. About 92 percent of its workforce will relocate outside Colorado within 12 to 16 months, according to a company release.
“We made a commitment publicly that we would not abandon the law-abiding gun owners in our own state, and we want to honor that,” said Duane Liptak, Magpul director of product management and marketing.
Pushed out by gun-control laws
None of this was on Magpul’s radar a year ago. In January 2013, the rapidly expanding manufacturer was planning to build a state-of-the-art facility in Broomfield, about 13 miles from its current location here in Weld County.
Everything changed when company officials realized that the Democratic legislature, prodded by out-of-state groups like Mayors Against Illegal Guns, was moving forward with an ambitious package of gun-control bills, including a bill to restrict ammunition-magazine capacity. Another major motivating force were two mass shootings in 2012, including a deadly attack by a lone gunman on an Aurora movie theater.
“Moving operations to states that support our culture of individual liberties and personal responsibility is important,” said Magpul CEO Richard Fitzpatrick, who started the privately-held company in 1999 from the basement of his home in Longmont, Colo. “This relocation will also improve business operations and logistics as we utilize the strengths of Texas and Wyoming in our expansion.”
Magpul officials plan to split up the company’s corporate and manufacturing arms, both of which are now located in Erie, Colo. The corporate headquarters will relocate to Texas, and a site-selection committee has narrowed the final destination to three locations in the state’s north-central region.
Meanwhile, Magpul’s manufacturing and distribution facility will move about 80 miles north to Cheyenne, Wyo. Company officials say they plan to lease a 58,000-square-foot building for two to three years while they construct a 100,000-square-foot custom facility in the Cheyenne Business Parkway.
Wyoming Gov. Matt Mead, a Republican, said in a statement that “Wyoming and Magpul are a great match.”
“Bringing an innovative and growing manufacturing operating to Wyoming is a significant step for the state,” Mr. Mead said. “We offer Magpul an attractive tax environment, stable and reasonable regulations, not to mention a firm commitment to uphold the Second Amendment.”
The move is a particular coup for Texas Republican Gov. Rick Perry, who openly wooed gun companies based in states considering restrictive gun laws to consider the Lone Star State as a new base.
“As you consider your options for responding to unwarranted government intrusion into your business, you may choose to consider relocating your manufacturing operations to a state that is more business-friendly,” Mr. Perry wrote in an open letter to more than two dozen gun companies in February. “There is no other state that fits the definition of business-friendly like Texas.”
Mr. Perry said Thursday that he was “proud that Magpul is the latest employer to join the ranks of companies that call Texas home.”
In addition, Magpul, which is a plaintiff in the lawsuit filed by 55 Colorado sheriffs against the new state law limiting ammunition magazines to 15 rounds, plans to retain “limited operations” in Colorado. About 92 percent of its workforce will relocate outside Colorado within 12 to 16 months, according to a company release.
“We made a commitment publicly that we would not abandon the law-abiding gun owners in our own state, and we want to honor that,” said Duane Liptak, Magpul director of product management and marketing.
Pushed out by gun-control laws
None of this was on Magpul’s radar a year ago. In January 2013, the rapidly expanding manufacturer was planning to build a state-of-the-art facility in Broomfield, about 13 miles from its current location here in Weld County.
Everything changed when company officials realized that the Democratic legislature, prodded by out-of-state groups like Mayors Against Illegal Guns, was moving forward with an ambitious package of gun-control bills, including a bill to restrict ammunition-magazine capacity. Another major motivating force were two mass shootings in 2012, including a deadly attack by a lone gunman on an Aurora movie theater.
“We made the
decision that if this package of bills passes, our company is going to
be forced to relocate operations,” said Chief Operating Officer Doug Smith in an interview at the Erie corporate office.
It’s not every day that legislators run a successful business out of the state, which is what makes Magpul’s story so compelling. But after the gun incidents in 2012, state Democrats entered the legislative session determined to crack down on access to firearms and magazines.
But their bills were criticized as confusing and even illogical. Magpul officials argued that the magazine bill’s original draft would have made it unlawful to manufacture some of its products or sell them outside Colorado.
Democrats attempted to address some of the company’s concerns by amending the bill, while the governor issued a signing statement to clarify the intent, but that only worried company officials even more.
“[That] clearly exemplified in our mind that there was confusion around what the bill said,” said Mr. Smith. “Companies always have to work to manage and mitigate risk, and risk of this type we have to eliminate. Our concern going forward is that through rulemaking or some other means, legislators would move the effect of the bill closer to the original language.”
Magpul’s leadership was also concerned that remaining in Colorado would be seen as a betrayal of its customers and its core values.
“We believe that personal freedoms are inextricably linked to personal responsibility, and to continue to be based in a state where law-abiding citizens cannot purchase our products would be a betrayal of those values and a betrayal of our customer base,” Mr. Smith said.
Seeking political stability
As soon as the bills were signed in March, Mr. Smith said Magpul officials drew up an analysis of states that met the company’s criteria, including “business-friendliness, political stability and respect for our company values: individual freedoms and personal responsibility.”
Texas and Wyoming emerged at the top of the list. Business and government officials in both states have welcomed Magpul, which employs about 200 people and manufactures polymer accessories for the military, law enforcement and recreational shooters.
Its first product was a simple plastic loop that would fit on a soldier’s gear and hold a magazine that could be easily pulled out — a “magazine pull,” nicknamed a “magpul.” Mr. Fitzpatrick, a former Marine Force Recon sergeant, designed the magpul based on his experience in the field.
That focus on innovation, along with the use of polymer instead of wood or steel, have earned Magpul a reputation as a next-generation firearms company. Its corporate offices, with their open spaces and no guns in sight, could just as easily house a software or Internet company. Magpul even makes an iPhone case, just because its designers and engineers weren’t happy with the ones they found on the market.
“We know that our opportunities down the road are very, very significant,” Mr. Smith said. “We want to achieve something beyond what we’ve already achieved, and diversifying geographically. The support that we’ve gotten from Wyoming and Texas, that’s a key part of what we’re going to do.”
It’s not every day that legislators run a successful business out of the state, which is what makes Magpul’s story so compelling. But after the gun incidents in 2012, state Democrats entered the legislative session determined to crack down on access to firearms and magazines.
But their bills were criticized as confusing and even illogical. Magpul officials argued that the magazine bill’s original draft would have made it unlawful to manufacture some of its products or sell them outside Colorado.
Democrats attempted to address some of the company’s concerns by amending the bill, while the governor issued a signing statement to clarify the intent, but that only worried company officials even more.
“[That] clearly exemplified in our mind that there was confusion around what the bill said,” said Mr. Smith. “Companies always have to work to manage and mitigate risk, and risk of this type we have to eliminate. Our concern going forward is that through rulemaking or some other means, legislators would move the effect of the bill closer to the original language.”
Magpul’s leadership was also concerned that remaining in Colorado would be seen as a betrayal of its customers and its core values.
“We believe that personal freedoms are inextricably linked to personal responsibility, and to continue to be based in a state where law-abiding citizens cannot purchase our products would be a betrayal of those values and a betrayal of our customer base,” Mr. Smith said.
Seeking political stability
As soon as the bills were signed in March, Mr. Smith said Magpul officials drew up an analysis of states that met the company’s criteria, including “business-friendliness, political stability and respect for our company values: individual freedoms and personal responsibility.”
Texas and Wyoming emerged at the top of the list. Business and government officials in both states have welcomed Magpul, which employs about 200 people and manufactures polymer accessories for the military, law enforcement and recreational shooters.
Its first product was a simple plastic loop that would fit on a soldier’s gear and hold a magazine that could be easily pulled out — a “magazine pull,” nicknamed a “magpul.” Mr. Fitzpatrick, a former Marine Force Recon sergeant, designed the magpul based on his experience in the field.
That focus on innovation, along with the use of polymer instead of wood or steel, have earned Magpul a reputation as a next-generation firearms company. Its corporate offices, with their open spaces and no guns in sight, could just as easily house a software or Internet company. Magpul even makes an iPhone case, just because its designers and engineers weren’t happy with the ones they found on the market.
“We know that our opportunities down the road are very, very significant,” Mr. Smith said. “We want to achieve something beyond what we’ve already achieved, and diversifying geographically. The support that we’ve gotten from Wyoming and Texas, that’s a key part of what we’re going to do.”
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