Magpul Deflects Flak from Liberal Effort to ‘Demonize’ Move from Colorado to Wyoming

February 18, 2014
By
Magpul is under fire again from Democrats.

Magpul is under fire again from Democrats.

DENVER — If Magpul Industries executives were concerned only with reaping financial perks when they made the decision to leave Colorado, they could have done better than Wyoming.

That’s the reaction from a Magpul spokesman in response to liberal critics who have accused the firearms-accessories manufacturer of departing Colorado for reasons of pocketbook, not principle.

“The specific economic incentives Wyoming offers to relocating companies is at or below what other states can offer,” Magpul counsel Jon Anderson told the Colorado Observer. “However, Wyoming offers an excellent business environment for growing companies.”

Magpul has come under fire from the left since announcing Jan. 2 that the company intends to move its manufacturing facility to Cheyenne and its corporate office to Texas, making good on last year’s promise to leave Colorado as a result of Democratic gun-control bills signed into law by Gov. John Hickenlooper.

A Feb. 10 article on the liberal website ColoradoPols carried the headline: “Reminder: Magpul Played Everybody Like a Fiddle,” while the progressive Colorado Independent ran a Feb. 6 article with the headline, “Magpul is relocating because it landed long-sought financial deal.”

“Far from a hardship, [this] could be the most profitable ‘crisis’ in Magpul’s history!” said Colorado Pols in a Jan. 3 post.

Republicans described the reports as an effort by the left to discredit Magpul and rewrite the narrative of last year’s gun-control melee, which resulted in the historic recalls of two Democratic state senators and the resignation of a third.

“They [Democrats] passed a bill that drove hundreds of jobs and millions of dollars of revenue out of the state of Colorado,” said state Sen. Greg Brophy (R-Wray). “How do you defend that, other than to demonize the people who left by saying, ‘Good riddance, they should be gone?’”

“It’s what you do when you’re losing the argument,” Brophy said.

Magpul’s departure came as a huge public-relations blow to state Democrats, who have touted job creation as a top priority. Magpul employs about 200 people and supports another 400 supply-chain jobs, contributing an estimated $85 million to the Colorado economy.

At least two-dozen states expressed interest in luring Magpul, which chose Texas and Wyoming based on factors that included support for “individual liberties and personal responsibility,” said Magpul CEO Richard Fitzpatrick in a Jan. 2 statement.

At a recent committee hearing, state Rep. Mike Foote (D-Longmont) asked Republicans about “the fact that Magpul has accepted about $17 million in government subsidies from Wyoming in order to move there.”

Anderson countered in an email exchange with the Observer “the Wyoming incentives are not ‘subsidies.’”

“[T]hey are loans from Wyoming to the local economic development office Cheyenne LEADS,” said Anderson. “Cheyenne LEADS will use those state funds to build a 100,000+ sq. ft. facility.”

He added that, “LEADS is leasing the facility to Magpul and will repay those state funds.  Magpul has an option after year five of the lease to purchase (the) facility for the full construction cost.”

It was no secret that Magpul was seeking to leave Erie prior to 2013 in search of a larger footprint for its rapidly expanding manufacturing operation. The company had decided by December 2012 to build a state-of-the-art facility in Broomfield, about 15 miles from Erie, but pivoted after the passage of Democratic gun-control bills in March.

Even as they accuse Magpul of jumping ship to the highest bidder, critics have asked whether Magpul actually plans to leave Colorado, pointing out that the company is advertising to hire designers at its Erie location.

Anderson reaffirmed that Magpul is still planning to relocate under the schedule released Jan. 2, adding that the company has been “clear that this move will not interrupt operations or supply chain, and this requires maintaining sufficient personnel to support its ongoing business operations.”

“Any suggestion that a company would be frozen in place during a transition has not run a business,” said Anderson.

He said that Magpul is “committed to maintaining a limited presence in Colorado for the time being.” The January press released estimated that figure at about eight percent, but Anderson said it was “not possible to define with specificity how many employees will be in Colorado since that number will be largely based on how quickly the new space will be available in Wyoming and Texas.”

Officials at Magpul, a plaintiff in the lawsuit challenging the 2013 law limiting magazine capacity to 15 rounds, have emphasized that the company will continue to support gun rights in Colorado.

“They made that commitment to not abandon law-abiding gun owners in Colorado and will honor that commitment,” said Anderson.

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14 Responses to Magpul Deflects Flak from Liberal Effort to ‘Demonize’ Move from Colorado to Wyoming

  1. Barneby
    February 18, 2014 at 12:05 pm

    This entire ploy is misdirection on behalf of Magpul. They’re using the guise of politics to cover their rear ends as they bolt for money.

    • Luv2ski
      February 19, 2014 at 4:04 am

      You go on repeating that lie…but that won’t make it true. You obviously don’t know squat about running a business.

      Magpul could have shopped for much sweeter incentives for the Broomfield facility they planned to build. Much like DigiGlobe got from Broomfield before a better deal at the Avaya facility in Westminster landed in their lap.

      Instead, Magpul got a much leaner deal in the Cowboy State. They walked away from tax incentives and other sweeteners in Broomfield to get the build and lease deal up in Cheyenne. One of the reasons they went with Wyoming was to give their employee base an opportunity to relocate nearby if they were willing. It also lessens disruption in their supply chain. If it was all about money as the Democrat spinmeisters are pushing, they would have gone to TX, lock, stock and barrel.

      As a business ignoramus, you probably don’t know squat about supply chain and manufacturing either. These relationships are critical to manufacturers and they spent a huge amount of effort managing them. Relocation will likely increase Magpul’s COGS because they’ve developed several Colorado based suppliers including some down in southern Colorado. Now Magpul has to absorb the cost to ship those materials north to Wyoming.

      Relocation also poses a burden of recruiting and hiring replacements for the employees that don’t make the move. This is very disruptive and if not carefully managed, will negatively affect product quality and/or delay new product introduction.

      A company in Magpul’s situation would be much better retaining their workforce and getting incentives locally. Make no mistake, this move is NOT a money maker in any five year plan they have. Instead, they are doing what other gun companies have done in NY, CT and MD. They’re voting with their feet. I’m proud of them and will continue to support a company that stands up for its customers.

      • bonhomme
        February 19, 2014 at 6:06 pm

        That’s a thorough and accurate rebuttal which the troll did not read.

  2. February 18, 2014 at 12:15 pm

    The Free People Of Colorado stand shoulder to shoulder with Magpul. We will not be disarmed. We will die defending our rights that our ancestors fought for with their blood. Molan Labe!

    • Shawn D.
      February 18, 2014 at 1:24 pm

      Do you know the real reason they went to Wyoming instead of another state? it was so that their employes that live in Colorado would still have jobs… You lack of understanding is what most liberals face…

      • Brian McFarlane
        February 18, 2014 at 1:58 pm

        I guess you missed that they were planning on staying in Colorado (before the Dem anti-gun bills passed) by moving to Broomfield with a larger place. I suppose it makes logical business sense to only move to Cheyenne as many current employees could possibly still commute or have limited cost moving, only having to move to Cheyenne. Obviously it is less cost to keep current employees rather than higher new ones.

        Not sure what your point is?

        • Brian McFarlane
          February 18, 2014 at 3:16 pm

          Whoops… that should be hire not “higher” lol; oh well, only in Colorado, right.

  3. randian
    February 18, 2014 at 1:08 pm

    Wow, a principled leader of local industry who did what they said they would do. I know that’s hard for liberals and rinos to understand. I wish more folks and businesses could maintain their backbones against the constant onslaught of poorly thought out, unintended consequence laden progressive legislation and groupthink. As a physician, I am planning on standing up against the ACA induced chaos instead of scrambling for the pennies thrown at our feet, whilst our beneficent, omniscient overlords provide hoop after hoop of regulations and tasks which attempt to place complete control over our right to practice independently.

  4. Brian McFarlane
    February 18, 2014 at 2:15 pm

    “Far from a hardship, [this] could be the most profitable ‘crisis’ in Magpul’s history!” said Colorado Pols in a Jan. 3 post.

    Hardship? I don’t recall Magpul claiming a hardship/crisis… Magpul was already planning to move their the company deciding in December 2012 to build a state-of-the-art facility in Broomfield until the passage of Democratic gun-control bills last March.

    The offer they got from Wyoming I suppose was better financially than the planned move to Broomfield… just more reason that the Dems should have not passed bills that have very little to nothing to do with making citizens safer. Obama, Bloomberg and anti-gun zealots have done much more to increase Magpul’s profits than the Wyoming move has.

    Magpul is making principled decisions as well as “pocketbook” decisions. IF they were making only “pocketbook” decisions, that would be principled too. The unprincipled decisions were made by the Dems in the 2013 session.

  5. Tom L
    February 19, 2014 at 8:10 am

    I stand behind Magpul in there decision to move out of Colorado. I am a Gun owner and have Magpul products and will buy many more. I came to Colorado many years ago with the intention of never leaving the State, but now at the end of this month i am relocating to Texas, because of this DUMB Gun Law they passed.

  6. Angus
    February 19, 2014 at 6:13 pm

    The Democratic party will always back the loss of jobs in order to further their failed policies. So now a growing and profitable company is leaving Colorado because of Hickeloopers war on the 2nd amendment. Meanwhile, has anybody found out where 70 million taxpayer dollars went when Abound Solar went out of business? The smart money backs guns and ammo over solar panels and windmills. Unfortunately, Dems are economic illiterates.

  7. Tom
    February 19, 2014 at 9:41 pm

    After this, eBay has gun banning businesses that sell MagPul parts.

    Mine was banned for three days and Magpul items were ‘banned’ even though they are within eBay’s policy. The eBay ads mentioned nothing of what type or firearm the parts would fit.

    ***************************************
    Hello 5280p,
    After reviewing your eBay account, it appears that you have violated eBay’s Assault Weapons Parts and Accessories policy. As a result, we’ve taken the following actions on your account:
    - Selling privileges have been temporarily restricted. You won’t be able to list new items for 3 days. You’re also not allowed to register a new account during this time.
    - Item listings have been removed. A list of removed items is available further down in this email.
    - We have credited any associated fees to your account.

    Due to numerous laws and regulations regarding the sale of assault weapons (including parts and accessories for assault weapons), these items aren’t allowed on eBay.

    You may list accessories that would fit a variety of different weapons, such as scopes, sites, and shoulder straps. However, if you sell these items, you may not mention assault weapons in your listing.

    Listings describing parts or accessories for assault weapons will be removed, including items that do not attach to assault weapons.

    To learn more about our assault weapons policy, go to:
    http://pages.ebay.com/help/policies/firearms-weapons-knives.html

    You listed parts for a firearm that are considered an assault weapon (AR-15/M16). While we appreciate that you have chosen to utilize our site, we must ask that you please not relist in this case. Please review your other active items to make sure that they are in compliance with our Firearms Policy.

    During this restriction, you can still:
    - Send email
    - Obtain shipping addresses
    - Leave Feedback
    - Perform other administrative tasks

    Please be sure to manage any current listings and to complete any open transactions. After 3 days, your account will no longer be restricted. However, keep in mind that any additional violations of this policy could result in the suspension of your account. Once eBay suspends an account, the member no longer has any account access. In addition, all active listings are canceled, and members who placed bids on those listings are notified.

    If you have more questions, contact our policy experts:
    http://ocsnext.ebay.com/ocs/cusr?query=508&domain=email1385

    Here are the listings we removed.
    171237013138 – New – Magpul Rail Vertical Grip (RVG) – Black
    171243111315 – New – Magpul MOE Grip – Folage (FOL)
    171243111783 – New – Magpul MOE Grip – Olive Drab Green (ODG)
    171243112027 – New – Magpul MOE Grip – Black (BLK)
    171243112200 – New – Magpul MOE Grip – Flat Dark Earth (FDE)

    We appreciate your understanding.
    Thanks,

    eBay

    Please don’t reply to this message. It was sent from an address that doesn’t accept incoming email.

  8. Slick
    February 20, 2014 at 6:10 am

    Serves all you dumb liberals and Democrats perfectly with Magpul leaving… Introduce idiotic and anti-business legislation and this is what the result is…You need to read a Business 101 book… lol

  9. Bruce Richardson
    November 1, 2014 at 2:51 pm

    I’m in Houston, Texas. I purchased my first MagPul product yesterday. Part of my purchase decision was based on MagPul’s decision to leave Colorado because of the new and silly Colorado law.

    I purchased a Generation 3, 30-round magazine for my AR-15 style rifle. I’m impressed. I had been using only steel magazines. This polymer magazine is lighter in weight than my others but it appears to be just as strong if not stronger.

    One thing that I noticed is that loading and unloading the magazine with my LULA loader/unloader is much smoother. I haven’t fired my rifle with the new magazine yet but it seems to me from running the cartridges through the rifle by hand it is smoother than with the metal magazines. I plan to purchase more of this. Welcome to Texas MagPul. You have a new customer.

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