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Archive for July, 2014

Some Thoughts on the SIG SAUER Staff Adjustments

Thursday, July 17th, 2014

I recently heard about layoffs of the work force at SIG SAUER‘s facility at the former Pease AFB in New Hampshire. The numbers were very high and I was a bit concerned. I contacted SIG to see if it was true and they sent me the statement you see below. You’ll notice that they refer to the action as a “Staff Adjustment”. While many will write this off to bureaucratese, I’ve taken some time since receiving the statement last night to consider it, as well as what I know about the manufacturing business.

To start with, while SIG did not discuss the numbers with me, I am certain that the high percentages reported and then deleted by another website are untrue. I was there a few weeks ago and the loss of that many positions at once doesn’t add up. Additionally, the deletion of the story from the website that initiated the story tells me that they were way off. In fact, it was that deletion that got me looking into the issue in the first place.

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By no means am I trivializing the issue. To be sure, these are jobs we are talking about and their loss, if even temporary, affects those workers and their families. But, as a manufacturer you don’t want to pay people for work that you don’t need. In the case of SIG (and other gun makers) you don’t want to pay people to build guns you aren’t selling. Anyone who works in manufacturing will tell you that they’ve seen a layoff or three. It’s part of doing business. To do otherwise puts the entire enterprise at risk.

The genesis of these manufacturing positions was panic buying. To meet the increased firearms demand after the Obama Administration’s call for firearms restrictions in response to the Newtown shooting in December, 2012, SIG hired additional workers. They also moved down the road into a new facility. But, those demands have changed and along with them, SIG is adapting.

SIG SAUER® Announces Work Force Adjustments

NEWINGTON, N.H. (July 10, 2014) — SIG SAUER® has instituted a series of work force adjustments to adapt to ever-changing market conditions and manufacturing efficiencies.

The firearms market has begun to cool from the record highs experienced over the past couple of years. Additional resources, including new employees, were brought on to help meet this spike in demand. Now that sales have began to return to normal, an adjustment in staff numbers is needed to maintain an efficient and cost-effective workflow.

Additionally, enhanced productivity and efficiency at the company’s new Newington, New Hampshire, manufacturing facility has made certain positions redundant or no longer needed. In order to maintain quality and control costs, an adjustment in staffing levels is required.

These difficult, but necessary, measures will allow SIG SAUER to continue to deliver innovative, high-quality firearms to its customers. As SIG SAUER continues to grow into new business categories, including ammunition and accessory products, these market-driven decisions will play a significant role.

Become a fan of SIG SAUER on Facebook at www.facebook.com/sigsauerinc.

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Just walk into your local gun store and you can see that the demand for firearms has slowed down since the Newtown shootings. Once bare shelves are now bristling with a wide variety of offerings. I’d say that sales are still up over 2012 levels, but they aren’t anywhere near what they were last year, in 2013. That’s across the board, not just with SIG. SIG SAUER is a privately held company and not a conglomeration of share holders. Also, they aren’t fixated on the next quarter’s earnings. I doubt anyone walked in one morning and said, “Ok, let them go.” Rather, they took a look along view (forward and backwards) at the market and where it was going. The last thing you want to do is lay people off, lower capacity and then have missed the cues for another surge in demand. It’s hard to make money if you don’t have anything to sell. It’s why SIG hired on extra workers, to meet demand, and conversely, when that demand has slowed, they’ve adjusted their staff to meet that new reality.

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I don’t believe that the SIG layoffs are due to low quality or poor products but rather an overall drop in demand for firearms after a record breaking year. I visited SIG in June and President Ron Cohen told an assembled group of gun bloggers that SIG was going to move production of additional handgun models to the US from Europe, next year. Between that and the introduction of the MPX and MCX along with new suppressor designs, I’d say that some of those folks who were laid off will end up returning to work. To me, that’s promising. Many walked in the door knowing that their jobs were temporary. Hopefully, at least some of them will see additional employment with SIG in the future.

New Announcements From TRU-SPEC

Thursday, July 17th, 2014

Tru-Spec has just made a few new announcements regarding their product line, competitive shooting team, and their providing of uniforms for the upcoming Brownell’s Rockcastle Pro-Am 3-gun Championship.

First, Tru-Spec has partnered with A-TACS, and will now be offering their Tactical Response Uniform selections in A-TACS AU and FG. The TRU Shirt, Pant, 1/4 Zip Combat Shirt, Boonie, and Patrol Cap will all be available in the new patterns starting November 2014.

Secondly, Tru-Spec has added Bethany Harris to their roster of award winning competitive shooters. Bethany Harris has competed and placed in USPSA, IDPA, GSSF, and 3-Gun events. Harris, who entered the competitive shooting arena in 2010, has celebrated winning High Lady and a second place Tac-Irons Division finish at the Task Force Dagger 3-Gun in 2014 already this year; adding to a list of accolades, including: 2013 3-Gun Nation Ladies Division: 4th Overall, 2013 3-Gun Nation Divisional Series: 3rd Tac-Irons Division, 2013 Southeastern 3-Gun Championship: Tac-Irons Division Champion and match High Lady, 2012 3-Gun Nation Amateur Series Finish: 9th and 2012 3-Gun Nation Ladies Division Finish: 5th.

Lastly, Tru-Spec has been awarded the tile as “Official Range-Wear” for the 2014 Brownell’s Rockcastle Pro-Am 3-Gun Championship. They will be outfitting the entire staff with an option of 24-7 Series Shorts or Pants, Performance Polos, and Tac-Ts. Rockcastle will be hosting more than 500 shooters on the various courses, making it the largest gathering of competitors (and sponsors) at any one 3-gun outing.

The 2014 Brownell’s Rockcastle Pro-Am 3-Gun Championship is taking place at Rockcastle Shooting Center at Park Mammoth Resort in Park City, KY, August 22-24.

www.truspec.com

Gellman Gear Tactical – Team USA RWB Plate Carrier

Thursday, July 17th, 2014

RWB Plate Carrier

We put this picture up on our Facebook page and it garnered a lot of attention, so in the interest of cool, custom gear, here’s the story:

The Team USA RWB (Red, White, and Blue) Plate Carrier was made by Fayetteville-based Gellman Gear Tactical as a small run for a specific group. Recently, they posted an auction on eBay for a custom version made to order for the winner. It was listed as being made from 1000D nylon with MilSpec elastic/webbing, buckles, and thread, removable shoulder pads, and a three (3) cell pouch “sized for 12-24 oz canned beverages”, built around the SAPI plate size requested. Although that auction has ended, don’t fret – there may be more of these carriers available at an undisclosed time if Gellman is able to source the proper hardware.

Keep an eye out on the Gellman Gear Tactical Facebook page and gellmangear.wordpress.com for more information.

Warrior Expo ADStv | CASE Construction Heavy Equipment & Procurement

Thursday, July 17th, 2014

Ever hear of the DLA Heavy Equipment Procurement Program (HEPP)? I hadn’t either until last week’s Warrior Expo. It’s intended to facilitate the rapid acquisition of “commercial-type” heavy equipment used by a variety of military and other federal government agencies. Check out some of the stuff you can buy with it.

adsinc.com/case-construction-heavy-equipment-procurement

Warrior Expo ADStv | SeaBotix Underwater Remotely Operated Vehicle (ROV) Solutions

Thursday, July 17th, 2014

If you’ve never seen an underwater Remote Operated Vehicle in action, you need to check out this SeaBotix model.

adsinc.com/seabotix-rov-solutions-warrior-expo-east-ads-tv

Warrior Expo ADStv | Specialized Chemical Ordnance Transportation System

Thursday, July 17th, 2014

ADS Inc and United Tactical Supply teamed up to offer the Specialized Chemical Ordnance Transportation System. The SCOT system includes all the tools and materials necessary for sealing, decontamination, and transport of unexploded chemical ordnance.

For additional info, see adsinc.com/specialized-chemical-ordinance-transportation-scots-kit-warrior-expo-east-ads-tv

Warrior Expo ADStv | Dismounted FREE System

Thursday, July 17th, 2014

The Army is starting to talk publicly about developing a new FR clothing system for dismounted troops that would leverage features of both the general issue Extreme Cold Weather Clothing System Gen III and Fire Resistant Environmental Ensemble used by mounted and aviation crewmen. Two years ago, ADS Inc took a look at this issue and introduced their take on the concept called Dismounted FREE. Here, Ike Horvath from ADS highlights the features, functions, and solutions behind the system.

For more information, visit adsinc.com/dismounted-free-warrior-expo-east-ads-tv.

Details On The Tactical Holdings Chapter 11 Bankruptcy Filing

Thursday, July 17th, 2014

Last week, Tactical Holdings filed for Chapter 11 Bankruptcy protection in Federal Court in Wilmington, DE. The brands under Tactical Holdings include well known FR clothing manufacturer Massif as well as footwear makers Wellco and Altama as well as other companies Tactical Intermediate Holdings Inc, Tactical Holdings Operations Inc, Ro-Search Inc, Mo-Ka Shoe Corp, and Massif Holdings LLC. As you may recall, Ro-Search developed the Panama sole used in the old jungle boot.

Fortunately, they were given permission to use up to $3.5 Million in loans from Wells Fargo to pay vendors in order to keep things going through the process.

At face value this looks pretty scary for these brands but Massif may well come out of this situation stronger than before. While all brands were given until the end of July to find buyers, Massif has already been courted by Sun Capital Partners, who owns Point Blank Solutions, Protective Products Enterprises, Paraclete, Kelty, Sierra Designs, Slumberjack, Ultimate Direction and Royal Robbins. These guys know how to do it. Dow Jones reports that Sun Capital Partners has a $13 Million offer for Massif. As I understand it, Massif will go to auction soon with Sun Capital Partners as keen bidders who wish to nurture the business alongside its other holdings.

In a telephone interview with Noelle Christensen of Massif, she related, “As you know, we’re part of a larger corporate group, including footwear brands Wellco and Altama. The corporation, along with all entities, filed Chapter 11 last week. This court process will divest Massif from Tactical Holdings and Massif will be proceeding with an auction soon, to determine if Sun, or another investor, will be taking ownership.

Massif is a strong company and we’ll remain strong after this process is complete. As mentioned in the court filings, Massif received approval to pay vendors deemed critical during this process, so we can continue to deliver high-performance protective clothing to the warfighter.”

Unfortunately, the outlook isn’t as good for the footwear brands. Declining contracts and an investigation last year into sourcing of footwear has led to layoffs at Wellco. If they can’t find a buyer, DoD contracts will be moved elsewhere.

I would say that assuredly, Tactical Holdings as we know it, will cease to be. Things look promising for Massif who may find a new home alongside other PPE manufacturers. However, considering the crowded tactical footwear market, we are unsure who might go after not one, but two boot makers.