It’s commonly known in America that much of the everyday consumer products that citizens purchase are manufactured elsewhere in the world. Even some of today’s hottest selling “American” items aren’t actually made in American. On the back of every single iPhone for instance, it reads “Designed by Apple in California Assembled in China.”
One company, however, is bucking this trend and setting up a plant in the United States to produce handgun grips as well as other plastics technologies.
For years, as company after company moved away from the United States to produce, one industry has largely remained true to its U.S. roots and is still hugely dominated by American manufacturing. That industry is gun manufacturing.
There’s a number of different reasons why producing guns in America is much preferred to producing them outside of the U.S., some legal and some not, but for a number of reasons, historically, this sector of the economy has remained within the borders of the United States.
Now, Gripfactory LLC is moving the production plant of its original 1911 grip facility to Arkansas from its current location in Hong Kong. The facility makes grips for the popular American handgun that is commonly referred to as the “1911,” signifying the year of its inception.
The stated reason for its move was to save on transportation and legal costs involved with being an exporter in the Hong Kong region.
“There are a lot of costs involved with exporting products in this industry. Different countries have vastly different laws and sorting through all them for each distribution can get quite expensive. Since the majority of our sales occur in the United States, we are choosing to move current plant operations to better serve our client base. And as of right now, we will only be moving the production of our custom grips for the 1911 model,” said company spokesman Lee Chen.
In the same press release, Chen said they have been debating this for some time and the only thing holding them back from the move sooner was the U.S. corporate tax structure.
“We would have been happy to have moved production the U.S. 5-10 years earlier, but the taxing structure is a big drawback on business. The U.S. is one of the highest taxed countries to set up your operations in, so we heavily debated this, but think in the long wrong it will still be the right move.”
This is a problem that is facing Asian-American business owners all across the United States in their efforts to expand their operations: our blatantly uncompetitive tax code. How can we expect people to want to come here and set up operations when we refuse to compete with the rest of the world? Gripfactory is clearly an anomaly to the nationwide trend of companies leaving as a result of the high corporate tax infrastructure. Even after their decision to move to the United States, their statement shows that we could have had these jobs 5-10 years earlier but our tax code stopped it from happening.
In order for businesses to thrive and for employees to maintain a higher degree of economic opportunity in the future, the government should consider fundamental tax reform that makes this great country a little more competitive on the worldwide stage. We need to empower our citizens, not doom them to the bottom of the barrel with a tax structure the rest of the world is fleeing from.