If you live outside a large city or have roots in rural areas, the economic drivers of the economy tend to be agriculture because the land grants allowed settlers to receive land for free if for 5 years they showed improvement on it. After the agriculture becomes the institutional uses such as government offices, educational uses such as public and high schools and maybe a college, then services to the people of the area. Once in a while an industry has developed and has lasted for decades and everyone expects the industry to last for more decades. Then the reality of manufacturing decades before and what manufacturing takes in the present time days changes because of innovation and technology. It is blow to the small town the manufacturer leaves because it will take decades before something replaces it.

In an article by Michael Hill of the Associated Press, the rifle called the Remington has invented and made in the town of Ilion, New York which is about 30 minutes north of Cooperstown (home of the National Baseball Museum) in upstate New York. Eliphalet Remington founded the company in 1816 and it has a long history of making rifles. Within that long history, the manufacturing plant expanded and just about everyone in town either work for or knew someone working for the company. The plant covers 34 acres and a million square feet of red brick industrial buildings.

The company announced it was shutting down the plant and moving operations to La Grange, Georgia which is halfway between Atlanta, Georgia and Montgomery, Alabama. Companies offer many reasons, but one given was the state was friendlier to the firearms industry. This typically means the government is trying to stay out of their business or asking softball questions.

Linking to dividend paying stocks, all companies are started somewhere and if successful expand over time. In the internet age, we have seen many companies can operate from anywhere and larger companies have operations in more than one setting, partly as a risk management process. When the company moves, for perhaps all the correct economic reasons, people are left behind and it will be a few years before they adjust as some will start small businesses, some will retire, some will move and eventually some outsiders will come in and see the town for new opportunities, but that takes time. The closing of the plant is considered doing what is the greater good or the best interests of the company and this year there will be more mergers and acquisitions and some of that will be driven by cutting costs. As investors you accept the decisions to ensure the company remains profitable and can pay dividends.

There are more questions than answers, till the next time – to raising questions.