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Well .. maybe .. but this part is concerning .. Production will transition into Atlas’s global manufacturing and supply network, ensuring continued availability and consistent quality standards worldwide.
Well I hope not. Given the current import environment and the long-term fallout thereof, moving a functioning US operation overseas is... is... foolhardy, to say the least. The bean-counters must be banking on the current instability in import/export administration settling in their favor. It's going to be different, wherever the policy lands.The biggest problem with on-shoring across the board is the loss of factories and other physical facilities to on-shore to. It just seems monumentally insane to close a functioning operation only to move it to an operating environment (i.e., China) where you are mandated to relinquish control of your production assets. As Mike says, maybe it's not going to be China, but personally I'd err on the side of something like a Micro Engineering situation where production was moved within the U.S. to a region with an available and possibly less-expensive labor pool.
They're in a town with a sub 10,000 person population and in a pretty rural part of the world.
[recalculating]Ed, Talent is a suburb of Medford. The metro area has a population of 250,000. That's not to say they haven't been impacted by the runaway costs of housing like most coastal regions and that MTL can't shoulder what it takes to retain staff, but it's not an especially rural region.
Guys, before we all run out of the building screaming...You're comparing MTL pre-fires to a fear of a China Atlas future. And neither is the right framing.MTL wasn't as sustainable post-fire. While they may have been in the black still, they weren't able to produce what they used to. Ed already alluded to the continuing story of production and assembly bottle necks. Look at their trimming of production for things like Z and Nn3 and HOn3 and whatever... they have been shrinking. And that's not good for a company's long term sustainability either. In business, if you're not growing you're dying, right? MTL hasn't been growing...Atlas has built a global network, beyond China. So it's also not the right framing to assume its going to China entirely either. Don't fall into that trap. It's going to be OK. And, it might even be a bit better. Just give it a couple months to transition!
Under the agreement, Atlas will assume ownership of Micro-Trains’ molds, tooling, and associated intellectual property...