SIG Manufacturing

Basically reading between the lines, the hobby is downsizing. Gone are the days when internationally, kits were sold in the tens of thousands per month for each kit. The facilities at their current location do not support current scaled down demands. I gather that too, although SIG has invested in newer equipment, the older equipment is probably at or near the end of its service life and is more labor intensive to support current production demands. With changes in computer technology, even CNC (computerized numerical control) equipment can be obsoleted quicker than normal scheduled equipment replacement intervals.

Being older facilities, to upgrade them to be more energy efficient and sustainable to reduce operating costs would be probably more expensive than to tear down and build new. Also, any major renovation requires strict adherence to the new building codes, especially the fire codes. For example, fire sprinklering may require them to replace the incoming water lines upsized to support the extra required water flow. They may also have to add or upgrade on-site water storage (i.e., water tank) if the city water supply cannot support the quantities required if a fire occurred.

The age of the buried pipes in the ground may require replacement, if they are near or beyond their reasonable service life. That can add up quickly for additional work required on old buildings versus incorporating as new. It also complicates subdividing and subleasing. The oversized facilities means they pay an additional burden in business property taxes. They can use the sale of the properties to offset the cost of their new facilities.

Here in NM and TX Panhandle, there are a lot of industrial / business buildings that are metal framed with false store fronts in attractive brick. With wide open framing can easily be reconfigured with partition walls and drop in ceilings, etc. Going new, they can lay out their facilities layout to more efficiently operate and hopefully remain profitable, plus reconfigure as necessary to support business direction.

For survivability, I am sure they are doing the right thing.