Palmetto State Armory Factory Tour & CEO Interview – Part 1
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Palmetto State Armory Factory Tour & CEO Interview – Part 1


Hi Gear heads Jeff with your report I’m here today at Spartan Forge with
Chad Wylie the CEO of Palmetto State armory. The investment group that owns
Palmetto State… they own a bunch of companies one of them is recently
acquired also here at Spartan Ford we have a neat story here just in the idea
that that they buy companies and then put money into them so you can get cool
new things like what do we have here sure this is a state of the art press or
our new forge we’ve got a forging operation down below this building that we
just toured right basically this will increase our productivity increase
production it’s more efficient power consumptions a lot less right little
green technology they’re going in and it’ll actually give us a little bit more
diverse product basis on our delivery to the customer right I see you on
Facebook every now and then lurking around in gun groups and making comments
and people don’t know who they’re talking to. No. Which is kind of funny
it’s funny but neat as well I mean a real connection to the consumer
something that I see the consumers say many people over and over is there a
couple different forging places everyone gets them the same place what are the
reasons that you’re investing in something as basic as forging your own
parts versus I mean you could sub those out and get them from from someone else
yeah as people do the education process that they AR platform there are a small
number of forges in the country and you’re relying on those forges. if the
market shifts you’re in line with everybody else to get that forged
product and what we wanted to do to be able to get the best price to the
customers always have that product available to the customers we looked at
the basics the beginning of the AR cycle which is the forge process so we’ve
made the investment in purchasing Spartan to be able to have the ability
to be able to forge our own uppers as we see fit and that gives us a competitive
advantage to be able to have that first right of all the forges that come to our
product line action right and there’s another interesting thing that you kind
of slipped in there you’re not just making them for Palmetto State or right
so we’ll be able to have a diverse catalog we will be able to sell what we
don’t use to other customers and other contracts as we see fit
yeah as far as you know I was not trying to get him to reveal who those other
folks are but rather just to acknowledge It is something you see over and
over is oh they’re all coming from the same places and well no this is I know
where this is coming now because the next building over that we watched them
I’ll overlay some video of that of the forge running and actually it’s really
hot process it’s a it’s something else to see you know when we toured a few of
us on the gear report team toured the Columbia facility
Jamin was showing us around and talking about part of the rationale you
mentioned it is being able to keep the cost down for the customer and a couple
things that really struck me in that discussion he kept coming back to over
and over was yes if you want to control the flow part but bringing the costs
down for the customer so what else are you doing we talked about the forge
which does your lower receiver your upper receiver are you also forging your
own things for like the new AK line? The akv has forged parts are those coming out
you hear not yet this is fairly new for us also learning experience and what
we do know really well is the AR right I mean we are that’s our bread and
butter product that’s what we do and that’s where we’re gonna start
I don’t know of any plans immediately Jamie to be able to better tell you on
the AK side. I know that our AR production is pretty much the number one
thing that we’re focused on right now right so some of the other parts we’ll
continue to use vendors and whatnot based on our checks to supply them but
for now I think we’re gonna focus on the AR market so from a business model
standpoint when I first was introduced to a few years ago because I wasn’t an
ak or excuse me I’m still not an ak guy wouldn’t an AR guy forever you know last
four or five years I’ve really kind of come around to the AR platform that’s
when I met the company was you know four or five years ago and my understanding
is it was mainly parts assembly everything came from other places and I
don’t want to talk about any of the specific brands you see the debates
online what kind of barrel to get it looks to me from what I’ve seen in
various facilities you’re looking to make pretty much every
part yeah 90% of it we’ve we’ve not delved into the small parts yet because
they’re pretty plentiful and it’s just not from our perspective a competitive
advantage to make a safety detent right I mean those by bulk what we’re trying
to do is control every aspect that we typically run into issues with if there
ever is a surge in demand so we started out with the forge we’re doing our own
uppers as you saw it STS and DC and their quality is amazing I mean some of the
things that the effort that they’re putting in and going into the testing
and the material differences in the products and parts is just in my opinion
outstanding you know and they’re doing a good job with that but we do own the
majority of the parts that go on the AR with the exception of some of the
injection molded parts pistol grip stocks got a great relationship with
Magpul to provide those but the rest of it we we have made great effort in
creating ourselves so that we can control that and it’s controlling our
destiny and then to help push that out to the customer if you look at the
business model the way we operate if we can manufacture all the parts assemble
the parts and sell them directly to you you don’t have to go through the gun
shops or the distribution channels and we’re basically taking it anywhere for
15 and 30 percent margin of the platform out to be able to give you a product
it’s good quality I mean amazing quality it’s it’s it’s a good product and it’s
at less price because we’ve cut out that distribution model that’s traditionally
been a part of the industry

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