Milwaukee Tool acquires Empire Level

[Dave Lehnert]

http://www.milwaukeetool.com/press-releases/milwaukee-tool-acquires-the-empire-level-business

[Peter Kelly]

Awesome. Looking forward to seeing more of Empire's products made in China :mad:

[Rick Fisher]

The brand name is worth more than the product.. :(

[Curt Harms]

Awesome. Looking forward to seeing more of Empire's products made in China :mad:

I sure hope not though I wouldn't bet against it. Something like 80% of Empire's products are made in the U.S. presently. Their stuff isn't Starrett durable but I've had better luck with it being square/level than its competition. Better Milwaukee than Stanley/B&D though IMO.

[Peter Kelly]

Milwaukee is owned by TTI Holdings (http://www.ttigroup.com). I'd be very surprised if they didn't shut down all of Empire's manufacturing in the US and move everything to China.

They're just as low-end as Stanley/B&D if not more so.

[Phil Thien]

I sure hope not though I wouldn't bet against it. Something like 80% of Empire's products are made in the U.S. presently. Their stuff isn't Starrett durable but I've had better luck with it being square/level than its competition. Better Milwaukee than Stanley/B&D though IMO.

Milwaukee is a TTI brand. The only reason I can think of for TTI to structure this deal as a Milwaukee acquisition rather than a TTI or OWT (One World Technologies, which seems to be an umbrella of sorts for TTI) is sensitivity to a backlash against Asian acquisitions and subsequent imports of previously US-made goods.

Empire WAS a local outfit, and in the local newspaper someone from "Milwaukee" tool said most production would be kept local. Hard to know for how long.

If the Empire lines are highly automated, there is little advantage to moving them to Asia. They will eliminate as much labor in the US as possible (further automating production), making strong environmental regulations about the only hurdle (they can jump that one).

With what happened with Putin and the oligarchs it wouldn't surprise me if Chinese industrialists want to maintain some production in the US in case the proverbial you-know-what ever hits the fan in China. That way they aren't completely at the mercy of a non-elected centrally-controlled government and can board a plane and come to the US and oversee divisions here. Better to lose 90% of your fortune than all of it.

[Curt Harms]

It seems like Phil is about right. I think much of Empire's product line lends itself to automated production. I think there's some political desire to bring some manufacturing back to this country. Likely not the relatively low value high labor products like clothing but perhaps something high value highly automated like electronics?