I have no insight into how Scrapyard makes their knives. There are many different ways Dan could divide the production steps between Spring, Texas and any other place on the planet.
Given the mysterious "Inspected by sleeves" it may be that all the CNC cutting milling/grinding, and heat treatment is done in Wauseon. The blades would then be coated and assembled with handles, inspected, sleeved and then shipped to Texas. Dan then does all the final grinds and puts the edge on them. That would give him a chance to QC the product and ensure it was up to snuff.
Knifes don't take a lot of storage space so a large warehouse is not necessary in Spring. More like one bay of a garage, but that's just a SWAG.
If I was in Dan's shoes at a minimum I'd have to have a complete shop that would allow me to build prototypes of my new knife ideas. That would allow Dan to test the new designs and move them into production as he saw fit. The CNC stuff is all CAD driven on a computer. It would be straightforward for Dan to program the machining steps to run in his brother's shop if he wanted. All he would need is one of the same CNC milling machines in Texas.
However, all of this is idle speculation. If the Busse shop in Wauseon is indeed running at near capacity I don't see how Dan could get his products assembled up there.
In summary, I have no clue <img src="/ubbthreads/images/graemlins/grin.gif" alt="" />
