Firearms Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 440 firearms manufacturers in the US sell handguns, rifles, and shotguns to distributors, retailers, government agencies, and private individuals. Firms may also manufacture other shooting, hunting, and outdoor products and accessories such as knives and cutting tools, sighting lasers, shooting supplies, and survival gear.

Changes in Federal and State Regulation

Federal and state legislatures frequently consider legislation that may alter the regulation of firearms.

Competition from Used Firearms Sales

Used firearms can often be bought at a savings of 30% or more compared to their new equivalents.

Industry size & Structure

The average firearms manufacturer employs about 45 workers and generates about $20 million annually.

    • The firearms manufacturing industry consists of about 440 firms that employ 20,000 workers and generate about $9.5 billion annually.
    • The industry is concentrated; the top 50 companies account for 89% of industry revenue.
    • Large firms include Smith and Wesson; Sturm, Ruger & Company; Remington; Sig Sauer; and O.F. Mossberg.
                                  Industry Forecast
                                  Firearms Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 3, 2024 - Manufacturing Activity Contracts in December
                                  • US manufacturing activity contracted in December 2023, falling below the baseline for growth for the fourteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.4% in December, up from the 46.7% recorded in November. A reading above 50% indicates manufacturing expansion. December’s New Orders Index remained in the contraction zone at 47.1%. The December Production Index was 50.3%, up from November’s 48.5%. Only one manufacturing industry tracked by the ISM reported growth in December: Primary Metals. The industries reporting contraction in December were Printing & Related Support Activities; Apparel, Leather & Allied Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; Textile Mills; Petroleum & Coal Products; Paper Products; Wood Products; Fabricated Metal Products; Computer & Electronic Products; Miscellaneous Manufacturing; Furniture & Related Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Chemical Products.
                                  • Consumer confidence levels rose in December 2023 for the second month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 110.7 in December 2023 from 101 in November 2023. According to Dana Peterson, Chief Economist at The Conference Board, “December’s write-in responses revealed the top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns.” Peterson added that the gains in consumer confidence were largest in householders aged 35-54 and households with income levels of $125,000 and above. Plans to purchase homes, autos, and large appliances rose moderately on a month-to-month basis as interest rates moderated.
                                  • Changing demand levels, lingering supply chain problems, and inflation are expected to limit growth in the US firearms manufacturers industry, which is projected to grow at a nearly 2% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. Employment levels in the industry have remained at consistent levels year to date.
                                  • Two new gun laws went into effect in Colorado in October 2023, according to NBC11 News. The laws bring a new three-day waiting period for gun purchases and place more legal culpability on gun manufacturers for those injured or killed by their weapons. Gun violence victims and their families will be able to sue the manufacturers of the guns that affected their lives. A gun-rights advocacy group, Rocky Mountain Gun Owners, has filed a lawsuit against the waiting period law, calling it unconstitutional and seeking an injunction to block the state from enforcing the law.
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