Firearms Manufacturers NAICS 332994

Mar 12, 2025 - Faster Growth Forecast

• The US firearms manufacturers industry is projected to grow at a CAGR of 5.21% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's anticipated growth. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation. The durable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry.
• The total economic impact of the US firearm and ammunition industry rose 1.3% in 2024 to $91.7 billion compared to the previous year, according to the US Firearm and Ammunition Industry Economic Impact report from the National Shooting Sports Foundation (NSSF). When compared to 2008, the total economic impact of the industry is up 379% from $19.1 billion, and the total number of full-time equivalent jobs increased 130% from 166,000 to 383,000. The industry includes US companies that manufacture, distribute, and sell firearms, ammunition, and hunting equipment. The report estimates industry jobs pay an average of $68,300 annually in wages and benefits. According to the report, the firearm and ammunition industry paid $11 billion in business taxes, and an additional $886 million in federal excise taxes.

• According to The Outdoor Wire, firearms manufacturers may have to navigate higher costs and rework supply chains due to new 25% tariffs on imported steel and aluminum imposed by the Trump administration; firearms makers rely heavily on these materials during production. Smaller firearms manufacturers will likely have to diversify suppliers to mitigate the tariff’s impact. While generally pricier, domestic suppliers may turn out to be a good option due to more predictable lead times and quality consistency, per the report. It may make sense to lock in favorable longer-term agreements or higher volume orders to better predict costs in the face of ongoing tariff fluctuations. Other options to manage the circumstances include investing in operational improvements, adjusting pricing strategically, and diversifying product lines and markets.
• Firearms manufacturing, included in the fabricated metal products manufacturing category, is one of the six manufacturing industries reporting contraction in April’s Manufacturing ISM Report on Business. Fabricated metal products manufacturers reported increases in new orders and production, while reporting slower supplier deliveries, lower inventories, decreased employment, lower order backlogs, and higher prices for raw materials. Other manufacturing industries reported contraction during the period including Wood Products; Paper Products; Food, Beverage & Tobacco Products; Transportation Equipment; and Fabricated Metal Products. Eleven industries reporting growth were Apparel, Leather & Allied Products; Petroleum & Coal Products; Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Textile Mills; Computer & Electronic Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Machinery; Chemical Products; and Primary Metals. Overall, economic activity in the manufacturing sector contracted for the second consecutive month in April, with the Manufacturing PMI registering 48.7%.