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 460 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 50 workers and generates about $20.7 million annually.

    • The firearms manufacturing industry consists of about 460 firms that employ 22,800 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

                                  May 6, 2024 - Slower Growth Forecast for Industry
                                  • The US firearms manufacturers industry is projected to grow at a CAGR of 2.64% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is slower than the overall economy's anticipated growth. The report noted that consumer confidence levels are expected to improve in the forecast window, which bodes well for durable manufacturing industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. Factors that continue to limit consumer spending are higher price levels and interest rates, though both are expected to improve in 2024. Post-pandemic, consumer spending has shown slower gains of 2.5% in 2022 and 2.2% in 2023, supported in part by savings compiled by households from federal pandemic relief programs.
                                  • According to a new report by the Small Arms Survey, there will be an increase in newer technologies in the next five years that are dual-use in nature and can be easily transformed into weapons, such as the 3-D printing of firearms. Another example is the weaponization of low-cost commercial drones. This development will present challenges to existing arms control measures. The report also details how other technologies could assist in tracking firearms and ammunition and enhance accountability, such as the laser marking of ammunition or forensic analysis of 3-D printer nozzle patterns.
                                  • Several US gun manufacturers are facing a $10 billion lawsuit filed by Mexico after a recent US appeals court ruling, according to the BBC. The government of Mexico has alleged that the flow of illegal guns moving across the border is the result of business practices by six US gun makers. The Mexican government alleges that the US gun manufacturers facilitated the sales of firearms across the US border to criminal organizations. Companies named in the lawsuit include Smith & Wesson, Glock, Beretta, Barrett, and Sturm and Ruger. The lawsuit was first filed in 2021 in a Massachusetts federal courthouse, but it was dismissed by a US federal judge who determined the companies were shielded by the Protection of Lawful Commerce in Arms Act (PLCAA). Following an appeal by Mexico's government, the US appeals court ruled in January 2024 that the lawsuit could move forward as it plausibly alleges a claim exempt from the PLCAA's protection.
                                  • US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
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