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
Recent Developments
Jul 12, 2024 - Decline in NICS Checks in June 2024
- The June 2024 National Shooting Sports Foundation-adjusted National Instant Background Check System (NICS) figure of 1 million reflected a decline of 4.7% compared to the previous year’s figure, according to SGB Media. The report shows background checks fell less in June compared to year-over-year declines of 7.2% in May and 11.2% in April. NSSF reported that June 2024 was the 59th consecutive month to exceed one million adjusted background checks in a single month. The NSSF-adjusted NICS figure of 3.3 million in Q2 2024 showed a decrease of 7.9% compared to Q2 2023. According to the report, the NSSF-adjusted NICS data does not directly reflect arms sales but offers a view of current market conditions.
- Several US gun manufacturers are facing legal challenges related to marketing guns to young people and defective designs, per recent reports. According to the Wall Street Journal, families of children killed in the 2022 mass shooting in Uvalde, Texas, filed lawsuits in late May accusing AR-15 style rifle manufacturer Daniel Defense, videogame publisher Activision, technology firm Meta Platforms, and others of partnering to market military-style semiautomatic guns to minors. The lawsuit is focused on the advertising and marketing of guns to children, which is not covered in a 2005 federal law shielding gun makers from suits if their products are used in a crime, per the WSJ. SIG Sauer is facing a number of lawsuits related to the design of its popular P320 pistol, the standard-issue pistol for US soldiers. The company was found liable in June in the shooting of a man who claimed his weapon fired when he did not pull the trigger, with the jury concluding the P320 was defectively designed and adequate warnings were not given to the public about the risk of unintended shootings, per The Trace. SIG Sauer has said its gun is safe and has won more than a dozen cases related to the issue, according to New Hampshire Public Radio. The company, which faces more lawsuits related to the weapon’s design, plans to appeal the verdict.
- 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.
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