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
Recent Developments
Mar 5, 2024 - Producer Prices, Employment Up
- Producer prices for firearms and ordnance manufacturers increased mid-way through 2023 and remained consistent through the second half of the year, according to data from the Bureau of Labor Statistics (BLS). Overall, producer prices have grown 6% from December 2019 to December 2023. Employment for the small arms, ammunition, and other ordnance manufacturing industry increased slightly in December 2023 compared to the previous year and has grown 17.8% since 2019, per the BLS. Additionally, consumer spending levels rose in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
- 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 February 2024, falling below the baseline for growth for the sixteenth consecutive month, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 47.8% in February, down 1.3 percentage points from the 49.1% recorded in January. A reading above 50% indicates manufacturing expansion. February’s New Orders Index was in the contraction zone at 40.2%. The February Production Index was 48.4%, a decrease from January’s 50.4%. Eight manufacturing industries tracked by the ISM reported growth in February: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Miscellaneous Manufacturing; and Transportation Equipment. The industries reporting contraction in February were Furniture & Related Products; Machinery; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; and Electrical Equipment, Appliances & Components.
- Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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