Gun & Ammunition Manufacturing

Gun & Ammunition Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture small arms and ammunition. Major companies include American Outdoor Brands, Colt, Remington Outdoor, and Vista Outdoor (all based in the US), as well as Beretta (Italy), FN Herstal (Belgium), Glock (Austria), Heckler & Koch (Germany), Kontsern Kalashnikov (Russia), Norinco (China), and Taurus Armas (Brazil).

COMPETITIVE LANDSCAPE

Demand is driven partly by hunters, gun enthusiasts, and weapon upgrades by police departments. The profitability of individual companies is closely linked to?marketing. Large companies have economies of scale in purchasing. Small companies can compete effectively by producing premium-priced high-quality or decorative guns. The industry is?highly concentrated: the top 50 companies account for over 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Centerfire pistols and revolvers take up a major part US industry revenue (about 35%) while parts and attachments for small firearms account for about 20%. Single barrel shotguns and other small firearms account for about 10%, and centerfire bolt repeater rifles account for about 5%. The US industry produces about eight million guns per year: majority of the guns are pistols and revolvers; followed by rifles, and then shotguns and other firearms which take up the remaining number. Within a category, a company may make guns of different caliber and style. The most popular pistol calibers are 9 millimeter, .45, and .22. The most popular revolver calibers are .357, .45, and .38.