U.S. Firearms Industry Today 2011

Defying Economic Trends, Firearm Sales Remain Robust

By Russ Thurman
From The July 2011 Issue Of Shooting Industry

The firearms industry is enjoying brisk-to-robust firearm sales during a time when much of the U.S. economy continues to suffer.

In April, dealers reported firearms sales that matched and even exceeded those of the six months following the 2008 national elections.

In May, the number of NSSF-adjusted NICS background checks reflects an 11.4-percent increase over May 2010. The positive May report is in stark contrast to news of the nation’s economy, which hit another slowdown during the month.

NSSF reports that its adjusted NICS data shows increases for 2011, compared to 2010, of January: 9.7 percent; February: 13.6 percent; March: 15 percent; and April: 15.2 percent. NSSF also indicates that for 12 straight months, beginning in May 2010, there have been increases in the number of background checks.

The NICS data, even when adjusted by NSSF to eliminate certain purpose codes (see below), does not reflect actual firearm sales, yet it is the best indicator of monthly consumer activity.

Major firearm manufacturers also are reporting substantial sales — a welcome, if not surprising, boost in business. In late 2010, many manufacturers were approaching 2011 with a “cautiously optimistic” posture, with some predicting that the new year would present “major challenges.”

Top-Selling Brands

For the first quarter of 2011, Ruger reports a 10.5-percent increase in sales, compared to the same quarter of 2010.

Smith & Wesson reports a 6-percent increase in firearm sales for its third quarter, which ended on Jan. 31. The company posted a 47.9-percent growth in pistol sales, according to officials.

According to data from Southwick Associates (see below), Ruger was the top-selling handgun brand for 2010, and is competing with Smith & Wesson for the top spot in 2011.

For 2010, Remington was the top-selling rifle brand, and is dominating sales for 2011.

In shotguns, Remington and Mossberg tied for the best-selling brand in 2010. For 2011, the two companies, and Winchester, jockey for the top-selling position.

ATF’s Annual Data

According to the ATF’s 2009 Annual Firearms Manufacturing and Export Report — the latest data available from the agency — U.S. manufacturers produced 5,417,003 firearms, a 29.10-percent increase over 2008. This was the first time the industry produced more than 5-million firearms since 1994, and it was the largest number manufactured since 1980, when 5,645,131 guns were made.

Ruger was the number one U.S. firearms manufacturer in 2009 (page 32), outdistancing all other U.S. firearm manufacturers by a significant margin. This was the second year in a row that Ruger achieved the top ranking.

In 2009, Ruger manufactured 933,559 firearms, an impressive 55.8-percent increase over 2008. Ruger ranked number one in handgun and rifle production in 2009.

“Ruger has a popular brand, strong balance sheet, hardworking, dedicated employees, and an experienced and engaged board of directors. We have a simple but effective strategy: To use new product introductions to spur demand, and to adopt lean methodologies throughout the business to enable us to more efficiently fulfill that demand,” said Mike Fifer, Ruger CEO.

In foreign trade, U.S. exports in 2009 decreased 18.33 percent, this after an increase of 22 percent in 2008 (page 38). Smith & Wesson was the top U.S. firearms exporter with 54,692 units exported, a slight increase over 2008.

U.S. imports decreased 22.8 percent in 2010 (pages 40, 41, 42), with 2,508,888 firearms imported. Brazil continues to hold the number one importer position with 876,225 firearms imported in 2009 and 697,350 in 2010.

2009 U.S. Production

In 2009, handgun production increased 32.79 percent over 2008, rifle production increased 28.79 percent and shotgun production increased 19.34 percent.

The top U.S. firearms manufacturers in 2009 were:
• Ruger: 933,559 (+55.8%)
• Smith & Wesson: 666,670 (+19.42%)
• Remington Arms: 612,572 (+22.83%).

The top handgun manufacturers:
• Ruger: 572,479 (+70.26%)
• Smith & Wesson: 556,613 (+7%)
• SIG SAUER: 216,603 (+75%).

The top rifle producers:
• Ruger: 360,005 (+37.58%)
• Remington Arms: 288,728 (+79.37%).
• Marlin Firearms: 269,276 (+35.84%)

The top three shotgun companies:
• Mossberg/Maverick Arms: 374,724
(+10.24%)
• Remington Arms: 323,814 (-4.12%)
• H&R 1871: 46,365 (-19.15%).

U.S. Exports, Imports
The top three U.S. exporters for 2009 were:
• Smith & Wesson: 54,692 (+1.58%)
• Mossberg/Maverick Arms: 45,123
(+8.45%)
• Ruger: 32,489 (-7.85%).

In 2010, the top importers were:
• Brazil: 697,350 (-20.41%)
• Austria: 434,371 (-28.19%)
• Germany: 347,012 (-12%).

Benchmarks For Success

The firearms industry enjoys a unique relationship with American consumers. During tough economic times, the industry often prospers, as consumers purchase firearms for personal protection. Fear of terrorism and vulnerability during natural disasters also drives sales.

But the industry is not immune to business-crushing forces, which can take many forms: social, economical and political.

Solid business practices, continuous anti-gun vigilance and consumer-driven new products are the benchmarks for continued success.

Roxanne Smith contributed significantly to the production of this report.

NICS Background Checks — January 2009 — May 2011

NSSF Adjusted — NICS Background Checks

NSSF Research Department removes NICS purpose code permit checks used by several states for CCW permit application checks and checks on active CCW permit databases. This provides a more accurate picture of current market conditions. Visit www.nssf.org.

Southwick — Top-Selling Firearms 2010 and 2011

*Marketshare: Percentage of all retail sales attributable to the brand.
Source: www.HunterSurvey.com and www.ShooterSurvey.com. Visit www.southwickassociates.com.

Total U.S. Firearms Production By Type 1990 — 2009

These 20-year graph and chart have been updated, based on new data released by the ATF.

Top 25 U.S. Manufacturers 2009

Handgun Production By U.S. Manufacturers 2009

Pistol Production By U.S. Manufacturers 2009

Revolver Production By U.S. Manufacturers 2009

Long-Gun Production By U.S. Manufacturers 2009

U.S. Firearm Exports

Pistols 2009

Revolvers 2009

Shotguns 2009

Rifles 2009

Firearms Imports

Handguns By Country 2009 & 2010

Rifles By Country 2009

Rifles By Country 2010

Imports Shotguns & Combination Guns By Country 2009

Imports Shotguns & Combination Guns By Country 2010

*NESOI: “Not Elsewhere Specified Or Included” — Foreign Trade Division, U.S. Bureau of Census