To view this site you need Adobe Flash Player and your browser must allow javaScripts. Go here to get the latest Flash Player. Russ Thurman GREATLY TESTED In 2008 Sales Defy Economic Slump, Business Braces For Challenges INDUSTRY T he industry is enjoying substantial firearm sales at a time when U.S. retail is suffering from an economic slump. Just how long such business will continue is in question. The latter part of 2008 remains murky, with companies bracing for a drop-off of sales and the impact from possible gains by anti-gun elements on the political front. U.S. manufacturers, distributors and dealers continue to report “solid” firearm sales, primarily in the handgun and “black rifle” markets. According to the FBI National Instant Criminal Background Checks System (NICS), there was a 9.1 percent increase in background checks during the first five months of 2008, as compared to the same period in 2007. While impressive on its own merit, the increase is significant, since 2007 was a record-setting year for background checks. During January through May 2008, consumers underwent 4,831,693 background checks, an increase of 403,003, as compared to the same months in 2007. Despite the impressive numbers, company executives see challenges ahead. “What does the rest of the year look like? I think it’s going to be a very challenging year, because, for our average customer, when gas costs $4 or more a gallon, when milk costs twice as much as it did a year ago, and the other micro factors are pressuring how much free discretionary money people have to spend, something has to give. I think it’s going to be a very challenging year in the domestic hunting and sports shooting market,” said Tommy Millner, Remington CEO. There are bright spots, however, that will likely continue, according to Millner. “The domestic law enforcement and homeland security markets are growing significantly,” Millner said. Also contributing to the anxiety is “the prospect of further Democratic gains in the House and Senate and the prospect of a Democratic president,” Millner said. At the same time, Millner cites the industry’s abilities to face such challenges. “On the plus side, we are unified, we are well-organized and we all understand how to fund and fight,” he said. The ATF’s 2006 Annual Firearms Manufacturing and Export Report, the latest data from the agency, reveals a rebounding industry. U.S. manufacturers produced 3,614,452 firearms in 2006, a 12.3 percent increase over 2005, and the largest number of guns manufactured since 2000. In 2006, Remington Arms Co. again was the number one U.S. firearm manufacturer, out-producing other companies ATF’s Annual Data by nearly 150,000 firearms. It was the sixth straight year the company ranked number one on the Top 25 U.S. Manufacturers list (page 30). “First and foremost, it makes me very proud that U.S. manufacturing of firearms is still vibrant, alive, healthy and thriving. Secondly, and of equal importance, is my pride in the hard work of a lot of people that added up to this kind of success. I’m proud of our team,” Millner said. Remington manufactured 598,888 firearms, producing the most rifles and shotguns in the U.S. in 2006 (page 36). Smith & Wesson, for the second straight year, posted the most aggressive growth of U.S. manufacturers. In 2006, S&W had a 46.4 percent increase in production, which placed the company in the number two position of U.S. manufacturers. Marlin also posted notable numbers in 2006, with 226,761 rifles made, placing the company in the number two position of U.S. rifle manufacturers (page 36). In foreign trade, U.S exports in 2006 jumped a staggering 78.6 percent (page 38), with 333,499 firearms exported — this on top of the 18.7 percent increase in 2005. “The international businesses in sporting and the military/L.E. markets are booming because of a weak dollar,” Millner said. Remington exported 58,431 firearms in 2006; however, the number one U.S. ex- NICS Background Checks — January 1999 - May 2008 January 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 591,355 639,972 640,528 665,803 653,751 695,000 685,811 775,518 894,608 942,556 February 696,323 707,070 675,156 694,668 708,281 723,654 743,070 820,679 914,954 1,021,130 March 753,083 736,543 729,532 714,665 736,864 738,298 768,290 845,219 975,806 1,040,863 April 646,712 617,689 594,723 627,745 622,832 642,589 658,954 700,373 840,271 940,961 May 576,272 538,648 543,501 569,247 567,436 542,456 557,058 626,270 803,051 886,183 June 569,493 550,561 540,491 518,351 529,334 546,847 555,560 616,097 792,943 July 589,476 542,520 539,498 535,594 533,289 561,773 561,358 631,156 757,884 August 703,394 682,501 707,288 693,139 683,517 666,598 687,012 833,070 917,358 September 808,627 782,087 864,038 724,123 738,371 740,260 791,353 919,487 944,889 October 945,701 845,886 1,029,691 849,281 856,863 865,741 852,478 970,030 1,025,123 November 1,004,333 898,598 983,186 887,647 842,932 890,754 927,419 1,045,194 1,079,923 December 1,253,354 1,000,962 1,062,559 974,059 1,008,118 1,073,701 1,164,582 1,253,840 1,230,525 28 JULY 2008 www.shootingindustry.com