BY JADE MOLDÉ AND RUSS THURMAN U.S. FIREARMS INDUSTRY TODAY INDUSTRY MAINTAINS ENCOURAGING GROWTH DURING PIVOTAL ELECTION YEAR E ntering the second half of 2016, the U.S. firearms industry is well positioned to finish the year in a promising position. While not reaching the unprecedented heights of 2013, demand for firearms in the U.S. is strong — especially as consumers remain concerned about being responsible for their personal safety. Sales are also being driven by the intensified anti-gun/antiindustry rhetoric from leftwing politicians, with November’s general election near. In an era when other segments of the U.S. economy have grown sluggish or are increasingly reliant on outsourcing labor and resources to places outside the United States, the U.S. firearms industry, even through cyclical ups and downs, has maintained enviable growth. In April, NSSF released the findings from the 2016 “Firearms and Ammunition Industry Economic Impact Report,” which revealed the U.S. firearms industry’s total economic impact increased from $19.1 billion in 2008 to $49.3 billion in 2015 — an impressive 158 percent increase. In that same period, the industry also added around 120,000 full-time jobs (an increase of 73%) that pay an average annual wage of $50,180. Combining business and excise taxes, the U.S. firearms and ammunition industry generates more than $6.8 billion in taxes, a sizable footprint. In short: A healthy industry is an influential one. they would expand manufacturing ammunition facilities in central Arkansas. These two expansions will add over 130 jobs to the region. New Hampshire-based SIG SAUER maintained Arkansas officials’ “aggressive” negotiations and financial incentives influenced their decision to open an ammunition manufacturing facility in the Natural State. First announced in Jan. 2014, Beretta USA Corp. opened its new 156,000-square-foot, state-of-the-art manufacturing and engineering center in Gallatin, Tenn., in April. This facility will support all of the company’s U.S. manufacturing, creating over 200 jobs in North Central Tennessee. The company’s corporate offices and executive support functions will remain in its Accokeek, Md., facility. Many have labeled the South the “New Gun Valley,” and these recent expansions have further substantiated this claim. Financial Insights In May, NICS conducted 928,532 (NSSF-adjusted) background checks, a 1.1 percent increase over May 2015. In an encouraging sign, 2016 year-to-date (Jan.–May) totals are higher compared to the corresponding dates in 2015, increasing from 5,427,494 to 6,206,763 — a 14.3 percent increase. Ruger’s latest earnings report (Q1 2016) reveals the company posted $173.1 million in net sales, a 26.35 percent increase over the corresponding quarter in 2015. This substantial increase is attributed to several factors, including the rise in overall demand, new product introductions and Ruger’s increased production capability and availability of products in demand, according to the report. After a period of declining sales, Ruger experienced a welcome recovery in 2015 that has strengthened into 2016. “In 2015, demand returned to more normal seasonality. But nonetheless, 2015 was a recovery year in the cycle until very late in the year when we observed a significant spike in demand. This Expansion To Gun-Friendly States In a continued trend, several manufacturers have announced or opened relocated operations in gun-friendly states in 2016. In January, Remington Outdoor Co. and SIG SAUER announced NICS BACKGROUND CHECKS: NSSF-ADJUSTED YEAR 2013 2014 2015 2016 JAN. 1,790,154 970,510 1,052,441 1,362,847 FEB. 1,634,309 1,264,010 1,280,825 1,487,871 MARCH 1,501,730 1,224,705 1,187,823 1,297,275 APRIL 1,185,231 988,726 987,698 1,130,238 MAY 974,457 877,655 918,707 928,532 JUNE 872,025 805,571 886,825 –– JULY 855,259 816,588 946,528 –– AUG. 1,016,559 989,337 1,031,959 –– SEPT. 1,034,701 1,024,272 1,071,945 –– OCT. 1,113,818 1,174,797 1,211,478 –– JAN. 2013–MAY 2016 NOV. 1,308,100 1,329,688 1,432,451 –– DEC. 1,520,529 1,624,524 2,235,560 –– TOTALS 14,796,872 13,090,383 14,244,240 6,206,763 NSSF removes NICS purpose codes used by several states for CCW application checks and other purposes. The removal of this data provides a more accurate report of background checks conducted for the purchase of firearms. Visit www.nssf.org/research. 32 JULY 2016 Subscribe to SI DIGITAL www.shootingindustry.com
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