|Last Quarterly Update:||3/25/2013|
|SIC Codes:||3482, 3484|
|NAICS Codes:||332992, 332994|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry manufacture small arms and ammunition. Major companies include Alliant Techsystems, Colt, Freedom Group, and Smith & Wesson (all based in the US), as well as Beretta (Italy), FN Herstal (Belgium), Glock (Austria), Heckler & Koch (Germany), Izhmash (Russia), Norinco (China), and Taurus (Brazil).
International trade of small arms, parts, accessories, and ammunition is estimated to be worth $8.5 billion, according to Small Arms Survey. The US is the largest importer and exporter of small arms. Other major exporters include Italy, Germany, Brazil, and Austria; the UK, Saudi Arabia, Australia, and Canada are among the leading importers.
The US gun and ammunition manufacturing industry includes about 300 companies with combined annual revenue of about $7 billion and is expected to grow at a low rate in the next two years. Key growth drivers include the development of new products and expansion into international markets.
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Firearms and ammunition each account for about half of industry revenue. The US industry produces more than 6 million guns per year: about 50 percent are pistols and revolvers; about 35 percent are rifles, ...
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