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Gun & Ammunition Manufacturing
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US gun and ammunition manufacturing industry includes about 300 companies with combined annual revenue of about $6 billion. Major gun and ammunition manufacturers include Browning Arms; Freedom Group (which includes Remington Arms, Marlin Firearms, and Bushmaster Firearms); Olin; Alliant Techsystems; Sturm, Ruger & Company; and Smith & Wesson. The industry is highly concentrated.
This profile includes makers of guns and ammunition classified as small arms (30 mm in caliber or less).
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. Small companies can compete effectively by producing premium-priced high-quality or decorative guns. Although automation has increased, the industry is still labor-intensive: average annual revenue per worker is about $140,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories include firearms and ammunition, each of which accounts for about half of industry revenues. The industry produces more than 4 million guns per year: about 30 percent are pistols and revolvers; about 40 percent are rifles, and about 30 percent are shotguns and other firearms. 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.
Gun manufacture is similar to the manufacture of other metal products with moving parts that require precision machining and assembly. A typical gun contains between 50 and 100...
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