Small Firearms & Ammunition Market in the U.S.

Table of Contents

Chapter 1 Executive Summary

• Scope
• Small Arms and Ammunition Defined
• Product Categories and Segments
• Methodology
• Market Size and Growth
  • Firearms & Ammunition Reach $4.9 Billion
  • Table 1-1 U.S. Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
  • Civilian/Commercial Market Reaches $2.8 billion
  • Shipment Growth Slows, While Trade Activity Accelerates
  • Table 1-2 U.S. Small Firearm & Ammunition Shipments, Imports and Exports, 1998 and 2003-2007 (in million $)
  • Imports by Product Type
  • Exports by Product Type
  • Unit Growth at 15% to Top 7 Million
  • Table 1-3 U.S. Small Firearm Units Manufactured, Imported and Exported, 1998-2007 (in millions of units)
  • Handguns Surge, Long Guns Drop
• Market Forecast
  • U.S. Market for Small Arms & Ammunition to Reach $6.5 Billion by 2012
  • Figure 1-1 U.S. Small Firearms & Ammunition Market Forecast, 2007-2012 (in billion $)
• Market Trends
  • GDP Forecasted Growth: Modest 1.3% in 2008
  • Commodity Price Increases
  • Producer Price Increases for Arms and Ammunition
  • Not All Gun Markets Are Equal
  • Production Moving Overseas
  • FBI Crime Statistics
  • ATF Gets Tough on Gun Store Owners
  • Urbanization and Gun Violence
  • Ammo Shortage Pinches Homeland Security
  • Ammunition Prices Going Up
  • Possible Drop in Ammo Demand
  • Flawed by Politics and Flamed by Emotions
  • Waiting Periods, Background Checks and Assault Weapons Bans
  • Politicians and Lobbyists Draw Lines in the Sand
  • Taxes on Guns for Non-Related Services
  • The Hunt Is On
  • Table 1-4 Number of Participants Engaged in Hunting by Prey, 1991-2006 (in thousands)
  • Spurring New Ownership Through Innovation
• Corporate Landscape
  • Seeped in American History, But Hip to the 21st Century
  • Competition
  • Competitive Landscape for Firearms
  • Competitive Landscape for Ammunition
  • Selected Manufacturers
  • Table 1-5 Selected Manufacturers of Small Firearms and Ammunition
• Distribution and Retail
  • Overview
  • Disjointed Regulatory Landscape
  • Retailers and Dealers in Decline
  • Survey Highlights Retail Best Practices
  • Long Hunting Season Boon for Retailers and Distributors
  • Attracting Customers
• The Consumer
  • U.S. Gun Ownership Strong, But Dropping
  • Top States for Small Arms & Ammunition Ownership
  • How Gun Violence Affects Individuals' Perceptions
  • Individuals Generally Support Regulation
  • Sporting Arms & Ammo Consumer Penetration
  • Table 1-6 Consumer Penetration Rates for Sporting Arms & Ammunition, 2004-2006 (%)
  • Demographic Characteristics
  • Party Affiliation No Surprise

Chapter 2 The Market

• Scope
• Small Arms and Ammunition Defined
• Product Categories and Segments
• Methodology
• Market Size and Growth
  • Firearms and Ammunition Reach $4.9 Billion
  • Figure 2-1 U.S. Small Firearms & Ammunition Market, 1998-2007 (in billion $)
  • Table 2-1 U.S. Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
  • Civilian/Commercial Market Reaches $2.8 billion
  • Figure 2-2 Estimated U.S. Civilian/Commercial Small Firearms & Ammunition Market, 1998-2007 (in billion $)
  • Table 2-2 Estimated U.S. Civilian/Commercial Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
  • Excise Taxes Approach $300 Million in 2007
  • Figure 2-3 U.S. Small Firearms & Ammunition Excise Tax Collections, 1998-2007 (in million $)
• Value of Shipments, Imports and Exports
  • Shipment Growth Slows, While Trade Activity Accelerates
  • Table 2-3 U.S. Small Firearm & Ammunition Shipments, Imports and
  • Exports, 1998 and 2003-2007 (in million $)
  • Ammunition Leads Shipments in 2007
  • Figure 2-4 U.S. Small Firearm & Ammunition Shipments, 1998-2007 (in billion $)
  • Figure 2-5 U.S. Small Firearm & Ammunition Shipments as a Share of Total Shipments, 2007 (%)
  • Imports Increasingly Important
  • Figure 2-6 Domestic vs. Foreign Production as a Share of U.S. Market Supply for Small Firearms & Ammunition, 1998-2007 (%)
  • U.S. Manufacturers Export 14% of Shipments in 2007
  • Figure 2-7 U.S. Small Firearm & Ammunition Exports as a Share of Shipments, 1998-2007 (%)
  • Imports by Product Type
  • Firearms
  • Table 2-4 U.S. Imports of Small Firearms, Parts & Accessories by Product Type, 1998 and 2003-2007 (in million $)
  • Figure 2-8 Estimated Share of U.S. Small Firearms, Parts & Accessories Imports by Product Type, 2007 (%)
  • Ammunition
  • Table 2-5 U.S. Imports of Small Firearm Ammunition & Parts by Product Type, 1998 and 2003-2007 (in million $)
  • Figure 2-9 Estimated Share of U.S. Small Fire Ammunition & Parts Imports by Product Type, 2007 (%)
  • Exports by Product Type
  • Firearms
  • Table 2-6 U.S. Small Firearms, Parts & Accessories Exports by Product Type, 1998 and 2003-2007 (in million $)
  • Table 2-6 [cont.] U.S. Small Firearms, Parts & Accessories Exports by Product Type, 1998 and 2003-2007 (in million $)
  • Figure 2-10 Estimated Share of U.S. Small Firearms, Parts & Accessories Exports by Product Type, 2007 (%)
  • Ammunition
  • Table 2-7 U.S. Exports of Small Ammunition & Parts by Product Type, 1998 and 2003-2007 (in million $)
  • Figure 2-11 Estimated Share of U.S. Small Firearm Ammunition & Parts Exports by Product Type, 2007 (%)
  • Imports by Country of Origin
  • Firearms
  • Table 2-8 U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 1998 and 2003-2007 (in million $)
  • Table 2-8 [cont.] U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 1998 and 2003-2007 (in million $)
  • Figure 2-12 Estimated Share of U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 2007 (%)
  • Ammunition
  • Table 2-9 U.S. Small Firearm Ammunition & Parts Imports by Country of Origin, 1998 and 2003-2007 (in million $)
  • Figure 2-13 Estimated Share of U.S. Small Firearm Ammunition & Parts Imports by Country of Origin, 2007 (%)
  • Exports by Country of Destination
  • Firearms
  • Table 2-10 U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 1998 and 2003-2007 (in million $)
  • Table 2-10 [cont.] U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 1998 and 2003-2007 (in million $)
  • Figure 2-14 Estimated Share of U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 2007 (%)
  • Ammunition
  • Table 2-11 U.S. Small Firearm Ammunition & Parts Exports by Country of Destination, 1998 and 2003-2007 (in million $)
  • Figure 2-15 Estimated Share of U.S. Small Firearm Ammunition & Parts Exports by Country of Destination, 2007 (%)
• Small Firearm Unit Size and Growth
  • Unit Growth at 15% to Top 7 Million
  • Figure 2-16 U.S. Market for Small Firearms, 1998-2007 (in millions of units)
  • Table 2-12 U.S. Small Firearm Units Manufactured, Imported and Exported, 1998-2007 (in millions of units)
  • Exports as a Share of Domestic Production
  • Table 2-13 U.S. Small Firearm Units Manufactured and Exported,
  • 1998-2007 (in millions of units)
  • Imports as a Share of U.S. Market Supply
  • Figure 2-17 Domestic vs. Foreign-Made Small Firearm Units as a Share of U.S. Market Supply, 1998-2007 (%)
  • U.S. Unit Manufacturing by Type and Caliber
  • Figure 2-18 Estimated Share of U.S. Small Firearm Unit Manufacturing by Type, 2007 (%)
  • Figure 2-19 U.S. Small Firearm Unit Manufacturing by Type, 1998-2007 (in thousands of units)
  • Handguns Surge
  • Figure 2-20 U.S. Handgun Manufacturing: No. of Units and Share of Total Small Firearms, 1998-2007 (in millions of units)
  • Figure 2-21 U.S. Pistol Manufacturing: No. of Units and Share of Total Handguns, 1998-2007 (in millions of units)
  • Figure 2-22 U.S. Revolver Manufacturing: No. of Units and Share of Total Handguns, 1998-2007 (in millions of units)
  • Table 2-14 U.S. Handgun Unit Manufacturing by Type and Caliber, 1998-2005 (in thousands of units)
  • Long Guns Decline in Share
  • Figure 2-23 U.S. Long Gun Manufacturing: No. of Units and Share of Total Small Firearms, 1998-2007 (in billion $)
  • Figure 2-24 U.S. Rifle Manufacturing: No. of Units and Share of Total Long Guns, 1998-2007 (in billion $)
  • Figure 2-25 U.S. Shotgun Manufacturing: No. of Units and Share of Total Long Guns, 1998-2007 (in billion $)
• Market Forecast
  • U.S. Market for Small Arms & Ammunition to Reach $6.5 Billion by 2012
  • Figure 2-26 U.S. Small Firearms & Ammunition Market Forecast, 2007-2012 (in billion $)

Chapter 3 Market Trends

• Overview
• Economic Factors
  • GDP Forecasted Growth: Modest 2.2% in 2007, 1.3% in 2008
  • Figure 3-1 U.S. Current-Dollar GDP vs. Real GDP, 2002-2008 (in trillion $)
  • Figure 3-2 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
  • Economic Impact on Firearm Industry
  • Rising Manufacturing Costs
  • Commodity Price Increases
  • Figure 3-3 U.S. Producer Price Indexes for Selected Commodities, 1997-2006
  • Producer Price Increases for Arms and Ammunition
  • Figure 3-4 U.S. Producer Price Indexes for Small Firearms and Ammunition, 1997-September 2007
  • Not All Gun Markets Are Equal
  • Condensed Seasonality
  • Production Moving Overseas
• Security Factors
  • FBI Crime Statistics
  • Table 3-1 Safer Now Than Before 9/11?, 2004, 2006, 2007
  • Property Crime Continues to Decline
  • Violent Crime Ticks Upward
  • ATF Gets Tough on Gun Store Owners
  • Urbanization and Gun Violence
  • Segregation Fuels Violence
  • Exurbia: Blending the Line Between Urban and Suburban
  • Table 3-2 Leading Homicide Rates in Small, Medium and Large U.S. Cities
  • Ammo Shortage Pinches Homeland Security
  • Ammunition Prices Going Up
  • Possible Drop in Ammo Demand
• Regulatory Factors
  • Flawed by Politics and Flamed by Emotions
  • Waiting Periods, Background Checks and Assault Weapons Bans
  • Politicians and Lobbyists Draw Lines in the Sand
  • An Alternative to NRA?
  • Tiahrt Amendment
  • Taxes on Guns for Non-Related Services
  • Supreme Court May Take Up Second Amendment Case
• Hunting Trends
  • The Hunt Is On
  • Hunting Falling Out of Favor
  • Figure 3-5 Total Number of Participants Engaged in Hunting, 1991-2006 (in thousands)
  • Table 3-3 Number of Participants Engaged in Hunting by Prey, 1991-2006 (in thousands)
  • Figure 3-6 Total Hunting Expenditures for Firearms, 1991-2006 (in million $)
  • Table 3-4 Hunting Expenditures by Type of Expenditure, 1991-2006 (in million $)
  • Figure 3-7 Share of Hunting Equipment Expenditures by Type of Expenditure, 2006 (%)
  • Figure 3-8 Hunting Expenditures on Firearms by Firearm Type, 1991-2006 (in millions)
  • Figure 3-9 Share of Hunting Expenditures by Firearm Type, 2006 (%)
  • Figure 3-10 U.S. Consumer Purchases of Hunting and Firearms Equipment, 1990-2005 (in billion $)
• The New Frontier
  • Spurring New Ownership Through Innovation
  • Table 3-5 Selected Small Firearms and Ammunition Product Introductions, 2006-2007

Chapter 4 Corporate Profiles

• Seeped in American History, But Hip to the 21st Century
  • Competition
  • Competitive Landscape for Firearms
  • Competitive Landscape for Ammunition
  • Selected Manufacturers
  • Table 4-1 Selected Manufacturers of Small Firearms and Ammunition
• Smith & Wesson Holding Corp.
  • Overview
  • Performance
  • Figure 4-1 Total Net Sales for Smith & Wesson, 2003-2007 (in million $)
  • Figure 4-2 Smith & Wesson Customers, 2007 (%)
  • Firearm Sales
  • Figure 4-3 U.S. Net Firearm Sales for Smith & Wesson, 2003-2007 (in million $)
  • Product Portfolio
  • Table 4-2 Smith & Wesson Firearm Product Portfolio, 2007
  • Figure 4-4 Smith & Wesson Product Mix, 2007 (%)
  • Significant Events
• Herstal Group
  • Overview
  • FN Herstal
    • Overview
    • Product Portfolio
    • Table 4-3 FN Herstal Firearm Product Portfolio, 2007
    • Browning/U.S. Repeating Arms Co.
    • Overview
    • Product Portfolio
    • Table 4-4 Browning Firearm Product Portfolio, 2007
    • Table 4-5 Winchester Brand Portfolio, 2007
  • GLOCK G.m.b.H.
    • Overview
    • Performance
    • Product Portfolio
    • Table 4-6 Glock Firearm Product Portfolio, 2007
  • Sturm, Ruger & Co., Inc.
    • Overview
    • Performance
    • Figure 4-5 Total Net Sales for Strum, Ruger & Co., 2002-2006 (in million $)
    • Figure 4-6 Total Net Firearm Sales for Strum, Ruger & Co., 2002-2006 (in million $)
    • Product Portfolio
    • Table 4-7 Sturm, Ruger & Co. Firearm Product Portfolio, 2007
  • O.F. Mossberg & Sons, Inc.
    • Overview
    • Product Portfolio
    • Table 4-8 O.F. Mossberg & Sons Firearm Product Portfolio, 2007
    • Significant Events
  • Remington Arms Co., Inc.
    • Overview
    • Performance
    • Figure 4-7 Total Net Sales for Remington Arms, 2002-2006 (in million $)
    • Firearms
    • Figure 4-8 Total Net Firearm Sales for Remington Arms, 2002-2006 (in million $)
    • Ammunition
    • Figure 4-9 Total Net Ammunition Sales for Remington Arms, 2002-2006 (in million $)
    • Product Portfolio
    • Table 4-9 Remington Arms Product Portfolio, 2006
    • Figure 4-10 Remington Arms Product Mix, 2006 (%)
    • Alliant Techsystems, Inc.
    • Overview
    • ATK' s Ammunition Systems Group
    • Overview
    • Performance
    • Figure 4-11 Total Net Sales for Alliant Techsystems, 2003-2007 (in billion $)
    • Ammunition
    • Figure 4-12 Total Net Ammunition Sales for Alliant Techsystems,
    • 2003-2007 (in million $)
    • Small-Caliber Ammunition
    • Figure 4-13 U.S. Small-Caliber Ammunition Net Sales for Alliant Techsystems, 2003-2007 (in million $)
    • Figure 4-14 Small-Caliber Ammunition Customer Mix for Alliant
    • Techsystems, 2007 (%)
    • Product Portfolio
    • Significant Events
  • Olin Corp.
    • Overview
    • Performance
    • Figure 4-15 Net Sales for Olin Corp., 2002-2006 (in billion $)
    • Winchester Ammunition
    • Performance
    • Figure 4-16 Net Sales for Winchester Ammunition, 2002-2006 (in million $)
    • Product Portfolio
    • Table 4-10 Winchester Ammunition Product Portfolio, 2006

Chapter 5 Distribution and Retail

• Overview
• Selected Firearm Distributors
• Disjointed Regulatory Landscape
• Loopholes: Gun Shows and the Mentally Ill
• Table 5-1 Selected Legislation Highlights in States with High Gun
• Ownership, 2007
• Retailers and Dealers in Decline
• Table 5-2 Number and % Decrease of Type 1 Federal Firearms Licenses (FFLs) by State, 1994 to 2007
• Table 5-3 Number of Gun Dealerships vs. Gas Stations, by State, 2005
• Survey Highlights Retail Best Practices
• Know the Laws
• Ensuring Insurance
• Protecting Against Theft
• Educate, Educate, Educate
• Carry a Wide Selection ... and Don' t Forget the Accessories!
• Long Hunting Season Boon for Retailers and Distributors
• Inventory Management Imperative
• Attracting Customers
• Retailer Profile: Cabela' s
• Direct Business via Catalog and Internet Platforms
• Retail Business Surpasses 20 Stores Nationwide
• Revenue Neared $2 Billion in 2006
• Selected Firearm Retailers

Chapter 6 The Consumer

• U.S. Gun Ownership Strong, But Dropping
• High Per Capita Ownership
• Gun Ownership Plunges
• Top States for Small Arms & Ammunition Ownership
• Table 6-1 Percentage of Adults Reporting Household Firearm Ownership by State, 2002 (%)
• How Gun Violence Affects Individuals' Perceptions
• Table 6-2 Broader Problems Reflected by Incidents Such as Virginia Tech Shooting?, 2007 (%)
• Table 6-3 How Views on Gun Control Have Changed, 2000-2007 (%)
• Individuals Generally Support Regulation
• Table 6-4 U.S. Public Support for Measures to Regulate Firearms, 2006 (%)
• A Look at Sporting Arms & Ammo Owners
  • The Simmons Survey System
  • Consumer Penetration
  • Table 6-5 Consumer Penetration Rates for Sporting Arms & Ammunition, 2004-2006 (%)
  • Demographic Characteristics
  • Table 6-6 Sporting Arms & Ammunition Ownership by Demographic Characteristic, 2007 (index)
• Participation in Hunting
  • Consumers Participation
  • Table 6-7 Hunting Participation Rates, 2004-2006 (%)
  • Demographic Characteristics
  • Table 6-8 Demographic Indicators for Hunting Participation, 2007 (index)
  • Table 6-9 Demographic Indicators for Hunting "Every Chance I Get," 2007 (index)
  • Table 6-10 Demographic Indicators for Hunting Occasionally, 2007 (index)
  • Table 6-11 Demographic Indicators for Hunting Seldom, 2007 (index)
• The Politics of Gun Ownership
  • Party Affiliation No Surprise
  • Table 6-12 Sporting Arms & Ammunition Ownership by Voter Registration Status and Political Party Affiliation, 2007 (index)
  • Beyond Red vs. Blue
  • Table 6-13 Gun Ownership by Political Affiliation, 2005 (%)
  • Table 6-14 Views of the National Rifle Association by Political Affiliation, 2005 (%)