The firearms industry continues to post solid business numbers, even as the U.S. economy struggles to gain traction. While not all segments of the industry are enjoying “solid” business, data indicates consumers continue to purchase firearms in healthy numbers.

The FBI’s NICS conducted 5,913,177 background checks during the first five months of 2010, compared to 6,067,141 for the same record-setting months of 2009.

Even when the 2010 figure is adjusted downward, because of an abnormal number of background checks in Utah for April, there was only a 4-percent decrease in background checks in the first five months of 2010, when compared to 2009. That’s impressive, given the extraordinary number of firearm sales in 2009.

In comparing 2010 with 2008, a more “normal” business year, NICS data indicates there was a 21-percent increase in background checks for the first five months of 2010, compared to the same months in 2008. An average 10.5-percent growth, in a troubled economy, is substantial.

The NICS data, while not reflecting actual sales, is the best indicator of monthly consumer activity.

Sales Continue

For 2010, Ruger reported a 47-percent increase in earnings for the first quarter (Jan. 1-April 3, 2010).

“Demand for our products remained strong in the first quarter of 2010. Estimated sell-through of our products from distributors to retailers in the first quarter of 2010 increased by approximately 8 percent from the first quarter of 2009 and approximately 21 percent from the fourth quarter of 2009,” said Mike Fifer, Ruger CEO.

According to data from Southwick Associates, Ruger was the top-selling handgun brand for 2009, and gained the position again in February of this year.

For 2009, Remington captured the top-selling spots in rifles and shotguns, according to Southwick.

In the rifle category, Remington continued to dominate sales for the first four months of 2010, according to Southwick, while it shares the shotgun category with Winchester and Mossberg.

In overall firearm retail sales for the first four months of 2010, rifles were dominant at 44.5 percent, followed by handguns (35.3%) and shotguns (14.6%).

ATF’s Annual Data

The industry continues in a growth cycle, according to the ATF’s 2008 Annual Firearms Manufacturing and Export Report, the latest data available from the agency.

In 2008, U.S. manufacturers produced 4,152,082 firearms, an 8-percent increase over 2007. Ruger was the number one U.S. firearms manufacturer (page 32), edging out Smith & Wesson. This is the first time Ruger has reached the top ranking since 2000.

In 2008, Ruger manufactured 599,202 firearms and was ranked number one in rifle production (page 36). However, Ruger’s largest production gain was made in its smallest firearm, the LCP. Introduced in 2008, the palm-sized pistol was an instant hit.

It’s rare to learn the actual number of units produced for a particular model; however, with the LCP, the number is revealed in the ATF’s “To .380” column (page 35), since Ruger had not made a .380 prior to 2008. The 83,161 LCPs manufactured helped give Ruger an overall 68.6-percent increase in pistol production for 2008.

This year, in an April letter to shareholders, Fifer wrote, “I am optimistic about the opportunities for Ruger to grow and prosper. ... We have a clear plan to transform the business, using new product introductions to spur demand and adopting lean methodologies throughout the business to enable us to more efficiently fulfill that demand.”

Look for more growth and number-one U.S. manufacturing rankings from Ruger.
In foreign trade, U.S. exports in 2008 increased 22 percent, this after a drop of 44 percent in 2007 (page 37). Smith & Wesson was the top U.S. firearms exporter with 53,836 units exported, a 2.35-percent increase over 2007.

U.S. imports increased 36 percent in 2009 (pages 38, 39, 40). Brazil continues to hold the number one importer position with 615,517 firearms imported in 2008 and 876,225 in 2009.

2008 U.S. Production

The top U.S. firearms manufacturers in 2008 were:
• Ruger: 599,202 (+29.14%)
• Smith & Wesson: 558,235 (+6.62%)
• Remington Arms: 498,730 (-4.43%).
The top handgun manufacturers:
• Smith & Wesson: 519,789 (+4.19%)
• Ruger: 336,235 (+40.91%)
• SIG SAUER: 123,756 (+10.84%).
The top rifle producers:
• Ruger: 261,663 (+17.39%)
• Marlin Firearms: 198,225 (-13%)
• Remington Arms: 160,967 (-43.24%).
The top three shotgun companies:
• Mossberg/Maverick Arms: 339,913 (+7.21%)
• Remington Arms: 337,763 (+41.77%)
• H&R 1871: 57,345 (-21.6%).

In 2008, handgun production increased 12 percent, adding to a combined spike of 45 percent in 2006 and 2007.

Rifle production dropped 0.1 percent in 2008.

In shotguns, 2008 production increased 17 percent after a 10-percent drop in 2007.

U.S. Exports, Imports

The top three U.S. exporters for 2008 were:
• Smith & Wesson: 53,836 (+2.35%)
• Mossberg/Maverick Arms: 41,606
(+90.37%)
• Ruger: 35,258 (+27.94%).
In 2009, the top importers were:
• Brazil: 876,225 (+42.36%)
• Austria: 604,904 (+63.33%)
• Germany: 393,936 (+36.7%).

Caution Is Demanded

The success the firearms industry has enjoyed is not a guarantee of future success. The changing political landscape ensures that the industry will continue to fight anti-gun battles, nationally and within states.

Mostly, caution is demanded by the economy. Companies with market-demanding products — those that engender consumer loyalty — and refined business models will succeed in 2010 and beyond.

Roxanne Smith contributed significantly to the production of this report.