U.S. Firearms Report 2021

The U.S. firearms industry finds itself at a crossroads: Now more than 15 months into this period of unprecedented, relentless and, at times, unforgiving demand surge, nearly every facet of the supply chain has come under strain. How long this period of intense demand lasts is anyone’s guess, but all signs point to it continuing at least through the end of the year — and likely well into 2022.

Everyone involved in the industry — manufacturers, wholesale distributors, importers, storefront dealers, range operators and more — is grappling with how to “strike while the iron is still hot” as millions of first-time gun owners and established customers alike continue to seek out firearms, ammo and related accessories in record numbers.

An Industry On The Move

With an eye on the future, a number of U.S. manufacturers have either increased their production footprint through expansions or relocations over the past several months.

Oct. 12, 2020, SIG SAUER announced an expansion of its New Hampshire operations to the city of Rochester, N.H., acquiring a multi-building campus on 35+ acres with up to 210,000 sq. ft. of space and relocating its Dover operation.

“We’re incredibly excited about completing the acquisition of a new facility in Rochester which gives SIG the much-needed flexibility to expand our manufacturing operations in the region and grow our workforce,” said Ron Cohen, SIG SAUER president and CEO.

SIG followed up this announcement May 7 with the commencement of the construction of the SIG SAUER Experience Center on the grounds of the SIG SAUER Academy in Epping, N.H. This 40,500 sq. ft. facility will feature the SIG SAUER flagship retail showroom, state-of-the-art indoor shooting ranges and an interactive SIG SAUER museum.

Kimber Mfg. named Troy, Ala., its official headquarters Oct. 21, 2020. Its new headquarters is situated on 80+ acres, with 225,000 sq. ft. of space that houses design engineering, product management and manufacturing.

December 2020, Ruger and Wilson Combat unveiled expansions — Ruger at its Mayodan, N.C., production facility and Wilson Combat at its Berryville, Ark., campus.

Investing $10 million, Ruger’s in the midst of a three-year plan to expand its Mayodan facility, which will create roughly 60 jobs.
“This expansion will help us to grow our business and further expand our diverse lineup of rugged, reliable firearms,” said Mickey Wilson, Ruger VP of Mayodan operations.

Wilson Combat is in process of adding 16,000 sq. ft. of manufacturing space, which will “boost parts production and improve delivery times” the company said in a press release. As of mid-June, the expansion is “95% complete,” according to Owner Bill Wilson — and an additional one is coming quickly.

“We’re currently planning another 8,000–10,000 sq. ft. building since we’re already out of room and need more machines to meet demand,” he added.

Springfield Armory’s presence in the U.S. is also primed to increase significantly. The company broke ground on a new 200,000+ sq. ft. facility in Geneseo, Ill., which will house manufacturing, research and development, distribution operations, administration and more.

“This new facility will build on our strong reputation for quality, and ensure we continue to meet the ever-increasing demand for our products,” said Dennis Reese, Springfield Armory CEO.

June 15, Dark Storm Industries became the latest manufacturer to reveal a relocation: It will be expanding its operations from Oakdale, N.Y. to the Florida Space Coast in Titusville. The project is expected to create 50 jobs and a capital investment of approximately $3.2 million.

“The combination of economics and a friendlier political environment made the decision to build our new headquarters and manufacturing plant in Florida an easy one,” said Edward Newman, Dark Storms co-owner. “We’re excited to join a growing number of gun manufacturers on the Space Coast and look forward to our new facility allowing us to both increase our production capacity as well as develop new and exciting products.”

These expansion and relocation efforts are just focused on the firearms manufacturing side, but the industry at large is poised for continued growth — with a number of companies from around the industry announcing comparable, long-term strategic steps.

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.

Notable Acquisitions

Two of the industry’s oldest firearms brands have experienced significant change in the past year: Remington and Colt.

Remington Outdoor Company — a family of brands that included firearms companies Remington Arms, Marlin Firearms, Bushmaster and DPMS — filed for bankruptcy July 2020, and its assets were auctioned to several bidders Sept. 2020.

Roundhill Group acquired the Remington firearms brand and its Ilion, N.Y., manufacturing facility for $13 million. In May, Roundhill Group announced the return of 230 former Remington employees at the Ilion plant. Initial plans called for relaunching production on the Model 870, according to the Times Telegram.

Ruger acquired the Marlin Firearms brand for $30 million. It plans to reintroduce the brand in Q4 2021, with the first rifles being produced at its Mayodan facility, according to Ruger President and CEO Chris Killoy.

“The first models is coming out of there [Mayodan] will be the 336, the 1894 and the 1895,” Killoy said during a May 6 earnings call on Ruger’s Q1 2021 results. “After that, we’ve got other portions of the Marlin product line, things like the Model 60 semi-automatic .22 rifle.”

At a cost of $1.7 million, Franklin Armory was the successful bidder for the Bushmaster brand. In February, the return of the Bushmaster brand was teased on its Facebook page.

JJE Capital Holdings, which includes Palmetto State Armory in its portfolio, was the winner of the DPMS, Harrington & Richardson and Parker firearms brands.

Adding another chapter to its storied history, Colt was acquired by CZG for $220 million.

First announced Feb. 11, CZG secured regulatory approvals by U.S. and Canadian officials and successfully closed on its acquisition of Colt Holding Company (parent company of Colt’s Mfg. Co. and its Canadian subsidiary, Colt Canada Corp.) May 24.

“Colt is pleased to join forces with CZG. We’re proud of our heritage and believe the strength of the combined businesses and the many synergies created by the merger will enable us to honor our roots while also securing the future of the Colt brand. We look forward to continuing to deliver our high-quality products while also investing in innovation and new product offerings in the near future,” said Dennis Veilleux, Colt president and CEO.

Industry’s Economic Growth Soars

NSSF released figures detailing the industry’s meteoric rise since 2008 in its 2021 Firearm & Ammunition Economic Impact Report. The total economic impact of the firearm and ammunition industry in the U.S. increased 232% from 2008 to 2020 ($19.1 billion to $63.5 billion). The total number of full-time equivalent jobs rose 106% (from 166,000 to 342,330) in that same period.

Year-over-year (YOY), the industry’s economic impact grew 5% ($60 billion to $63.5 billion), while total jobs increased by more than 10,000, from 332,000 to 342,330.

The firearm and ammunition industry paid nearly $7 billion in business taxes, including property, income and sales-based levies.

“The firearm industry has demonstrated amazing resilience and these economic impact figures are the result of every man and woman who comprise our industry,” said Joe Bartozzi, NSSF president and CEO. “These professionals are the reason our industry continues to grow and contribute to our communities, states and nation. These workers and our member companies produce the highest-quality firearms and ammunition that over a hundred million law-abiding Americans rely upon to exercise their right to keep and bear arms and safely enjoy the recreational shooting sports.”

Additionally, since 2008, the industry has increased federal tax payments by 170%, Pittman-Robertson excise taxes (which support wildlife conservation) by 89% and state business taxes by 125%.

NICS Records Continue To Fall

After a year defined by record-breaking statistics, 2021 has so far followed the script. While not a direct correlation to firearm sales, NICS background checks provide a quantifiable measure of current market conditions. And the current market remains hot.

Through May 31, there have been 8,501,879 (NSSF-adjusted) background checks in 2021 — a record figure and 4.8% over Jan. 1–May 31, 2020 (8,115,139). For context, prior to a worldwide pandemic and domestic social unrest, the top figure from Jan–May came in 2013 when 7,085,881 checks were conducted. The adjusted NICS figures in January and April 2021 are top monthly totals.

Providing his reaction to continued strong demand, Bartozzi offered this sentiment:

“There’s something fundamentally critical about the right to defend yourself and your family, and people recognized they’re the first line of defense. They’re continuing to speak with their wallets and are buying firearms and ammunition in records numbers.”

Bartozzi highlighted the impact of non-traditional buyers entering the market.

“It’s a phenomenal thing — people from all walks of life, all creeds and colors, embracing the Second Amendment. It’s been a renaissance for gun rights,” he said.

Unadjusted NICS data paint a similar picture, with 19,188,494 conducted through May 31 in 2021, significantly more than the 15,248,440 observed through the first five months of 2020.

Top Manufacturers

Ruger was the top U.S. manufacturer in 2019, a position it has held 11 of the past 12 years. It was the only manufacturer to eclipse the 1 million mark in 2019, with 1,271,879 firearms produced. For the third consecutive year, Ruger was the top rifle manufacturer. The company ranked as the second-largest producer of pistols and revolvers. Combined, however, it was the top handgun producer in 2019.

Of note: Ruger’s revolver figures jumped 26.6% over 2018 (145,534 to 184,197). Its performance in .22-caliber powered a notable increase, from 22,011 to 102,816. Not a coincidence, the Ruger Wrangler was introduced in April 2019 and was an immediate success story for the company. During a Nov. 8, 2019 earnings call on its Q3 2019 results, Killoy said, “The Wrangler has been probably the biggest hit, and that’s the gun we continue to chase production.”

Smith & Wesson was the second-largest U.S. firearms manufacturer in 2019. It ranked third in handgun production and fifth in rifle production.
As the third-ranked manufacturer, SIG SAUER continued its upward trajectory to close out the decade. For the first time, according to our records, it led the pistol production category with 692,326 pistols. Of this figure, nearly 90% of its production came from 9mm (88.9%) — strongly associated to the success of the P320 and P365 platforms.

Remington was the fourth-largest U.S. manufacturer in 2019. It was the second-largest producer of rifles and shotguns.

Rounding out the top five, O.F. Mossberg/Maverick Arms was the fifth-largest firearms maker in 2019. It produced the most shotguns that year for the third year in succession. In honor of the company’s 100th anniversary in 2019, Mossberg reentered the handgun market with the MC1sc and became the 16th top producer of pistols as a result.

Among the top 30 U.S. manufacturers, 12 achieved YOY growth over 2018. Of those 12 manufacturers, CZ-USA (70.2%), Christensen Arms (59.8%), Palmetto State Armory (46.9%), Taurus (38%), American Tactical (35.9%) and Daniel Defense (31.8%) elevated production by more than 30%.

Firearms Production Insights

Pistol and revolver production experienced a YOY decline in 2019, dropping 21.5% (3,881,158 to 3,046,013) and 12.7% (664,835 to 580,601), respectively. Because the AFMER data categorizes both pistol and revolver manufacturing by caliber, individual insights can be gleaned.
For example, production of pistols in the “up to .25-caliber” and “up to .32-caliber” each saw increases. The up to .25-caliber category more than doubled from 2018 to 2019 (25,370 to 53,402).

Each of the top-producing handgun categories experienced a YOY decline. Production in the to 9mm category ranked as the fourth-highest of the 2010s (1,729,834) but represented a 17.9% drop from 2018 (2,099,319). Production in .22 dropped 8.5% YOY (417,806 to 382,169) the fewest since 2010, when 374,505 were produced. In the up to .380 and .50 categories, production fell to their lowest levels of the decade, to 470,859 (a 38.1% YOY decrease) and 364,826 (33.4% YOY decrease), respectively.

While overall revolver production in 2019 dropped to its smallest figure since 2010, when 558,927 revolvers were produced, figures in the .22 category hit its highest mark of the decade (365,440). Heritage Mfg. Inc. was the top overall producer of revolvers (212,694), with 210,994 coming in .22. Its YOY production grew 13.7% (from 187,104 to 212,694).

After experiencing a bit of a rebound in 2018, the rifle category recorded its third-lowest total of the 2010s. The top five rifle producers were Ruger, Remington, Savage Arms, Henry USA and Smith & Wesson.

Shotgun manufacturing dropped below 500,000 for the first time in decades (499,885). O.F. Mossberg/Maverick Arms and Remington were the two-largest shotgun producers by some distance, with KelTec Weapons, Henry USA and Savage Arms rounding out the top five.

As noted above, the miscellaneous firearms category isn’t included in total figures, but the lead producer in 2019 was WM C Anderson Inc. (Anderson Manufacturing) — a position it has held since SI began reporting on this category in 2017.

International Business

In 2018, U.S. manufacturers exported a record 548,111 firearms. Coinciding with a drop in domestic production, export figures plunged 43% to 312,021. This was the lowest total observed since 2012 (which had 272,169 total exports). Each firearms category experienced a YOY decline: pistols (-58.4%), revolvers (-31.3%), rifles (-17.7%) and shotguns (-19.6%).

With 58,832 firearms exported, Remington was the top exporter in 2019 — buoyed by its 46,841 rifles. Ruger was the second-largest U.S. exporter (56,107), and the only manufacturer in the top five to post an increase over 2018 (53,663 to 56,107). SIG SAUER was ranked third overall (56,107), and was the top U.S. pistol exporter — a position it has held since 2016. GLOCK and Smith & Wesson were the fourth- and fifth-largest U.S. exporters in 2019. For more U.S. export figures, see p. 35.

Using the latest data from the U.S. Census Bureau, Economic Indicators Division, we can compare U.S. imports from 2019 and 2020. After experiencing a modest drop from 2018 to 2019 (-7.4%), U.S. firearms imports rebounded spectacularly in 2020 — with 5,626,554 firearms imported, surging 51.9% over 2019’s total (3,705,172). The top three importing countries each eclipsed the 1 million firearm barrier: Austria (1,278,628), Turkey (1,033,653) and Brazil (1,013,122).

Handgun imports expanded from 2,556,834 in 2019 to 3,917,903 in 2020, an impressive 53.2% jump. Austria (1,278,628), Brazil (849,217) and Croatia (521,932) represented the top three originating countries.

Rifle imports likewise posted a YOY increase, with 765,391 rifles imported into the U.S. in 2020 (up from 575,263 in 2019, a 33.1% uptick). Canada (211,767), Brazil (120,864) and Japan (78,249) were the top importers.

Finally, shotgun imports followed the trend in 2020: They rose 64.6% over 2019 (from 573,075 to 943,260). Turkey (659,421), Italy (149,760) and China (82,917) led all shotgun imports.

All Eyes On 2020

Though U.S. firearms manufacturing closed out the 2010s on a downward trend, we’ll soon be able to glean just how much things have skyrocketed since then when the ATF releases its 2020 AFMER data in early 2022 — which will no doubt reveal the new benchmarks. We look forward to covering it in detail next year. Have a comment after reading this year’s report? Send the SI team an email: editor@shootingindustry.com.

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