|SIC Codes:||3484 3482|
|NAICS Codes:||332994 332992|
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).
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.
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, and about 15 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.Buy Now