Industry ends devastating year, 1996 a test of survival - firearms industry - Industry Overview
In 1994, gun sales soared, manufacturers worked overtime, distributors rushed inventories through the pipeline, and dealers sold guns as fast as they arrived.
In 1995, gun sales plummeted, manufacturing slowed to a crawl, bloated inventories gathered dust, and the dealer became the second loneliest man in town.
Ironically, 1994 should have been a rotten year for businesses and 1995 a great year. In 1994, anti-gun messages resounded across the country and the crime law was signed by the President. It had the makings of a bad year.
However, the anti-gun campaigns actually drove guns sales to record highs. When the GOP gained control of Congress, 1995 was set to be a good year.
It didn’t happen. Sales figures lurched, stumbled and staggered through the first quarter of ‘95. And then it got worse.
“It was not a banner year,” said Bob Scott of Smith & Wesson. “Hardest hit were high-capacity handguns that no longer had high-capacity magazines.”
With handgun sales crippled, other products took a beating.
“The softening of the handgun market definitely affected our handgun ammunition business,” said Bill Wohl of Remington.
When sales stopped, inventories jammed warehouses and manufacturers slowed and, in some cases, turned off the machines, 1995 was a bad year for business. And its effect on the industry is expected to be felt into 1996.
“It’s going to be a tough first quarter,” said William Fraim, president of AcuSport. “Some in the industry have been so badly hurt they may not be around in February. Overall for next year, we’re looking at a slight improvement over 1995.”
Industry analysts expect handgun sales to continue to be soft through at least the first half of ‘96.
Despite the devastation, there were some bright spots during 1995. Shotgun sales held their own during the year and even advanced moderately, which also helped the sale of shotgun ammo. Rifles also continued to sell.
“Our long-gun business was still brisk,” said Wohl. “There was a big demand for our varmint rifles especially the Sendero.”
Quick adjustments by some manufacturers also helped them through the year.
“Introducing new products definitely helped,” said Scott. “We took a small gun emphasis to counter the soft high capacity market and to meet the demands of concealed carry.”
While most retailers reported a dismal year, not all dealers suffered during 1995. Wayne Williams, owner of Greene Guns & Sports Supply in Ruckersville, Va., said he had a “wonderful year.”
“We’ve done well this year and I’m expecting it to get better,” said Williams. “We sell upper-end firearms and a lot of accessories. We also don’t try to compete with the big mart stores.”
Adjusting to the marketplace will be, more than ever, vital to success in ‘96, according to industry insiders.
“We’re addressing the black powder market in ‘96,” said Wohl. “It’s an area where we see continued growth. Overall, 1996 looks to be a good year for us.”
In the end, experts view 1996 as a critical test to determine who will survive in the shooting industry.
“Yes, it’s been tough, but to be honest, we’ve never seen greater opportunity for future growth,” said Fraim of AcuSport. “We’re in this for the long term.”
Editor’s Note:
Each year, in the December issue of SI, we provide an extensive analysis of the firearms production for the previous year based on data received from the ATF. Devoted readers will note that no such 1994 production report appears in this issue. And for good reason. We don’t have the data.
For the first time in several decades, the ATF did not publish an Interim Annual Firearms Manufacturing and Exportation Report. This year, the ATF acknowledged that their reports have been incomplete and often inaccurate. According to ATF officials, the reports from the manufacturers often have errors and the problem is compounded because the data has been handled poorly at the ATF. Rarely were reports ever screened and no one checked on manufacturers who failed to file their reports as required by law.