The Economics of the Gun Industry and Regulations (Incl. Bans)

[BearGriz]

As we see a flurry of threads about the current political climate and how it will (or potentially) affect gun availability, gun ownership, panic buying, etc., one thing keeps coming up in my mind:

How much economic impact does the gun industry have here in the US?

I think there must be a ton of jobs in the US (more in some regions/locations than others) that depend on a healthy gun market that is relatively free of constraints and regulations. I look at all the companies that manufacture, distribute, sell, market, and otherwise are involved in this industry, and I assume that there must also be a huge investment in infrastructure, R&D, employee training, supply chains and channels, etc.

Wouldn't any bans, regulations, restrictions, etc. obviously have an adverse economic impact to the country in general, and certain regions specifically? Each regulation would have a specific degree of impact, so we'd first need to know the specific regulation in question before we could scope it's exact impact.

So maybe I can ask this other question as well:

Have you personally seen an economic impact with previous bans/regulations (or even the lifting of them)?

It may have been an impact to you personally, or you saw an economic impact to your LGS, or your friend's company that marketed certain "evil" accessories, etc. I imagine that many of you have stories to tell of how gun regulations have impacted your wallets or the wallets of those you know and love. It is one thing to no longer be able to buy the gun you want, but it is another thing to lose part of your livelihood.

 

[Reloadron]

If you want to see an irony as of this writing the DJIA is down -267.96. Everything is down today with investors following last night's election returns looking at the fiscal cliff. Now take a look at RGR (Ruger Arms) which is up +3.21 or +7.20 %. The only green in my portfolio is Ruger Guns. Go figure!

Overall, the general consensus in some is the entire US firearms industry is not enough to matter in the big picture. Meaning if the industry ceased tomorrow the overall impact would not be that great.

Ron

 

[MErl]

I don't have the numbers handy but a ballpark can be obtained by taking the production numbers posted here a month or 2 back and assuming $750/gun (wild guess for an average)

Should be good within an order of magnitude.

so swag numbers:
~15million background checks done
$750/gun
works to around $11 billion in primary sales of firearms

then add accessories, services, and consumables.

It isn't GM or but is not tiny either. Especially when alot of that money gets distributed among smaller shops all over the country.

 

[cfullgraf]

The sales related to the gun industry is substantial enough for Wal-mart to sell ARs these days.

That should put it in perspective.

 

[MErl]

The sales related to the gun industry is substantial enough for Wal-mart to sell ARs these days.

That should put it in perspective.

thats why I'm not too concerned about a AWB. little too mainstream now.

 

[BearGriz]

I don't have the numbers handy but a ballpark can be obtained by taking the production numbers posted here a month or 2 back and assuming $750/gun (wild guess for an average)

I think you mean this thread (I did a search): http://www.thehighroad.org/showthread.php?t=669211

That thread shows 6.4 million manufactured in 2011. If you do assume $750 per gun, as you say, then it is ~$4.8 billion in new gun sales. I wonder if the 15 million BG checks you cite is a combination of foreign firearms, used firearms, and domestic production. In any case, like you said you also have to consider accessories and other related industries.

It isn't a huge industry, but with production numbers like that, I imagine it can't be set aside either.

 

[BearGriz]

As I read posts on this forum the past few days, I can't help but think that it must be "the best of times" and "the worst of times" for this industry. People who are in the business are probably "making hay," over the panic, but they are also probably thinking they better do it while "the sun shines!"

Imagine how scary and uncertain it would be, for example, to own a company that sells or manufactures ammo? I keep hearing that the anti's want to severely restrict ammo. I can think of a company that comes to all our gun shows, and as far as I can tell, they just travel around the Western U.S. selling bulk ammo at gun shows. How would you like hearing on the news everyday that people want to put you out of business?!?!

I hope that in all of our letter campaigns we remind our representatives and senators that they are talking about putting people out of work with all this talk of bans.