Another thing is many US import laws.
The United States with it gun freedoms for citizens is the largest market in the world. But
in 1968 the GCA severely limited foreign firearm makers.
The point system requirement for handgun imports killed off several small companies in Europe and Italy.
They had lost the largest market in the world, and could not sell models with the same exact features (or lack of) as American firearm manufacturers not subject to those import laws could produce and sell to the market.
So when the profit margin is minimal, and your competitor can make a firearm at a price point without features required from you by law, you simply cannot compete.
For example the Ruger LCP, or Kel-Tec P3AT pocket size guns in .380 calibers have been very big sellers in portions of the US.
Yet they
would be illegal by far for import to the United States. They would be so low on the point system as to have no hope of being made to comply.
So no foreign manufacturer can compete with that segment of the market.
Consider even many Glocks are illegal for import in the condition they are sold from the store. They have to be imported with features that are removed by the distributor just to be imported. Parts which are then shipped back overseas to be used with the next batch. Yet even with all this some models barely meet the minimum 75 point requirement, and some like the .380 models still do not.
A big company can do this, a small company may not. A smaller company simply would be unable to sell those guns in the US, the biggest market for guns.
http://www.glockfaq.com/content.aspx?ckey=Glock_FAQ_Glock_Model_Info#points
Changes and features made to Glocks to comply with the BATF rules:
- all models are imported with a cheap click-adjustable rear sight that is replaced at the factory with the stock sight
That cheap target sight adds 10 points to import, and with even the Glock 17 (many models score worse) at just 80 import points, that lack of those 10 points would remove all Glocks from legal import (though the non compact models could likely add other features to barely meet import again if necessary., the compact and subcompact models would be illegal.)
So in the 1970-80s many that relied on the US market went out of business.
Foreigners seeking to export to the US market need to add extra features that may be both undesirable to the market (longer barrels, heavier guns),
and increase the cost of manufacture per firearm (adjustable target sights, target triggers, various safeties etc.)
Domestic firearm producers do not.
Domestic producers can therefore sell cheaper with a higher profit margin, or sell products completely illegal for foreign companies to import.
For example a foreign company can not even export a snub nose revolver to the US, because there is a minimum of 3" required even if they have enough points from other features. So the entire under 3" barrel revolver market has been limited to US domestic Gun manufacturers.
To compete with the domestic US market a foreign company needs to have such a massive profit advantage over US companies before import that even after all the extra hassle they are still at an advantage.
A small family gun maker would already have trouble competing with big US companies without those import limitations, but add in those extras and they simply cannot compete.
There is still a few big names from Italy, but that is what happened to many of the smaller ones.
Here is a list of limitations of foreign manufacturers on just handguns (
there is separate regulations and restrictions on foreign long guns like 922R compliance that also do not apply to domestic firearms) that does not exist for domestic US gun makers:
PISTOL
Prerequisites
1. The pistol must have a positive manually operated safety device.
2. The combined length and height must not be less than 10" with
the neight (right angle measurement to barrel without magazine
or extension) being at least 4" and the length being at least 6".
Individual Characteristics Point value
Overall Length
For each 1/4" over 6" 1 pt
Frame Construction
Investment case or forged steel 15
Investment case or forged HTS alloy 20
Weapon Weight w/Magazine (unloaded)
Per ounce 1
Caliber
.22 short and .25 auto 0
.22 LR and 7.65mm to .380 auto 3
9mm parabellum and over 10
Safety Features
Locked breech mechanism 5
Loaded Chamber Indicator 5
Grip Safety 3
Magazine Safety 5
Firing Pin Block or Lock 10
Miscellaneous Equipment
External Hammer 2
Double Action 10
Drift Adjustable Target Sight 5
Click Adjustable Target Sight 10
Target Grips 5
Target Trigger 2
Qualifying score is 75 points
----------------------------------------------------------------------
Revolver
Prerequisites
1. Must pass safety test.
2. Must have overall frame (with conventional grips) length (not diagonal)
of 4 1/2" minimum.
3. Must have a barrel length of at least 3"
Individual Characteristics
Barrel Length (Muzzle to Cylinder Face)
Less than 4" 0
For each 1/4" over 4" 1/2
Frame Construction
Investment Cast or Forged Steel 15
Investment Cast or Forged HTS Alloy 20
Weapon Weight (Unloaded)
Per ounce 1
Caliber
.22 short to .25 acp 0
.22 LR and .30 to .38 S&W 3
.38 Special 4
.357 mag and over 5
Miscellaneous Equipment
Adjustable Target Sights 5
(drift or click)
Target Grips 5
Target Hammer and Target Trigger 5
Safety Test
A Double Action Revolver must have a safety feature which automatically
(or in a Single Action Revolver by manual operation) causes the hammer to
retract to a point where the firing pin does not rest upon the primer of
the cartridge. The safety device must withstand the impact of a weight
equal to the weight of the revolver dropping from a distance of 36" in a
line parallel to the barrel upon the rear of the hammer spur, a total of
5 times.
Qualifying score is 45 points.
