Table of Contents

• Scope
  
  
• Small Arms and Ammunition Defined
  
  
• Product Categories and Segments
  
  
• Methodology
  
  
• Market Size and Growth
  
  
  
  
  
  • Firearms & Ammunition Reach $4.9 Billion
    
    
  • Table 1-1 U.S. Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
    
    
  • Civilian/Commercial Market Reaches $2.8 billion
    
    
  • Shipment Growth Slows, While Trade Activity Accelerates
    
    
  • Table 1-2 U.S. Small Firearm & Ammunition Shipments, Imports and Exports, 1998 and 2003-2007 (in million $)
    
    
  • Imports by Product Type
    
    
  • Exports by Product Type
    
    
  • Unit Growth at 15% to Top 7 Million
    
    
  • Table 1-3 U.S. Small Firearm Units Manufactured, Imported and Exported, 1998-2007 (in millions of units)
    
    
  • Handguns Surge, Long Guns Drop
  
  
  
  
• Market Forecast
  
  
  
  
  
  • U.S. Market for Small Arms & Ammunition to Reach $6.5 Billion by 2012
    
    
  • Figure 1-1 U.S. Small Firearms & Ammunition Market Forecast, 2007-2012 (in billion $)
  
  
  
  
• Market Trends
  
  
  
  
  
  • GDP Forecasted Growth: Modest 1.3% in 2008
    
    
  • Commodity Price Increases
    
    
  • Producer Price Increases for Arms and Ammunition
    
    
  • Not All Gun Markets Are Equal
    
    
  • Production Moving Overseas
    
    
  • FBI Crime Statistics
    
    
  • ATF Gets Tough on Gun Store Owners
    
    
  • Urbanization and Gun Violence
    
    
  • Ammo Shortage Pinches Homeland Security
    
    
  • Ammunition Prices Going Up
    
    
  • Possible Drop in Ammo Demand
    
    
  • Flawed by Politics and Flamed by Emotions
    
    
  • Waiting Periods, Background Checks and Assault Weapons Bans
    
    
  • Politicians and Lobbyists Draw Lines in the Sand
    
    
  • Taxes on Guns for Non-Related Services
    
    
  • The Hunt Is On
    
    
  • Table 1-4 Number of Participants Engaged in Hunting by Prey, 1991-2006 (in thousands)
    
    
  • Spurring New Ownership Through Innovation
  
  
  
  
• Corporate Landscape
  
  
  
  
  
  • Seeped in American History, But Hip to the 21st Century
    
    
  • Competition
    
    
  • Competitive Landscape for Firearms
    
    
  • Competitive Landscape for Ammunition
    
    
  • Selected Manufacturers
    
    
  • Table 1-5 Selected Manufacturers of Small Firearms and Ammunition
  
  
  
  
• Distribution and Retail
  
  
  
  
  
  • Overview
    
    
  • Disjointed Regulatory Landscape
    
    
  • Retailers and Dealers in Decline
    
    
  • Survey Highlights Retail Best Practices
    
    
  • Long Hunting Season Boon for Retailers and Distributors
    
    
  • Attracting Customers
  
  
  
  
• The Consumer
  
  
  
  
  
  • U.S. Gun Ownership Strong, But Dropping
    
    
  • Top States for Small Arms & Ammunition Ownership
    
    
  • How Gun Violence Affects Individuals’ Perceptions
    
    
  • Individuals Generally Support Regulation
    
    
  • Sporting Arms & Ammo Consumer Penetration
    
    
  • Table 1-6 Consumer Penetration Rates for Sporting Arms & Ammunition, 2004-2006 (%)
    
    
  • Demographic Characteristics
    
    
  • Party Affiliation No Surprise

Chapter 2 The Market

• Scope
  
  
• Small Arms and Ammunition Defined
  
  
• Product Categories and Segments
  
  
• Methodology
  
  
• Market Size and Growth
  
  
  
  
  
  • Firearms and Ammunition Reach $4.9 Billion
    
    
  • Figure 2-1 U.S. Small Firearms & Ammunition Market, 1998-2007 (in billion $)
    
    
  • Table 2-1 U.S. Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
    
    
  • Civilian/Commercial Market Reaches $2.8 billion
    
    
  • Figure 2-2 Estimated U.S. Civilian/Commercial Small Firearms & Ammunition Market, 1998-2007 (in billion $)
    
    
  • Table 2-2 Estimated U.S. Civilian/Commercial Small Firearms & Ammunition Market and Year-over-Year Growth, 1998-2007 (in billion $)
    
    
  • Excise Taxes Approach $300 Million in 2007
    
    
  • Figure 2-3 U.S. Small Firearms & Ammunition Excise Tax Collections,
    
    
  • 1998-2007 (in million $)
  
  
  
  
• Value of Shipments, Imports and Exports
  
  
  
  
  
  • Shipment Growth Slows, While Trade Activity Accelerates
    
    
  • Table 2-3 U.S. Small Firearm & Ammunition Shipments, Imports and
    
    
  • Exports, 1998 and 2003-2007 (in million $)
    
    
  • Ammunition Leads Shipments in 2007
    
    
  • Figure 2-4 U.S. Small Firearm & Ammunition Shipments, 1998-2007 (in billion $)
    
    
  • Figure 2-5 U.S. Small Firearm & Ammunition Shipments as a Share of Total Shipments, 2007 (%)
    
    
  • Imports Increasingly Important
    
    
  • Figure 2-6 Domestic vs. Foreign Production as a Share of U.S. Market Supply for Small Firearms & Ammunition, 1998-2007 (%)
    
    
  • U.S. Manufacturers Export 14% of Shipments in 2007
    
    
  • Figure 2-7 U.S. Small Firearm & Ammunition Exports as a Share of Shipments, 1998-2007 (%)
    
    
  • Imports by Product Type
    
    
  • Firearms
    
    
  • Table 2-4 U.S. Imports of Small Firearms, Parts & Accessories by Product Type, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-8 Estimated Share of U.S. Small Firearms, Parts & Accessories Imports by Product Type, 2007 (%)
    
    
  • Ammunition
    
    
  • Table 2-5 U.S. Imports of Small Firearm Ammunition & Parts by Product Type, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-9 Estimated Share of U.S. Small Fire Ammunition & Parts Imports by Product Type, 2007 (%)
    
    
  • Exports by Product Type
    
    
  • Firearms
    
    
  • Table 2-6 U.S. Small Firearms, Parts & Accessories Exports by Product Type, 1998 and 2003-2007 (in million $)
    
    
  • Table 2-6 [cont.] U.S. Small Firearms, Parts & Accessories Exports by Product Type, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-10 Estimated Share of U.S. Small Firearms, Parts & Accessories Exports by Product Type, 2007 (%)
    
    
  • Ammunition
    
    
  • Table 2-7 U.S. Exports of Small Ammunition & Parts by Product Type, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-11 Estimated Share of U.S. Small Firearm Ammunition & Parts Exports by Product Type, 2007 (%)
    
    
  • Imports by Country of Origin
    
    
  • Firearms
    
    
  • Table 2-8 U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 1998 and 2003-2007 (in million $)
    
    
  • Table 2-8 [cont.] U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-12 Estimated Share of U.S. Small Firearms, Parts & Accessories Imports by Country of Origin, 2007 (%)
    
    
  • Ammunition
    
    
  • Table 2-9 U.S. Small Firearm Ammunition & Parts Imports by Country of Origin, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-13 Estimated Share of U.S. Small Firearm Ammunition & Parts Imports by Country of Origin, 2007 (%)
    
    
  • Exports by Country of Destination
    
    
  • Firearms
    
    
  • Table 2-10 U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 1998 and 2003-2007 (in million $)
    
    
  • Table 2-10 [cont.] U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-14 Estimated Share of U.S. Small Firearms, Parts & Accessories Exports by Country of Destination, 2007 (%)
    
    
  • Ammunition
    
    
  • Table 2-11 U.S. Small Firearm Ammunition & Parts Exports by Country of Destination, 1998 and 2003-2007 (in million $)
    
    
  • Figure 2-15 Estimated Share of U.S. Small Firearm Ammunition & Parts Exports by Country of Destination, 2007 (%)
  
  
  
  
• Small Firearm Unit Size and Growth
  
  
  
  
  
  • Unit Growth at 15% to Top 7 Million
    
    
  • Figure 2-16 U.S. Market for Small Firearms, 1998-2007 (in millions of units)
    
    
  • Table 2-12 U.S. Small Firearm Units Manufactured, Imported and Exported, 1998-2007 (in millions of units)
    
    
  • Exports as a Share of Domestic Production
    
    
  • Table 2-13 U.S. Small Firearm Units Manufactured and Exported,
    
    
  • 1998-2007 (in millions of units)
    
    
  • Imports as a Share of U.S. Market Supply
    
    
  • Figure 2-17 Domestic vs. Foreign-Made Small Firearm Units as a Share of U.S. Market Supply, 1998-2007 (%)
    
    
  • U.S. Unit Manufacturing by Type and Caliber
    
    
  • Figure 2-18 Estimated Share of U.S. Small Firearm Unit Manufacturing by Type, 2007 (%)
    
    
  • Figure 2-19 U.S. Small Firearm Unit Manufacturing by Type, 1998-2007 (in thousands of units)
    
    
  • Handguns Surge
    
    
  • Figure 2-20 U.S. Handgun Manufacturing: No. of Units and Share of Total Small Firearms, 1998-2007 (in millions of units)
    
    
  • Figure 2-21 U.S. Pistol Manufacturing: No. of Units and Share of Total Handguns, 1998-2007 (in millions of units)
    
    
  • Figure 2-22 U.S. Revolver Manufacturing: No. of Units and Share of Total Handguns, 1998-2007 (in millions of units)
    
    
  • Table 2-14 U.S. Handgun Unit Manufacturing by Type and Caliber, 1998-2005 (in thousands of units)
    
    
  • Long Guns Decline in Share
    
    
  • Figure 2-23 U.S. Long Gun Manufacturing: No. of Units and Share of Total Small Firearms, 1998-2007 (in billion $)
    
    
  • Figure 2-24 U.S. Rifle Manufacturing: No. of Units and Share of Total Long Guns, 1998-2007 (in billion $)
    
    
  • Figure 2-25 U.S. Shotgun Manufacturing: No. of Units and Share of Total Long Guns, 1998-2007 (in billion $)
  
  
  
  
• Market Forecast
  
  
  
  
  
  • U.S. Market for Small Arms & Ammunition to Reach $6.5 Billion by 2012
    
    
  • Figure 2-26 U.S. Small Firearms & Ammunition Market Forecast,
    
    
  • 2007-2012 (in billion $)

Chapter 3 Market Trends

• Overview
  
  
• Economic Factors
  
  
  
  
  
  • GDP Forecasted Growth: Modest 2.2% in 2007, 1.3% in 2008
    
    
  • Figure 3-1 U.S. Current-Dollar GDP vs. Real GDP, 2002-2008 (in trillion $)
    
    
  • Figure 3-2 Percentage Changes in U.S. Current-Dollar GDP, Real GDP
    
    
  • and the GDP Price Index, 2002-2008 (%)
    
    
  • Economic Impact on Firearm Industry
    
    
  • Rising Manufacturing Costs
    
    
  • Commodity Price Increases
    
    
  • Figure 3-3 U.S. Producer Price Indexes for Selected Commodities,
    
    
  • 1997-2006
    
    
  • Producer Price Increases for Arms and Ammunition
    
    
  • Figure 3-4 U.S. Producer Price Indexes for Small Firearms and Ammunition, 1997-September 2007
    
    
  • Not All Gun Markets Are Equal
    
    
  • Condensed Seasonality
    
    
  • Production Moving Overseas
  
  
  
  
• Security Factors
  
  
  
  
  
  • FBI Crime Statistics
    
    
  • Table 3-1 Safer Now Than Before 9/11?, 2004, 2006, 2007
    
    
  • Property Crime Continues to Decline
    
    
  • Violent Crime Ticks Upward
    
    
  • ATF Gets Tough on Gun Store Owners
    
    
  • Urbanization and Gun Violence
    
    
  • Segregation Fuels Violence
    
    
  • Exurbia: Blending the Line Between Urban and Suburban
    
    
  • Table 3-2 Leading Homicide Rates in Small, Medium and Large
    
    
  • U.S. Cities
    
    
  • Ammo Shortage Pinches Homeland Security
    
    
  • Ammunition Prices Going Up
    
    
  • Possible Drop in Ammo Demand
  
  
  
  
• Regulatory Factors
  
  
  
  
  
  • Flawed by Politics and Flamed by Emotions
    
    
  • Waiting Periods, Background Checks and Assault Weapons Bans
    
    
  • Politicians and Lobbyists Draw Lines in the Sand
    
    
  • An Alternative to NRA?
    
    
  • Tiahrt Amendment
    
    
  • Taxes on Guns for Non-Related Services
    
    
  • Supreme Court May Take Up Second Amendment Case
  
  
  
  
• Hunting Trends
  
  
  
  
  
  • The Hunt Is On
    
    
  • Hunting Falling Out of Favor
    
    
  • Figure 3-5 Total Number of Participants Engaged in Hunting, 1991-2006 (in thousands)
    
    
  • Table 3-3 Number of Participants Engaged in Hunting by Prey, 1991-2006 (in thousands)
    
    
  • Figure 3-6 Total Hunting Expenditures for Firearms, 1991-2006 (in million $)
    
    
  • Table 3-4 Hunting Expenditures by Type of Expenditure, 1991-2006 (in million $)
    
    
  • Figure 3-7 Share of Hunting Equipment Expenditures by Type of Expenditure, 2006 (%)
    
    
  • Figure 3-8 Hunting Expenditures on Firearms by Firearm Type, 1991-2006 (in millions)
    
    
  • Figure 3-9 Share of Hunting Expenditures by Firearm Type, 2006 (%)
    
    
  • Figure 3-10 U.S. Consumer Purchases of Hunting and Firearms Equipment, 1990-2005 (in billion $)
  
  
  
  
• The New Frontier
  
  
  
  
  
  • Spurring New Ownership Through Innovation
    
    
  • Table 3-5 Selected Small Firearms and Ammunition Product Introductions, 2006-2007 Chapter 4 Corporate Profiles
    
    
    
    
    
    
    • Seeped in American History, But Hip to the 21st Century
      
      
    • Competition
      
      
    • Competitive Landscape for Firearms
      
      
    • Competitive Landscape for Ammunition
      
      
    • Selected Manufacturers
      
      
    • Table 4-1 Selected Manufacturers of Small Firearms and Ammunition
    
    
    
    
  • Smith & Wesson Holding Corp.
    
    
    
    
    
    • Overview
      
      
    • Performance
      
      
    • Figure 4-1 Total Net Sales for Smith & Wesson, 2003-2007 (in million $)
      
      
    • Figure 4-2 Smith & Wesson Customers, 2007 (%)
      
      
    • Firearm Sales
      
      
    • Figure 4-3 U.S. Net Firearm Sales for Smith & Wesson, 2003-2007 (in million $)
      
      
    • Product Portfolio
      
      
    • Table 4-2 Smith & Wesson Firearm Product Portfolio, 2007
      
      
    • Figure 4-4 Smith & Wesson Product Mix, 2007 (%)
      
      
    • Significant Events
    
    
    
    
  • Herstal Group
    
    
    
    
    
    • Overview
      
      
    • 
      
      
    • FN Herstal
      
      
      
      
      
      • Overview
        
        
      • Product Portfolio
        
        
      • Table 4-3 FN Herstal Firearm Product Portfolio, 2007
        
        
      • Browning/U.S. Repeating Arms Co.
        
        
      • Overview
        
        
      • Product Portfolio
        
        
      • Table 4-4 Browning Firearm Product Portfolio, 2007
        
        
      • Table 4-5 Winchester Brand Portfolio, 2007
      
      
      
      
    • GLOCK G.m.b.H.
      
      
      
      
      
      • Overview
        
        
      • Performance
        
        
      • Product Portfolio
        
        
      • Table 4-6 Glock Firearm Product Portfolio, 2007
      
      
      
      
    • Sturm, Ruger & Co., Inc.
      
      
      
      
      
      • Overview
        
        
      • Performance
        
        
      • Figure 4-5 Total Net Sales for Strum, Ruger & Co., 2002-2006 (in million $)
        
        
      • Figure 4-6 Total Net Firearm Sales for Strum, Ruger & Co., 2002-2006 (in million $)
        
        
      • Product Portfolio
        
        
      • Table 4-7 Sturm, Ruger & Co. Firearm Product Portfolio, 2007
      
      
      
      
    • O.F. Mossberg & Sons, Inc.
      
      
      
      
      
      • Overview
        
        
      • Product Portfolio
        
        
      • Table 4-8 O.F. Mossberg & Sons Firearm Product Portfolio, 2007
        
        
      • Significant Events
      
      
      
      
    • Remington Arms Co., Inc.
      
      
      
      
      
      • Overview
        
        
      • Performance
        
        
      • Figure 4-7 Total Net Sales for Remington Arms, 2002-2006 (in million $)
        
        
      • Firearms
        
        
      • Figure 4-8 Total Net Firearm Sales for Remington Arms, 2002-2006 (in million $)
        
        
      • Ammunition
        
        
      • Figure 4-9 Total Net Ammunition Sales for Remington Arms, 2002-2006 (in million $)
        
        
      • Product Portfolio
        
        
      • Table 4-9 Remington Arms Product Portfolio, 2006
        
        
      • Figure 4-10 Remington Arms Product Mix, 2006 (%)
        
        
      • Alliant Techsystems, Inc.
        
        
      • Overview
        
        
      • ATK’s Ammunition Systems Group
        
        
      • Overview
        
        
      • Performance
        
        
      • Figure 4-11 Total Net Sales for Alliant Techsystems, 2003-2007 (in billion $)
        
        
      • Ammunition
        
        
      • Figure 4-12 Total Net Ammunition Sales for Alliant Techsystems,
        
        
      • 2003-2007 (in million $)
        
        
      • Small-Caliber Ammunition
        
        
      • Figure 4-13 U.S. Small-Caliber Ammunition Net Sales for Alliant Techsystems, 2003-2007 (in million $)
        
        
      • Figure 4-14 Small-Caliber Ammunition Customer Mix for Alliant
        
        
      • Techsystems, 2007 (%)
        
        
      • Product Portfolio
        
        
      • Significant Events
      
      
      
      
    • Olin Corp.
      
      
      
      
      
      • Overview
        
        
      • Performance
        
        
      • Figure 4-15 Net Sales for Olin Corp., 2002-2006 (in billion $)
        
        
      • Winchester Ammunition
        
        
      • Performance
        
        
      • Figure 4-16 Net Sales for Winchester Ammunition, 2002-2006 (in million $)
        
        
      • Product Portfolio
        
        
      • Table 4-10 Winchester Ammunition Product Portfolio, 2006

Chapter 5 Distribution and Retail

• Overview
  
  
• Selected Firearm Distributors
  
  
• Disjointed Regulatory Landscape
  
  
• Loopholes: Gun Shows and the Mentally Ill
  
  
• Table 5-1 Selected Legislation Highlights in States with High Gun
  
  
• Ownership, 2007
  
  
• Retailers and Dealers in Decline
  
  
• Table 5-2 Number and % Decrease of Type 1 Federal Firearms Licenses (FFLs) by State, 1994 to 2007
  
  
• Table 5-3 Number of Gun Dealerships vs. Gas Stations, by State, 2005
  
  
• Survey Highlights Retail Best Practices
  
  
• Know the Laws
  
  
• Ensuring Insurance
  
  
• Protecting Against Theft
  
  
• Educate, Educate, Educate
  
  
• Carry a Wide Selection … and Don’t Forget the Accessories!
  
  
• Long Hunting Season Boon for Retailers and Distributors
  
  
• Inventory Management Imperative
  
  
• Attracting Customers
  
  
• Retailer Profile: Cabela’s
  
  
• Direct Business via Catalog and Internet Platforms
  
  
• Retail Business Surpasses 20 Stores Nationwide
  
  
• Revenue Neared $2 Billion in 2006
  
  
• Selected Firearm Retailers

Chapter 6 The Consumer

• U.S. Gun Ownership Strong, But Dropping
  
  
• High Per Capita Ownership
  
  
• Gun Ownership Plunges
  
  
• Top States for Small Arms & Ammunition Ownership
  
  
• Table 6-1 Percentage of Adults Reporting Household Firearm Ownership by State, 2002 (%)
  
  
• How Gun Violence Affects Individuals’ Perceptions
  
  
• Table 6-2 Broader Problems Reflected by Incidents Such as Virginia Tech Shooting?, 2007 (%)
  
  
• Table 6-3 How Views on Gun Control Have Changed, 2000-2007 (%)
  
  
• Individuals Generally Support Regulation
  
  
• Table 6-4 U.S. Public Support for Measures to Regulate Firearms, 2006 (%)
  
  
• A Look at Sporting Arms & Ammo Owners
  
  
  
  
  
  • The Simmons Survey System
    
    
  • Consumer Penetration
    
    
  • Table 6-5 Consumer Penetration Rates for Sporting Arms & Ammunition, 2004-2006 (%)
    
    
  • Demographic Characteristics
    
    
  • Table 6-6 Sporting Arms & Ammunition Ownership by Demographic Characteristic, 2007 (index)
  
  
  
  
• Participation in Hunting
  
  
  
  
  
  • Consumers Participation
    
    
  • Table 6-7 Hunting Participation Rates, 2004-2006 (%)
    
    
  • Demographic Characteristics
    
    
  • Table 6-8 Demographic Indicators for Hunting Participation, 2007 (index)
    
    
  • Table 6-9 Demographic Indicators for Hunting “Every Chance I Get,” 2007 (index)
    
    
  • Table 6-10 Demographic Indicators for Hunting Occasionally, 2007 (index)
    
    
  • Table 6-11 Demographic Indicators for Hunting Seldom, 2007 (index)
  
  
  
  
• The Politics of Gun Ownership
  
  
  
  
  
  • Party Affiliation No Surprise
    
    
  • Table 6-12 Sporting Arms & Ammunition Ownership by Voter Registration Status and Political Party Affiliation, 2007 (index)
    
    
  • Beyond Red vs. Blue
    
    
  • Table 6-13 Gun Ownership by Political Affiliation, 2005 (%)
    
    
  • Table 6-14 Views of the National Rifle Association by Political Affiliation, 2005 (%)