The U.S. firearms industry remains a cornerstone in the nation’s defense and civilian markets as it goes through changing demands and strategic adjustments. Insights from leading manufacturers, such as Ruger and Smith & Wesson, provide an in-depth view of current market conditions and their expectations for the future.
Industry giant Ruger netted $136.8 million in net sales for Q1 2024, a decrease of 8.5% from the $149.5 million realized in Q1 2023. While the overall market is trending downward, demand for several product families remained very strong, said Ruger CEO Chris Killoy. Within this, the 75th-anniversary models comprised of Mark IV Target pistol, 10/22 rifles, and LCP MAX pistol, along with American Rifle Generation II family, Mini-14 Tactical, and LC Carbine, witnessed excellent sales. New products accounted for $42 million, or 32% of firearms sales in Q1 2024, versus $30 million, or 21% of sales, in Q1 2023.
Killoy said that, according to external estimates, sell-through of the company’s products from independent distributors and retailers rose 1% in Q1 2024, as contrasted with a 4% decline in NSSF-adjusted NICS background checks. Ruger has responded to the weakened market by initiating a reduction in force affecting 80 staff, half of whom were transferred to manufacturing positions. Killoy also spoke about how discounting was prevalent out in the market, as many manufacturers were trying to remain competitive, while others saw modest annual price increases, which were less common this year due to competitiveness.
Another industry giant, Smith & Wesson, also reported its Q4 and full fiscal year 2024 results, showing a positive trend: Q4 2024 net sales of $159.1 million were 9.9% over Q4 2023; the full fiscal year 2024 net sales came in at $535.8 million, up 11.8% over the previous year. Mark Smith, president and CEO of Smith & Wesson Brands, said he is optimistic regarding future demand, despite the traditionally slow summer season. He emphasized that the strategy of the firm in aggressively pursuing the market share through promotions, marketing campaigns, and new product introductions has a focus on especially entry-level price launches to cater to price-sensitive consumers hit by inflation.
As Orchid noted, the wider industry context is corroborated by the ATF’s 2022 Annual Firearms Manufacturing and Exportation Report. Other major leading companies in this respect include Ruger and Smith & Wesson, among other leading manufacturers such as SIG Sauer, Savage Arms, and Springfield Armory leading the market in several firearm categories. The report underlined the leading position of Ruger in rifle manufacturing and the strong position of Smith & Wesson in the market for handguns.
With large-scale firearm manufacturing, Tennessee ranked number 18 of the states, producing 185,720 firearms in 2021. Beretta USA Corp.’s facility in Gallatin accounted for 83.6% of the state’s total.
The American firearms industry includes over 3,200 federally licensed gunmakers and produced almost 14 million firearms in 2021, the majority of which went to the domestic market. Indeed, resilience and adaptability are reflected in how manufacturers like Ruger and Smith & Wesson continue braving the challenges of the market and seizing opportunities in their quest for competitive advantage.