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NEW YORK: With higher uncertainty about personal safety and security enticing new owners and driving current owners to add to their existing gun collections, a new report estimates the U.S. market for small arms and ammunition at $4.9 billion in 2007, an increase of 10% over 2006. By 2012, the market value will achieve $6.5 billion, according to market research publisher SBI's Small Firearms and Ammunition Market in the U.S.
Market value accelerated in 2007 due to an increase in commodity costs forcing manufacturers to increase prices. From 1998 to 2007, the small arms and ammunition market grew at an annual rate of nine percent, with the U.S. civilian and commercial market increasing 82% to $2.8 billion. With a U.S. market supply of 7.2 million units, small firearms manufactured in the United States rose an estimated two percent to 3.7 million.
Despite the big 10% bang in 2007, SBI estimates only modest increases over the next five years. Uncertainty surrounding the health of the U.S. economy, increased commodity costs and more competition from overseas are all contributors. An increased number of imports were the chief catalyst in slow domestic production growth. The number of imported units grew 30% while unit exports revealed a growth of less than one percent annually since 1998.
“2007 showed a remarkable shift in the percentage share of import and export unit shipments, with imports accounting for 52% of total unit consumption,” notes Cathy Minkler, Associate Editor of SBI. “Units manufactured in the U.S. accounted for the remaining 49%. The chief culprit for this changing mix was cheaper imports from countries like China, compounded by price increases for U.S.-made small arms.”
This comprehensive report covers two main product categories: small firearms (typically less than .50 caliber, including the handgun, long gun, shot gun and muzzle-loading firearm segments) and small firearms ammunition. The report includes data on shipments, units, imports and exports. It identifies the key trends and dynamics of the market, such as current economic conditions and distribution, and profiles key market players, outlining their strategies to maximize growth and profitability.
by SBI, Read Full Report Here
