Here are some interesting facts about this industry, apologies if it is lengthy but worth the time to read.
NAICS 332992: Small Arms Ammunition Manufacturing
Industry report:
This industry includes establishments primarily engaged in manufacturing ammunition for small arms having a bore of 30 millimeters (1.18 inches) or less. Establishments primarily engaged in manufacturing ammunition, except for small arms, are classified in SIC 3483: Ammunition, Except for Small Arms; those manufacturing blasting and detonating caps and safety fuses are classified in SIC 2892: Explosives; and those manufacturing fireworks are classified in SIC 2899: Chemicals and Chemical Preparations, Not Elsewhere Classified.
Industry Snapshot
The first two decades of the twenty-first century were marked by increased sales for small arms and small arms ammunition manufacturers. Ongoing controversy over gun laws helped to boost sales and interest in shooting sports, as did concerns about self-defense. The industry saw large numbers of first-time gun buyers in the late years of the first decade of the 2000s and early 2010s, and the increase in ownership of small arms has driven sales of ammunition.
Most of the ammunition made by manufacturers in this industry was sold to private consumers. However, the U.S. Army was a major market for this industry, requiring about 300 million rounds each day by 2005. Specialized niche products also helped to promote sales for the industry, including top-end, high-performance ammunition, "cowboy-action" loads, and light recoiling ammunition targeted for the growing market segment of female gun consumers.
About 260 establishments were engaged in manufacturing ammunition for small arms having a bore of 30 millimeters (1.18 inches) or less in 2010, according to Dun & Bradstreet. Total industry sales reached $196.6 million that year, with industry-wide employment of 3,673 workers. States with the highest concentration of establishments in this industry were Texas and California (23 each), Florida (20), and Georgia and Virginia (10 each). The top producing state based on revenues was Missouri with $58.2 million.
Consumers and Trade Representatives.
Three industry and consumer groups represent ammunition interests in the United States. Most ammunition industry executives are affiliated with the National Shooting Sports Federation (NSSF), which promotes hunting and target shooting. The NSSF's sister organization, the Sporting Arms and Ammunition Manufacturers Institute (SAAMI), sets voluntary national standards for ammunition and firearm design. These groups rarely participate in political lobbying efforts, although ammo producers have traditionally donated money to support game populations and preserve hunting areas. The third and best-known organization, the National Rifle Association (NRA), is heavily involved in lobbying efforts, most of which are of interest to ammo manufacturers and users.
An Obscure Industry.
The high-profile firearm industry receives large amounts of press and is often the target of state and federal regulatory initiatives. Ammunition makers, however, operate in relative obscurity, with little publicity, regulation, or outside analysis of the industry.
One reason the industry has such a low profile is that most of its products are homogenous, resulting in a commodity-like business environment that is not dynamic. In addition, the largest producers in the industry are owned by massive conglomerates that view ammo operations as relatively small sideline businesses.
Gun and ammunition sales soared in the days following the terrorist attacks on the United States on September 11, 2001, as people once again prepared for the unexpected and looked for a sense of control and security. The Federal Bureau of Investigation reported a 21 percent increase in required background checks for gun purchases in the months following the attacks. In Maryland, where gun ownership was curtailed by strict gun laws, gun sales were up 50 to 75 percent in early October 2001. Ammunition companies responded to the events of September 11 by working on the development of a bullet that could be safely used on an airplane. The object was to make a bullet that would disintegrate on contact with a hard surface to eliminate ricochet, thus allowing pilots and security personnel to be armed in flight.
Although the rise in gun sales in the years following September 11, 2001, eventually leveled off, the sales of ammunition steadily increased. The industry shipped $888 million in products in 2002 and $1.21 billion in products in 2005. By the middle of the decade, small arms ammunition was rising much faster, driven in part by the need from the U.S. Army, which had to replenish supplies after the war with Iraq began. Quality was as important as quantity to this end market. In Business News, Paul Kern, commander of the Army Materiel Command, explained: "Our ammo has to work, at 40 below zero or 140 degrees."
The development of lighter, faster, and more accurate premium bullets ignited the interest of gun and ammunition enthusiasts. According to Terry Wieland of Sports Afield, "The new bullets hold together beautifully, retaining a high percentage of their original weight for maximum penetration. There is no need to go to the heaviest and longest bullets to achieve such performance. The virtues of the new premium bullets complement the capabilities of the new short magnum cartridges to create a combination that renders just about every conventional magnum cartridge obsolete."
In the late 2000s, small arms ammunition manufacturers held 63.8 percent of total industry share, employed 5,062 workers, and shipped products totaling $187 million. Shotgun ammunition (empty, blank, or loaded) manufacturers constituted 9.3 percent in market share, generating $15.5 million in shipments. Based on revenues, shot steel ammunition manufacturers also exhibited strong demand with shipments totaling $13.1 million.
The U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau reported an estimated 12 billion rounds of ammunition were purchased between November 2008 and November 2009, compared to the average 7 to 10 billion rounds of ammunition purchased annually. In fact, tax revenue from ammunition sales advanced 49 percent during the first half of 2009, compared to the same time frame in 2008. Ammunition manufacturers found themselves working at full capacity in an attempt to keep up with demand, following a nationwide ammunition shortage spurred by the election of Barack Obama. Gun owners were worried about taxes being added to ammo as well as new laws that could affect production of ammunition, and firearms and related products, including ammunition, flew off the shelves of U.S. retailers.
Current Conditions
According to Dun and Bradstreet, a majority of the establishments in this industry in 2011 reported manufacturing small arms ammunition in general and recorded a combined revenue total of $147.6 million. Companies that focused on specific products (30mm and below) included those that manufactured bullet cores, cartridges, pellets and BBs for pistols and air rifles; shotgun ammunition; lead shot; steel shot; and cartridge cases. Of these subcategories, shotgun ammunition accounted for the highest percentage of sales, with $14.3 million, followed by bullet cores ($8.6 million), lead shot ($6.1 million), and steel shot ($5.4 million).
The future of the industry was dependent on various conditions, including the state of the firearms industry in general. According to Andrew M. Molchan, director of the Professional Gun Retailers Association, as reported in the Dayton Daily News in August 2011, "gun sales have steadily increased nationwide in the last six years following the U.S. Supreme Court overturning gun bans in major cities, such as Chicago and Washington, D.C., on the grounds they violated the Second Amendment." The article also pointed to the increase in FBI background checks for gun sales, which increased from 8.5 million in 2003 to 14.4 million in 2010. Other reports, such as that by market research firm IBISWorld in August 2011, noted some challenges ahead, such as the potential increase in competition from imports.
Industry Leaders
Remington Arms Company Inc. of Madison, North Carolina, was the only maker of both fire arms and ammunition in 2011, and it was the leading small arms and ammunition dealer in the nation. The company posted revenues of $168.2 million with 2,275 employees in 2010. The company acquired rival Marlin Firearms Co. in 2008 for approximately $47 million. Other leaders in this industry included Hornady Manufacturing of Grand Island, Nebraska; Nosler Inc. in Bend, Oregon; and Alliant Techsystems Inc. of Minneapolis, Minnesota.
Most of the companies in this industry in the early 2010s were small, with about 90 percent employing fewer than 25 workers. Larger companies (those with more than 25 workers), however, accounted for more than 70 percent of all employees in the industry. Several companies focused on producing specialty cartridges, construction industry products, and reused rounds.
Workforce
According to the U.S. Census Bureau, employment in the small arms ammunition industry dropped steadily throughout the 1990s but rose again in the 2000s. In 2005, there were 8,242 employees in the industry, up from 6,740 in 2002. Of these, 6,741 worked in production and earned an average hourly wage of $18.52. By 2008, however, employment had dropped again to 5,616, and Dun and Bradstreet reported only 3,673 people directly employed by the industry in 2010.
Now pay close attention to numbers in the workforce!!! These companies are owned by large conglomerates not mom and pop operations as Mr. Hornaday and Mr. Hodgdon would lead us to believe. There profit margin has risen since this all started, prices have gone up but there overhead has not. I am still trying to trace back to actual owners of these companies as I believe there is more to this than the shooters/handloaders know. Again I apologize for the long length.
