Gun Makers Face Shrinking Market

Sambonator

New member
from wsj.com, 10/26/99:

Gun Makers Face Shrinking Market
As Stigma Rises and Hunting Wanes
By VANESSA O'CONNELL and PAUL M. BARRETT
Staff Reporters of THE WALL STREET JOURNAL


Michael Maul doesn't have anything against guns; he owns six. But the Houston radio-station engineer hasn't hunted for eight years, and he doubts that he will ever buy another gun. When he wants to shoot animals these days, Mr. Maul, 40 years old, uses a camera.

"It's a lot easier in the city to go to a nature trail or an arboretum," he says.

The gun business is losing customers. Hunters and target shooters -- the industry's core market -- are gradually walking away from those sports. Subdivisions have encroached on land once used for hunting. Bicycling, kayaking and other hobbies are luring people away from firing ranges.

Most ominously, gun companies' efforts to cultivate new buyers among women and teenagers have failed to stem the erosion. And gun manufacturers face a dramatic shakeout, as recent high-visibility killings have made guns less socially acceptable in many people's eyes.

"Our future is rather tenuous," says Paul Jannuzzo, vice president of the U.S. unit of Austrian handgun maker Glock GmbH.

Mr. Jannuzzo's industry has attracted public attention lately as it attempts to fend off a legal assault by 28 cities and counties across the country. But however that courtroom fight ends, gun companies face the peril of a shrinking consumer market. U.S. gun production and imports have fallen more than 20% since the late 1970s, and despite an unusual buying surge this year, industry analysts predict little to no overall growth in the decade ahead.

Retail giants such as Wal-Mart Stores Inc. and Kmart Corp. recently have reduced their gun and ammunition displays in favor of other sporting goods. The ranks of gun wholesalers -- the middlemen between the factory and the store -- have thinned by 16%, to about 160, since 1996.


A consolidation wave among manufacturers is already under way. Colt's Manufacturing Co. just this month eliminated its less expensive civilian-handgun lines and is negotiating a possible merger with rival Heckler & Koch Inc. Three small California makers of inexpensive handguns have either shut down or sought bankruptcy-court protection this year. Smith & Wesson Corp., the largest U.S. handgun manufacturer, is diversifying into everything from police bikes to car parts to clothing.

With more than 200 million guns already in civilian hands, industry officials worry that the market is nearing saturation. Just 10 million people own roughly half the national stock, which translates into about 10 guns per owner.

In the 1980s, the proportion of men who said they personally owned a gun held steady at 52%, but by 1998, the figure dropped to 38%, according to regular surveys by the National Opinion Research Center at the University of Chicago. Female ownership has hovered around 11% since 1980.

The lurid massacres of the past two years are statistically an aberration; violent crime has dropped nationally for seven straight years. But round-the-clock reports of gun killings have created a "much broader negative perspective, a tainting" of firearms, says Douglas Painter, executive director of the National Shooting Sports Foundation, the main industry trade group. In the wake of the Littleton bloodshed, his group dropped its first-ever mainstream-magazine advertising campaign, what would have been a $3 million effort to create a wholesome image for shooting sports.

Shooting traditionally has relied on family relationships and word-of-mouth promotion to attract neophytes. But fear of social disapproval is muffling veteran participants, Mr. Painter says. "Does that have a negative impact? You bet it does."

Lory Ambriz bought a new gun every year for more than four decades, displaying his favorites, including an assault rifle, above the fireplace in his La Mirada, Calif., home. But following this year's school shootings, his grandchildren and other house guests questioned why he kept such a potentially dangerous arsenal.

"I began to think I don't need them anymore," says the 68-year-old retired truck driver, who hadn't fired a gun for years. He says he has moved his 40 weapons to a neighbor's safe and has begun to sell them.

To be sure, there are tens of millions of loyal gun users who still raise their children to hunt or target shoot. Mark Anderson, an insurance agent in Columbia, Mo., for example, was taught to shoot by his father and today owns more than 20 guns. A recent purchase was a .22-caliber rifle for his 12-year-old son, who is interested in target shooting. His next purchase is likely to be a quail-hunting shotgun for the boy, Mr. Anderson says.

But in many gun-owning families, these traditions aren't being passed to the next generation. Mr. Maul of Houston learned to hunt with his older male relatives, but they are back in rural Illinois, where he grew up, and as an adult, he hasn't found new hunting buddies. He doesn't plan to encourage his own son, now three years old, to take up the sport. "I expect he'll develop other interests, as I have," Mr. Maul says.

The upshot is that each of the industry's key markets is eroding. Hunting, which accounts for about 60% of consumer gun sales, has declined steadily for decades. The number of adults who hunt tumbled 17% from 1990 to 1998, according to Mediamark Research Inc., a market-research firm. The number of hunting licenses issued annually by states fell 11%, to 14.9 million, from 1982 to 1997, the most recent year for which statistics are available from the U.S. Fish & Wildlife Service.

Target shooting, which accounts for 25% of sales, is slowly fading, too. From 1993 to 1997, participation fell 5%, to 18.5 million people, according to a survey by the National Sporting Goods Association.

As their ranks thin, hunters and shooters are graying. At last month's New Jersey State Outdoor Pistol Championship, in the town of South River, 66 mostly grandfatherly types fired at paper bull's-eyes. Competitor James Phillips, 72 years old and clad in surgical stockings and orthopedic shoes, describes his fellow shooters as "a bunch of old men." Lone spectator Bill Nolan recalls that in the 1950s and 1960s, the parking lot overflowed with the recreational vehicles of 200 young and middle-age shooters and their families. "Boy, have times changed," says Mr. Nolan, 58.

People who buy firearms for self-protection, mostly handguns, make up the remaining 15% of the market. In an anomaly, sales in this area increased this year, partly because of the threat of stiffer gun-control measures and fear of social breakdown related to year-2000 computer problems. But the larger trend, as crime rates have fallen, is a drop in demand for self-protection guns. In any event, this isn't particularly fertile ground for gun makers because consumers buying only for protection tend to tuck a handgun away in a closet and not return to the gun store for more purchases.

Attitudes toward guns vary from region to region. They are more popular in the South, less in the Northeast. But there is growing anecdotal evidence from around the country that some gun enthusiasts are viewed -- and view themselves -- as pariahs with an unseemly habit, akin to cigarette smoking. Indeed, the danger for the industry would be that gun ownership could become as unfashionable and frowned upon as chain-smoking, a habit that as recently as a decade ago wouldn't have raised eyebrows.

Fred Cunnings, a gun owner in Holiday, Fla., felt like such "an outsider" that he sold the pistol he had kept for years in a closet. "You almost feel like a smoker in a restaurant," says the 48-year-old landlord.

Most gun makers seem resigned to the erosion of their core customer base and are focusing on finding new faces. "The No. 1 challenge facing the gun industry is finding nontraditional consumers -- women, young people, and suburbanites -- to make up for the gradual decrease in traditional male hunting customers," says Ronald Stewart, who was chief executive of Colt's from 1996 through late last year.

Neither Colt's nor the industry at large is succeeding.

Since the late 1980s, handgun makers such as Colt's, Smith & Wesson and Italy's Beretta SpA have tried to convince women that they need to protect themselves and their families. Smith & Wesson, for example, pitched its LadySmith revolver, with pearl handles, as a "personal security plan" for women. But as crime rates eased in the late 1990s, the portion of women who personally own a gun dropped to 10.7% in 1998 from its recent high of 13.8% in 1993, according to the National Opinion Research Center.

Paxton Quigley, a handgun advocate who endorses Smith & Wesson products, recalls a "frenzy of interest" in her all-women handgun self-defense classes following the Los Angeles riots in 1992. Held at gun ranges nationwide, the classes now typically draw only 15 students, down from 35 in the early 1990s, she says.

For years, Dawn Brachmann, a homemaker in Holiday, Fla., kept her husband's .25-caliber Sterling pistol loaded and in a bread box on top of her refrigerator. But she asked him to get rid of it last month after a church sermon on gun violence at schools caused her to worry that her three-year-old son might stand on a chair and get at it. "I don't want to own any more guns," she says, "but I wouldn't mind finding something else to use in my self-defense."

In addition to problems recruiting women, gun makers acknowledge that they are failing to win over enough young people to replace aging shooters and hunters.

In recent years, the gun industry has aggressively courted kids, getting nearly three million a year to participate in rifle programs sponsored by the NRA and groups such as the farming-oriented 4-H clubs and the U.S. Junior Chamber of Commerce. Some manufacturers have tried to capitalize on this activity. H&R 1871 Inc., Gardner, Mass., says that by lending firearms to these programs, among other promotions, it has doubled annual sales of youth guns since 1995, to more than 50,000.

But aside from such small pockets of success, overall efforts to recruit younger customers aren't working, gun executives say. People between the ages of 18 and 24 made up only 8% of all hunters in 1995, down from 17% in 1986, according to the National Shooting Sports Foundation. In one major hunting state, Pennsylvania, sales of junior hunting licenses have dropped 40% during the past three decades, to roughly 98,000.

At a time when participation in scholastic sports is at an all-time high, riflery drew just 2,966 participants in the 1998-99 school year, 47% fewer than in 1974-75, according to a survey of 17,000 schools by the National Federation of State High School Associations. More than four times as many students played on badminton teams.

Robert Soldivera, who coaches shooting teams at three private high schools in Staten Island, N.Y., says that at first, many children "want to learn to shoot because it is the forbidden fruit." But that curiosity tends to wear off quickly, as students conclude that "making holes in paper targets gets boring really fast," Mr. Soldivera says. He estimates that fewer than 20% of his students remain active through their senior year; most quit after just a few months.

Like schools, many summer camps are phasing out shooting programs. Kent Meyer, who oversees Camp Chief Ouray in the Colorado Rockies, suspended its 92-year-old rifle program in response to this spring's school shootings in Littleton and Conyers, Ga. Scott Brody, who owns Camps Kenwood and Evergreen in Potter Place, N.H., dropped rifle programs in June and added more woodworking and dance. "They don't have the dangers of the riflery program," says Mr. Brody.

Worried about a stagnant gun market, some major manufacturers are putting more emphasis on military and law-enforcement sales or diversifying into other products altogether. Sturm, Ruger & Co., Southport, Conn., the largest U.S. gun manufacturer, makes golf equipment. Ed Shultz, Smith & Wesson's chief executive, says he is steering his 147-year-old company, which once made only firearms, toward a 50-50 balance of gun and nongun products.

Other companies are trying more exotic niche-marketing strategies. Smith & Wesson, Springfield, Mass., Colt's, based in West Hartford, Conn., and Mossberg & Sons Inc., North Haven, Conn., are scrambling to be the first to offer a "smart gun" to women and people generally who otherwise wouldn't buy a firearm because of safety concerns. Smart-gun prototypes rely on microchip technology to allow only authorized users to pull the trigger. But the cost and reliability of smart guns are very much in doubt.

Savage Arms Inc., Westfield, Mass., aims to boost sales among aging diehards by designing new guns for older, arthritic hands. Savage reduced the weight of some of its rifles to 5 1/2 pounds from eight pounds by using plastic parts rather than wood and added devices to reduce the sometimes-painful recoil that comes with firing a gun.

Both modifications appear to be hits with Savage's maturing customer base, says company President Ronald Coburn. But the problem, he adds, is that "as our audience matures, the younger generation isn't coming up behind them."





[This message has been edited by Sambonator (edited October 26, 1999).]
 
They might like for you to believe it's a dead industry but everyone I know in the business is so busy they hate to hear the phone ring because they know its another order! I just had to add 16,000 square ft and If it keeps up I will have out grown it before I move in. Custom gun builders are quoting as much as a year delivery. I know all the anti gun has moved people who otherwise may have put off ordering but you would be surprised how many newbys we get. No doubt that next years elections will have a big bearing on business if they go to the Democrats. If you consider how many gun shows there is and how many customers at each it adds up to a lot of business in guns being transacted every week. I wonder if the antis are aware how they ran the market up on assault rifles had they not brought the public attention you would have still been able to buy them at a reasonable price but now people who would never have considered one has two or three. Yesterday I could have sold a hundred 50s if they would have been on the shelf. Every one in Calif. Wants one before its to late. So all I can say is I hope these bad times continue
 
Gale M., it suddenly dawned on me who you are. We have even met at one of the SHOT Shows a few years age. I took Miss Demeanors shooting this weekend and the first firearm she had ever shot in her life was built using one of your stocks. I had a rifle built using an Olympic X-Ring barrelled action and the Kevlar Anshutz style stock. It is very comfortable and a real tack driver. I will let her know.
 
I'm a long-time reader of the WSJ. I'm beginning to think they've been sold recently to Charlie Schumer and his friends! Their coverage re: firearms is just disgusting lately.
 
There's a lot of truth to what is posted. S&W told us that they make other stuff just to remain viable as a metal manufacturer and to keep a skilled workforce employed. Ruger has been casting golf clubs for years (titanium ones for you golfers). Overall, Gun makers making things other than guns is not new. Winchester made roller skates and wood working tools. Marlin made razor blades. Remington has also ventured into non-gun products before.

Some firms have folded under the weight of lawsuits (which suck, regardless of whether any of us would buy their products or not). Other firms like Bushmasters and DPMS and Olympic Arms are pushing out ARs as fast as they can produce them. Bushmeister is pumping out 5k a month right now.

The observation that the youth of today are not exposed in a positive manner to firearms (either through scouting, dad, ROTC) may be very accurate. Indeed, there have been efforts by some school boards to remove rifles/firearms from the ROTC programs in high schools.

With more anti-gun legislation, increasing anti-gun litigation, persistent demonizing of the sport courtesy of the media, it would be difficult to reverse the trend in urban areas. Mind you, I say that because a lot of country folk seem to have more common sense and rationale that the drones I've met in the big cities. Come to think about it, it's only when there's a riot and the common man on the street realizes he needs one to defend what little he owns.

------------------
Vigilantibus et non dormientibus jura subveniunt
 
Did some one mention HK to aquire Colt?

Hold on - mental images forming here...
An HK made 1911?!?!?!? There is a God in Heaven!
This is natures Balance to S&W building P99s.
:)

------------------
"A fear of weapons is a sign of retarded sexual and emotional maturity." - Sigmund Freud
RAGE AGAINST THE MACHINE
 
A) Fred Cunnings memory will be jogged as to why he purchased that handgun should some career criminal come alling on his homestead. Lory Ambriz will remember why he bought the assault-style weapon if another race riot ever occurs in Kali.

B) Word on the street is that Colt's Mfg. owner Don Zihlka, the liberal democrat friend of Charles Schummer and citizen of America and iraq is bidding to buy up as many top-of-the-line gun makers as possible. His plans are to cease selling to the public and concentrate on Police and Military Sales. He would then raise prices as the supply of small arms tightened.

Remember there are still probably 250 million guns that we know of in the U.S. If you get discouraged, go down to Dixie. Gun ownership is alive and well and will continue regardless of what the Feds do. Want to revisit secession? Try to outlaw the Second Amendment in the South.

------------------
"When guns are outlawed;I will be an outlaw."


[This message has been edited by Will Beararms (edited October 27, 1999).]
 
Times change, and so does everything else along with it. The gun industry, along with every other human endeavor, is not immune to evolution.
What this means in the long run is anybody's guess. There are trends that do support the claim that the market is shrinking, but that doesn't mean that it's in any danger of disappearing. There are a number of companies that, like Colt, are going to have a hard time making the transition. A number of them are undoubtably going to fail.
As this cycle continues, new companies will rise up to answer new needs. New products will create new markets. Colt is banking heavily on their smart gun. There are studies that indicate that there may be a potential market of 50-60 million new gun owners for such a product. That alone would reverse the declining market trend.
Years ago, the animal rights folks prematurely claimed that "fur was dead". After a prolonged effort on their part, the number of fur garments sold in this country dwindled appreciably. The fur industry changed. It shrank, it consolidated and many of the old companies that made it up are no longer around. But they still sell fur coats. And they probably will for a lot longer than anyone expects them to.
 
Evolution is inevitable in every industry, including the gun industry. In the next century firearms will indeed reflect the technologies of the times. The so called "smart gun" will be perfected as computers have been perfected for the desktop. We may even see the concept of primer activated powder propellants firing a projectile become an anachronism being replaced by sound wave and laser technologies. Ammunition may consist of having a long lasting "power supply."

I can see it now, Congress arguing whether individuals can own a gun with greater than "stun" capability!

------------------
Safe shooting - PKAY
 
On a positive note, a new gun
store opened up in San Antonio
just awhile ago.

It was full of people this weekend
and they weren't all geezers
 
Glenn,

What? What? A new gun store? In San Antonio?

Quick! Name, location, phone numbers, hours, your personal impressions, etc.!!!!

There's several of us in the S.A. area! :)
 
BS. Pure and simple BS.
I haven't hunted for a number of years. In fact, this is the first (but not the last) time in years that I bought a hunting licence(been so long I can't even remember how to spell it ;)). I just have not had the time! Plain and simple! I will be making time for it though, for all the reasons they say in their BS(did I mention I think the whole thing is BS)article. Before I bought a gun safe, if a stranger asked if I hnted or owned a gun, generally my answer was no. That can skew some "Recent Polls". Michael Maul may not hunt, but it would be interesting to find out if he has a CCW permit huh? This entire article is so full of crap it could fertilize the Sahara.

------------------
CCW for Ohio action site.
http://www.ofcc.net
 
Colt buying HK?

I weep for the future.

Hey, wait one second - silver lining here...

HK AR-15, Baby!
US MADE HK53!
Domesticated PSG1!

Dreams can come true!


------------------
"A fear of weapons is a sign of retarded sexual and emotional maturity." - Sigmund Freud
RAGE AGAINST THE MACHINE
 
The ironic thing that has now dawned on me is that the more crime there is, unfortunately, the better for our gun rights. Though we do indeed preach "it's the criminals, not the guns", because that is the truth, in reality we ought not push too hard for crackdown on the crooks, lest the dumbed-down masses forget what we need the guns for.

George, I share your dreams.

Gale, in my business I don't have your problem - wincing when the phone rings because it's another darned customer!

[This message has been edited by Futo Inu (edited October 28, 1999).]
 
I think the writers of the WSJ article make a common, if not "elitist" mistake. They live in a Big City. Gun ownership is highly restricted, while the industry in general is diversifying for whatever reason -- ergo, the
whole country must be like this.

This may apply to all the urban areas, but as pointed out above, guns and their owner-ship is alive and well, especially out West (Kali is another planet).

When I visit my grandkids in Utah, I always take time to go to a great Federal/State rifle range 30 miles east of Tooele, west of Salt Lake. The place is ALWAYS crowded on the
weekend, displaying everything from muzzle-loaders to AR-15s.

Just recently, my 32-year-old son bought his first gun, a Ruger 10-22, and went out with his Air Force buddy, who just bought an
AR-15.

A parochial article, and perhaps some wishful
thinking on the part of the liberals.

------------------
If you can't fight City Hall, at least defecate on the steps.
 
If Kolt acquires HK and George Hill is not a member of the Military or an LEO, his dream may come true in the form of a nightmare. Don Zihlka, owner of Kolt's Manufacturing has made it clear that he does not believe in civilian gun ownership nor does he desire the liability that this now entails. This info I gleaned from an attorney who is following the Kolt's campaign of half truths and conusmer deception very closely. HCI even makes mention of Kolt's role in furthering their goal of Smart Technology only for civilians.

------------------
"When guns are outlawed;I will be an outlaw."
 
Zihlka may wish to buy up all the top-of-the-ling gun makers, but I doubt that Glock, H&K, SIG, Smith & Wesson, Winchester, Remington, Kimber, Springfield, Mossberg, Ithaca, Walther, Beretta (you get the idea) will all sell, nor do I think Colt's Mfg would have sufficient capital to buy even one. Remember, they have been just about belly-up for 8 yrs. I've even heard they lost the M-16 contract to FN about a year ago.

Let's suppose Comrade Zihlka manages to achieve his socialist wet-dream... New gun companies will rise up to take to place of the ones he 'acquires'. I saw a comment earlier about 'if they want to revisit secession, try to ban guns in the South'. Amen to that!

------------------
Lady Justice has been raped, truth assassin;
Rolls of red tape seal your lips, now you're done in;
Their money tips her scales again, make your deal;
Just what is truth? I cannot tell, cannot feel.

The ultimate in vanity
Exploiting their supremacy
I can't believe the things you say
I can't believe, I can't believe the price we pay- nothing can save us
Justice is lost, Justice is raped, Justice is gone
Pulling your strings,Justice is done...
Seeking no truth, winning is all,
Find it so grim, so true, so real....

If it isna Scottish, it's CRAP! RKBA!
 
Hi Everyone-

Oatka, you're on-the-money with regard to your observation about the <BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>"common elitist mistake"[/quote] being made by the Wall Street Journal in their opinion that "guns are less socially acceptable."

Please tell me who is being polled for these articles! Sheesh! Hell, my family has belonged to the NRA and been firearm purchasers for decades with a sharp upturn in these same purchases over the past seven years alone.

Hal, you're completely right. As far as "admitting" gun ownership goes, I know that we don't place NRA decals on our daily-use vehicles. This would only serve to attract break-ins while our cars or trucks are parked at the mall, commuter train stations, school, etc.

Does this mean we don't support the NRA or continue to make firearm and firearm-related purchases either? Please! Nothing could be further from the truth. I can't remember the last time I've been to a gun store lately when it hasn't been busy...

It's all about common sense! We ALL don't need (or desire) to wear our hearts on our sleeves 24 x 7. Approach me on the street with proper newspaper credentials and a notepad, and I'll be glad to give you my detailed anonymousopinion. Today's climate just demands prudent, safety-conscious behavior.

Does the WSJ want to see public health menaces plummet to practically nothing? Try placing a television crew and WSJ reporter in front of Madison Square Garden and have him or her interview people with these type of questions, <UL TYPE=SQUARE><LI>"Do you suffer from Herpes?"
<LI>"Do you always wash your hands after using the bathroom?"
<LI>"Have you blown your nose then used subway hangstraps?"</UL>

I'll guarantee that people will modify their answers to match prevailing social mores, and not answer honestly. While this is an absurd example, it does illustrate the path they're taking. Presto! Instant improved "public health" practices! Their slanted questioning and recent demonization of gunowners is pathetic.

As I've mentioned in several other threads here at TFL, the Wall Street Journal has been really slamming us hard lately. Their recent treatment of gunowners is inaccurate and saddening.

Thankfully the Internet is accessible to so many to spread the truth.

Best regards to all,

~ Blue Jays ~


[This message has been edited by Blue Jays (edited October 29, 1999).]
 
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