Industry Analysis & Industry Trends
In recent years, gun and ammunition makers have benefited from conflicts abroad and domestic fears about rising crime rates and stricter gun laws. While continued conflict will support revenue growth, demand for the industry's products will slow in light of diminishing concerns. Imports will satisfy a growing portion of domestic demand, rising at a substantial rate over the next five years... purchase to read more
Industry Report - Industry Investment Chapter
The Guns and Ammunition Manufacturing industry exhibits a medium level of capital intensity. IBISWorld estimates that in 2014, for every dollar spent on labor, $0.17 will be spent on capital. The industry requires a substantial amount of capital investment. The cost of new plant and equipment is significant and product innovation necessitates periodic investment in new technology. On the other hand, a substantial amount of skilled labor is also needed to manufacture industry products.
Capital intensity tends to be higher for companies that specialize in manufacturing advance weapons systems and munitions for the armed forces... purchase to read more