On target: Increased demand from the defense market will boost industry revenue

The Guns and Ammunition Manufacturing industry has experienced growth and volatility over the past five years to 2018. A significant portion of the industry's performance has been dependent on the civilian market. Initially, demand from consumers surged as consumer concerns about stricter gun control laws led many to purchase industry products in anticipation of a ban. In response to a weakening domestic military market, industry players have increasingly sought growth in exports, which have been rising due to geopolitical tensions and global instability. More recently, demand from the military has rebounded to increasing defense spending and combat operations. Over the five years to 2023, industry revenue is forecast to grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 13-18
2.0%
Forecast Growth 18-23
Profit
Employment
50,730
Businesses
755

Industry Threats & Opportunities

  • Industry revenue is expected to increase due to strong demand from the military
  • The current administration's intention of increasing defense spending has led to a drastic surge in demand for industry products
  • The key driver of industry revenue growth is expected to be US military spending
  • Industry Report - Industry SWOT Analysis Chapter

    After years of growth, the industry has entered a mature stage of its life cycle. Over the 10 years to 2023, industry value added (IVA), which measures an industry's contribution to the economy, is expected to grow an annualized 1.3%, compared with annualized 2.1% GDP growth anticipated during the same period. While IVA growth below GDP performance typically indicates a declining industry, the Gun and Ammunition Manufacturing industry's performance is close enough to indicate maturity. Overall, IVA performance has also hidden the volatility in the industry's two primary segments; defense contracting and consumer products. The defense segment has recently picked up after years of declining sales amid declining US defense spending. Con...purchase to read more.

    Additional Insights for the Guns & Ammunition Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Guns & Ammunition Manufacturing Industry are

  • Having a loyal customer base
  • Access to high quality inputs
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Federal funding for defense and NATO defense spending in the Guns & Ammunition Manufacturing industry impact industry performance..

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    What's in this report

    What is the Guns & Ammunition Manufacturing Industry?

    This industry manufactures small weapons (including shotguns, rifles, revolvers, pistols, machine guns and grenade launchers), and ammunition, artillery and accessories.

    Industry Products
  • Small arms ammunition
  • Other ammunition
  • Small arms & machine guns
  • Ordnance & accessories
  • Industry Activities
  • Machine guns
  • Shotguns and rifles
  • Handguns
  • Gun magazines
  • Small arms ammunition
  • Ammunition (except small arms)
  • Grenades
  • Mines
  • Artillery and tank ammunition
  • Howitzers and man-portable and vehicle installed rockets and rocket launchers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for defense
  • NATO defense spending
  • Local and state government investment
  • Per capita disposable income
  • Trade-weighted index

  • Current Performance
  • Consumer market fluctuates
  • Government and international demand
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Government bolsters demand
  • Trade
  • Other industry trends
  • Table: Guns & Ammunition Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Guns & Ammunition Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Sporting Goods Stores
  • Security Services

  • Key Selling Industries
  • Copper Rolling, Drawing & Extruding
  • Explosives Manufacturing
  • Metal Pipe & Tube Manufacturing
  • Nonferrous Metal Foundry Products Manufacturing

  • Products & Services
  • Small arms & machine guns
  • Small arms ammunition
  • Other ammunition
  • Ordnance & accessories
  • Chart: Guns & Ammunition Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Economic conditions
  • Regulation
  • Public perception of gun laws, politics, security and crime
  • Defense funding
  • International trade

  • Major Markets
  • Civilians and law enforcement
  • Military
  • Exports
  • Chart: Major Market Segmentation for the Guns & Ammunition Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Guns & Ammunition Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Guns & Ammunition Manufacturing Industry

  • Industry Globalization
    General Dynamics Corp., BAE Systems, Vista Outdoor Inc., Orbital ATK Inc.,
  • Table: General Dynamics Corp. - financial performance
  • Table: BAE Systems - financial performance
  • Table: Vista Outdoor Inc. - financial performance
  • Table: Orbital ATK Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Guns & Ammunition Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Guns & Ammunition Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Federal funding for defense (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Ammunition
  • Primers that are fired from guns, explosive military items like grenades and bombs and any materials that are thrown in fight.
  • Ordnance
  • Ammunition, explosives and similar warfare devices.
  • Tampion
  • Wooden plug, or a metal, canvas, rubber or plastic cover for the muzzle of a gun.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Guns & Ammunition Manufacturing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Guns & Ammunition Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Guns & Ammunition Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Guns & Ammunition Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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