More proof that the great Obama gun-buying boom is coming to an end.
The Freedom Group, a "family" of gun companies cobbled together by Cerberus Capital Management (the former owners of Chrysler, among many other things), has just filed new documents with the Securities and Exchange Commission (SEC) in anticipation of a long-threatened stock IPO (Initial Public Offering). And the picture isn't pretty.
Freedom Group companies run the gamut from sporting arms to assault weapons. In addition to Bushmaster and DPMS (two leading manufacturers of AR-15 type assault rifles), companies and brands that comprise Freedom Group include: Remington, Marlin, Harrington & Richardson, New England Firearms, L.C. Smith, Dakota Arms, Advanced Armament Corporation, and Barnes Bullets. Freedom Group states that it has the number one U.S. market position in shotguns (31 percent), ammunition (33 percent), traditional rifles (37 percent), and "modern sporting rifles" (48 percent). And, of course, a really kick-ass name. The chart below detailing their market share and position is taken from Freedom Group's SEC filing.
What's that you say? You've never heard of "modern sporting rifles"? Well, actually you have--except you probably know them as assault rifles. "Modern sporting rifle" is just the gun industry's latest rebranding effort by the National Shooting Sports Foundation (NSSF) for lethal, high-capacity, military-bred firearms like the AR-15 and AK-47. A prior industry-wide effort to rechristen assault weapons "black guns" never took hold. So they're now "modern sporting rifles." At this churn rate, the NSSF (the "official" trade association for the gun industry, albeit always capably abetted by the industry's "unofficial" trade association, the National Rifle Association) will soon be down to calling them "Freedom Sticks." (This week the Violence Policy Center posted a video on YouTube on the NSSF's "modern sporting rifle" rebranding campaign.)
In the SEC documents, Freedom Group details how the gun market has "softened," especially the market for "modern sporting rifles":
Our industry also experienced an increase in certain firearms demand between late 2008 and mid 2009. In the first quarter of 2010, sales in our firearms segment have softened from the levels experienced during that period. Demand for higher end centerfire rifles has softened and sales have transitioned to more moderately priced firearms, which has resulted in an overall sales decrease of 21.7% in our firearms segment during the three months ended March 31, 2010 versus the three months ended March 31, 2009...[assault rifles]. Shotgun sales decreased by $1.2 million, or 4.9%, as compared to the prior-year period. Rimfire rifle sales decreased by $1.0 million, or 14.4%, as compared to the prior-year period.
Net sales for the three months ended March 31, 2010 were $94.7 million, a decrease of $26.3 million, or 21.7%, as compared to the three months ended March 31, 2009. Centerfire rifle sales decreased by $24.2 million, or 27.8%, as compared to the prior-year period, primarily due to reduced sales demand for modern sporting products
When the self-declared top assault-weapon cartel--with, let's remember here, nearly half the U.S. market--reports a nearly 28 percent drop in centerfire rifle sales "due to reduced sales demand for modern sporting products," it's fair to say that the assault rifle boom in general, and the AR-15 rifle boom in particular, is over.
In March, I wrote a blog about the first cracks appearing in the gun industry's post-Obama boom. One manufacturer talked about the "collapse" of the assault rifle--specifically AR-15--market, noting that panic-buying as the result of President Obama's election had come to an end. "The consumer just stopped buying," the manufacturer stated, the "sales blitz lasted about eight months."
The blog resulted in a bevy of counter-arguments from the NRA and NSSF, the most recent being an article in the June edition of the NRA's America's 1st Freedom magazine, ironically citing Freedom Group's Bushmaster as one proof of the AR-15's manifest destiny as "the standard center-fire rifle platform for all applications."
And that's because the industry views assault weapon sales as key to their future. As the industry publication The New Firearms Business noted in November 2008:
the sole bright spot in the industry right now is the tactical end of the market, where AR and AK pattern rifles and high-tech designs, such as FNH USA's PS90 carbine [sic], are in incredibly high demand right now.
In a market that continues to shrink over the long term, assault weapons are the "sole bright spot" with sales potential. Especially if they can be rebranded as "modern sporting rifles" for "all applications" to traditional sportsmen. That's the legal side. On the illegal side, regardless of this year's warmer and fuzzier label du jour, assault weapons have a proven appeal to criminals--from mass shooters and cop-killers in the U.S. to narco-terrorists in Mexico (where, according to U.S. law enforcement, Bushmaster and DPMS AR-15s are primary "weapons of choice" of gun traffickers). And the gun industry cares little about who buys their guns--just as long as someone, anyone, does.
And while the NRA and gunmakers more often than not are allowed to make up their own facts when it comes to their industry, now and then they have to play by other people's rules--like those of the Securities and Exchange Commission. And that's when we get a glimpse of the truth.
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05/13/10
"Remington Arms, a division of Freedom Group Inc., announced today that it would expand operations at its Ilion, N.Y. facility, creating 100 new jobs and investing $5.9 million in capital improvements to its buildings, equipment and machinery there. The growth is credited to the relocation of Freedom Group's Marlin Firearms manufacturing facilities following the closure of their North Haven, Conn. plant earlier this year.
The Remington facilities at Ilion are 194 years old and the largest employer in the area. The last relocation of manufacturing to Ilion occured in 2008, with Remington transferring 600 of the then 715 positions."
1) The US Gov't will follow up on his recommendations and call to renew the AWB, once again causing sales to increase and the House and/or Senate to revert to GOP control in Nov.
2) The US Gov't will ignore his recommendations, quieting any outspoken advocates (like they did w/ Holder the last time), as the VPC, BC et al wail and gnash their teeth as they recognize their irrelevancy in the political spectrum.
I guess they've stopped being violent so there is no more demand,..
Then again the Term "Market Oversaturation" comes to mind.
You have to bear in mind, these are very powerful cartels with hundreds of millions of dollars and private armies. Many of their arms came from the Mexican Army, when soldiers deserted to work for the cartel for a whole lot more money and took their arms with them. I'm sure most of the rest came from international arms dealers who sell real M16s, M4A1s, and AK47s, along with all sorts of explosive ordinance.
But hey, why don't we just put a bunch of signs up along the border facing towards the states that say "Gun Free Zone"? That'll be sure to any smugglers who want to bring any firearms over the border into Mexico.
The first is that none of them admit to being anti gun. They are merely for "Common Sense Gun Laws" that ban all gun ownership. Their organizations supported the gun ban in DC and support the current law in Chicago. They are against law abiding citizens carrying concealed and are also against being able to defend yourself in your home (Castle Doctrine) with your firearm.
Yep....all they want is a little "Common Sense Gun Control."
I've also noticed that while they claim to just want to make America safer all of their proposals are aimed (no pun) at law abiding citizens. I have yet to see these groups push for harsh penalties for murderers, rapists and robbers that used firearms in their crimes. Their ire is reserved for the guy with the black plastic rifle or the woman with a 9mm and 15 rnd magazines.
By the way, is there a class of firearms these guys approve of? Let me guess....the non operational kind is ok with them. They don't like militaristic looking rifles, semi automatic pistols, semi automatic rifles, high powered rifles, small concealable handguns, scoped rilfes, hi powered target rifles, etc, etc, etc.
At least on the old Brady blog a BC member would very occasionally chime in with some "reasoned discourse".
Apparently for those mentioned actual discourse would be much too much like capitulation...
Subcompact pistols = too small and unreliable
Service sized pistols = too large and high quality
All Semi-automatic rifles = "assault weapons"
All bolt action rifles = "sniper rifles"
All gun ownership = "gun violence" (except the police of course)
All human beings on the planet = stupid, incompetant, homicidal, suicidal, or some combination of them all, thus unfit to have guns (except the police)
http://daysofourtrailers.blogspot.com/2009/09/why-confusion-on-assault-weapons.html
A debate on (1) (If) a person needs to be part of a militia to bear arms
(2) Does "state" mean United States or each state, or both?
Does it include your home and person?
(3) What does "Arms" mean (does it include all weapons H bomb included?)
How much regulation is too much? Can you own a rockets launcher?
I do think we can do better at keeping Arms out of the hands of nut cases and I would hope we don’t allow people to walk around with rocket launchers. But how far do we go?
There are laws already in place prohibitting violent offenders, felons, and even "nutcases" from possessing firearms, as well as the underaged, and the habitual users of alcohol and drugs. Those bases are already covered.
So I ask, what purpose is there for diminishing the 2A?
It is certain that the purpose is NOT criminal control, as criminals are not inclined to adhere to the law, nor are they harbored under the umbrella of the 2A.
It seems more likely that the true purpose is for citizen control.
A stream of people on these posts constantly and predictably try to re-interpret the 2A (to fit their agenda) in an attempt to tell others, who have committed no crimes and have gone through the proper chanels to aquire arms, that they are not part of the requisit militia, or are not part of The People, and so the 2A just doesn't apply to them.
(As if this stream of people has been granted a superior understanding of the Bill of Rights, and somehow has the ability to distribute rights to others as they choose.)
That is not crime control.
That is simply a rampant desire for control over others...people control.
You should not have a AK-47 at home and go shopping with Food Stamps !
http://daysofourtrailers.blogspot.com/2008/05/silly-assault-weapon-definitions.html
It's better than your branding them with the name assault rifles.
Anyway, just think, you might make some money of this with your FFL.
Hang in there, Mr. Sugarmann, your conversion of a few people a year to your lost cause is valiant.
The gun stores need to be better regulated - background checks for all no matter who !
Commenting on something you know nothing about makes you look foolish.
That's it.
Most of these weapons shoot a less powerful bullet than the average hunting rifle. Some of these "Assault Weapons" shoot the same caliber as hunting rifles but the vast majority shoot a less powerful round.
Black plastic and pistol grips do not make the gun anymore dangerous than other weapons. They do make the gun more ergonomic and lightweigth however.
You guys are routinely conned by the VPC and the Brady Campaign.
As for the sales of AR's drying up....the drought will end as soon as the next round of anti gun stupidy starts from our elected officials in DC.
I'm willing to be educated on this.
As I said earlier, this firearm is extremely accurate and I see AR's at the range everytime I shoot. These weapons remind me of motorcycles in regards to parts and accessaries. If you want to change or personalize your AR there are hundreds (at least) of aftermarket parts available. I'm referring to stocks, target triggers, grips, etc (before the usual suspects chime in about full auto conversions which are not available).
Long story short....they're just guns. If you don't like the "Black Rifle" look then that's fine. Eveyone has their own taste.
It boils down to economics. So called "assault rifles" shoot FMJ(full metal jacket) rounds which are produced by the billions by every NATO signatory. FMJ rounds are no frills bullets and relatively cheap when compared to traditional hunting ammo which has alot of engineering in it to make it expand on impact.
If I'm shooting at pieces of paper or tin cans, I don't want to pay for the extra engineering which makes a bullet mushroom.
The shooting sports is not a cheap hobby, and we like a bargin as much as the next guy.
Then I realised I was being silly and it was just a weapon for computers to take over the world.