Around the Fireams Industry: Not everyone is running 24/7

By Jim Shepherd

While the entire outdoor segment mirrors the general miasma of American industry and commerce (business generally stinks), there are some commonly accepted points being accepted as fact. In fact, they're not all dead on target.

First, the commonly accepted belief that the entire firearms category is going like the proverbial house on fire, with gun owners and speculators buying everything in sight.

Not so.

Granted, a couple of categories are running at full-capacity, unable to keep up with orders. Those categories, however, do not constitute an entire industry. If you spot check manufactures of rifles, pistols, shotguns or revolvers that doesn't contain the word "tactical" or the letters "AR" you might find a different situation. In some of the broad-category gun companies, entire product categories are not being manufactured. With adequate inventories already on hand to accommodate normal anticipated demand, the manufacturing capacities are focused on the hot sellers.

Focusing on the hot sellers, however, doesn't mean that you can suddenly change your entire manufacturing capacity to meeting demand. Having visited modern manufacturing facilities, there's certainly more involved than a memo from management directing all equipment to be dedicated to making a certain product. Today's manufacturing processes are so incredibly efficient and precise that changing over a "line" in the manufacturing facility can take a year - or longer. Consequently, you have more demand than you can meet in the immediate term.

You make what you can, and delay delivery dates accordingly.

That's true in ammunition categories as well. Granted, you'll face challenges if you're looking for quantities of those calibers that are common to many platforms (civilian and military, hunting and target shooting, etc), but other calibers are generally available.

Having said "generally available" let me qualify that. One caliber that is decidedly not a military caliber is in extremely short supply nationwide- the diminutive .380. Essentially a 9mm "short" - it is among the most common of concealed carry handgun calibers. So, it appears we're seeing the equivalent of demographic huddling along common lines: military/civilian and personal defense.

One statistic that is also fueling the perception that the entire firearms making business is roaring along is the frequently-quoted NICS statistics. Yes, nearly four million background checks required for purchase of a firearm from a federally licensed dealer were performed in the first quarter of 2009, an all-time record.

But those checks are required for the purchase of used firearms as well.

Spot checking around the country, I've found that there are a few commonalities with gun dealers. First, they are seeing continued demand for the modern repeating rifle platform (AR-style). Older military styles are selling, too, along with concealed carry handguns and home-defense configured shotguns.

The purchasers are also trading in large numbers of other styles of guns, from single-action revolvers to high-end hunting rifles in exotic calibers.

Consequently, some buyers are bargain hunting, buying the firearms that might not be so highly desired right now, but have long term appeal. The opportunity to purchase traditional firearms at reduced prices due to lower demand, it is a very good time to look at a precision hunting rifle and scope combination. Bargains, I'm being told, are out there.

With the fact that other investments have cratered across the financial landscape, buying a gun at a rock-bottom price looks like a pretty solid investment. Some financial advisors, in fact, are suggesting that guns and/or ammunition may represent decent investment opportunities. Seldom, they point out, do their values fall- and never so precipitously as the traditional investment markets of today.

All those factors considered, the NICS checks may be a misleading economic indicator. While it does signal a hot consumer market for firearms in general, it does not signal that the entire firearms industry is literally running 24/7 across all categories.

It just isn't so.

Likewise, there are other pockets of outdoor categories holding their own or reporting increased demand. Camping, for example, is on the rise nationally. With budgets feeling the pinch, families are looking at less-costly vacation options. That's being reflected in state and national campground reservations. For the cost of a single family vacation in a moderately-priced vacation destination, a family can equip itself for a camping vacation, and have the equipment available for anything from long weekends to unexpected interruptions in public utilities in bad weather.

The same is generally being said about fishing tackle and boating accessories. While few people are buying boats, they are spending their reduced cash on additional tackle and upgrades to existing boats.

Likewise, technical clothing isn't doing badly either - although retailers say the consumers who are buying are being considerably more particular in their purchases.

As a business category, the outdoors isn't outpacing our lagging economy. For big-ticket categories like RVs and boats, things are downright dreadful right now.

But the participatory segments of the industry - destinations, disposable items and access - are seeing increases as people are looking for affordable alternatives to the luxury vacation.

Hopefully, that will lead some families to the realization that life really is better when it's lived outdoors.

Get out there this weekend and be a good example for someone else.

Republished from The Outdoor Wire.