Despite the fact that most Americans have cut back on their purchases of cars, clothing and other luxury items, purchases of small firearms and ammunition have surged
Los Angeles, CA (PRWEB) November 15, 2011
The Guns and Ammunition Stores industry has experienced surprisingly strong growth over the last five years according to IBISWorld, the nation’s largest publisher of industry research. Despite the fact that most Americans have cut back on their purchases of cars, clothing and other luxury items, purchases of small firearms and ammunition have surged. For this reason, industry research firm IBISWorld has added a report on the Guns and Ammunition Stores industry to its growing Lifestyle Goods Stores Collection.
While gun and ammunition sales rates are driven by a number of factors, the recent spike was most likely attributable to fears about the possibility of the Obama administration enacting tougher gun control legislation. Gun enthusiasts have been seizing the opportunity to get firearms and ammunition while they can. Fears about increasing crime and civil disorder due to the economic downturn have also influenced civilian gun purchases. According to IBISWord analyst, Nima Samadi, another factor influencing civilian gun purchases has been fears about increasing crime and civil disorder due to the economic downturn. “Although there is no evidence of any such link, guns still provide people with a sense of security during times of uncertainty,” says Samadi. Guns and ammunition purchases by civilians are made through gun stores, sporting goods stores like Bass Pro Shops, Dick's Sporting Goods Inc and The Sports Authority and some large retail stores like Walmart.
Law enforcement is also another major market for Guns and Ammunition Stores. Growth in government spending on state and local agencies generally coincides with increased funding of law enforcement. When law enforcement funding increases, gun and ammunition purchases grow as well. Historically this segment has had steady revenue growth, though as of late law enforcement agencies have received additional funding in response to the increased threat of terrorism and from the stimulus package. This has translated into more arms and ammunition purchases from this market segment.
Guns and Ammunition Stores in the US have increasingly turned to imports to satisfy their rapidly growing demand for guns and ammunition. With demand for small arms and small arms ammo, ordnance and accessories surging over the last five years, domestic manufacturers have struggled to keep up with growing demand and many retail outlets have turned to imports to satisfy their needs. The industry gets a large portion of its firearm imports from Austria and Italy, due to the popularity of the Glock and Beretta brands.
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