Air Gun and Airsoft Gun Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

The tale of the Air Gun and Airsoft Gun Manufacturing industry mirrors several industries within the US manufacturing sector that rely on plastic and steel to produce relatively small, simple goods: Production has moved overseas. In addition to the pervasive outsourcing, the recessionary period of 2009 limited consumer sentiment and incomes and input prices have been rising. While the industry's performance outlook is positive, revenue growth will be slow and imports are forecast to remain high. For these reasons, industry research firm IBISWorld has added a report on the Air Gun and Airsoft Gun Manufacturing industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

Foreign competition and input prices will remain high, hampering industry growth

Los Angeles, CA (PRWEB) March 23, 2012

The tale of the Air Gun and Airsoft Gun Manufacturing industry mirrors several industries within the US manufacturing sector that rely on plastic and steel to produce relatively small, simple goods: Production has moved overseas. As such, “imports satisfy virtually all domestic demand,” says IBISWorld industry analyst Josh McBee, “while exports are responsible for driving what little revenue remains for US manufacturers like Crosman Corporation.” In fact, Crosman dominates the industry, while other industry leaders either forego US manufacturing to focus instead only on assembly (e.g. Daisy Outdoor Products) or conduct their entire manufacturing and assembly operations overseas to focus solely on US distribution (e.g. Cybergun). In either case, American air gun and airsoft gun enthusiasts largely purchase imported weaponry.

In addition to the pervasive outsourcing, the recessionary period of 2009 limited consumer sentiment. Disposable incomes fell in line with rising unemployment, thus making the potential market for the Air Gun and Airsoft Gun Manufacturing industry's discretionary items smaller than usual. At the same time, says McBee, rising input costs in plastic and steel have forced manufacturers to narrow their margins to remain competitive with cheaper imports. As a result of these combined adverse conditions, industry revenue is expected to fall at an annualized rate of 0.3% during the five years to 2012. During 2012, conditions are expected to improve in line with returning consumer sentiment as the US job outlook improves.

While the industry's performance outlook is positive, revenue is projected to remain below the 2008 peak for at least the next three years. Imports are forecast to remain high through the five-year period, consistently accounting for more than 95.0% of domestic demand. Foreign competition will likely continue to offer cheaper goods of similar quality, and input prices are projected to remain near their current highs. As a result, price-based competition will only intensify. The resulting pressure on operators' margins will likely force some companies to move production overseas or exit the industry altogether. The Air Gun and Airsoft Gun Manufacturing industry has a high level of market share concentration. The large companies that lead the industry benefit from significant brand recognition and have established distribution channels with mass merchandisers, such as Walmart and Kmart, and national sporting goods stores, which gives them a significant advantage in the industry. For more information, visit IBISWorld’s Air Gun and Airsoft Gun Manufacturing report in the US industry page.

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IBISWorld industry Report Key Topics

This industry primarily manufactures air guns and airsoft guns, which are distinct from firearms. Air guns and airsoft guns use air or gas, while firearms burn a propellant. Air guns and airsoft guns are used for hunting, pest control, recreational shooting and competitive sports. Spring-loaded, pneumatic, gas-powered and electric guns are included, but guns designed specifically for paintball are excluded.

Industry Performance
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Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
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Globalization & Trade
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Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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