Posted on 03/14/2017 9:36:22 AM PDT by Perseverando
As we noted last summer, the Obama administrations constant gun control threats did little more than flood American homes with more guns as people looked to stockpile weapons ahead of anticipated new regulations. In fact, both of Obama's elections resulted in massive and unprecedented spikes in gun sales.
Meanwhile, Obama's presidency was a boon for the gun manufacturers whose revenue, profitability and stocks all soared during his presidency.
But while the constant threat of new regulations under Obama resulted in a massive full forward of gun demand and pushed gun stocks to all-time highs, the election of Trump, and thus the removal of those threats for at least the next 4-8 years, is having exactly the opposite effect.
If fact, Remington Outdoor just announced layoffs of 120 people at their upstate New York manufacturing facility due to sinking gun demand in the Trump era. Per the Wall Street Journal:
Remington Outdoor Co. has laid off more than 120 workers at an upstate New York factory in response to falling demand for firearms, dealing a blow to an upstate village of 8,000.
Since Donald Trumps presidential victory eased concerns about stiffer gun laws, the small-arms industry has seen a drop in sales. As a result, orders for Remington handguns have slowed, a company spokeswoman said Monday. That is a dynamic from which Remington is not immune, she said of the industry challenges.
The March 8 layoffs are a hit for Ilion, N.Y., where Remington has operated a plant since the 19th century, said Terry Leonard, mayor of the village located about 60 miles east of Syracuse.
Should they ever just close down totally, it would be a total catastrophe for the entire area here, the mayor said.
Meanwhile, other firearms makers, including American Outdoor Brands, formerly known as Smith & Wesson, say demand for weapons, particularly handguns, has been ebbing since Trump's election. Earlier this month the company posted disappointing sales and higher inventories and admitted to investors on their quarterly earnings call that business had slowed...all of which sent the stock into a downward spiral.
Meanwhile, Wedbush equity analyst James Hardiman expects FBI background checks, a good indicator of gun sales, to be down 10-15% in 2017.
Financial analysts said the possibility of new gun laws under the Obama administration almost certainly contributed to strong growth in gun sales last year.
We do believe that having a Republican in the White House negatively impacts gun sales in that it effectively eliminates any threat of new gun regulation for the foreseeable future, said James Hardiman, managing director of equities research for Wedbush Securities Inc.
Mr. Hardiman forecasts a 10% to 15% decline in FBI background checks for 2017.
The gun industry is sure going to miss this guy:
Time to stock up a little more?
Time to stock up a little more?
Unintended consequences?
Perhaps, with the sudden relative surpluses of weapons and ammunition on the market, it becomes a VERY good time to stock up your home arsenal.
Because the gun-grabbers WILL be back, next time far more determined to crush any potential for armed insurrections against THEIR rule.
Yep, time to stock up on ammo.
Also, why does DHS need to ration the ammo for their agents? I though they bought enough for a hundred years. Their purchases made ammo expensive and hard to get for the citizens. What happened to all the ammo the gov’t bought?
It’s like any market: buy low, sell high. Should see .22 LR and some other calibers become more available and cheaper in the coming months.
This week, there was a post about how gun sales hadn’t really decreased that much, written by Dr John Lott:
In fact, there was a large increase in gun sales immediately following the election. November had a record-setting month for FBI background checks. On Black Friday, there was a single day record of 185,713 checks. While December sales were not quite at record levels, they were still the second highest monthly total ever. Januarys and Februarys sales data slipped below last Januarys and Februarys, but they were still the second highest January and February sales on record.
Anecdotal stories right after the election suggested that people particularly minorities might be buying guns out of fear of a Trump presidency. The National African-American Gun Association saw a 7% increase in members just over the Thanksgiving weekend. NBC News contacted gun storeowners who reported seeing up to four times as many black and minority customers. The Liberal Gun Club says that its membership is up 10%.
There were other signs that gun control was losing popularity. . . .
http://freerepublic.com/focus/f-news/3534414/posts
It would also be a good time for older FReepers to buy guns, and arrange to pass them along to kids and grandkids.
That way, when the grabbers come years from now, they will not be able to know where dear departed Grandpa’s gun stash went.
Remington is moving out of New York State, which has been known since last
year.
How does ZeroHedge define the word ‘flood’, when used to describe the
increase in gun sales?
Remington has attempted to produce
small frame semi-automatic pistols,
with mixed results.
I[n] fact, Remington Outdoor just announced layoffs of 120 people at their upstate New York manufacturing facility due to sinking gun demand in the Trump eraWhat, not because of Cuomos regulatory/confiscatory tax morass or his push for minimum wage increases? How about the libs switching from open gun buying to the black market, in order to keep the criminals supplied?
Maybe Remington is doing poorly because the stuff they make isn’t the quality that it used to be?
Quality...
Yup.
I saw this one coming a mile off just like every other gun owner. Speculation before the election was that if Hillary won the price of guns and ammo would sky rocket in anticipation of an onslaught of regulations and executive orders aimed at the 2nd Amendment. And when Trump won we all breathed a YUGE collective sigh of relief.
What is happening now is the result of gun owners over purchasing during the run up to the election. Gun owners were hedging their bets and buying while they could and while stock was available. I use to visit the gun store several times a week before Nov 16. Since then I’ve been to the gun store a handful of times.
I think gun and ammo sales will continue to fall for the next year and then the market will flatten out. At that point sales will probably pick up but they will not be like they were under obama,....unless we get a hillary or obama like character in 2020.
Wait until the Spring/Summer “Leftist Riot Season,” interest in guns will pick back up again.
You're much too kind. Have you looked at a new Marlin lately? Remington and their parent have effectively turned that brand into the Llama of American firearms manufacturers. Pure crap compared to a few short years ago.
I’ve been eyeing the 10/22 takedown Lite model. Looks great. Threaded end for accessories.
Seriously? Any of this is a surprise? Anybody with even a modicum of interest in firearms could predict that with O'Scumbag leaving office and President Trump assuming control, firearms sales would plummet.
I'm seeing a tremendous surge of AR bargain prices locally. I've even seen a gun store selling the Ruger AR556 for $450. That's a huge discount compared to a few months before. I'm guessing they hedged the wrong bet for POTUS.
I bought two Remington R1 1911 pistols over the past three years. The price seems to have dropped a little, but Remington was running rebates of $75 and then $100 when I bought them. They are quality weapons, made in the USA and if you’re looking for a 1911 .45ACP type pistol they are worth checking out.
>>Maybe Remington is doing poorly because the stuff they make isnt the quality that it used to be?
That plus their inability to match the market demand. I know a dozen people who would love to have a 7615 but no one has ever seen one in a store in Florida.
No, I haven’t and that is too bad. I have a Model 39A I bought in the 1970s and it is one of my favorite rifles. I have been thinking about buying a Marlin 45/70 but I guess I might look at the Henry instead. I own a model 870 Wingmaster made in the 1960s and it is a fine and beautiful shotgun. My Dad recently bought one of the new model 870s and it seems junky to me compared to the one have. I also have an old Remington 550 .22 made in the 1950s that is a fine rifle as is my 700 BDL from the 1970s. Their new stuff just does not look or feel as good to me as the older firearms they used to make.
There is that. It seems to me that Remington got away from making a few very good rifle and shotgun models and got into making a whole bunch of lines of mediocre stuff.
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