Posted on 03/14/2017 9:36:22 AM PDT by Perseverando
As we noted last summer, the Obama administration’s 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 Trump’s 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:
Maybe Remington is doing poorly because the stuff they make isn’t the quality that it used to be?
I don’t know. My Remingtons bought in the mid 1950’s, 1960’s and 1970’s still work great.
Also, Remington was supposedly shutting down its NE plant and moving to a gun and corporate friendly state. Of course the left wing mediots in the NE would never admit that.
The new stuff is just junk in comparison. It's a shame that such a storied builder is going down. Just look at Colt and Winchester. Same trajectory.
Henry is a great option and made here in the Communist Republic of NJ!
Need to glamorize and expand the shooting sports. Bikini skeet shoots, Large dollar shooting competitions, competitions that have video game quality and excitement...etc.
My point is that older Remington firearms are very good and well made too. My view is that the stuff they make now is not as high quality as the stuff they made before 1995 or so. I suspect that is at least a part of the reason their products are not selling very well.
Or maybe a good old fashioned Uprising!
I had a Remington 1100 in 12 gauge, about `76. Except for being a little heavy, I loved it. Ventilated rib, nice scroll work, very pretty.
While I was away my Dad felt sorry for a preacher who had trouble feeding six kids and loaned it to him.
I came back and learned the preacher had left town abruptly with my shotgun and a lot of other loaned stuff.
Dad felt bad and gave me his 20 gauge Browning Citori over-and-under: as light as a feather or Obama’s resume.
Moral: Never trust a hungry preacher
Just Dang!
I’m working hard to keep Ruger in Prescott, AZ afloat. LOL! I guess I didn’t get the memo saying that we didn’t need to buy guns anymore.
>>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.
They tried at that but still failed to deliver. The consumer wants the many lines of mediocre stuff these days. He prefers the golf bag approach to shooting because the many products that are available at a decent price.
You win the prize.
I doubt if Ruger or Savage, even Smith and Wesson are laying people off.
(Can you say R51?)
I have a Rem 1100 3in long barrel full choke goose and duck gun.
Heavy as heck, but even with steel shot, you can roll ducks out of the sky at 50-60 yards. Geese works great at 40-50 yards.
Even with a custom fitted recoil pad, you only want to fire about 10-12 shots a day.
You got a better gun from your Dad, for close in shooting.
Well just means it’s more affordable to buy more guns and ammo. I’d like to upgrade my revolver. I CCW a Tarsus Ultra Lite .30, I need a small butt for small hands. Any recommendations?
And if crime doesn’t go down people will still be buying more guns, and with the beef up in the Military it will mean more hand and long guns are needed. Temporary lull.
Had to renew my CCW permit today, for Tennessee, we now can do a LIFE TIME permit for $200. Beats $50 every 4 yrs and that trip to the DMV and the long lines.
Might the layoffs have more to do with NY’s repressive gun laws?
ping
Sweet gun to go with the others.
Actually, speaking of Remington, the Remington RM380 is not a bad little pistol. The one I know about is extremely reliable and shoots anything. It is very easy to rack the slide. But it does have a long, relatively heavy trigger pull (no manual safety). It is accurate and shoots well at it’s intended ranges once you get used to it. The .380 is a pretty good cartridge in a short barrel if you use the Ruger ARX ammo or about any brand using the Hornady XTP hollow point bullet, IMHO.
Prescott....
God’s Country !
You bet.
I just read somewhere this morning that gun sales are up because people are afraid of Trump. Could it be .......FAKE NEWS?
It wouldn't surprise me to learn that it was shipped to bunkers in Kuwait and Saudi Arabia, with GPS locations and bolt cutters delivered to ISIS by McCain. Make him talk.
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