by Joseph P. Tartaro
Executive Editor
As the annual Shooting, Hunting and Outdoor Trade (SHOT) in Las Vegas approached many in the industry— manufacturers, wholesalers, importers and retailers—were anticipating getting a better picture during the show of what kind of business to expect in the 2012 election year.
Recent business indicators in the industry have been promising. Reports from the National Association of Sporting Goods Wholesalers show in November—the first omen for future business prospects—were generally upbeat. Other good indicators followed.
The National Shooting Sports Foundation (NSSF), the trade association for the gun and ammunition industry, reported that there were record single day background checks on the day after Thanksgiving.
Data derived from the FBI’s National Instant Criminal Background Check System (NICS) showed that Black Friday had the most background checks for firearm purchases in a single day—129,166—with a 32% increase over the previous NICS high on Black Friday in 2008.
Much of the late 2008 gun buying surge has been credited to public fears of what dangers an Obama administration presaged for law-abiding gunowners. Few people were assured by the new president’s claims of support for the Second Amendment; after all, Sen.
Charles Schumer (D-NY) also has said he supports the right to keep and bear arms. Barack Obama’s earlier political and foundation records were seen as a better measure of where his White House might go on the gun issue. The giddy response of anti-gunners at his election further inspired fears.
But Obama will be running for reelection in 2012 and, if he wins, be in a position to pursue, without concerns about any political downside, whatever agenda he chooses in his final years in office.
Further fueling concerns of gunowners and the gun industry is that a generally pro-gun House of Representatives could also undergo major changes in the November 2012 general election, especially as American voters, continually concerned about the general economy, seem to have little confidence in the ability of Congress to deal with their economic plight. So a presidential election year seems traditionally to presage a change in the business climate.
In an interview with USA Today, NSSF Senior Vice President and General Counsel Lawrence G. Keane attributed the record growth of the gun business and outdoor in the past three years to a “burgeoning awakening of the American public that they do have a constitutional right to own guns.” On the heels of the Black Friday record, the FBI released background check statistics for all of November 2011. NSSF-adjusted NICS figures showed an increase of 16.5% over the NSSF-adjusted NICS figure for November 2010, marking the eighteenth straight month that NSSFadjusted NICS figures have increased when compared to the same period the previous year.
And GunBroker.com reported a 25.4% increase in 2011 Cyber Monday sales activity over 2010.
Whether the American public’s appetite for guns, ammunition and related products—recreation or defense—remains strong during the media madness of the national election campaign remains to be seen. Certainly if the fourth quarter sales activity was as good as some indicated, there should be money to stock up retailer shelves, but later fill-in reorders may be a better measure of what will happen.
In other news, Colt’s Manufacturing Company’s announcement that it is moving part of its operations to Florida, and that led some to question Gov. Rick Scott’s support for state incentives for business and job expansion like the help given Colt’s.
The Associated Press report out of Kissimmee suggested that some people in and out of politics wondered if that was a good policy.
However, Rick Scott called the Colt’s move a solid investment for taxpayers, just one in a series of projects that will help continue to lower unemployment.
The 175-year-old Colt Manufacturing Co. said it is bringing 63 jobs along with a new regional headquarters and product manufacturing center to Kissimmee in 2012. The new engineering and manufacturing positions will pay an average salary of just over $45,000.
The Harford, CT-based Colt’s, one of the oldest manufacturing operations in America, is making a $2.5 million investment, with the state incentives of about $1.6 million, including $250,000 from Scott’s Quick Action Closing Fund and funds for workforce training.
Asked several times by reporters whether taxpayers should feel good feel about spending more than $1 million to gain 63 jobs, Scott defended the investment for the project saying it will be monitored to make sure it offers a return for taxpayers.
“And if we don’t, then we’ll get the money back,” he said. He also said officials are looking at incentive deals that were set up before he became governor “and making sure companies do the right thing there.” According to Associated Press, Osceola County Commission Chairman John Quiñones agreed with Scott’s assessment of the Colt project’s viability.
He said Osceola has a “fluid business environment” in which new companies are exempt from paying development impact fees until February.
“The fact is you’re creating manufacturing jobs (and) you’re creating a vision into the future,” Quiñones said.
“Manufacturing jobs are so hard to come by. And the fact that they’re choosing Osceola County and they’re choosing Florida to come to is going to present so many opportunities for Osceola to develop and for potential tourism as well.” That could mean a Colt museum at the Osceola plant, like one at the company’s Hartford facility, the report suggested.
In other industry news, Thompson/ Center Arms Company, Inc., Traditions Sporting Goods, Inc., and Ardesa S.A.
d/b/a Ardesa Firearms announced that they have reached an agreement to settle patent infringement complaints brought by T/C in the US International Trade Commission and US federal court. Under the terms of the agreement, Traditions and Ardesa have agreed to a multi-year license agreement, allowing them to use certain T/C muzzleloader rifle technology.
In exchange, T/C and its parent, Smith & Wesson Holding Corporation, have agreed to dismiss all infringement claims asserted in the complaints. Further details and financial terms of the settlement are not being made available.
