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Firearms industry on an upward trajectory

by Tom Lotshaw Northwest Montana News Network
| November 28, 2012 8:23 AM

Gun building has a long history in the Flathead Valley. But a “perfect storm” of Montana’s hunting and gun culture, entrepreneurship and rampant political fear about gun owners’ rights has the local gun-building business booming as never before.

Local companies are building and selling thousands of guns and gun components to customers around the world, including to some of the nation’s biggest gun makers, and bringing millions of dollars into the valley.

The signs of local success are everywhere.

Montana Rifleman is on track to produce 312,000 rifle and pistol barrels this year and is employing close to 170 workers. Its sister company, Montana Firearms Group, makes production rifles, one of which was named “Best of the Best” by Field and Stream magazine.

Proof Research just opened a state-of-the-art manufacturing, research and design facility. The company specializes in creating lightweight, accurate firearms using carbon-fiber barrels and stocks unlike anything else on the market. Proof currently employs 29 people and is still hiring.

McGowen Precision Barrels expects production to hit about 16,000 barrels next year. Its sister company, American Gun Co., produces full guns and has several rifle-action guns in research and development.

Other successful firearms businesses operate on a much smaller scale. Many individual gunsmithers work out of their home shops, hiring on help as needed. Other related businesses may have a half-dozen employees.

The Flathead’s cluster of gun builders is shaping up to be one of the biggest of its kind in Montana.

Many leaders in the firearms industry see the similarities between the Flathead Valley and Gordona, Italy, a prosperous Alpine region where a cluster of skilled artisans, including woodcarvers, engravers, barrel makers and gun makers cooperate to supply top Italian gun manufacturers such as Beretta and Perazzi with high-end products.

It’s the collaboration among those Italian firearms businesses that have made the Gordona region a successful business model. That same kind of collaboration is emerging here, according to Ron Duplessis, president of McGowen Precision Barrels and American Gun Co. of Kalispell.

“They see each other as colleagues,” not competitors, he said about the Gordona craftsmen. “It’s an exciting model.”

Chris Hyatt of Whitefish, president and one of the founders of the Montana Firearms Institute, agrees.

“With the amount we have going on here, and the amount of product delivered out of this region, we are definitely leading the way,” Hyatt said.

The institute formed last summer to help businesses in the gun industry grow and collaborate both here and elsewhere around the state.

In the Flathead, the gun industry has been a bright spot in a local economy that has seen heavy job losses in logging, construction and aluminum production.

By some estimates, gun-related businesses now account for several hundred jobs in the county.

Montana Rifleman, for example, has moved to a volume manufacturing platform and employs significant numbers of people in the valley.

“That’s happened in just the last five years,” Hyatt said.

The Flathead’s hunting and shooting heritage plays one major part in the gun industry’s success here and in attracting gun businesses to the area.

It’s a natural place for people to buy, shoot, build and customize firearms. And its outdoor recreation opportunities make it a highly desirable place to live and run a business.

That gun-friendly culture makes gun building an accepted, supported and honored profession here.

Will and Terri Parker of Kila are among those who sought out the Flathead when they were contemplating relocation after completing their military careers. People here share their social and family values, Will Parker said. The couple owns and operates Freddie Merc’s GLOCK Wercs and are building a sales facility at their home.

Flathead Valley Community College has been quick to work with the industry to develop classes in gunsmithing and machining so people can get the skills they need to land a job and businesses can find the workers they need.

Montana’s gun-friendly policies play another role.

While other states have tended to consider and enact onerous restrictions for gun makers, sellers, buyers and owners, Montana politicians on both sides of the aisle have supported guns and pro-gun legislation.

“Montana is a very gun-friendly state,” Duplessis said. “What I like about Montana is even the liberals carry guns.”

National politics are playing a part too.

Fear of federal restrictions on guns and ammunition have driven a major surge in their sales.

“I think it was summed up well by somebody who said President Obama has been one of the greatest marketers for the firearms industry,” Hyatt said.

With the president’s re-election, that trend is expected to continue.

Gun and ammo sales have continued to surge beyond levels seen four years ago.

Already experiencing record sales, Montana Rifleman got an order for 35,000 rifle barrels the morning after Election Day, founder Brian Sipe said.

“I’ve got more back orders today than I did in business all last year,” Sipe said. “I’m already doing two and a half to three times what I did last year.”

Sipe suspects a lot of gun sales are being driven by political fear.

“Most of the guys out there believe that the Democratic Party will come after their guns ... They’re buying guns as fast as they can get them, as fast as they can afford them,” he said. “I don’t like the reason for it, but this is the business I’ve chosen and I have to go as hard as I can.”

Hyatt and others predict the Flathead‘s gun industry has reached a critical mass and will continue to grow.

Hopefully its success will continue to spill over into other sectors of the local economy, Hyatt said.