ROGERS - The two airgun companies that call Arkansas home say business is good, and they expect interest in shooting sports to bolster their customer base this summer.
Rogers-based Daisy Outdoor Products is hosting the 48th National BB Gun Championship this weekend in its hometown, while Umarex USA, with headquarters in Fort Smith, is touting the American Airgunner Challenge as part of its American Airgunner television show that begins its 2013 season in early July.
According to data provided by the National Sporting Goods Association, an advocacy group for the sporting goods industry, consumers spent an estimated $335.6 million on air guns of all types in 2012, up nearly 10 percent from $305.1 million in 2011.
Air guns include BB guns, air rifles and air-soft guns. BB guns tend to be smooth bore, while air rifles shoot pellets made of various materials through a rifle barrel. Air-soft guns shoot plastic pellets, can be used indoors and require eye protection when used in competitive games in which opponents target another, much like laser tag or paintball.
Privately owned Daisy began in 1886 and has operated in Rogers since 1958, when the company moved from Michigan. It employs between 60 and 120 workers at its Rogers operation, depending on demand.
This year, its National BB Gun Championship, commonly called The Daisy Nationals, had a record 54 teams from around the U.S. registered in the 5-meter (roughly 5.47 yards) match. The contestants, ages 8-15, must qualify to compete. All shoot Daisy’s Avanti Champions, a singleshot BB gun. The match began Saturday and finishes today at the John Q. Hammons Center in Rogers. A roughly 10-meter (roughly 10.9 yards) Sporter 3-position air rifle match is set for Monday and Tuesday.
“Daisy BB guns are often people’s first guns, and their first shooting experience,” said Joe Murfin, Daisy’s vice president for public relations. “We feel a responsibility to teach shooting safety and marksmanship skills.”
He called the 54 seven-man teams just the tip of the iceberg in competitive air-gun shooting in the U.S. He said about a million young people are involved in various competitive programs around the nation.
In the U.S., air-gun manufacturing is dominated by Crosman Corp., which accounts for 82.5 percent of the sector’s revenue, according to a 2013 report by market research group IBIS World. Daisy Outdoor Products and Cybergun are prominent in the industry, according to the report, but were not considered manufacturers by IBIS World because their products were made overseas, or in Daisy’s case, assembled in the U.S.
Murfin said products are assembled at the Daisy plant but the company also imports some finished guns from overseas. He declined to give exact sales figures for competitive reasons but said if only the BB gun and air rifle segments were considered, Daisy would likely be the nation’s largest producer. However, Crosman, when its air-soft and other products are included, is possibly larger overall.
Daisy has stepped away from the air-soft market in recent years, Murfin said, noting that the market is flooded. Where Daisy has seen growth recently is in the higher-end youth and adult air rifle segment.
While sold online, Daisy primarily focuses on selling to retailers like Wal-Mart Stores Inc. and online retailers like Amazon. Price point is key, he said, with Daisy products running from $28 to around $200.
Sales have been good coming out of the recession of2008, Murfin said, noting that in general Daisy hasn’t been hit hard by tight economic times in the past, primarily because of its lower price points.
“Our average gun sells for about $60,” Murfin said. “If we were selling $1,600 air rifles, things might be different.”
The IBIS World report indicated that the cost of raw materials, like steel and plastic, have kept profits low and that imports continue to put pressure on the market. IBIS World predicted revenue of $73.1 million for 2013 for the manufacturing segment on annual growth of 4.4 percent with profits of $7.7 million. It projected growth of 3.3 percent annually over the next five years.
Of the 21 U.S. operations included in the IBIS World report, 52 percent of the industry revenue came from air guns, 35.8 percent from air-soft guns, and 12.2 percent from repairs and service. Market segments included 18.4 percent sold in brick-and-mortar retail stores, 10.2 percent online and 71.4 percent exported.
In Fort Smith, Umarex USA Inc. imports and distributes air guns and air-soft guns around the U.S. and into Central America. The company opened its Chaffee Crossing operation in 2010 and employs about 80. The Fort Smith location includes a warehouse, distribution center, the company’s corporate office and a customer service department. It performs warranty work and air-gun refurbishment at the site.
Walther Arms Inc., the U.S. unit of German gunmaker Carl Walther GmbH, moved its headquarters to the Fort Smith location in November. Walther Arms Inc. and Umarex USA are private companies owned by Arnsberg, Germany-based PW Group.
In 2012, Umarex USA assumed production and began to fully fund American Airgunner, a television program that promotes air guns for recreation, hunting and sport shooting. The show is filmed by 5 Star Production LLC. in Fort Smith and aired on the Pursuit Channel, and is available online at FilmOn.com with new episodes to begin Wednesday. Rossi Morreale, former wide receiver with the University of Arkansas Razorbacks, is the show’s host.
Justin “JB” Biddle, director of marketing for Umarex USA, is the show’s executive producer. He said the company’s hope is to reach a wide audience with the new programming, which is aimed at new shooters and well-established enthusiasts, both young and old. The show has high production values and takes advantage of high-speed photography to highlight the action, much like the History Channel’s popular Top Shot program does.
This year, six competitors from five states, including two Arkansans - Amanda Smith from Fort Smith and Jason Baggett of Mansfield in Sebastian County - will shoot air guns in a series of contests as part of the Airgunner Challenge. The winner will take home $5,000. The show also provides advice from industry experts and includes features on air-gun events and activities.
Biddle said one of the show’s goals is to highlight the diversity in air-gun shooting.
“Our hope is with this format we reach a wide audience,” he said.
Richard Turner, vice president of sales and marketing for Umarex USA, said sales have been strong and continue to grow as the nation’s general interest in shooting rises.
He said the company sells a wide variety of air rifles, from models less than $100 to more than $1,000. They can be used for target practice, pest control, hunting and in shooting competitions. Turner said innovations have made air rifles more powerful and more attractive to consumers.
Umarex USA also sells action pistols designed to look and handle similar to firearms made by companies like Colt and Smith & Wesson.
Turner said the company’s air-soft line continues to expand as it targets paintball enthusiasts as potential customers. Air-soft guns sold by Umarex USA range from as low at $15 to as high as $700.
Business, Pages 63 on 06/30/2013