Air-gun maker at show in Vegas

Fort Smith firm, industry mingle

A limited edition, BB-firing, Colt Single Action Army Revolver produced by Umarex of Fort Smith sold out the first day of the Shooting, Hunting and Outdoor Trade Show in Las Vegas.
A limited edition, BB-firing, Colt Single Action Army Revolver produced by Umarex of Fort Smith sold out the first day of the Shooting, Hunting and Outdoor Trade Show in Las Vegas.

When it came time to decide when and where air-gun maker Umarex USA would release a collector's edition of one of its pistols, the choice was clear -- it had to happen during the Shooting, Hunting and Outdoor Trade Show in Las Vegas.

Commonly called the SHOT Show, the industry-only event is a must for those in the business. It began Tuesday and runs through Friday with attendance numbers expected to be around 70,000.

In 2013, gun sales from the nation's largest firearms manufacturers surged after calls for more regulations after several mass shootings resulted in panic buying and nationwide shortages of some firearms and ammunition. Since then, demand has cooled and the market has leveled out, with some retailers sitting on excess inventory.

The SHOT Show is annual event sponsored by the National Shooting Sports Foundation, a trade association for the firearms, ammunition, shooting and hunting industry. This is the 37th year for the show, and it's expected to have 1,600 exhibitors.

Fort Smith-based Umarex is one of those exhibitors, offering 15 new air guns at its booth, including a limited edition, BB-firing, Colt Single Action Army Revolver. The pistol will display the U.S. Marshals Service emblem in the grip and will be numbered from one to 500.

In less than four hours, all the limited pistols were spoken for, said Richard Turner, vice president of sales and marketing for Umarex. "It was phenomenal," he said.

Umarex took pre-orders for the guns, limiting orders from a minimum of three to a maximum of 30. The pistols are expected to retail for $179 to $199. A percentage of the proceeds will go to the U.S. Marshals Museum in Fort Smith that's expected to open in 2017.

Last year Umarex offered a similar collector's version of the Colt 1911 pistol, and it also sold out on the first day, Tuner said, but not nearly as quickly as the Colt Army.

The SHOT Show also is a place to recruit firearms companies to begin operations in or move them to Arkansas. Major firearms-makers have been relocating as some states expand regulations. Last year, Remington Arms said it was opening a plant in Alabama, and Beretta USA said it intended to move its entire Maryland operation to Tennessee.

According to the "Firearms and Ammunition Industry Economic Impact Report 2013" by the National Shooting Sports Foundation -- the trade association for the firearms industry -- there were 2,398 jobs directly attributed to all firearm-related industries in Arkansas. Those jobs had total wages of $150.8 million. Nationally, the firearms industry directly accounted for 111,900 jobs in 2013, up from 75,600 in 2008, with total wages of $4.5 billion for 2013, up from $2.4 billion in 2008.

According to the Arkansas Economic Development Commission, Arkansas has the fourth-highest employment in guns and ammunition manufacturing in the nation. Forbes ranks Arkansas as America's third most gun-friendly state, with 42 registered firearms for every 1,000 residents.

Arkansas Economic Development Commission spokesman Scott Hardin said three commission representatives attended the SHOT Show this year and heard from attendees that Arkansas was one of a handful of states that seem to be committed to recruiting those in the firearms sector. He said there was a favorable response to the state's new governor, Asa Hutchinson, due to his reputation for supporting the firearms industry.

Hardin said the Arkansas team met with several U.S. companies considering moving headquarters or expanding into new states but most of the prospects were European companies considering either moving into the U.S. or building on an existing presence here.

The commission's list of targeted industries changed in 2014 to include firearms. The agency placed a full-page ad in the June issue of Guns & Ammo highlighting Arkansas' support of its firearms industry and its pro-Second Amendment environment. Also last summer, the commission sent a delegation to the Czech Republic on a recruiting mission

Madison, N.C.-based Remington Arms operates an ammunition plant in Lonoke that recently completed a $32 million expansion. Remington Arms began production in Lonoke in 1969 and employs about 1,300.

Umarex USA moved to Fort Smith in 2010, and in 2012, Walther Arms, the U.S. unit of German gun-maker Carl Walther GmbH, moved its headquarters there. Both Umarex and Walther are owned by Arnsberg, Germany-based PW Group and share space in the Chaffee Crossing development.

In late 2013, Thermold Magazines moved its headquarters to Fort Smith from North Carolina.

Todd Michael, chief operating officer for Thermold, said the company is showing off a prototype pistol magazine for the Beretta Model 92 at the show.

Michael said retailers seem to have worked through some of their excess inventory and are buying once again. The company sold 10,000 30-round magazines used in AR-style rifles in the past 60 days after months of little interest in the product.

"The market was saturated," Michael said.

Berryville is home to two makers of custom guns. Wilson Combat is expanding its facility and employs about 125 people. Nighthawk Custom employs more than 50.

Jay Smith, Wilson Combat's director of business development, said he was at the show to look for innovative developments that the company can use in its products or product lines.

"This is the place to go," he said. "You can only research online so much."

Business on 01/22/2015

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