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Why Do Gunmakers Love AR-15s More Than Handguns?

Why Do Gunmakers Love AR-15s More Than Handguns?
(Dreamstime)

By    |   Monday, 25 June 2018 10:31 AM

Gunmakers love AR-15s more than handguns because of the wide profit made possible by the rifle's high demand and its manufacturing advantages, plus the ability to accessorize and customize them.

Bloomberg reported that many “modern sporting rifles,” as AR-15s are called, now are made of a polymer plastic costing much less than the steel needed for handguns, and while prices for other guns have tapered off, AR-15s still fetch premium prices.

The double-barreled AR-15 made by Silver Shadow Advanced Security Systems Ltd., an Israeli company, brings in $2,299, Bloomberg said, and the Daniel Defense DDM4V11 has a retail price of $1,519.

Manufacturers and retailers can profit from the weapons because of the seemingly endless customizable accessories made for them, which also yield wide profit margins.

"One of the key reasons why the AR-15 platform is so popular now is that there have been decades of former ex-military and law enforcement personnel who knew how to use it," Rommel T. Dionisio, a firearms analyst and the managing director of equity research at Aegis Capital Corp., told Bloomberg.

He said a 10-year ban on such weapons signed by President Bill Clinton did little to dampen the public's enthusiasm for them.

"Once the expiration lapsed, the market absolutely exploded," Dionisio told Bloomberg. "It went from virtually zero to 70 percent (of the market for modern sporting rifles)."

Today's AR-15s are "generic" versions of the Colt Manufacturing model which lost its patent protection in 1977. ArmaLite started making the air-cooled, gas-powered automatic assault rife in 1956, then sold the design and trademark to Colt three years later.

Many see the AR-15 as a status symbol, even though it has been used in mass shootings in Aurora, Colorado; Newton, Connecticut; San Bernardino, California; Sutherland Springs, Texas; Las Vegas; and Parkland, Florida, NBC News reported.

"It's kind of the standard, de-facto rifle now," said Evan Daire, 23, a gun-range worker in New Jersey who aspires to become a professional target shooter. "No matter what role you're looking at, it pretty much fills that role."

Dave Kopel, a guns-rights advocate in Denver, said the ability to accessorize and customize AR-15 makes the weapons loved among its users as well as gunmakers, NBC News said.

"It was destined to be a best-seller because of these qualities," said Kopel, who is also the research director at the Independence Institute, a libertarian think tank.

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Gunmakers love AR-15s more than handguns because of the wide profit made possible by the rifle's high demand and its manufacturing advantages, plus the ability to accessorize and customize them.
gunmakers, ar-15, handguns
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2018-31-25
Monday, 25 June 2018 10:31 AM
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