Ruger

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Ruger Comes To North Carolina And Does Good

March 18, 2014 by

Ruger comes to North Carolina, builds rifles, and then does good for the community. Is this the picture of an evil company that builds “instruments of war” so that kids can kill one another on our city streets? Of course, it isn’t and Ruger doesn’t build instruments of war either. Instead it is the picture of a company that opens a new plant in a semi-rural location and then seeks to help out the community.

Though production wasn’t originally expected to begin at Ruger’s new Mayodan, North Carolina plant until the first quarter of 2014, it actually began ahead of schedule in 2013. Ruger is taking five of the Ruger American Rimfire Rifles that were produced in the first production run and auctioning them off for five local charities in the Rockingham County – northern Guilford County area. Ruger will also be making the rest of that first run of 1,000 rifles available for sale only in the Carolinas.

Ruger’s announcement regarding the charities and the link to the auction is below:

Ruger To Auction First Production Run Ruger American Rimfire™ Rifles From Mayodan, NC


March 14, 2014

In September 2013, Ruger finalized the purchase of a 220,000 square foot facility in Mayodan, NC. This was the Company’s first major expansion in over 25 years, and production was expected to begin during the first quarter of 2014. Production actually began late Fall of 2013! The boxes of the first 1,000 rifles were affixed with a special “First Production Run” sticker. Rifles with serial numbers 832-01001 through 832-02000 were the only ones to leave the factory with this special sticker. We are auctioning five of those rifles. The other 995 rifles were circulated through distribution in the Carolinas only.

The serial numbers of these auction rifles are: 832-01920; 832-01931; 832-01940; 832-01958 and 832-01960. The testfire date for all five is December 3, 2013. 100% of the proceeds from each of these auctions will be donated to the following five local organizations: Camp Carefree, Stokesdale, NC; the Salvation Army, Mayodan, NC; Reformers Unanimous, Stoneville, NC; the American Cancer Society, Rockingham Co., NC; and the Western Rockingham Firefighters Association, Mayodan, NC.

The Ruger American Rimfire™ rifle is made of alloy steel with a satin blued finish and features a 22-inch barrel, fiber optic front sight and adjustable rear sight. The stock is black composite and includes two interchangeable stock modules that provide comb height options for scope or sight use. It also features the detachable, flush-mounted 10/22® BX-1 10-round rotary magazine. Included in the auction is an original instruction manual, marketing materials and an extra “First Production Run” sticker. To learn more about this auction, visit www.ruger.com/auction.

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Stepping Up To The Plate In California

January 31, 2014 by 12 Comments

As I reported earlier this month, both Ruger and Smith & Wesson have taken a stand against the California Department of Justice Handgun Roster by letting numerous popular models of their handguns drop off the list. In other words, they refuse to make a California-only model that includes a microstamped firing pin.

Now Mike Fifer and James Debney, the CEOs of Ruger and Smith & Wesson respectively, have filed Declarations in support of the plaintiffs challenging the Handgun Roster in the long-running case of Pena v. Lindley. This is a case being brought by the CalGuns Foundation and the Second Amendment Foundation in US District Court for the Eastern District of California.

The Declaration of Ruger CEO Mike Fifer can be found here. In it he says that the microstamping requirement is unworkable and that no firearms manufacturer has been able to implement it.

The Declaration of S&W CEO James Debney says that the technology is unworkable and that “the state law requires the technology to perform at a level it cannot.” Debney goes on to point out that many of their handguns also do not have mag disconnects and loaded chamber indicators.

These Declarations join the amicus curie brief of Glock, Inc. in arguing against the Handgun Roster and in favor of the plaintiffs’ position.

The Second Amendment Foundation welcomed the support from all three firearms manufacturers in a release put out yesterday shown below.

SAF THANKS GUN COMPANIES FOR
SUPPORT IN CA MICROSTAMPING CASE

BELLEVUE, WA – The Second Amendment Foundation is expressing heartfelt gratitude today to three major firearms companies – Ruger, Smith & Wesson and Glock – for their supporting documents in the on-going case of Pena v. Lindley, a lawsuit challenging the California handgun roster requirements that include microstamping and magazine disconnects.

Earlier this week, Ruger CEO Michael O. Fifer and Smith & Wesson President and CEO James Debney submitted declarations to the court, explaining their respective companies’ positions on the California microstamping requirement. Late last year, attorneys representing Glock, Inc. filed an amicus curiae brief supporting the SAF case.

“SAF will be eternally grateful for the timely support from all three companies, which we believe strongly reinforces our case,” said SAF founder and Executive Vice President Alan M. Gottlieb. “The statements from Messrs. Debney and Fifer confirm what we have argued all along, that California’s requirements place an undue burden on both consumers and manufacturers.”

In his statement, Fifer bluntly observed, “There is no workable microstamping technology today, and Ruger believes that California’s microstamping regulations make compliance impossible.”

Debney concurs in his statement, noting, “Smith & Wesson does not believe it is possible currently to comply with California’s microstamping regulations. Quite simply, the state law requires the technology to perform at a level that it cannot.”

In its earlier brief, submitted by attorneys Erik S. Jaffe of Washington, D.C. and John C. Eastman of Orange, Calif., Glock maintained that neither its pistols nor any other handgun in common use can comply with California’s microstamping mandate.

“You cannot regulate handguns out of existence or out of the marketplace by mandating technology that doesn’t work,” Gottlieb observed. “Now three major gun companies have weighed in and we’re confident their opinions will carry a lot of weight.”

The impact of the microstamping requirement on handguns available for sale in California can be seen in this infographic from the CalGuns Foundation.  It is not a pretty picture and not a Constitutional one in my opinion.

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Ruger CEO Mike Fifer Clarifies Why They Are Leaving California Market

January 17, 2014 by 7 Comments

As I reported yesterday in the infographic on the California Handgun Roster, Ruger is reportedly going to let all their semi-automatic pistols drop off the approved Handgun Roster. Today, Ruger CEO Mike Fifer clarified this in an interview with Guns.com.

“We’re being forced out of the state by the California Department of Justice,” explained Fifer. “This insistence on microstamping, which doesn’t work, is denying you your rights to have access to these guns.”


“We’re not abandoning the [California] market at all, we are trying our hardest to stay in the market,” he continued. “We’re committed to California and we’re fighting this every inch of the way.”


In other words, they’re not abandoning their fans, enthusiasts and customers in California. They’re going to do whatever they can to see that this inane law gets struck down.

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2014 SHOT Show – Ed Head On Ruger 10/22 50th Anniversary Edition

January 16, 2014 by 3 Comments

As part of their Day Two roundup, Ed Head and Tommy Sanders of the Outdoor Channel examined the 50th Anniversary Edition of the Ruger 10/22 that was designed by customers. Instead of calling it the 50th Anniversary Edition, they could just as well name it the Appleseed Edition because it seems like a stainless and polymer-stocked version of the RWVA’s Liberty Training Rifle.

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Ruger Finalizes Purchase Of NC Plant

September 4, 2013 by 2 Comments

Ruger announced yesterday that they had completed the purchase of the former Unifi plant in Mayodan, North Carolina.

September 03, 2013

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that it has finalized the purchase of a 220,000 square foot facility in Mayodan, North Carolina. This is the Company’s first major expansion in over 25 years, and production at the new facility is expected to begin during the first quarter of 2014.

In conjunction with Ruger’s announcement, the Rockingham County Board of Commissioners approved their package of incentives for Ruger and the Mayodan Town Council is expected to do the same next Monday.

As part of their deal, the town of Mayodan and Rockingham County officials had to offer incentives to the company.

Rockingham County Commissioners approved incentives in the amount of $942,000, Tuesday night.

Mayodan has scheduled a public meeting for September 9 on their incentives offer to Ruger. Town officials are offering $823,000.

The company won’t receive any incentives until 2015 and it will be over a 14 year period.

The manager of the new Ruger plant, Mickey Wilson, said at the commissioners’ meeting that Ruger wanted to be in Rockingham County.

“We sought Rockingham County,” Wilson said. “It was all based on available real estate at the beginning and through our diligence process we found that the workforce was equally as good as the available real estate.”

“Plus we’re big on Second-Amendment rights,” said Vice Chariman Craig Travis.

 There is no word yet on exactly what firearms will be made at the Mayodan plant. However, some production will be shifted from the Newport, NH plant to Mayodan according to the plant manager.

Mickey Wilson, the plant manager, said the company will shift two production lines from Ruger’s New Hampshire plant, with the other lines being dedicated to new products and designs. The initial hiring will include production workers, tool makers and engineers for manufacturing and product design.

“We are planning for a soft opening in the first quarter, but we would like to go full force as quickly after that as we can,” Wilson said.

Just last week, Ruger announced their new Ruger American Rimfire rifle. This was the first new firearm introduced by Ruger since January at the SHOT Show. I’m sure they have more designs ready to go and are only waiting for the production lines to be set up in Mayodan.

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It’s More Than Official Now

August 14, 2013 by

While Ruger made their official announcement that they intended to open their third plant in Mayodan, North Carolina back in early July, it became really official yesterday with an announcement ceremony involving Gov. Pat McCrory (R-NC), numerous state and local officials, and Ruger CEO Mike Fifer.

From the Rockingham County’s local paper, the News-Advance:

The busy atmosphere outside Unifi’s former dye plant on Cardwell Road in Mayodan on Tuesday morning was only a small indication of things to come. More than 150 people gathered under a tent beside the 221,000-square-foot building to hear Gov. Pat McCrory make the official announcement that Sturm, Ruger & Co. would locate the company’s newest manufacturing facility in Rockingham County.

McCrory said the new plant would create more than 450 new jobs and invest more than $26 million in the Mayodan location by the end of 2017.

Video of the event from the Winston-Salem Journal can be seen here.

Included in the incentives to Ruger from the State of North Carolina is a Job Development Investment Grant that could be worth as much as $9.6 million according to the press release from the Governor’s Office.

The project was made possible in part by an award to Ruger from the state Job Development Investment Grant (JDIG) program, as voted by the state Economic Investment Committee. Receipt of the award is based on proof of job creation and other performance requirements. JDIGs are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state, and which would not be undertaken in North Carolina without the grant.

Under the terms of the company’s JDIG award, Ruger is eligible to receive up to twelve annual grants equal to 75 percent of the state personal income tax withholdings from the eligible new jobs created since the date of the initial award. Receipt of each annual grant is based on state-certified proof that the company has fulfilled incremental job creation requirements. Over twelve years, the JDIG award could yield aggregate benefits to Ruger of up to $9.46 million upon creation of 473 new jobs.

This report from WFMY-TV2 in Greensboro discusses more about the grants. Rockingham Community College will receive $700,000 for workforce training with another $372,000 going to Ruger for employee training. In addition, people and businesses in the Town of Mayodan are quite excited about the possibilities that the new Ruger plant will bring to that town.

Other anecdotal evidence that the people of Mayodan and Rockingham County are on board with the Ruger expansion comes from Perry Hughes who is the chairman of the career and technology education department at Rockingham Community College. Registration for fall classes began yesterday at 10am. He had a student who arrived before 7:30am to be first in line for a slot in their machining program.

“We’re starting to look at ways to expand our machining program capacity and Ruger hasn’t even arrived yet,” Hughes said.

The final day registration for courses at RCC opened, Hughes said he arrived at his office at 7:30 a.m. to prepare for the 10 a.m. registration. One young man was already sitting outside the door when Hughes arrived.

“He said he had already been there for a while, but wanted to make sure he was first in line,” Hughes said.

It was fortunate the young man made that decision. Hughes said he only had two slots left in the machining program.

“Education is a supply and demand industry and right now our demand is much greater than the supply,” Hughes said. “With industries like Ruger coming to the area, we’re going to have to find ways to work with these companies and expand our programs to meet the demand. We’ve even considered the possibility of having day and night classes to allow for more students.”

RCC has an associate’s degree program in computer-integrated machining which I’m sure will be sending a number of graduates to Ruger over the coming years.

UPDATE: More on the official announcement as well on how the RCC computer-integrated machining program will tie into Ruger’s plans from WGHP-Fox8 in High Point.

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News On The Business Of Guns

August 2, 2013 by

There are a number of news items from the last few days regarding the firearms industry that are worthy of attention.

First, ArmaLite of Geneseo, Illinois was bought out by Strategic Armory Corps (SAC) of Phoenix, Arizona. SAC was formed in 2011 as an acquisition vehicle with which to buy out firearms and firearms related companies. In addition to ArmaLite, SAC owns high-end tactical bolt-rifle maker Surgeon Rifles, suppressor maker AWC Systems Technology, and AWC Ammo. The head of SAC had this to say on the acquisition.

“ArmaLite is a tremendous addition to our group of outstanding companies and broadens our product line so we can better meet the needs of our customers”, said Mark Johnson, SAC President and CEO. “The history of Mark Westrom over his 19 years of leading ArmaLite will provide a wealth of industry knowledge to our leadership team and allow us to further expand our ability to meet the ever increasing demands for the highest quality products by our customers and the marketplace.”

News comes that longtime tactical and military equipment retailer US Cavalry which declared bankruptcy in March has been purchased by ERMC Corporation of Chattanooga, TN.

US Cavalry Retail Ownership Announcement

Chattanooga based ERMC Corporation, the parent company of Modern Firearms and ASR Uniforms announced today the acquisition of U. S. Cavalry Stores. ERMC purchased all U. S. Cavalry assets to include personnel, inventory and retail stores. I will be working with others in the company to integrate Modern Firearms, ASR Uniforms and U.S. Cavalry into a top notch provider of Military, Police, Fire and EMS uniforms, equipment and firearms.

Public companies are starting to report their sales and profits for the second quarter. Both ATK and Ruger reported their sales and earnings in the last couple of days.

ATK’s business is composed of three segments: aerospace group, defense group, and the sporting group. For me, it is the sporting group of companies that is of the most interest. While the overall sales for ATK were flat for the second quarter of 2013, the sporting group saw a 28.4% increase or $79,346,000. In terms of profit, the sporting group led ATK with a 112.2% increase compared to a single digit increase for the aerospace group and a loss for their defense group. This increase from the sporting group allowed them to beat stock analysts’ expectations of profits.

With the purchase of Savage Arms, the sporting group is now more than just ammo, reloading components and equipment, and other firearms related accessories. It appears that the company leadership also recognizes the importance of Savage to their bottom line. ATK’s President and CEO Mark DeYoung had this to say about Savage.

“The Company’s completion of the Savage acquisition builds upon strong Sporting Group performance and market leadership with a well-respected and recognized brand in the long guns market. We are well underway with the integration of Savage and I am confident our wholesalers, retailers, distributors and consumers will find value in our robust portfolio of product offerings.”

 Ruger had another stellar quarter. Their earnings increased 79% for the second quarter when compared to the same quarter a year earlier. The earnings increase was driven by a 50% increase in sales for the quarter compared to a year earlier. Sales for the quarter were $179.5 million and the earnings per share were $1.63 per share. Both of these numbers blew away analysts’ expectations. Ruger was forecast to have earned $1.18 per share in profits on sales of $154.7 million.

New product sales accounted for 31% of sales in the quarter. New introductions include both the LC380 and SR45 pistols.

Ruger expects to spend upwards of $35 million on capital expenditures during 2013. Much of that will be related to new products and production capacity expansion. I’m sure part of that money will go to getting the Mayodan plant up and running after the expansion plans are finalized. The company is waiting on the tax incentives and grants package from North Carolina to be completed.

CEO Mike Fifer held a conference call today to discuss the company’s second quarter results. Fifer said he expected the third quarter to slow down as things start to return to more normal growth. As reported by CNN Money:

While the trend continued in the second quarter, Ruger CEO Mike Fifer said gun demand appears to be returning to “more normalized growth rates.”

“We haven’t seen any slowing in demand for Ruger products,” Fifer told analysts during a conference call. “But we have heard anecdotally that the normal seasonal slowdown is starting.”

He said sales in the current quarter could represent a “reset from the huge surge” that began late last year.

He was also asked about the damage to the Prescott plant. He said he thinks the total cost to Ruger will be less than $5 million in terms of damage to the roof, equipment, and lost production. They resumed production on Monday. The machinery that got soaked was not being used in current production and was intended for future projects.

Fifer was asked about the new Mayodan plant and what was needed to get it ready. He said that with the exception of adding a section for bluing and for heat treating they only needed to move in the new machinery. He was very complimentary towards the workforce in the Rockingham County area. He said the caliber of the potential employees was “really impressive.” He said the firearms to be produced in Mayodan would be new introductions so he couldn’t discuss what they were yet.

If the overall market demand is starting to slow, I’m going to go out on a limb and say we should expect to see a number of new product introductions from not only Ruger but the rest of the industry. SHOT 2014 should be interesting in that regard.

UPDATE: Steve at The Firearm Blog listened in on the ATK conference call for analysts. He has a review of it here. A couple of points from his review. First, Savage Arms is expected to make ATK around $25-28 million in profits. Second, Steve believes that ATK is in the market to pick up other firearms companies.

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Ruger Plant Damaged By The Rain

July 28, 2013 by 1 Comment

It isn’t only the East getting torrential rains. Prescott, Arizona received about 1.5 inches of rain from late Thursday afternoon through Friday morning of this past week. For an area that averages less than 18 inches in a year, that’s a heck of a lot of rain. So much rain in fact that it caused part of the roof of the Ruger factory to collapse.

Sturm Ruger issued a news release via Business Wire Friday stating heavy rainfall caused a portion of the roof to collapse Thursday at its plant near the Prescott Airport. No one was injured.

“The company is in the process of undertaking repairs and expects to be back in production soon,” the news release stated.

Mark Lang, group vice president for Sturm Ruger, was unavailable for comment. However, a person at the scene who wished to remain anonymous left a voicemail message: “It was terrifying. They evacuated the whole building. The ceiling opened up. A flood of water came in. … It went everywhere, all over the machine, all over everybody. The roof caved in.”

 The collapse of the roof was significant enough that they had to make an 8-K filing with the Securities and Exchange Commission as it was “material” which included their press release. The release said:

SOUTHPORT, CONNECTICUT, July 26, 2013 – Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that during a severe thunderstorm on July 25, 2013, heavy precipitation caused a portion of the roof to collapse at our Prescott, Arizona manufacturing facility. No one was injured. The Company is in the process of undertaking repairs and expects to be back in production soon.

This temporary disruption may have a material impact on the Company’s results of operations for the third quarter of 2013, but is not expected to have a material impact on the financial position of the Company.

I guess the new manufacturing plant in Mayodan, North Carolina can’t come soon enough.

H/T Defensive Use of Firearms list

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Comparing Apples And Oranges

July 15, 2013 by



The Winston-Salem (NC) Journal had an interesting article today questioning whether the new Ruger plant would turn out to be a bust for Mayodan like the Dell Computer plant was for Winston-Salem.

Dell Computer brought a $110 million plant to Winston-Salem in 2004 in order to keep up with demand for their personal computers. At its peak, the plant employed over 1,100 workers. Dell is now in the process of shutting that plant down.

At the time that the Dell plant was announced in 2004, the article states that stock analysts were questioning the need for a new plant when the market for PCs was becoming saturated and Dell faced strong competition. The Journal sees similar parallels with the Ruger expansion to Mayodan.

Still, there are analysts who question whether opening a third Ruger plant is prudent. They wonder how many firearms gun buyers want or need before feeling fully stocked.

“While most industry executives believe this surge in demand should still have some steam left in the tank, it’s safe to say it certainly won’t last forever,” said Steve Symington, an analyst with The Motley Fool.

“From an investor’s standpoint, we can’t forget there’s risk involved” with Ruger’s expansion plans,” Symington said.” Ruger could be overbuilding its manufacturing facilities only to watch demand for its products taper off.”

There are a few problems with the Journal’s attempt to make the comparison between the Dell plant and the new Ruger expansion in North Carolina.

First, the stock analysts who criticized the Dell expansion in 2004 were Wall Street professionals with an intimate knowledge of both the market and Dell’s finances. By contrast, Steve Symington who writes for The Motley Fool is an amateur writing on an investment website. There is a qualitative difference between the two.

Second, the firearms industry is much more regulated than the computer industry as well as more mature. There is no Bureau of Alcohol, Tobacco, and Computers, no special licenses are needed to make a computer, and you don’t see the United Nations passing a CTT – Computer Trade Treaty. A computer company can move production of personal computers offshore to a China or a Taiwan quite quickly and quite easily. While there are a number of overseas firearms manufacturers, due to both regulation and the nature of the product you just can’t move production offshore at the drop of a hat.

Third, there is a whole new cohort of firearms owners coming into the market which is driving its expansion. What Michael Bane calls Gun Culture v.2.0 is concerned with personal protection. A recent study of new gun owners by the National Shooting Sports Foundation confirms this interest in personal protection. These new gun owners also tend to be more active and shoot at least once a month.

Fourth, gun owners who are active in shooting and personal protection tend to own more than one firearm. What you can do with a laptop PC is virtually the same as what you can do with a desktop PC. It is not the same with firearms. Firearms are much more specialized as to task than are computers. While your Ruger 10-22 could be used for personal protection, you can’t use it for carrying concealed.

Fifth, Ruger is at capacity. Both the Prescott and Newport plants are at full production and have no more room for expansion. New product introductions currently account for 35% of the company’s sales growth. If Ruger is to continue to grow, they must expand. Even if overall market demand for firearms does begin to slow which it will sometime, the stronger companies such as Ruger should continue to grow their market share.

Finally, building a plant in North Carolina is a hedge against the political risk that is growing in New England. While it hasn’t spread to New Hampshire yet, the political culture of that state is rapidly changing due to in-migration from Massachusetts. If things get bad enough in New Hampshire, Ruger could move that production to North Carolina.

Thus, for the reasons I’ve outlined, I don’t see a Ruger plant in Mayodan going the way of a Dell plant in Winston-Salem. I’m sure the author thought it made for an interesting comparison but his premises were all wrong.

UPDATE: The Captain at Captain’s Journal has his take on this article here. He concludes:

 If firearms manufacturers stay in the North, they will become obsolete
and eventually go out of business.  If they relocate to the South, a welcome party awaits.  So much for the “experts.”  Ruger knows what they’re doing.

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Mayodan Updates Ordinances For Ruger

July 10, 2013 by 1 Comment

The Town of Mayodan recognizes the importance of getting the new Ruger plant in their community. In addition to the expected economic incentives from the town, county, and state, Mayodan approved a change in their ordinances concerning the discharge of firearms within city limits.

According to the local paper, The News and Advance, Mayodan’s Town Council changed the ordinance Monday to allow firearms manufacturers to test firearms in their plant within city limits.

On Monday, Mayodan Town Council approved a set of amendments to a town ordinance prohibiting the discharge of firearms within the corporate limits.

One change allows industrial facilities to manufacture and test firearms “within an enclosed facility controlled by the manufacturer and not open to the general public as a shooting range.”

Town manager Michael Brandt told council members the exception allowed a firearms manufacturer to test their product at their own facility.

“To eliminate any gray area, we felt that exception should be included here also,” Brandt said. “So, this would make it clear that a manufacturer of firearms, when testing their materials, would be just like any other business testing their product before sales.”

It’s good to see a town treat a firearms compnay just like any other business.