Suffering from Success – Gun manufacturer Smith & Wesson is not able to keep up with new demand for their products.
The country has seen a massive spike in gun ownership and interest in becoming a gun owner, the summer of rioting America was subjected to, the increase in crime, failing support for law enforcement, and the Covid-19 pandemic are all the elements of this new firestorm. Gun manufacturers are struggling to keep up with this new demand and companies like Smith & Wesson are looking for solutions.
Smith & Wesson CFO Deana McPherson told investors that the company is “well below our target” in reference to inventory while on the company’s earnings call. While the company and its shareholders must be delighted that their guns are selling fast, others are not so happy.
Many long-time gun owners and collectors are struggling to find once common firearms in their local stores. Smith & Wesson is not alone in its lack of inventory, many companies are struggling to keep up with consumer demands. The issue of inventory has also been affected by the pandemic, some companies had to take a break from manufacturing as a result of the pandemic so inventory was already going to be short.