Meeker | Industry Cluster Study - Photo Credit: Town of Meeker, CO - Rio Blanco County
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Meeker | Industry Cluster Study
Photo Credit: Town of Meeker, CO
TABLE OF CONTENTS Current and Future Demand for Small Arms ...........................14
Major Markets in the Industry .................................................15
Executive Summary .............................................................. 4 Major Players in the Industry ..................................................16
Targeted Industries for Relocation or Expansion........................4 Industry Life Cycle & Consolidation .........................................17
Approach for Contacting Potential Recruits ...............................4 Technological Innovation.........................................................17
Guns & Ammunition Manufacturing Industry ............................5 Barriers to Entry.......................................................................17
Archery Equipment & Accessories Manufacturing Industry .......5 Manufacturing Locations in the Industry ................................18
U.S. Fly Fishing Equipment & Accessories ..................................5 Colorado Firearms legislation ..................................................19
Other ........................................................................................6 Business Contact History .........................................................19
Summary of Previous Reports .............................................. 8 Conclusion – Guns & Ammunition Industry.............................20
Economic Assessment ...............................................................8 2 | ARCHERY EQUIPMENT & ACCESSORIES MANUFACTURING IN
Workforce Assessment ..............................................................8 THE U.S. .................................................................................. 21
Wages and Earnings...................................................................8 Industry Summary ...................................................................21
Industry Expansion Opportunities .............................................9 Demographic Characteristics of the Industry’s Consumers .....23
Market Study Analysis ...............................................................9 Archery Market Segmentation ................................................24
Future Oil and Gas Industry .......................................................9 Conversations with Businesses in the Industry .......................24
Market Strengths and Weaknesses ...........................................9 Maven Optics ...........................................................................25
Proposed Areas for Economic Development ...........................10 Total Archery Challenge...........................................................25
Recommendations .................................................................. 10 Conclusion – Archery Industry .................................................26
The Center for Outdoor Adventure .......................................... 10 4 | FLY FISHING EQUIPMENT AND ACCESSORIES
MANUFACTURERS IN THE U.S. ................................................. 27
Next Steps: Industry Recruitment & Expansion .................. 12 Industry Summary ...................................................................27
Target Industries for Meeker ................................................... 12 Conversations with Businesses in the Industry .......................28
The Decision to Relocate or Expand to Meeker ........................ 12 Conclusion – Fly Fishing Industry .............................................29
Industry Analyses ............................................................... 14 Conclusion.......................................................................... 29
1 | GUNS & AMMUNITION MANUFACTURING IN THE U.S. ...... 14
Industry Summary ...................................................................14
Executive Summary important characteristics. These characteristics indicate where
each industry is headed and how firms within each industry are
The Town of Meeker and Rio Blanco County, Colorado are achieving success amidst their competitors. These three
engaged in an effort to diversify their economy and create industries include: guns and ammunition manufacturing,
employment opportunities. The Town and County have archery equipment and accessories manufacturing, and fly
identified a strategic opportunity to build on their successful fishing equipment and accessories manufacturing. The analysis
reputation within the outdoor adventure industry by creating a of each of these industries led to the selection of certain
regional attraction, also known as the Center for Outdoor businesses that may have an interest in the current and future
Adventure (the “Center”). development of Meeker, along with the opportunity to relocate
or expand their manufacturing or other business operations to
Summaries of the previous economic development strategy the Town.
reports completed are provided herein to summarize the
research, findings and recommendations that have already been Approach for Contacting Potential Recruits
given in regards to the Center and the viability of the industry
generally. These summaries help provide insight as to the future Businesses in all three industries were contacted and informed
direction of the local economy, its current strengths, about the vision of Meeker and the Center. Secondly,
weaknesses, opportunities and threats. Understanding these opportunities for relocation or expansion were presented and
characteristics associated with the local economy aid in discussed if applicable to the current operations of the business.
identifying potential recruits, and in determining additional It is important to note that while few responses have been
incentives that may be required in order to successfully recruit received, the decision to relocate a business takes time and a
new businesses to the Town. The purpose of this report is to sufficient understanding of all costs and opportunities
identify the types and sizes of businesses that, if recruited to the associated with the decision. The initial process of contacting
Town of Meeker, would be successful and profitable within the these businesses has begun and a summary of future responses
local economy. will be provided in a later version of this report.
Targeted Industries for Relocation or Expansion Businesses contacted in regards to the opportunity to relocate
or expand to Meeker were provided with “the whole picture” to
Three major industries that are directly related to the nature of help recruitment targets understand all aspects that can make
the Town and the proposed Center were analyzed in order to doing business in Meeker affordable and attractive. These
best understand the current phase of growth: locations of aspects include the proposed future development of the Center,
existing manufacturers, market demographics and other the existing industrious workforce in Meeker, the quality of life
4
associated with the Town, the proximity to the Flat Tops It is possible that new entrants and small to mid-sized firms in
Wilderness, the White River, the Town’s reputation for hunting the industry may be more eager to relocate to Meeker to benefit
and fishing and the supportive local government. Casting the from the town’s reputation and the future development for the
vision of the Town and its future development is essential to purpose of increasing their brand awareness. Thus, the
successfully recruiting new businesses. businesses that were contacted for recruiting purposes were in
this size category.
Guns & Ammunition Manufacturing Industry
Archery Equipment & Accessories Manufacturing Industry
The analysis of the guns and ammunition industry revealed that
this industry is currently in a mature stage of growth, which Research performed on the archery industry revealed that this
means that while the production and sales of guns and industry is in a rapid growth stage. The popularity of, and
ammunition were growing rapidly during the past five years, this participation in both bow hunting and target archery is
growth has slowed and major players in the industry are increasing worldwide. The annualized growth rate of revenue
consolidating. The existing manufacturing locations in this generated from archery sales in the U.S. between 2008 and
industry tend to be located in densely populated areas and in 2014 was approximately 10 percent. New firms are entering the
close proximity to suppliers or wholesalers to which the firms market and barriers to entry are lower than those of the guns
sell their products. Businesses in this industry compete primarily and ammunition industry.
on price and technological innovation. The barriers to entry in
this industry are high. Conversations with businesses in the archery industry revealed
that they also prefer to be located near existing suppliers and
These findings and others revealed in the analysis suggest that major buyers (wholesalers or retailers). Many of the existing
there is a low likelihood that a major gun or ammunition manufacturers in this industry, however, are located in rural
manufacturer would locate to the Town because the Town isn’t communities where the archery community is strong and
located within close proximity to major suppliers or wholesalers supportive.
associated with these firms. Conversations with businesses in
the industry confirmed these findings. However, as discussed
previously, these aspects may be overcome by offering tax or U.S. Fly Fishing Equipment & Accessories
other incentives to help these businesses decrease their
expenses. The analysis of the fly fishing industry reveals that this industry
is growing at a moderate pace. There are approximately 4.5
million anglers in the U.S. that participate in fly fishing at least
5once per year. Fly fishing retail stores located in the Rocky
Mountain Region have the most success due to the ample
amount and quality of fly fishing rivers. This growth in the
industry, combined with the Town’s proximity to the White
River and the fly fishing tours that will be offered through the
Center make the this an industry that should be targeted for
business recruitment.
A contact list has been created that includes fly fishing
equipment manufacturers located in the U.S. Some of the
businesses on the list were contacted, but no responses have
been received to date. All of the businesses on the list will be
contacted in the near future and a summary of their responses
will also be included in a future version of this report.
Other
Maven Optics, an emerging manufacturer of hunting scopes and
binoculars has expressed an interest in marketing their products
at the Center. The Total Archery Challenge (TAC) has also
expressed an interest in holding an archery challenge in Meeker,
sponsored by TAC, and hosted by a local outfitter or
organization. The TAC is one of the most popular events in the
archery industry.
67 Photo Credit: Hamish Reid
Summary of Previous Reports This report also provided insight on the demographics and
employment in the County, as they relate to statewide and
In order to identify and understand the various industries and national averages. The County experienced steady population
firms that will help diversify the local economy and thrive in the growth between 2006 and 2012 primarily driven by a
Town, it is important to understand the current plan for combination of natural growth and migration. The population
economic development, the County’s economic assets and the has remained relatively flat since then and experienced out
overall history associated with Rio Blanco County (“The migration in 2013 and 2014.
County”). In Q4 of 2015, assessments of the County were
conducted by Better City and presented to the County and the Unemployment declined from a high in 2010 of 8.9 percent to
Town of Meeker. These reports included an initial economic 5.2 percent in July of 2016. The most recent reports (July 2016)
assessment and market analysis of the County. The following show that the County has a labor force of 2,821 with 2,673
report outlined specific recommendations for economic employed and 148 unemployed. The County’s unemployment
development and was provided during Q2 of 2016. A feasibility rate is higher than the statewide average of 4.58 percent and
study was performed regarding the Center for Outdoor the national average of 5.5 percent.
Adventure and was provided to the County and the Town during
Q3 of 2016. A summary of each report is provided below: Wages and Earnings
Economic Assessment The most recent statistics provided by the Colorado Department
of Labor and Employment report data from Q1 of 2016. The
average hourly wage in the County was $22.88, which is lower
Workforce Assessment
than the statewide average of $26.43 per hour. The average
weekly wage in the County is $915 compared to the statewide
In the economic assessment, the County’s workforce, existing
average of $1,057. The average annual wage in the County is
business entities and industries were analyzed for the purpose
$47,580 compared to the Statewide average annual wage of
of identifying the economic strengths, weaknesses,
$54,964. While the County’s wages may seem low compared to
opportunities and threats associated with the County’s
the statewide averages, these wages are similar and in some
economy. This study concluded that during the past year (2014),
cases, higher than those of adjacent counties. The counties
the County had seen a decline in its economy as activity within
offering the highest wages are located in and around the Denver
the oil and gas industry had slowed due to a global supply glut.
MSA.
Oil and gas has historically been the dominating industry within
the County and support industries have been negatively
impacted with the slow-down.
8Of the 64 counties in Colorado, Rio Blanco County had the 8th Market Study Analysis
highest average weekly wage in Q1 of 2016. Those seven
counties featuring wages higher than those of Rio Blanco County The market study report completed during Q4 of 2015 provided
were all located in and around the Denver MSA. This suggests the County and Towns with further insight to guide investment
that of all of Colorado’s rural counties, Rio Blanco County decisions by identifying and prioritizing industries and
currently has the greatest ability to compete with wages offered opportunities that are best positioned to succeed in a
along the front range. While this may be good news for competitive environment.
employees living in Rio Blanco County, it may pose a challenge
for new businesses that cannot afford to pay the higher wage. Future Oil and Gas Industry
Industry Expansion Opportunities The oil and gas industry has not kept pace with State job growth
due to the competitive advantages of other regions in the State
Included in this economic assessment was a section addressing and the Nation. The oil and gas deposits within the County will
possible industry expansion opportunities. Due to the likely remain more sensitive to global market forces due to the
dominating effect that the oil and gas industry has had on the type of product that is available.
workforce, those who were and are currently employed in this
industry are trained in welding, equipment operation, industrial The industry cluster analysis included in this study concluded
safety, and are generally good at fixing mechanical problems. that strengthening the arts, entertainment and recreation
Thus, a manufacturing firm requiring these skillsets would be a industry will create economic activity on its own, but more
good candidate for expanding or relocating to Meeker. importantly will help to recruit and stabilize additional industry
clusters.
There are issues associated with attracting a manufacturing firm
to Meeker. Manufacturing jobs typically don’t pay as much as Market Strengths and Weaknesses
the oil and gas jobs. During the oil and gas boom cycles it may
be hard to retain some of the workforce, particularly those that Multiple strengths and weakness are associated with the
took a pay cut when they came into the manufacturing industry. County’s ability to attract new investment. The rural nature of
Shipping and transportation costs will be higher in Rangely and the County, including the small population and isolation from
Meeker than in other locations near Denver, but the shipping other population centers will limit retail trade and puts some
costs differential can be overcome by focusing on high value businesses, such as those that rely on shipping, at a
products. disadvantage. The County is competitive in terms of general
costs of doing business compared to neighboring communities.
9In particular, the County benefits from low real estate costs, low The concept behind the idea of the training center revolved
electricity rates, and moderate labor costs. around generating new demand drivers for the community. The
new training center will create momentum in the downtown
Proposed Areas for Economic Development region that can be leveraged to attract additional retail and
housing developments. Opportunities within the shooting
The areas for economic development in Meeker, as mentioned sports and outdoor recreation clusters are currently considered
in the market study analysis included the following: location to be the “low hanging fruit” due to the existing natural assets
neutral businesses, niche manufacturing and tourism. Each of found in and around the Town, and the current growth in these
these areas has the potential to provide significant economic industries.
impacts to the economy. Tourism will generate an economic
impact on its own merit, but more importantly it has the The Center for Outdoor Adventure
potential to create the attractive environment that will enable
the other economic development efforts to move forward. New firms looking to relocate or expand to Meeker will be highly
interested in any new development that may help them become
Recommendations more profitable. Therefore, it is imperative to understand the
specific impacts that the Center for Outdoor Adventure will have
The Comprehensive Economic Development Strategy and on the local community and the industries that will be directly
Recommendations were presented to the County and the and indirectly associated with this new development.
Towns during Q4 of 2015. The principal recommendation made
for the Town of Meeker revolved around expanding the Town’s The initial idea of the training center was improved and modified
tourism and outdoor recreation industries. The idea presented during the process of determining the feasibility of the project.
was to create a new state of the art training facility that will The feasibility study for the training center was completed and
establish Meeker as “the place” to come and learn how to hunt presented to the County and the Town of Meeker during Q2 of
and fish. It was proposed that the training center include 2016. The result of this feasibility study was the creation of a
training for multiple disciplines including firearms, archery and concept for the “The Center for Outdoor Adventure” (“The
fly fishing. The training center leverages the community’s Center”).
unique culture and history, and will make the town a sought
after destination for competitions, events and conferences. The Center leverages the Town’s existing natural assets and
Another aspect of this idea was to create a popular destination reputation for premier big game hunting and fishing to create a
for individuals and families that want to recreate together in the new outdoor destination in Northwest Colorado. These natural
outdoors. assets include the following: Flat Tops Wilderness, White River,
10White River National Forest, an extensive OHV trail system (250 hold such competitions depends on the successful construction
miles of trails), diverse wildlife populations, and the overall and execution of the proposed archery lanes and atmosphere.
natural beauty of the area. Meeker is the Gateway to the Flat
Tops Wilderness, which is the Wilderness that inspired the The initial idea of the Center only included these indoor services.
Wilderness Protection Act of 1964. The Flat Tops Wilderness is Conversations with professionals in the associated industries
also home to the largest elk herd in the Country. expressed their concern that the market size for these specific
services would be insufficient to justify the construction of the
The Center will offer both indoor and outdoor services. The Center. It was proposed that additional services be added to the
indoor services will take place within a 68,000 SF facility. This Center in order to reach a larger market and to create a
facility will be located in the downtown area of Meeker along destination not only for competitors in the shooting sports but
Market Street. for families, sportsmen, wildlife watchers and outdoor
enthusiasts in general.
The indoor services/features include:
The outdoor services offered through the Center will include:
• Sixteen live-round shooting lanes at 70m
• Twelve live-round simulation (virtual) shooting lanes at • Guided backpacking tours in the Flat Tops Wilderness
10m that simulate shots up to 1,200 yards • Horseback riding in the Flat Tops Wilderness and near
• Twelve laser simulation lanes the Town
• Twenty archery lanes at 80m • ATV & OHV rentals (originating at the Center)
• Four classrooms (800 SF each) • Snowmobile rentals (originating at the Center)
• Pro Shop (8,000 SF) for selling guns, bows, ammunition • Fly fishing trips (booked through the Center and then
and accessories subcontracted to existing outfitters)
• Wildlife watching tours in the White River National
As stated previously, one of the goals of the Center is to create Forest and around the Flat Tops Wilderness
a regional, statewide and possibly even a national venue for
shooting sports competitions and events. Multiple associations
in the target archery industry such as the National Field Archery
Association (NFAA) and the Colorado State Archery Association
(CSAA) have already expressed an interest in holding regional
and statewide competitions at the Center. The commitment to
11- Gun & ammunition manufacturing
Next Steps: Industry - Archery equipment & accessories manufacturing
Recruitment & Expansion - Fly fishing equipment & accessories manufacturing
The Town is currently in a position to The Decision to Relocate or Expand to Meeker
begin efforts to recruit new
entrepreneurs and existing businesses. There are many aspects to consider when seeking to identify businesses that would be
Due to the Town’s isolated position in interested in relocating or expanding to Meeker. Each location around the Country is
NW Colorado, it is important to target unique, but uniqueness doesn’t necessary always equate to desirability. A business that
industries that best relate to the nature operates well in Meeker, CO may not operate well in Denver. Figure 1 represents many
of the Town’s atmosphere, existing of the aspects that businesses consider when considering relocation or expansion. The
workforce and future development. size of the word generally relates to its impact on the final decision to relocate or
expand.
Target Industries for Meeker
The purpose of this report is to identify
industries and specific firms that will
thrive in Meeker. The reports
performed previously have provided the
basis for these assumptions. Target
industries are identified as those that
are most applicable to the nature of the
Center, the natural assets associated
with the Town and its reputation for
hunting and fishing.
The following are industries are directly
related to the Town and services offered
through the Center, and should be
targeted for recruiting new businesses Figure 1: Aspects to Consider When Relocating a Business
to Meeker.
12Historic Main Street in Downtown Meeker
13breakdown of total revenue by products and services included
Industry Analyses in the industry are displayed in Figure 2
1 | GUNS & AMMUNITION MANUFACTURING IN THE U.S.
Ordnances &
Accessories,
Industry Summary 9.2%
Other
Table 1 below displays a snapshot of the guns and ammunition Ammunition,
14.7% Small Arms,
manufacturing industry. This information was obtained via an
46.3%
IBISWorld report on the guns and ammunition manufacturing
industry in the U.S.
Industry Snapshot
Revenue $16.2 billion Small Arms
Ammunition,
Annualized Annual Growth (2011 - 2016) 4.7%
29.8%
Annualized Annual Growth (2016-2021) 1%
Profit $1.3 billion Source: IBIS World 2016
Exports $6.0 billion Figure 2: Industry Products and Services by Revenue
Businesses 630
Source: IBISWorld 2016 Current and Future Demand for Small Arms
Table 1: Snapshot of the U.S. Guns & Ammunition
Manufacturing Industry Guns and ammunition are considered to be expensive
discretionary goods for most people. As a result, demand for
This industry manufactures small arms including shotguns, rifles, industry products is dependent on factors such as disposable
revolvers, pistols and ordnance weapons. Ordnance weapons income, the unemployment rate and consumer confidence.
are mounted guns built for military artillery purposes. Ordnance When unemployment is low and consumers' income and
weapons only make up 9.2 percent of total revenue in the confidence are high, people are more willing and able to
industry, while small arms including rifles, pistols and light purchase industry products. Thus, revenue in this industry has
machine guns (caliber no greater than 7.6 mm) make up 46.3 surged during the past five years ever as the U.S. economy has
percent of the industry’s revenue. Thus, the small arms guns and slowly recovered from the Great Recession. Also, much of the
ammunition industry is estimated to be a $12.34B industry. The
14growth achieved during the past five years is attributable to $20 20%
fears of potentially tougher gun control legislation. $18
15%
$16
Although some military spending is included in the total revenue
10%
for this industry, private-sector demand has been the biggest $14
Annual Growth Rate
driver of industry revenue growth.
Revenue (in billions)
$12
5%
$10
This industry has experienced increased volatility over the past
0%
five years due to the fears of gun control laws. The fear of new $8
gun laws subsided in 2014 and then resurfaced in 2016 due to $6 -5%
renewed emphasis on gun control, as well as security fears.
$4
However, even with this volatility, the industry continues to -10%
grow at a relatively steady rate as new technological advances $2
are made in the industry. Year over year growth between 2015 $0 -15%
and 2016 reached the highest revenue and growth rate that the 12 13 14 15 16 17 18 19 20 21 22
Year
industry has ever seen, reaching $16.2B, an increase of 16.3
percent from the year before.
Source: IBIS World
The number of small arms manufactured in the U.S. more than
Figure 3: Industry Revenue and Growth (2012 - 2022)
doubled between 2008 and 2013 from 4.4M to 10.9M guns.
Small arms production is estimated to be near 12M in 2016. Major Markets in the Industry
However, the demand for small arms is stabilizing due to the
previous failed attempts to create more stringent gun The three major domestic markets for industry purchases are
regulations. However, the probability of these laws being passed civilians, military and law enforcement. Civilians make up the
on a federal level is low. The result is that consumers will not largest market for guns and ammunition purchases. Guns and
feel the need to stockpile their weapon supply, and the ammunition purchases by civilians are made through gun stores,
annualized growth rate is expected to decrease to 1 percent by individual sellers, sporting goods stores and large retail stores
2021. like Walmart. The breakdown of these three markets based on
their percentage of total revenue in the industry is displayed in
These changes can be seen in Figure 3. Figure 4.
15Major Players in the Small Arms Industry
Military, Civilian and
22.6% law BUSINESS MARKET SHARE
enforcement, Vista Outdoor Operations LLC 10.6%
40.2%
General Dynamics Corp. 9.8%
Freedom Group Inc. 5.5%
Orbital ATK Inc. 5.5%
Smith & Wesson 4.7%
Olin Corporation 4.5%
Sturm, Ruger & Co. Inc. 3.8%
Source: IBIS World 2016
Exports, Table 2: Major Players in the Small Arms Industry
37.2%
The leader in the small arms industry is Vista Outdoor
Source: IBIS World Operations, formerly known as the sporting division of Alliant
Figure 4: Market Segments in the Industry Techsystems (ATK) based in Clearfield, UT. Vista Outdoors is the
nation’s largest manufacturer of ammunition, accessories, rifles
and shotguns for the civilian and law enforcement markets. Its
Major Players in the Industry headquarters is located in Farmington, UT. Shooting sports
accounts for the majority of Vista Outdoors’ revenue. Vista
Table 2 displays the firms with the greatest market share of total Outdoors has made multiple acquisitions over the past five
revenue in this industry. years, including the acquisition of the Caliber Company in June
2013. Vista Outdoor’s industry-specific revenue is expected to
increase an annualized 17.8 percent to $1.7 billion by fiscal
2017. Booming civilian sales and acquisitions of consumer-
oriented companies have been the primary drivers of growth in
both company revenue and profit.
Due to the size of these major companies in terms of revenue,
number of employees and the locations of their existing
manufacturing facilities in densely populated cities, there is a
16low likelihood of them being recruited to the Town. Large which use fingerprint or RFID technology to identify their
companies like these have the sufficient capital to be able to owners, are anticipated to carve out market share from more
relocate their manufacturing plants, but aspects such as railroad conventional firearms. Moreover, 3D printing technology has
access, proximity to suppliers and markets are essential to the potential to increase the speed and efficiency at which
maintaining their competitive price. However, small to mid- industry products are made. A continued analysis of the smart
sized businesses in this industry that are looking for a new way gun technology is included in the conclusion section of this
to spread brand awareness and cut costs by accepting tax or chapter.
other incentives may have an interest in locating business
operations to Meeker. Thus, the businesses contacted for the Barriers to Entry
purposes of this report are in the small to mid-size category.
There are few explicit barriers to entry. A significant financial
Industry Life Cycle & Consolidation investment is required to acquire, maintain and update a
manufacturing plant and associated equipment. This cost may
This industry is now in a mature phase after experiencing years deter some firms from entering the industry. Machinery
of rapid growth. Due to a number of factors, including a operators also need to be trained, but these costs are relatively
resurgence of demand from the civilian sector, industry revenue insignificant. In order to effectively compete, an entrant should
has surged over the past few years. However, as fears over gun be committed to spending a significant amount on research and
regulation subside and the government defense spending development (R&D) due to the constant need for product
remains under pressure, the industry's growth is expected to innovation.
slow down, returning to historic levels. As described previously,
major players in the industry are consolidating through a series For certain product segments, establishing a brand for a product
of acquisitions. represents a barrier to entry. This may require funds to be spent
on advertising in order to establish a market presence.
Technological Innovation Additionally, many incumbent operators in this industry have
developed strong relationships with upstream suppliers and
The industry is constantly innovating new products, but its core downstream markets, making it difficult for new companies to
products and major markets have essentially been established break in. Companies are likely to experience difficulty entering
and its participants are mostly focused on taking market share the industry as a result of the customer loyalty that the more
from competing countries and companies. However, a number prominent industry participants have, including Remington,
of technological advancements are expected to begin changing Smith & Wesson and Ruger.
how the industry operates over the next five years. Smart guns,
17Guns and ammunition manufacturers require specialized labor
and machinery and incur high research and development costs.
Government regulations on small arms also poses a challenge to
new entrants due to the costs of satisfying such regulations.
Manufacturing Locations in the Industry
The location of manufacturing establishments is generally
influenced by their proximity to major markets, as well as
material and supply industries. Manufacturing establishments
also tend to be highly correlated with population density.
IBISWorld estimates that the industry is concentrated in the
Southeast, Great Lakes, Southwest and West regions of the
United States, due to their proximity to major supply industries
as well as population centers. These regions combined will
account for 61.4% of industry establishments.
Colorado features 2.4 percent of the industry’s manufacturing
establishments as seen in Figure 5 The largest small arms
manufacturer in Colorado is RND Manufacturing, Inc., located in
the City of Longmont. In 2013, new gun laws were introduced
that made it difficult for some gun accessory manufacturers like
Magpul Industries to continue operations in Colorado. Magpul
Industries, a manufacturer of polymer and composite high-tech
Source: IBIS World
firearms accessories moved its manufacturing plant to
Figure 5: Location of Manufacturing Establishments in the U.S.
Cheyenne, WY.
18Colorado Firearms legislation represented in Table 3 on the following page. All of the
businesses listed have been contacted. However, some
Effective July 1, 2013, Colorado requires background checks for businesses have not yet provided a specific response. The
all firearm sales at the buyer's expense. Magazines that are legend located at the bottom of the table defines the colors
capable of accepting more than 15 rounds or are readily used to represent each response.
convertible to accept more than 15 rounds cannot be sold or
transferred within state limits. This is what caused Magpul to
relocate to Wyoming because Magpul manufactures magazines
that accept more than 15 rounds. However, such magazines
lawfully obtained prior to July 1, 2013 may be kept without
restrictions on their use. The magazine restriction law also does
not specifically address residents purchasing LCMs from out-of-
state sources for personal use. Colorado's large capacity
magazine ban is silent on non-residents visiting Colorado while
in possession of magazines that meet the state's LCM ban
criteria, provided the LCMs are for personal use, and the
individual had lawfully obtained the LCMs according to the laws
of his or her home state.
Open carry, as well as possession of a handgun either openly
displayed or concealed in an automobile, is generally permitted
without a license. However, the City of Denver has banned
assault weapons and the open carry of firearms.
Business Contact History
Multiple U.S. small arms manufacturers in the small to mid-size
category were contacted in order to further understand the
industry and investigate opportunities of relocation and
expansion. These businesses, their primary manufacturing
location and the status/result of the conversation(s) are
19Primary Conclusion – Guns & Ammunition Industry
Company Manufacturing Comment
Location
Adams Arms Tampa Bay, FL The purpose of analyzing each industry is to identify businesses
Barrett Firearms
Murfreesboro, TN
and business opportunities that could be successfully operated
Mfg. Inc. in Meeker. The analysis of the guns and ammunition industry
A conversation with the owner revealed that the
family owned business would not be interested in confirms the fact that major manufacturers and their suppliers
Hi Point Firearms Mansfield, OH relocation or expansion due to their current in this industry are located in major markets, in areas highly
proximity to suppliers and their preference to correlated with population density. This is because competitors
remain in their home town.
Browning /
in this industry compete primarily on price. They consider all
Morgan, UT available avenues that may cut costs. Manufacturers locate
Winchester
Century Arms Inc. Delray Beach, FL themselves near their suppliers. This suggest that a major
Cooper Firearms Of Stevensville,
supplier of materials used to manufacture guns and ammunition
Montana Montana
Diamondback would need to be located in or within close proximity of the
Cocoa, FL
Firearms LLC Town in order to recruit a major manufacturer in this industry.
Double Star Corp. is working to expand
international sales and this will include the
Double Star Corp. Winchester, KY
expansion of their manufacturing capability. They Although there are new firms entering this industry, the barriers
may be considering new locations in the U.S. to entry are high. Intensive amounts of capital are required to
FN Mfg. Columbia, SC effectively compete with the major players. This suggests that
Operations manager requested more information.
Heckler & Koch Inc. Newington, NH They're looking to consoidate their manufacturing
only well-established firms in the industry with a significant
operations and are looking at various cities. amount of capital could likely afford to relocate or expand to
IWI is not interested in expanding to the Western Meeker. However, since major players in the industry have
States since they are currently located along the
recently relocated their manufacturing plants to large cities or
east coast and only sell to wholesalers who are
IWI US Inc. Harrisburg, PA
also mostly located along the east coast. to be closer to existing manufacturing plants, it is highly unlikely
However, they may be interested in marketing that a mid to large size player in this industry would consider
opportunities associated with the new Center. relocating to Meeker.
Mega Arms Centralia, WA
LEGEND
Business looking to relocate or expand at this time. Other players that have an interest may be small to mid-sized
Businesses Not Interested in Relocating or Expanding to Meeker manufacturing firms that are eager to take advantage of
Businesses Interested in Marketing Aspects Associated with the Town and Center
marketing opportunities to increase their brand awareness. This
Awaiting Response
is the case for all industries associated with the Center. The
Table 3: Summary of Conversations with Small Arms
strategy will be to help these smaller companies catch the vision
Manufacturers in the U.S.
20of the Center and the benefits of being located in Meeker, CO. events held at the Center or promoting products through the
Thus, the contacts made to companies for recruitment purposes pro shop gun sales and rentals. Businesses that express an
focused on these small to mid-sized companies and new interest in marketing their products or brand in association with
entrants in the industry. the Center will be asked to provide a letter of interest specifying
their interest in the Center.
Areas of opportunity may exist in attracting or creating a firm
that can effectively lead the market in technological innovation. 2 | ARCHERY EQUIPMENT & ACCESSORIES
The “smartgun” technology is one possible avenue of such MANUFACTURING IN THE U.S.
innovation, but has received much debate. Smith & Wesson
developed a government sponsored smart gun prototype, but
Industry Summary
suffered revenue-crushing boycotts. The reasoning behind the
boycotts was a fear that smart guns would become the only
Table 4 displays a snapshot of the Archery Industry. The
guns that people would be allowed to buy, thus infringing on
information contained in this table was obtained from multiple
individuals’ constitutional right to bear arms of their choosing.
sources including the 2014 Archery Trade Association (ATA)
report, the 2005 National Sporting Goods Association (NSGA)
Due to the boycotts and the overall negative response to new
report and the 2012 U.S. Federal Excise Tax Report:
smart guns, existing small arms manufacturers aren’t likely to
add the smart gun to their existing inventory until the political Industry Snapshot
debate over gun laws subsides. Revenue (2016) ~$925.88 million
Annualized Growth Rate (2008 - 2014) 10.03%
In regards to Colorado gun laws, the 2013 legislation should not Compounded Annual Growth (2014-2019) 9.55%
deter most manufacturers of guns and equipment from Bow Manufacturers in the U.S. 44
expanding into the State since the only major law currently in Arrow Manufacturers in the U.S. 11
place concerns large capacity ammunition magazines and not a Broadhead and Points Manufacturers in the U.S. 26
prohibition on assault weapons, rifles or handguns. Other Product Manufacturers in the U.S. ~ 75
(~) = Various data sources used to approximate statistic
In regards to those firms that express an interest in marketing Source: ATA (2014), NSGA (2005), & U.S. FET Report (2012)
opportunities associated with the Center, these firms have been Table 4: Snapshot of the U.S. Archery Industry
provided with additional information regarding the Center and
proposed ways in which a company may participate such as Limited resources are available to archery dealers and
branding a range or specific aspect of the Center, sponsoring manufacturers to help them understand the size of the archery
market, the sales volume of major product segments, or how to
21measure their respective business’ success. This is mostly due to Conversations were held with business owners in the industry
the density of small to mid-size firms in the industry that have to validate the estimates for market size and growth trends.
not yet become publicly traded companies. Thus, these According to the business owners interviewed, the industry has
companies are not required to share their annual business been growing rapidly in terms of units sold and total revenue,
statistics with the public. and has become a popular focus in the hunting and trapping
industry. Recent Hollywood films displaying heroes shooting
According to a 2005 report from the ATA bow sales accounts for bows has also been cited as one of the main contributing factors
32 percent of industry revenue, followed by arrows at 19 to the growth in popularity surrounding target shooting.
percent, bow accessories, at 16 percent, and crossbows at 7
percent. The breakdown of these products and their associated Statistics on tax revenue generated from the sales of bows and
percentage of total revenue in the archery industry are arrows confirm the growth in the industry. A report provided by
displayed in Figure 6. the ATA in 2015 revealed that the total federal excise taxes (FET)
collected on the sales of both bows and arrows in the U.S. during
Crossbows, 2014 totaled $55.13M. The tax rate for bows and arrows is
7% eleven percent and has been unchanged since 1972.
Accessory
Imports, 4% Bows, 36% Extrapolating from the tax information suggests that revenue
for bows and arrows would be $501.2M. However, since the FET
Accessories,
is incurred on the first transaction made on U.S. soil, these
12%
numbers do not reflect the total revenue in the industry because
the first transaction usually occurs between the wholesaler and
the retailer, and not between the retailer and the end
Bow consumer. However, the FET revenue does provide insights into
Accessories,
16%
the industry’s growth rate overall.
Broadheads, Figure 7 displays the total FET revenue generated the sales of
Arrows, 19% 7% bows and arrows over the period from 2004 – 2014. The growth
in FET revenue reflects the growth rate of the industry’s
Source: National Sporting Goods Association (2005) revenue, which is an annualized growth rate of 10 percent.
Figure 6: Breakdown of Products by Percentage of Total
Revenue Generated
22$60 compounded annual growth rate of 9.55 percent would result
in a total revenue of approximately $925.88 in 2016. Thus, the
$50 U.S. archery industry is almost a billion-dollar industry and will
FET Revenue (in millions)
most likely become a billion-dollar industry by 2017, assuming
$40
that the growth rate continues.
$30
A major opportunity for relocation and expansion exists in the
$20 archery industry due to the ample amount of new startup firms
looking to enter the market. These new businesses are looking
$10
to differentiate themselves from their competitors, and Meeker
$0 provides an opportunity for differentiation. New businesses in
4 5 6 7 8 9 10 11 12 13* 14 Meeker can benefit from the low cost of doing business, and
Year potential incentives to help them cut costs. New businesses can
(*) = Data not available. Midpoint value used to represent 2013 FET revenue
also benefit from the County’s new fiber network, the
reputation of the Town and the lifestyle associated with the
area. Meeker already features an industrious workforce that can
Source: Federal Excise Tax (FET) 2012 & Archery Trade Association (ATA)
help new businesses decrease their training costs. Employees in
2014
the archery industry prefer to live in mountainous areas, with
Figure 7: Revenue and Growth Rate for the Sales of Bows and
high populations of big game. In theory, Meeker is a perfect fit
Arrows (2004-2014)
for individuals seeking to live and work in a community that
In order to estimate the size of the industry in terms of total offers so many activities related to hunting and outdoor
revenue generated from all products in the archery industry, a recreation.
conservative “mark-up” percentage of ten percent was used to
estimate the total revenue from the sales of bows and arrows. Demographic Characteristics of the Industry’s Consumers
Using the estimated revenue for wholesalers of $501.2M in
2014, a ten percent markup would result in $551.32M. Since the According to the ATA Archery Report in 2015, 9.2 percent of the
sales of bows and arrows account for approximately 60 percent United States’ 235 million citizens 18 and older participate in
of the industry’s revenue, an additional forty percent was added archery at some level. The same report provided by the ATA in
to the $551.32M to include the revenue from the sales of 2015 revealed the following demographic characteristics that
broadheads, crossbows and other archery accessories, resulting are associated with the majority of consumers in the archery
in a total revenue of $771.84M in 2014. Applying the industry:
23• 78 percent of archery participants are male (16.85 year, which is up from the 8.4 million reported bowhunters in
million) and 22 percent are female (4.75 million) 2012.
• Archery participants are typically younger than non-
archers Figure 8 displays these various segments/categories of archers:
• Archery participants more often live in rural areas than
urban
• Archery is especially more common in the Midwest Bowhunt & Target
Target Archery Only,
The Town of Meeker is a perfect fit for the industry because it is Archery, 45%
located near the Midwest, and it’s a rural community with an 31%
excellent reputation built on hunting and fishing.
Colorado overall has a strong archery community. According to
the Colorado State Archery Association (CSAA), a National Field Strictly
Archery Association (NFAA) endorsed group in Colorado, the Bowhunters,
number of members in the CSAA has more than doubled over 24%
the past two years, totaling more than four hundred members
in 2016. While this does not reflect the entire statewide growth Source: ATA 2015
in archery, the CSAA is the most prominent target archery Figure 8: Market Segments in the Archery Industry
association within the State and has added multiple new archery
events and venues to their list of tournaments in order to Conversations with Businesses in the Industry
accommodate growth in the sport.
The following businesses represent major brands in the bows,
Archery Market Segmentation arrows and accessories manufacturing industry. Each of these
businesses was contacted and was informed as to the current
Of the 21.6 million American archers, about 45 percent shoot growth and vision associated with Meeker and the Center for
target archery only, while 24 percent identified themselves as Outdoor Adventure. Opportunities regarding sponsorship,
strictly bowhunters. The other 31 percent said they bowhunt branding, relocation and expansion were discussed based upon
and shoot target archery. Therefore, 55 percent of archers – the nature of the company, its recent growth and overall
11.9 million Americans – did some bowhunting the previous marketing methods. The results of these contacts are displayed
in Table 5 on the following page.
24Primary Maven Optics
Company Manufacturing Comment
Location
BOW MANUFACTURERS Various calls were made to businesses within the archery
Alpine Archery Lewiston, ID Already close to their existing suppliers
Bear Bows Evansville, IN
industry to inquire as to their possible interest in relocating or
Bowtech / Diamond Bows Eugene, OR expanding to the Town. One of these conversations included
Elite Archery Rochester, NY
Mr. Mike Lilygren, the owner of Maven Optics. Maven optics is
Hoyt Bows (Owned by
Easton)
Salt Lake City, UT Recently relocated to SLC, UT relatively new in the hunting industry. The headquarters for the
Mathews Bow Sparta, WI
Interested in selling Matthew's products firm is located in Lander, WY. Lander is a small Town with a
with a registered dealer at the Center
Prime & G5 Bows Memphis, MI population similar to that of Meeker. Maven optics sells
TNT Montara, CA binoculars and spotting scopes. Maven’s digital marketing and
PSE Archery Tucson, AZ
Parker Staunton, VA
unique product design has made them one of the most popular
Obsession Staunton, VA optics brands in the hunting industry.
MANUFACTURERS OF ARCHERY ACCESSORIES
Axion Archery Alpharetta, GA Small company not looking to expand
Bee Stinger American Fork, UT While Mr. Lilygren did not express an interest in relocating his
Bohning Lake City, MI manufacturing or office space to Meeker, he did express his
Carbon Tech Gilbert, AZ
Carter Enterprises Saint Anthony, ID
interest in partnering with the Center for Outdoor Adventure to
Cobra Broken Arrow, OK, perform product testing and other marketing activities. Mr.
Easton Archery Salt Lake City, UT Not interested in relocating or expanding.
Gold Tip American Fork, UT
Lilygren explained that his disinterest in relocation stems from
Grim Reaper Provo, UT his desire to remain in his hometown. Mr. Lilygren would like to
HHA Sports Wisconsin Rapids, WI Primarily doing business on the East Coast further discuss ways in which Maven could allow visitors of the
Montana Black Gold Belgrade, Montana
Limbsaver Shelton, WA Center to test their products and then order them if they are
OPTICS satisfied with the quality and performance of their optical
Interested in marketing products in
Maven Optics Lander, WY
association with the Center.
products.
ARCHERY EVENTS
Expressed interest in performing a TAC
Total Archery Challenge (TAC) Many Venues
sponsored archery event in Meeker.
Total Archery Challenge
LEGEND
Business interested in relocating or expanding at this time In order to attract new businesses within the archery industry to
Businesses not interested in relocating or expanding to Meeker
Businesses interested in marketing aspects associated with the Town and Center the Town, it is imperative that new attractions and events be
Awaiting response created that add excitement and exposure associated with the
Table 5: Summary of Conversations with Businesses in the Town and the Center. Meeker needs to be a popular topic of
Archery Industry discussion within the industry. This will occur as the Center is
25constructed and new events such as the Total Archery Challenge sponsored event in Meeker, CO. This would be a great
adds the Town to its list of venues. opportunity for the Town to further its reputation as a hunting
community and become a venue for future events.
The Total Archery Challenge (TAC) currently features its
competitions in venues such as the Snowbird Ski resort in Utah, Conclusion – Archery Industry
San Antonio, TX, Big Sky, MT and other mountainous and scenic
venues across the western states. Each event includes over 100 Many indicators suggest that business recruitment strategies for
3D targets which challenge shooters to adjust for distances, the Town should be focused on firms in the archery industry.
angles and natural obstacles. The events combine physical The addition of the Center will significantly increase the
fitness with adrenaline as the archers make their way through excitement and overall participation in archery throughout the
the course, taking aim, and firing at realistic targets. These County and the State. The Center will allow for year round
events simulate an intense hunting environment for archery participation. The overall atmosphere and natural
competitors and spectators to enjoy. assets associated with the Town could position Meeker as a the
ideal archery industry location. Archery-related events such as
Sean DeGrey, the event coordinator with TAC says that the TAC will also help position Meeker as a key archery community.
company is looking to create a major venue in Colorado, but Currently, archery events are scattered across the Country and
would prefer to host this event near the front range in order to no specific community is seen as “the archery capital of the
attain the greatest amount of participation. Currently, TAC is world.” Meeker has the potential to obtain such a title.
considering hosting their CO event at the Keystone Ski Resort in
Dillon, CO. However, Mr. DeGrey says that rural communities The archery industry is growing in all measures including
have surprised them in the past. Sometimes, the rural revenue, participation and units sold. Little to no legislation has
communities produce more competitors and enthusiasm than been established that limits the growth of the archery industry,
the events near the major MSAs. opposed to gun laws surrounding the small arms manufacturing
industry.
Mr. DeGrey and TAC are still interested in holding a TAC
sponsored event in Meeker. This initial event would not be a Multiple business in the archery industry were contacted in
standard TAC event featuring the full array of 100+ targets and regards to business expansion and relocation opportunities. The
courses, but a smaller event, sponsored by TAC that could be vision of the Town and the Center was stressed in each of these
held in Meeker to test the local market. Mr. DeGrey says that conversations. Initial contacts have been made with some of the
TAC would set up the desired number of courses and targets on businesses within the industry. However, multiple businesses
private or publicly leased land and list the event as a TAC
26have yet to be contacted and “selling” the story of Meeker will in fly fishing at least once per year. The amount of anglers that
require additional time and effort. fish multiple times per year, or consistently participate in fly
fishing year after year is estimated to be around half, or
4 | FLY FISHING EQUIPMENT AND ACCESSORIES approximately 2.25 million anglers.
MANUFACTURERS IN THE U.S.
The average revenue generated from fly fishing equipment for
retailers in the U.S. was $527,665 in 2012. However, retailers in
Industry Summary
the Rockies region experienced the highest revenues with an
average of $649,754. This is due to the ample amount and
This industry includes all those companies that manufacture fly
quality of fly fishing rivers located in Colorado, Utah, Idaho,
fishing rods, reels and various accessories. Similar to the archery
Montana, New Mexico, Arizona and Wyoming.
industry, limited resources are available to fly fishing dealers and
manufacturers to help them understand the size of the market,
The product that accounts for the greatest share of revenue in
the sales volume of major product segments, or how to measure
the industry is flies. However, revenue generated from outfitting
their respective business’ success.
services exceeds the revenue generated from flies. Figure 9
displays the various products and services in the industry
A report provided by the American Fly Fishing Trade Association
associated with their respective share of the industry’s revenue.
(AFFTA) in 2012 provides the most accurate and current
statistics related to the fly fishing industry. The report compiles
the survey responses submitted by 245 fly fishing retailers
across the Country to quantify the size of the industry. Table 6
displays a snapshot of the industry:
Industry Snapshot
Revenue (2015) ~ $815 million
Number of Anglers in the U.S. (2015) 4.507 million
Source: AFFTA 2012
Table 6: Snapshot of the Fly Fishing Industry
The total number of anglers provided in the report shows that
there are approximately 4.507 million fly fishing anglers in the
U.S. This estimate reflects the number of anglers that participate
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