Remington vows to remain number one U.S. manufacturer

Remington Arms Co. is the top firearms manufacturer in the United States. For the years 2001, 2002 and 2003, Remington made more firearms than any U.S. company, according to data from the ATF. When Remington emerged as the number one manufacturer in 2001, it was history making. For the first time in modern history, a long-gun company was the country's top manufacturer of firearms.

Securing the top position again in 2002 and 2003 was based on major changes and strategic planning, according to Tommy Millner, Remington president and CEO.

"It validates our strategy of innovation, together with an intense focus on the needs of our customers and our entire distribution system. Needless to say, I'm very pleased to see three consecutive years of our strategy paying off. I suspect that when the 2004 numbers are released, we're going to see similar results," Millner said.

Because the ATF embargos U.S. production data for one year, the 2004 report will not be released until the end of this year. While Millner is confident in the continuing performance of Remington, he is aware of the intense competition in the marketplace.

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"Paranoia is a healthy part of our culture and I've learned never to underestimate competitors, especially the quality competitors we have in the gun and ammunition business. So, while I'm pleased, I'm not comforted, because I know they are out there, working every day to get some of that business back. We just have to be smarter, work harder and get closer to the customer. If we do those things, we'll continue to prevail."

For 2005, Remington is experiencing a "pretty good year," Millner said.

"Retail conditions, our customers tell us, are pretty darn good, which interests me, because one would think with the rising cost of gasoline, it would pinch disposable income from our consumers. So far, it has not. The only dynamic we see changing at a rapid rate is our customers seem to be buying only the products they're selling at any given season of the year," Millner said.

In the past, Millner said, distributors and dealers were willing to buy products in the first half of the year that were going to sell in the second half.

"They are now more conscious of their inventory levels and turns. It just means we carry slightly higher inventories in the first half than we had done historically," Millner said.

In 2003, Remington made a significant commitment to develop products for law enforcement and the military. That commitment has paid off, according to Millner.

"It has just blossomed, both in foreign and domestic markets. We're experiencing success with our current Remington products, new technology products like our R1 Eyeball, our license-plate reading technology for law enforcement, new guns, new ammo, new training ammo--it's amazing when you focus on things how quickly good things happen," Millner said.

In addition to its U.S. manufacturing, Remington is enjoying solid sales of its Spartan line of long guns it is importing from Russia.

"We remain quite pleased with the performance of the Spartan line. The fact that we have been able to sell as many quality firearms made for us by a Russian manufacturer, with 'Made in Russia' on the bottom of them, only validates my belief that people really don't care where it's made. If it's a value and it works, they will buy it."

Millner says he see more opportunity for growth in Spartan line.

"We will expand the product line with other suppliers in different product areas that I can't tell you about now. But the market will see a rather significant expansion of our efforts to build a truly global company," Millner said.

Today's Remington is not the "Big Green" of the past. To succeed, Millner has demanded that "change" be instituted throughout the company. That change has not come easily to the 189-year-old company.

"There are still bastions of the status quo that we continue to work on, but we work on successfully, thank goodness. But I'm not going to be deterred by anything or anybody as we become what I think will make us a secure, dominate and competitive company in the future. So, it's get onboard or get out of the way. That's the clarity I've had to deliver from time to time in the organization. People don't like to change. It's uncomfortable. It's human nature. But change is necessary for growth and, ultimately, for success," Millner said.

Top Three U.S. Manufacturers 2001-2003

Manufacturer        Pistols  Revolvers  Rifles   Shotguns  Total

2001
Remington Arms                          289,470  276,116   565,586
Sturm, Ruger & Co.  112,847  150,844    243,600    7,740   515,031
Marlin Firearms                         258,383            258,383

2002
Remington Arms                          299,377  298,603   597,980
Sturm, Ruger & Co.  114,870  148,199    303,507    5,505   572,081
Marlin Firearms                         257,116            257,116

2003
Remington Arms                          290,873  300,399   591,272
Sturm, Ruger & Co.   98,422  110,894    234,595    4,538   448,449
Marlin Firearms                         233,759    4,783   238,542