NAICS 332994 Quarterly Industry Report
Small Arms Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 332994Sector: 33Updated: Q1 2026
About This Report
This Fair Market Value industry report covers NAICS 332994 (Small Arms, Ordnance, and Ordnance Accessories Manufacturing) using the 2022 North American Industry Classification System. Data sources include the U.S. Census Bureau[6] NAICS classification documentation, Bureau of Labor Statistics[7] employment data, ATF annual firearms manufacturing reports, and SBA size standard tables. Content addresses industry structure, regulatory requirements, and market dynamics for firearms and ordnance manufacturing establishments.
Industry Snapshot
Key metrics for the small arms manufacturing industry.
Industry Definition & Overview
Small Arms, Ordnance, and Ordnance Accessories Manufacturing (NAICS 332994) encompasses establishments primarily engaged in manufacturing small firearms, military ordnance, and ordnance accessories. Products include pistols, revolvers, rifles, shotguns, machine guns, artillery pieces, and associated components such as barrels, receivers, firing mechanisms, magazines, and recoil systems. Small arms are defined as weapons with calibers of 30 mm or less.
The U.S. firearms manufacturing sector produces millions of units annually for civilian, law enforcement, and military markets. Production splits between commercial firearms sold through licensed dealers and military-specification weapons procured under government contracts. Major manufacturers include publicly traded companies and privately held firms operating facilities across multiple states. Workforce requirements span CNC machining, metal finishing, assembly, and quality inspection specialties. Skilled labor availability directly affects production capacity.
Raw material inputs include specialty steels for barrels and receivers, aluminum alloys for frames, and polymer compounds for stocks and grips. Manufacturing processes combine CNC machining, metal injection molding, cold hammer forging for barrels, and precision assembly. Federal licensing through the Bureau of Alcohol, Tobacco, Firearms and Explosives[5] governs all manufacturing operations, with additional state-level requirements varying by jurisdiction. Export controls under International Traffic in Arms Regulations apply to military-specification products and restrict foreign sales without government approval.
What's Included in This Industry
- Pistols, revolvers, and handgun manufacturing
- Rifles and carbines for civilian and military use
- Shotguns including pump-action, semi-automatic, and break-action designs
- Machine guns and automatic weapons for military procurement
- Artillery pieces and naval gun systems
- Ordnance accessories including barrels, receivers, and firing mechanisms
- Gun magazines, belts, and ammunition feeding devices
- Recoil mechanisms and stock assemblies
- Ordnance mounting and sighting systems
- Rocket launchers and man-portable weapons systems
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Fabricated Metal Product Manufacturing | 332 |
| Industry Group | Other Fabricated Metal Product Manufacturing | 3329 |
| NAICS Industry | All Other Fabricated Metal Product Manufacturing | 33299 |
| National Industry | Small Arms, Ordnance, and Ordnance Accessories Manufacturing | 332994 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 332992 | Small Arms Ammunition Manufacturing | Manufactures small arms ammunition of 30 mm or less in caliber, producing cartridges and components designed to function in firearms manufactured under NAICS 332994, creating a direct product compatibility relationship |
| 332993 | Ammunition (except Small Arms) Manufacturing | Produces ammunition and ordnance exceeding 30 mm including bombs, grenades, and torpedoes, sharing defense procurement channels but focused on ammunition rather than weapons platform manufacturing |
| 336414 | Guided Missile and Space Vehicle Manufacturing | Manufactures guided missiles and space vehicles with advanced propulsion and electronic guidance systems, representing a higher-technology defense manufacturing segment that shares military procurement channels |
| 336992 | Military Armored Vehicle, Tank, and Tank Component Manufacturing | Produces military armored vehicles, tanks, and tank components that incorporate small arms and ordnance weapon systems, creating integration relationships where vehicle platforms mount weapons from NAICS 332994 |
| 332710 | Machine Shops | Provides machine shop services for precision machining of firearm components including barrels, receivers, and trigger assemblies, serving as a contract manufacturing resource for firearms producers |
| 332811 | Metal Heat Treating | Performs metal heat treating on firearm components to achieve required hardness, wear resistance, and dimensional stability specifications critical for reliable weapon system function and safety |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 9.4% | 48 |
| 2 | Florida | 7.9% | 40 |
| 3 | Arizona | 4.5% | 23 |
| 4 | Wisconsin | 4.3% | 22 |
| 5 | Montana | 4.1% | 21 |
| 6 | Pennsylvania | 4.1% | 21 |
| 7 | Ohio | 3.9% | 20 |
| 8 | Utah | 3.9% | 20 |
| 9 | Idaho | 3.5% | 18 |
| 10 | Georgia | 3.1% | 16 |
% Of Establishments
0%
9%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
176
Total SBA Loans
$57.7M
Total Loan Volume
$328K
Average Loan Size
10 yrs
Average Loan Term
10.92%
Average Interest Rate
1,240
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The Small Business Administration[8] sets the size standard for NAICS 332994 at 1,300 employees. Firms averaging 1,300 or fewer employees over the preceding 24 months qualify as small businesses for SBA loan programs, federal contracting set-asides, and small business certifications. This threshold exceeds the baseline 500-employee manufacturing standard, reflecting the specialized capital requirements, federal licensing obligations, and compliance infrastructure needed for firearms and ordnance manufacturing operations. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 64 | $16.8M | $263K |
| 2 | Colony Bank | 16 | $12.0M | $752K |
| 3 | Coulee Bank | 8 | $12.0M | $1.5M |
| 4 | Central Bank | 8 | $6.0M | $750K |
| 5 | Idaho Central CU | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 332994?
NAICS 332994 classifies establishments primarily engaged in manufacturing small arms, ordnance, and ordnance accessories. This includes manufacturers of pistols, revolvers, rifles, shotguns, machine guns, and artillery pieces, as well as producers of components such as barrels, receivers, firing mechanisms, and magazines. The classification covers both commercial firearms for civilian sale and military-specification weapons for government procurement. Industry Census Bureau[6] defines the scope of this classification.
How is the small arms manufacturing industry structured?
The industry ranges from large publicly traded manufacturers producing hundreds of thousands of firearms annually to small custom shops building specialty and competition firearms. Major producers operate multiple factory lines with CNC machining centers, cold hammer forging equipment, and automated assembly systems. Smaller manufacturers focus on premium hunting rifles, competition pistols, or custom-built firearms. Federal Firearms Licenses issued by ATF govern all manufacturing operations regardless of establishment size.
What is the SBA size standard for small arms and ordnance manufacturers?
The SBA sets the size standard at 1,300 employees for NAICS 332994. Firms averaging 1,300 or fewer employees over the preceding 24 months qualify as small businesses for SBA lending programs and federal contracting preferences. This threshold exceeds the standard 500-employee baseline for manufacturing, reflecting the specialized nature of firearms production. Size standard details appear in the SBA size standards table[8].
What NAICS codes are closely related to small arms manufacturing?
NAICS 332992 covers small arms ammunition manufacturing, producing cartridges designed for firearms in this classification. NAICS 332993 covers large-caliber ammunition and ordnance. Regional 336414 covers guided missile manufacturing. NAICS 336992 covers military armored vehicles that mount weapons from this sector. NAICS 332710 covers machine shops providing contract machining of firearm components.
What industries depend on small arms and ordnance manufacturers?
Ammunition manufacturers design products compatible with firearms from this sector, creating direct supply chain connections. Military branches and law enforcement agencies procure firearms and ordnance through government contracting channels. Sporting goods retailers and firearms dealers distribute commercial firearms to civilian consumers for hunting, sport shooting, and personal protection. The National Shooting Sports Foundation[11] tracks industry economic data and employment.
What activities and products does NAICS 332994 include?
Covered products include pistols, revolvers, rifles, shotguns, machine guns, artillery pieces, rocket launchers, and ordnance accessories. Component manufacturing covers barrels, receivers, firing mechanisms, magazines, stocks, and recoil systems. Military ordnance mounting and sighting systems are included. Excluded from this classification are small arms ammunition (NAICS 332992), larger bombs and torpedoes (NAICS 332993), guided missiles (NAICS 336414), and military armored vehicles (NAICS 336992).
Are small arms manufacturers eligible for SBA loans?
Yes, firearms manufacturers meeting the 1,300-employee size standard qualify for SBA lending programs including 7(a) and 504 loans. These programs support manufacturing equipment purchases, facility expansion, and working capital. Federal contracting set-asides also apply, providing procurement advantages for qualified small manufacturers. The SBA funding programs[12] page details eligibility requirements and application procedures.
Where is small arms manufacturing concentrated in the United States?
Connecticut maintains historical manufacturing presence dating to colonial-era firearms production. States with favorable regulatory environments have attracted manufacturing operations in recent decades, with facilities concentrating in the Southeast and Mountain West regions. According to BLS employment data[7], firearms manufacturing employment distributes across multiple states with no single state dominating production. ATF annual manufacturing reports track production volumes by state and firearm type.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Bureau of Alcohol, Tobacco, Firearms and Explosives atf.gov
- [6]U.S. Census Bureau census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]Small Business Administration sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]National Shooting Sports Foundation nssf.org
- [12]SBA funding programs sba.gov
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