The gun industry is increasingly pressured to rethink its business model as public sentiment shifts against unfettered gun ownership. Amid rising concerns over mass shootings and potential legal liabilities similar to those faced by the tobacco industry, analysts emphasize that gun makers risk leaving significant profits untapped in the non-lethal personal protection market, which could be more lucrative than traditional firearm sales.
Recent polls indicate a growing majority of Americans support stricter gun regulations, with 71% favoring some restrictions on ownership following tragedies like the Newtown massacre. As investors begin to divest from firearms companies, the need for innovation in product lines and a redefined approach becomes crucial for the industry’s survival, particularly as the financial margins in gun manufacturing are notably slim, averaging just 8.5% on annual revenue.
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