Ariate, Aaron Fernandez, Joey Manaligod, Manuel Ong, Steven Santos, Kevin Industry Analysis:Ammunitions Reloading Industry
1. Brief Description of the Industry 2. Market 3. Suppliers 4. Industry Barriers 5A. Competitors (Armscor Shooting Center Inc.) 5B. Competitors (TRUE WEIGHT Inc. ) 6. Conclusions Appendix: Value Chain Table of Contents
a. Product and / or Services: • The Industry offers a reloading service for spent ammunitions shells.
Ammunition, Reloading, and Basic Ballistics by Dean A. Grennell and Carl P. Wood b. Production Process:
1. Fire the loaded round 2. Retrieve and store fired cases
3. Inspect the fired cases 4. Reject defective cases
5. Sort for headstamps 6. Clean / polish fired cases (optional)
7. Resize / De-prime the fired cases 8. Seat the new primers
9. Prepare the case necks 10. Settle upon the load data
11. Adjust, measure, and verify powder charges. 12. Drop the powder charges and inspect levels.
13. Adjust for seating depth 14. Seat Bullets
Dominant Players Armscor True Weight
Lead Buller P6.50 Teflon Bullet P7.50 Full Metal Jacket P9.50 Armscor True Weight • Lead Bullet
Market (Who, Size, Growth, Location) • Shooters in the Philippine Practical Shooting scene. • 8,000 registered gunclub members in the PNP located all over the Philippines • (Source:Philippine National Police) • 5% - 10% annual growth in population • (Source: Philippine Practical Shooting Association)
Volume and Value of Sales • - Up to 5,000,000 rounds a month • - Up to P40,000,000 a month • (Derived from competitor values)
Pricing Structure • Components: Bullet, Powder, Primer. • + Shells: Usually provided by the client • + Labor • + Other Expenses • = Selling Price
Product Position • Focused on serving the niche of serious, competitive sport shooters. • There is very little product differentiation between firms.
Brand Identity • Dominantly "Word of Mouth" Marketing • Attendance in gun shows • Sponsorships and Logos on Various Ammenities
Bullet • A hard projectile propelled by a firearm, sling, or air gun and is normally made from metal.
Powder • Used in firearms and artillery which produce negligible smoke when fired, unlike the older black powder which they replaced
Primer • A small copper or brass cup, containing a precise amount of stable but shock-sensitive explosive mixture, with ingredients such as lead azide or potassium perchlorate.
Shell • Packages the bullet, gunpowder and primer into a single metallic case precisely made to fit the firing chamber of a firearm.
Primers (Import Only) CCI - US Federal - US Winchester - US Magtech - US Number of Suppliers • Powder (Import Only) • Vita Vouri - US • OBP 462 - US • Ramshot - US
Bullets (Full Metal Jacket: Local) Armscor - PH Bullets (Full Metal Jacket: Imported) Magtech - US Number of Suppliers • Shells (Local and imported) • Armscor - PH • Winchester - US • Federal - US • Magtech - US
Number of Suppliers • Bullets (Teflon and Lead: Local) • True Weight - PH • Stronghand - PH • Jethro - PH • Magnus - PH • Black Teflon - PH • (source: Armscor and True Weight)
Availability of Substitute Supply • There are various other substitue suppliers aside from those above. • Those above are the combined preferences of Armscor and True Weight.
Contribution of Suppliers to Product Quality • 1. Precise bullet weight is integral in the accurate calculation of the ammunitions' power factor • 2. Good powder and primers are also important to the ignition/firing of ammunitions. • 3. Standard sized and ample integrity are important to the smooth ejection of shells and its re-use.
Cost Contribution of suppliers to total product cost • The lower cost for which the components are acquired, the higher the margin.
Capital Requirements • Primers: • P100,000.00 • Powder: • P50,000.00 • Registration: • P85,000.00 + P165,000.00 • Reloading Press • P75,000.00 x 5 = P375,000.00 • Other Equipment • P100,000.00 • Bullets: • P125,000.00
Capital Requirements Total: P 1,000,000.00
There is no exclusive distributorship of reloading presses and other equipment used for reloading. One can either import materials from the U.S. or buy locally from importers and manufacturers. (Source: Dillon Precision, Inc.(US)) Sourcing of Materials
There is no exclusive distributorship in the industry. Thus, access to distribution channels of equipment, components and raw-materials are very open. Access to Distribution Channels
Competitor:Armscor Shooting Center, Inc.Contact: Bob Sajot EVP/General Manager
In 1905, Squires and Bingham starts a print shop and merchandising Squires, Bingham & Co. expands to general trading: motorcycles, sporting goods and firearms 1930's, they become known sporting guns. Arthur D. Hileman buys the shop from the original owners. Profile and Background / History (www.armscor.com.ph)
In 1941, known as “Sportsmen's Headquarters” - found new owner in Celso S. Tuason Four months after, the Japanese invaded and confiscates all their firearms. The store relies on selling clothing and haberdashery in that time. After the war, the government gives Don Celso Tuason permission to manufacture firears and ammunition, Squires Bingham Manufacturing is born Profile and Background / History (www.armscor.com.ph)
In the mid-1960's, Don Celson Tuason decided that it was time to turn over the management of the Company to his three sons - Bolo, Butch and Conkoy. In 1980, Squires Bingham Co., Inc. became the holding company of the Celso S. Tuason family and their varied business interests. Don Celso's eldest son, Demetrio "Bolo" Tuason, was chosen to be the Chairman and President of the manufacturing company for firearms and ammunition. Thus, Arms Corporation of the Philippines (Armscor) was born. Profile and Background / History (www.armscor.com.ph)
Gina Marie Angangco President
Can Reload (most popular): .40 cal., .45 cal., super .38, .38 special, 9mm 30% - 40% Market Share Minimum Monthly Production (in units): 150,000 rounds Capabilities
Branches: Marikina and Davao Sister Companies: Armscor Shooting Ranges, Inc. (Marikina, Makati and Cebu) Squires Bingham International. Inc. (Quezon City) Armscor Precision (U.S.) Capabilities
Around P1,200,000 minimum monthly sales Steady, annual growth of 20% Financial Performance