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Smith & Wesson buys Gemtech.

This topic can be found at:
https://sigforum.com/eve/forums/a/tpc/f/380105858/m/1790096624

July 02, 2017, 08:45 PM
MG34_Dan
Smith & Wesson buys Gemtech.
http://www.recoilweb.com/smith...-gemtech-128578.html

I do not know if this is good news or it is bad news. It just is.




“Elections have consequences, and at the end of the day, I won.”
– Barack Hussein Obama, January 23, 2009
July 02, 2017, 08:55 PM
smithnsig
I would say good because the big boys must be expecting the HPA to pass. I don't think S&W, SIG etc. would be getting in to the suppressor game unless they expect the market to increase exponentially. I would say that the projected demand for suppressors is driving this.


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TCB all the time...
July 02, 2017, 09:23 PM
ARman
^^^^^^^^^^^^^^^^

I hope so. I hope that "We the People" will be able to walk into the local fun shop, plunk down the billz and walk out with your brand new shiny "can".

I hope that what you said is true.

SIG, Ruger, acouple of small budget suppressor companies now Smith and Wesson getting into the act, by acquiring Gemtect. I say it's a good sign.

I hope that the HPA passes, and suppressors are more affordable, plus building your own isn't such a hassle!


ARman
July 03, 2017, 11:14 AM
David W
quote:
Originally posted by ARman:
^^^^^^^^^^^^^^^^


I hope that the HPA passes, and suppressors are more affordable


ARman


I don't see prices coming down for a long time after HPA passes. The demand will go through the roof when it passes. If you have ever wanted one get it now, I believe you will get back the $200 tax stamp if it did pass and if it didn't, well, you got a can.


David W.

Rather fail with honor than succeed by fraud. -Sophocles
July 05, 2017, 10:21 AM
myrottiety
I had a thought. I wonder if the suppressor drought has hurt Gemtec to the point that they needed to be bought?

Every single suppressor company is sucking wind. They are dropping prices, offering $200 rebates and such. Unforeseen consequences of the HPA being introduced.




Train how you intend to Fight

Remember - Training is not sparring. Sparring is not fighting. Fighting is not combat.
July 05, 2017, 10:39 AM
WARPIG602
quote:
Originally posted by myrottiety:
I had a thought. I wonder if the suppressor drought has hurt Gemtec to the point that they needed to be bought?

Every single suppressor company is sucking wind. They are dropping prices, offering $200 rebates and such. Unforeseen consequences of the HPA being introduced.


Perhaps. While its lean right now if it passes those companies will have the last laugh. While there will be a short drought, it wont be long beofer everyone with machining cpapabilty strts putting out cans. The well known names will likely not be able to keep up but there will be a flood of new companies much like we saw with the AR market who start churning them out. One the dust settles and prices/inventory normalize I think we'll see those companies fade away same as the AR companies will do in the very near future.


I think its S&W diversifying. Its smart. Id hate to be a company who's sole revenue stream is just guns or AR's to make matters worse. Sig has the right idea getting into differnt areas, but execution has always been lacking on those right ideas.


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July 05, 2017, 11:59 AM
RHINOWSO
Don't forget that S&W maybe trying to compete with SIG as a "one stop shop" with rifles, pistols, suppressors, etc.

Easiest way is buy a small company.

But people waiting and waiting and waiting for the HPA to pass are just wasting time they could have been shooting suppressed. Wink
July 05, 2017, 12:59 PM
myrottiety
quote:
But people waiting and waiting and waiting for the HPA to pass are just wasting time they could have been shooting suppressed.


THIS!!




Train how you intend to Fight

Remember - Training is not sparring. Sparring is not fighting. Fighting is not combat.
July 05, 2017, 03:45 PM
jhe888
quote:
Originally posted by smithnsig:
I would say good because the big boys must be expecting the HPA to pass. I don't think S&W, SIG etc. would be getting in to the suppressor game unless they expect the market to increase exponentially. I would say that the projected demand for suppressors is driving this.


That was my take on this. Smith thinks the HPA will pass and demand will shoot up.

Get it!? Shoot up? I slay myself.




The fish is mute, expressionless. The fish doesn't think because the fish knows everything.
July 05, 2017, 03:59 PM
WARPIG602
Not to mention smith has the capital to turn gemtech into a production powerhouse which is where some other small companies will fall short.


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July 05, 2017, 04:36 PM
mew
is that the same as Remington buying AAC? don't think that's gone all that well. Makes sense for Gemtech though especially if they got a good price.....


"All that is necessary for the triumph of evil is for good men to do nothing"
Edmund Burke
July 05, 2017, 05:07 PM
WARPIG602
quote:
Originally posted by mew:
is that the same as Remington buying AAC? don't think that's gone all that well. Makes sense for Gemtech though especially if they got a good price.....


Remington has ruined every single company they have purchased while simultaneously destroying their own name. That's the difference.


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July 05, 2017, 06:01 PM
DaBigBR
I don't think the HPA makes a lick of difference. Remember back in December when Smith and Wesson announced the name change to "American Outdoor Brands?" All this is is portfolio building. Why reinvent the wheel when you can buy somebody who is already a player?

Would the passing of the HPA help? Sure, but also keep in mind that suppressor companies, like much of the industry, are likely dealing with a downturn in revenue right now, too, so maybe it's the right time for Gemtech.
July 06, 2017, 09:49 PM
Edmond
quote:
Originally posted by RHINOWSO:
But people waiting and waiting and waiting for the HPA to pass are just wasting time they could have been shooting suppressed. Wink


The HPA might pass sooner than it takes for a stamp to get in. Big Grin


_____________

July 07, 2017, 07:16 AM
myrottiety
quote:
Originally posted by Edmond:
quote:
Originally posted by RHINOWSO:
But people waiting and waiting and waiting for the HPA to pass are just wasting time they could have been shooting suppressed. Wink


The HPA might pass sooner than it takes for a stamp to get in. Big Grin


Doubt it. My guess is we are several years out on the HPA.




Train how you intend to Fight

Remember - Training is not sparring. Sparring is not fighting. Fighting is not combat.
July 07, 2017, 07:42 AM
mew
quote:
Originally posted by myrottiety:
I had a thought. I wonder if the suppressor drought has hurt Gemtec to the point that they needed to be bought?

Every single suppressor company is sucking wind. They are dropping prices, offering $200 rebates and such. Unforeseen consequences of the HPA being introduced.


totally agree


"All that is necessary for the triumph of evil is for good men to do nothing"
Edmund Burke
July 15, 2017, 02:49 AM
soggy_spinout
quote:
Originally posted by David W:
quote:
Originally posted by ARman:
^^^^^^^^^^^^^^^^


I hope that the HPA passes, and suppressors are more affordable


ARman


I don't see prices coming down for a long time after HPA passes. The demand will go through the roof when it passes. If you have ever wanted one get it now, I believe you will get back the $200 tax stamp if it did pass and if it didn't, well, you got a can.

I think I'm going be on the 'disagree' side when it comes to cost. If and when HPA passes I think there's going to be an influx of new suppressor makers. After all, it's not just the end user's paperwork that gets easier; manufacturers are going to have it easier as well. Their red tape costs should come down significantly, which I would think is where the most significant part of the cost of any can is under the current system.

When you look at a typical suppressor--the actual HARDWARE--there's no way a metal tube with a bunch of baffles and some threaded bits and some finish work should cost hundreds of dollars in materials and manufacturing costs. After all it's just a gloried capped pipe with some somewhat fancy innards that allow the pass-through of a bullet. Sure there's some engineering involved but frankly muffler tech isn't exactly rocket science, at least to get a somewhat usable and effective silencer.

Just wait until the 80% kits start showing up...
July 15, 2017, 10:43 AM
mew
quote:
Originally posted by soggy_spinout:
[QUOTE]Originally posted by David W:
[QUOTE]Originally posted by ARman:

After all it's just a gloried capped pipe with some somewhat fancy innards that allow the pass-through of a bullet. Sure there's some engineering involved but frankly muffler tech isn't exactly rocket science, at least to get a somewhat usable and effective silencer.

with that being said you can always just pay $200 and make your own pipe then or even use an oil filter!! I think a quality supressor is a little more than pipe and fancy innards unless you are going to use it sparingly.


"All that is necessary for the triumph of evil is for good men to do nothing"
Edmund Burke
July 16, 2017, 07:48 PM
esdunbar
Interesting that they bought them. I don't think it's in anticipation of the HPA though.

If you're Gemtech, why sell low? Their business is down right now, so why sell low when you're about to go gang busters (assuming the HPA is going to pass)?

Personally I don't think the HPA will ever see a vote. Just my opinion. Heck, I bought 3 new suppressors last week. I just think it's too hot a topic when the last thing they need is another fight.

My guess is S&W bought them independent of the HPA.
July 16, 2017, 08:30 PM
Black92LX
quote:
Personally I don't think the HPA will ever see a vote. Just my opinion.


Not just yours, it is just flat not going to happen unfortunately.
But that does not mean S&W is not smart for buying Gemtech. Even without the HPA suppressor popularity has gone up. I think it will continue for awhile.


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