Weapons, security training spurs $5 million Van Buren business expansion

A more than $5 million investment in a weaponry retail and training business located in Van Buren is a high-stakes bet that the small arms manufacturing industry will continue to grow as predicted.

Thor Industries, a subsidiary of Van Buren-based Knesek Guns Inc., recently received a $70,000 grant from the Arkansas Economic Development Commission to pave a half-mile of dirt road to its burgeoning facility at 1206 Knesek Lane in south Van Buren.

The company has and will have several operations. Potentially the largest function will be the manufacturing, distribution and retail of a wide range of weapons. Knesek is a Class 3 arms dealer, meaning it is cleared by the federal government to sell weapons and weapon components — silencers, suppressors, etc. — that are tightly controlled by federal weapons laws.

The company also intends to provide building security analysis and security and weapons training for individuals, corporations and personnel with foreign governments, said Max Rodriguez, marketing director and project manager for Thor.

GUN DEMAND
Rodriguez said the company’s phones (and Internet sales) have been busy with orders following the election of President Barack Obama. He said people already leaning toward a gun purchase because of the recession, are now adding to that anxiety a concern about their 2nd Amendment gun rights.

But Rodriguez was careful to avoid a political discussion. He isn’t as much interested in why people buy guns and training as they are in where they do the purchasing.

“I don’t want to push any specific politics. … That’s not our job here. We’re here to meet that (higher demand for weapons and training),” Rodriguez said during an interview arranged by the Van Buren Chamber of Commerce.

That demand is real, according to a report from global research company SBI that estimates by 2012 the U.S. market for small arms and ammunition manufacturing will reach $6.5 billion. The most recent U.S. government figures show in 2002 there were approximately 400 U.S. gun makers, which together generated annual sales of approximately $1.38 billion. However, a report from Research and Markets indicated the small arms manufacturing industry in the U.S. saw 2006 revenue of $2.15 billion.

SBI notes that “higher uncertainty about personal safety and security can entice new owners and drive current owners to add to their existing gun collections. Product innovation geared at developing new customer bases can also add incremental ownership.”

‘RAMBO’ TRAINING
Knesek could employ around 50 when all aspects of the business — retail shop, manufacturing shop, training center, distribution system — are up and running. The business, which now employs less than 10, will easily invest $5 million in the expansion, Rodriguez said.

Part of that business will include a “shoothouse” — a structure that allows for tactical weapons training in buildings for law enforcement and other groups. Several firing ranges will provide a variety of challenging tests for weapons enthusiasts, Rodriguez explained.

“People want some place to go to be Rambo for the day. There’s definitely a market for this,” he said.

Roger Holland, the training director/firearms instruction for Thor, brings more than 10 years of military experience to the company. He said Thor has a lot of competition in the weapons and security training industry, but believes Van Buren’s centralized U.S. location and Thor’s proximity to Fort Smith and Van Buren will make it a popular global destination.

LOCATION, LOCATION, LOCATION
Holland explained that many of Thor’s competitors have facilities “in the middle of nothing” with no place to entertain customers. He said entertainment venues in Van Buren and Fort Smith greatly expanded in his 10-plus years away from the area.

“There is a night and day difference in that (entertainment venues in the area). … We’ll have that here. We have two great airports (Fort Smith and Northwest Arkansas) to bring these people in … and there will be places to go with (customers) in this area when we are finished (training),” Holland said.

Another aspect of the Thor facility is that the more than 100-acre property, combined with access to ranges in the Arkansas River bottoms, provides a wide range of training and weapons firing options, according to Holland. He said there are few places around the world that will have the depth of weapons and securities training opportunities as there will be in Van Buren.