A walk through Colt’s Manufacturing’s facility hints at something big happening at one of the region’s oldest companies.
Prominently placed new machines, not yet two weeks old, stand out against the old, signaling a long-needed transition into 21st century manufacturing for Colt’s commercial arm. It’s the result of about $3 million the company invested in the state-of-the-art equipment.
“It’s something we should have done 10 years ago but couldn’t for obvious reasons,” said Martin Tavares, director of manufacturing.
After a decade of focusing on defense contracts and sorting out a financial nightmare, Colt’s Manufacturing Co. is renewing a push to regain its position in the commercial market — something that industry insiders say will not be easy.
Joyce Rubino, a 30-year Colt veteran who took over the chief operating officer post in November and is spearheading the handgun effort, has a lot to be excited about. Colt’s Manufacturing — which sells to the commercial market, while Colt Defense sells to the military and law enforcement agencies — added seven new models in 2008, and aims to add at least six more by the end of this year.
It’s a sharp contrast from 10 years ago, when the then-struggling gun maker discontinued seven lines to regain financial stability.
The new additions include Colt’s first-ever rail gun, a handgun equipped to hold laser pointers and flashlights that has gained favor over the past few years with firearm owners.
“We’re all very excited about getting this to the market,” said Rubino, targeting the gun’s release for next month.
With plans to bring in even more machines to the factory floor, Colt projects the new equipment will boost firearm production to 150 per day, up from 90 just a few years ago. That will put production almost in step with Colt Defense, which has 485 employees, compared to 107 at Colt’s Manufacturing. The company said it is still too early to determine if it will add employees.
Still, Rubino knows the company faces an uphill battle to reclaim a large portion of the commercial market the legendary gun maker has lost to competitors throughout the company’s financial struggles, including a 1992 bankruptcy.
“It’ll take some time to grow,” she said.
Persisting financial woes prompted Colt Defense to split off from the company in 2002 to focus on the military business while the commercial side got its house in order. A few high-profile handgun lawsuits against manufacturers filed by cities — including Bridgeport — made it a particularly challenging environment for Colt to grow its commercial business leading up to the split, Rubino said.
Some American cities, including Bridgeport, filed suit against firearms manufacturers for failing to implement new technology that could make their products safer.
“The purpose was to get our arms around costs of running each of those operations to get the appropriate financing for both companies,” she said. “We split companies, and we were able to focus on government contracts.”
And Colt Defense has lived up to its end of the bargain, bringing in nearly $750 million worth of government contracts since the split. That reign faces a strong test this summer, when Colt Defense must turn over the technical data rights of the M4 assault rifle in June, giving the U.S. Army an opportunity to make improvements to the gun or pursue a contract with another company.
Given Colt’s troubled history, Shooting Industry Editor Russ Thurman said the gun maker’s ability to survive through it all is admirable, and the company had to makes some tough choices along the way.
“During the 1990s, you saw much more of a concentration on core things they knew they had a commodity in, and that was the military side,” Thurman said. “But in their commercial line, they have a long way to go to rebuilding their market share.”
Since the company went through its structured bankruptcy, Colt has fallen behind in handgun innovation, notably in its late entry to the rail gun market, Thurman said. And while Colt had drawn criticism within the industry for sometimes being its own worst enemy by pricing itself out of competition, the company’s legacy has bought it a lot of goodwill in the market, Thurman said.
“A lot of people in the industry are cheering them on,” he said. “There are certain brands you just want to succeed.”
The push for more commercial business couldn’t come at a more opportune time for Colt. Gun sales, already on the rise in 2008, soared in November after President Obama’s election. The number of background checks for firearms purchases that month spiked 42 percent, according to the FBI’s National Instant Criminal Background Check System, mostly because of fears the Obama administration would enact stricter gun laws.
Though Obama during the campaign took a softer stance on guns than some Democratic challengers, his choice of Eric Holder as attorney general sent a message to gun owners, said R. Brent Mattis, a finance professional that tracks firearm industry trends.
“That was sort of the catalyst that sent the sales numbers through the roof,” said Mattis of Holder, a champion of stronger gun-control measures.
Rubino declined to comment on what effect, if any, the Obama administration has on gun sales.
“I’m not free to comment on anything of a political nature,” she said. “I try to stay away from that.”
Reader response:
“There is a large Colt fan club cheering them on and anxiously waiting for there revival in the comercial market. “If they build it, we will come”! Especially if the quality is there. The sooner the better!!” — S. Stahlhut
