Welcome back to another episode of Gun Industry Insider, where we bring you the latest developments shaping the firearms industry. I’m your host, Ray Toofan, and today is June 13, 2025. In this episode, we’ll dive into Heckler & Koch’s new G36 .22LR rifle, Smith & Wesson’s Model 1854 in .45-70, and Citigroup’s reversal of its firearm policy. These developments matter to shop owners, gunsmiths, and manufacturer reps, offering insights into industry trends and opportunities. Let’s get into today’s episode.

The Heckler & Koch G36 .22LR rifle, released in March, adapts the renowned G36 design for the civilian market. The original G36, developed in the 1990s for the German Bundeswehr, replaced the heavier G3 and gained recognition for its reliability, modularity, and lightweight polymer construction. Deployed in various conflicts and adopted by multiple nations, it established a strong reputation among military firearms. This new rimfire version, produced through a partnership with Umarex, brings that heritage to shop owners and gunsmiths at a retail price of $749, with a wholesale cost of approximately $500, offering an expected margin for dealers when priced competitively.

This current iteration features an 18 1/8-inch barrel, blowback operation, and a weight of about 5.5 pounds. Its folding stock and ambidextrous controls enhance usability, while the threaded barrel accommodates suppressors, appealing to those interested in customization. Magazine capacities of 10, 20, or 30 rounds address varying state regulations, and compatibility with original G36 accessories—such as handguards, stocks, and optics—provides dealers with opportunities to increase sales through add-ons. Crafted with attention to the G36’s iconic design, it retains a military aesthetic while delivering the practicality of .22LR ammunition.

Social media platforms and review sites offer a range of perspectives on this release. On X, some enthusiasts voice disappointment over the absence of the 5.56 chambering, a nod to the G36’s military roots. Others, however, praise its affordability and utility for range practice or training, citing the low cost of .22LR ammunition. Early reviews emphasize its reliability across different .22LR ammo types, a critical factor for rimfire firearms. One Reddit user noted consistent performance with CCI Tactical AR ammo, describing the rifle as comfortable to shoot, which could resonate with customers prioritizing ease of use and dependability.

Dealers can anticipate interest from several distinct customer groups. Enthusiasts familiar with the G36, yet deterred by the HK SL8’s $1,400 price tag (and which seems to have been discontinued), will find this sub $700 alternative appealing for its design continuity at a lower cost. New shooters or those seeking a training rifle benefit from its minimal recoil and economical ammunition, paired with the allure of a military-style firearm. Collectors, particularly those with other HK models, may view it as a complementary addition, especially given its accessory compatibility. 

The partnership with Umarex, while potentially raising questions about production pedigree, is bolstered by HK’s direct involvement, ensuring the rifle aligns with the brand’s quality standards. Dealers can emphasize this to address any customer skepticism. The rifle’s modularity stands out as a key selling feature—it transcends basic rimfire applications, offering customization potential for recreational shooting or skill development. 

With a wholesale cost of $500, it’s mid-tier cost for a .22 rifle can support inventory investment, while the rifle’s features cater to a broad audience. Its lightweight construction and adaptable design make it suitable for extended range sessions, appealing to both novices and experienced shooters. The threaded barrel and accessory compatibility enhance its value, allowing dealers to promote tailored configurations. As the firearms market adjusts to current trends, this G36 .22LR rifle can potentially offer shop owners a product that balances affordability, performance, and the prestige of the HK name.

Next up, the Smith & Wesson Model 1854 in .45-70, released in April, brings a powerful new caliber to a lever-action rifle already familiar to many in the industry. This version features a 20-inch stainless steel barrel with a 1:20 twist rate, optimized for the .45-70’s ballistics, and holds 6+1 rounds in its fixed tube magazine. Two configurations are available: the stainless model with synthetic furniture wholesales around $1,125 and MAP at $1,299, while the blued model with walnut furniture wholesales around $1,200 and MAP at $1,399. S&W doesn’t strictly enforce MAP, so dealers can price under MAP without repercussions. Both come equipped with a threaded muzzle for suppressors, a Picatinny rail for optics, and XS Sights for quick target acquisition. At these price points, it sits comfortably among comparable rifles in the market.

Lever-action rifles chambered in .45-70 have a strong following, and it’s easy to see why. The cartridge, dating back to the late 1800s, has a reputation for stopping big game—think deer, elk, even bear—with authority. Its ability to handle a variety of loads, from lighter rounds for practice to heavy hitters for hunting, keeps it relevant. Shooters appreciate how the Model 1854 pairs this versatility with the smooth cycling and balanced feel of a lever-action. The blend of historical appeal and practical performance strikes a chord with hunters and enthusiasts alike. Feedback on this release has been largely positive, with many praising the modern touches, though some have noted the trigger feel could use a bit of refinement, a carryover from earlier models.

Lately, big bore calibers like .45-70 have been gaining traction. Part of that comes from hunting laws in some states favoring straight-wall cartridges, making them a go-to for compliance without sacrificing power. There’s also a growing interest in the sheer capability these rounds offer, especially in lever-action designs that feel both classic and rugged. The Model 1854’s suppressor-ready barrel fits right into another trend—more shooters are using suppressors for hearing protection and quieter shots. This rifle taps into those shifts, combining the .45-70’s old-school punch with features that match what people are looking for today. It’s a solid pick for anyone keeping an eye on where lever-actions are headed.

And finally, some banking news. Citigroup’s decision to reverse its firearm policy, which since 2018 restricted banking services for businesses selling firearms to those under 21 or without background checks (such as using a license to carry to bypass NICS), marks a shift that could ease financial pressures on retail shops and gunsmiths. This change, prompted by legislative efforts like the Texas FIND Act and growing political scrutiny, means these businesses might now access Citi’s services—loans, transaction processing, and cash flow management—without the hurdles they faced before. For small dealers and gunsmiths, this could simplify operations, as reliable banking is essential to their day-to-day survival. The NSSF has noted this as a potential relief, acknowledging how vital financial access is for the industry.

However, caution is warranted. Citigroup’s announcement, while public, lacks specifics on how it will be carried out across its operations. There’s a real chance the bank could maintain restrictive practices behind closed doors, quietly limiting services despite the stated reversal. Past behavior shows Citigroup often adjusts to social and political tides, raising doubts about the permanence of this move. If the political climate shifts—say, with a new administration or renewed pressure from advocacy groups—nothing prevents the bank from reinstating its old policy. Social media reflects this split: some view it as a solid win for firearm rights, while others suspect it’s a temporary gesture that could fade.

Retail shops and gunsmiths should monitor how this unfolds in practice, not just in press releases. Diversifying banking relationships could shield them from sudden changes if Citigroup backtracks. Legislative wins like the Texas law show state-level pushback can sway banks, but federal protections remain uncertain, with efforts like the FIND Act still in limbo. The industry needs to stay proactive, tracking Citigroup’s actions and advocating for consistent access to services. This reversal offers breathing room, but it’s no promise of stability.

Wrapping up today’s episode, we covered Heckler & Koch’s G36 .22LR rifle, Smith & Wesson’s Model 1854 in .45-70, and Citigroup’s policy reversal. These developments offer valuable insights for navigating the evolving firearms market. Got thoughts or topics you’d like us to look into? Email us at insider@gunindustryinsider.com or reach out on X at @GunInsider. Stay tuned for the next episode—we’ll bring you more updates that matter to your shop or next sales call. Thanks for listening. Until next time!