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 July 3, 2025. In this episode, we’ll dive into Ruger's recent acquisition of Anderson Manufacturing and its impact on the budget firearms market, and we’ll also explore the new Sig Sauer P365 AXG LUXE pistol. These developments matter to you, offering critical insights into industry trends and opportunities. Let’s get into today’s episode.

First up, more trouble in the budget firearms sector. It was just announced that Ruger acquired Anderson Manufacturing, which has sent ripples through the firearms industry, especially in the budget AR-15 market. Anderson, a company with a long-standing reputation for producing affordable AR-15 rifles, has been a key player for decades, offering reliable options that appealed to first-time buyers and those watching their spending. Known affectionately as the “poverty pony” among enthusiasts, their rifles combined quality and low cost in a way that made them a staple for many. However, following the acquisition announced on July 1, Ruger has decided to discontinue the Anderson brand. This means those low-cost ARs that so many relied on will no longer be available, a change that’s hitting at a time when the budget firearms market is already facing tough times, as seen with the recent closures of SCCY and Del-Ton Firearms.

Anderson’s history goes back to 1963, when they started out making precision parts for aerospace and defense. By the 1990s, they shifted into AR-15 components and eventually full rifles, building a name for themselves with a no-frills approach. Their focus on affordability without sacrificing too much reliability made them stand out. Now, with Ruger taking over their facilities and machinery through an asset purchase, that chapter is closing. Ruger has made it clear they won’t keep producing Anderson’s branded products, which leaves a noticeable gap in the market for budget-friendly AR-15s. This isn’t an isolated event either—SCCY, known for its inexpensive handguns, and Del-Ton, another budget AR-15 maker, both shut down in recent months. These closures point to a broader struggle for manufacturers trying to keep prices low while dealing with rising costs and competition.

For retailers, this development means rethinking what they can offer customers looking for affordable AR-15s. Anderson’s rifles were a go-to because they hit that sweet spot—decent quality at a price that didn’t scare off budget buyers. Without them, retailers will need to turn to other brands like Palmetto State Armory or Radical Firearms to fill the void. The challenge is that finding alternatives with the same value might not be easy. Some options could be pricier or lack the reliability Anderson delivered, which could leave retailers with fewer choices to satisfy entry-level buyers. This shift might push some customers to hold off on buying or look for used Anderson rifles instead, potentially affecting sales volume for shops that leaned heavily on those low-cost options.

Wholesale reps are also facing adjustments. They’ve been used to moving Anderson’s products to retailers, and now that supply is gone, they’ll need to pivot. This could mean putting more emphasis on Ruger’s product lineup, especially if Ruger ramps up production using Anderson’s facilities. Alternatively, they might need to scout out other manufacturers offering budget-friendly AR-15s to keep their retailer clients stocked. Either way, it’s a shift in strategy—building new supplier relationships or renegotiating terms with existing ones to adapt to the loss of a familiar brand. If Ruger does increase output, wholesale reps might find some relief by leaning into that expanded inventory, but it’ll take time to realign their approach.

The budget firearms market has been under strain lately, and Anderson’s exit only adds to the pressure. SCCY and Del-Ton’s closures already shrank the pool of affordable options, and now with Anderson gone, the low-cost segment is losing ground. Rising material costs, supply chain issues, and competition from bigger players are likely making it harder for smaller manufacturers to stay profitable. For retailers and their customers, this trend could mean fewer choices at the lower end of the price spectrum, nudging some buyers toward pricier models or second-hand deals. It’s a tough spot for an industry segment that’s long relied on accessibility to draw in new shooters.

Gunsmiths, though, won’t see much disruption from this change. Anderson’s AR-15s were built to mil-spec standards, meaning their parts match up with what’s used across most other brands. That interchangeability is a strength of the AR-15 platform—gunsmiths can still repair or customize Anderson rifles using components from elsewhere without any real headache. Customers who already own these rifles won’t be left high and dry, since the parts ecosystem is broad enough to keep them supported. It’s one area where the impact of the acquisition stays minimal, thanks to that standardized design.

Anderson did put out a pistol known as the Kiger, but it never really gained much traction. It was designed as a Glock clone and meant to compete with Palmetto’s Dagger pistol. With Anderson gone, and Ruger discontinuing the brand, parts for the Kiger will disappear. There was some compatibility with Glock OEM parts, however, some of the design was proprietary. Due to the low cost of the pistol, should customers require gunsmithing for these, it may not be worth it to them to fix it and just shift to a new model firearm.

Ruger’s move to acquire Anderson fits into their pattern of growth. Back in 2021, they picked up Marlin Firearms after the Remington bankruptcy, and now they’re adding Anderson’s assets to the mix. By taking over the Kentucky facility, Ruger can boost its own production capacity, maybe even rolling out more of their own AR-15s or branching into new products. For retailers, this could eventually mean a wider range of Ruger options to stock, though it’s not certain they’ll target the budget market Anderson served. Customers might feel the squeeze in the meantime, turning to alternatives that don’t quite match what they’re used to or hunting for Anderson’s rifles on the used market, where demand could push prices up. It’s a significant shake-up, especially for those tied to the budget AR-15 world.

Next up, the Sig Sauer P365 AXG LUXE brings a fresh option to the concealed carry market, designed with features that retailers can easily promote to their customers. Chambered in .380 Auto, this micro-compact pistol includes an integrated two-port compensator, delivering one of the smoothest shooting experiences in the P365 lineup. That softer recoil matters for some buyers who might shy away from harder-kicking models, especially newer shooters or those prioritizing comfort. The pearlescent black Cerakote finish on the stainless steel slide and frame adds a high-end look, blending style with practicality—a detail that can catch a customer’s eye on the shelf. The XL AXG grip module, paired with textured LOK grip panels, ensures solid control, while three 12-round magazines provide high capacity for a small frame. Being optic-ready and fitted with a Picatinny rail opens the door for retailers to pair it with accessories, boosting potential add-on sales.

At a wholesale price of $875 and a MAP of $999, the profit margin is fairly standard in the sig line-up. The .380 chambering might raise eyebrows compared to 9mm, but for the target market—folks who value low recoil and ease of use—it fits perfectly. Retailers can highlight the compensator’s effect on shooting comfort and the premium build to justify the price tag. Sig Sauer’s reliability adds credibility, making it easier to move units. Wholesale reps can position this pistol as a niche offering: a luxurious, soft-shooting concealed carry option. Stressing the included magazines, customization potential, and brand trust can seal the deal. Retailers may need to explain .380’s advantages for certain buyers, but with the right pitch, this model can find its place. Stocking a handful to gauge interest could be a smart move, especially with the upselling opportunities tied to its optic-ready design.

Wrapping up today’s episode, we explored Ruger’s acquisition of Anderson Manufacturing and its significant impact on the budget firearms market, and the new Sig Sauer P365 AXG LUXE pistol. These developments are crucial for understanding the evolving landscape of the firearms industry. 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!