State of Tennessee economic development successes for the firearms industry- economic impact and resilience amid tariffs
By: Heather Thomas, Associate Publisher, Upper Cumberland Business Journal
Tennessee has solidified its position as a national leader in firearms manufacturing.
The state’s winning combination of a pro-business regulatory climate, strategic workforce development programs and targeted economic development incentives has attracted domestic and international firearm manufacturers. Despite headwinds from global tariffs and supply chain volatility, the firearms industry in Tennessee continues to thrive, creating jobs and boosting local economies across the state.
Several premier firearms manufacturers have established or expanded operations in Tennessee, further cementing the state’s reputation as a hub for the industry:
- Smith & Wesson: Relocated its headquarters to Maryville, Tennessee, drawn by the state’s pro-Second Amendment stance and business-friendly climate.
- Barrett Firearms Manufacturing: Based in Murfreesboro, expanding with a new $120 million state-of-the-art manufacturing and testing campus set to open in 2027.
- Beretta USA: Manufactures multiple firearm models at its Gallatin, Tennessee plant, benefiting from streamlined logistics and workforce excellence.
- Troy Industries: Moved its headquarters and manufacturing to Clarksville, Tennessee, motivated by favorable political and economic conditions.
- Galloway Precision: A Tennessee-based firearm manufacturer with a growing footprint in the custom firearm and accessory market.
- IWI US, Inc.: Israeli-based manufacturer currently establishing a production facility in Anderson County, Tennessee, to expand U.S. market reach.
The 2025 U.S. tariffs on imported raw materials, including steel and aluminum, have increased manufacturing costs for the firearms industry nationwide. Tennessee manufacturers have responded with strategic resilience, expanding domestic operations, reshoring supply chains and passing minimal price increases on to consumers compared to competitors in other states.
Tennessee’s government has proactively supported the firearms industry by enacting legislation that limits liability exposure for manufacturers and promotes regulatory certainty. The state’s robust workforce development initiatives and commitment to fostering manufacturing excellence have made Tennessee a destination of choice for firearm producers.
As a result, Tennessee continues to be recognized as one of the top states for firearms manufacturing, with growing investments, stable job creation and a forward-looking approach to industry sustainability and growth.
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