Make vs. Buy: Should a Firearm Brand Outsource Production?

Posted by Dan Danner on Jul 30th 2026

By Dan Danner, Project Manager — 1934 Armory (Elsner Engineering Works)
Last updated: July 2026

Choosing between building production in-house and outsourcing it depends on your business goals, production volume, and available resources. Running your own machine shop offers complete control, but it also requires major investments in equipment, skilled labor, facilities, and regulatory compliance. Outsourcing allows you to use an established manufacturer's production capacity and quality systems without carrying those fixed costs. The right choice depends on where your company is today and where you expect it to grow.

Key Takeaways

Building production in-house requires significant investments in equipment, staffing, and compliance.
Outsourcing converts large, fixed costs into predictable production costs.
In-house manufacturing works best for sustained, high-volume production or proprietary processes.
Contract and OEM manufacturing serve different stages of product development.
A finalized design and recurring production demand are good indicators that outsourcing may be the right move.

The make-vs-buy decision, in plain terms

Every growing firearm brand eventually faces the same decision. Should you build your own manufacturing operation or work with a production partner? Building in-house means your company owns the machines, hires the employees, manages quality, and carries the responsibility for every part produced. Outsourcing shifts those responsibilities to an experienced manufacturer while allowing your team to focus on engineering, product development, sales, and customer support. Neither option is automatically better. The decision comes down to cost, production volume, available capital, and how quickly you need products hitting the market.

What building production in-house actually costs

Starting a manufacturing operation requires much more than purchasing a CNC machine. You also need tooling, fixtures, programming software, inspection equipment, maintenance programs, and a facility that supports precision machining. Staffing is another major expense. Experienced machinists, programmers, inspectors, and manufacturing engineers remain difficult to hire and retain. Beyond payroll, companies must establish documented quality systems, maintain ATF compliance, obtain the proper FFL Type 07 licensing, and, if desired, achieve ISO 9001 certification.

Time is often the largest hidden cost. Equipment installation, employee training, process development, and production validation can take months before a shop reaches consistent output. During that period, product launches and revenue may be delayed.

When outsourcing wins

Outsourcing removes many of the fixed costs associated with building a manufacturing operation. Instead of investing in equipment, facilities, and additional staff, companies purchase completed parts from manufacturers that already have production systems in place. This approach shortens the path to market and allows capital to be invested in product development, inventory, or business growth instead of manufacturing infrastructure. Outsourcing also provides you with flexibility. Production can often scale up or down more easily than maintaining unused machine capacity during slower periods. For many firearm brands, this makes outsourcing the lower-risk path while demand continues to grow.

When building in-house is the right call

Outsourcing is not always the best solution for every single situation. Companies producing very high volumes year after year may eventually recover the cost of their own equipment through lower production costs. Building internally also makes sense when proprietary manufacturing methods or scheduling requirements make outside production impractical. For many brands, however, reaching that point takes years of steady growth in an industry that is constantly in upwards or downward trends.

Contract vs. OEM: which outsourcing model fits?

Contract manufacturing is intended for companies with completed engineering drawings and production-ready designs. The manufacturer builds the product exactly as specified. OEM manufacturing includes engineering collaboration before production begins. This model is useful when a design still needs refinement or production planning before moving into full-scale manufacturing.

How to know your brand is ready to outsource

Most companies are ready to outsource once product designs are finalized and production demand becomes consistent. Manufacturers perform best with stable drawings, repeatable specifications, and realistic production forecasts. Recurring production programs ranging from roughly 200 units per year to more than 1,000 units per month often fit well within a production manufacturing environment. One-off prototypes and custom gunsmithing projects typically require a different type of shop altogether. If your goal is to focus on growing your brand instead of operating a machine shop, outsourcing can provide the production capacity you need while reducing capital investment and operational complexity.

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Frequently Asked Questions

Is it cheaper to manufacture firearms in-house or outsource?

It depends on your production volume, available capital, and long-term business goals. Building production in-house requires a significant investment in CNC machines, tooling, inspection equipment, skilled labor, facilities, and compliance systems before the first part is produced. Outsourcing converts many of those fixed costs into predictable per-unit manufacturing costs, making it the more practical choice for many growing firearm brands.

What does it cost to set up in-house firearm production?

The total cost varies depending on your production goals, but it often includes CNC machining centers, tooling, metrology and inspection equipment, software, facility upgrades, maintenance, employee salaries, and regulatory compliance. Companies must also account for the time required to establish production workflows, quality systems, and licensing before manufacturing can begin.

When should a firearm brand outsource production?

Outsourcing makes the most sense when your product design is finalized, production demand is becoming consistent, and building your own machine shop is not financially practical. It also allows companies to reach the market faster by using an established manufacturer's equipment, quality systems, certifications, and production expertise instead of building those capabilities internally.

What's the minimum volume to make outsourcing worth it?

There is no universal minimum order quantity because every product and manufacturing process is different. Many production manufacturers perform best with recurring production runs, while smaller specialty projects are priced to account for machine setup and programming time. The right production volume depends on part complexity, repeat demand, and long-term manufacturing goals.

Contract or OEM manufacturing. Which do I need?

Contract manufacturing is the right choice when your engineering drawings, specifications, and production requirements are complete. OEM manufacturing is better suited for companies that still need design refinement, engineering collaboration, or design-for-manufacturing support before production begins. Choosing the right model depends on how far your product has progressed through development.

Do I need my own FFL to outsource firearm manufacturing?

In many cases, no. A qualified manufacturing partner holding an FFL Type 07 Manufacturer license can legally manufacture firearms or firearm components according to federal regulations. Your own licensing requirements depend on your role in the product's design, ownership, distribution, and sales. If you are unsure, consult the ATF or qualified legal counsel before beginning production.

Related Guides

If you're evaluating manufacturing options, these resources provide additional information to help you compare production models and qualify potential suppliers.

Working with 1934 Armory

The decision to manufacture products in-house or outsource them should be based on careful planning rather than assumptions. Every firearm company reaches that decision at a different stage of growth, and the right answer depends on production volume, available capital, engineering resources, and long-term business strategy. There are situations where investing in your own manufacturing operation makes sense, just as there are situations where outsourcing provides a faster, more cost-effective path to market.

If you decide that outsourcing is the better fit, choosing the right manufacturing partner becomes the next important step. Look beyond equipment lists and production claims. Evaluate certifications, quality systems, manufacturing experience, communication, and the ability to deliver consistent results over time. A reliable production partner should provide confidence not only in the parts they manufacture, but also in the processes they use to produce them.

At 1934 Armory, we believe informed buyers make better long-term decisions. Whether you're comparing contract manufacturing with OEM manufacturing or determining if your company is ready to outsource production, understanding the business case behind each option is the best place to start. If you'd like to discuss your project or learn more about our manufacturing capabilities, request a consultation and we'll be happy to answer your questions.