AR/M4 Production? Business idea...

[Cala]

Hello Gents

I presume it hasn't gone unnoticed that for the past few months Iraq has once again become a focal point in the news. The conflict raging in the Northern parts of Iraq has had a detrimental effect on the way Iraqi citizens view their government and security forces. On turning points like this people flock to the black market to purchase weapons and ammunition to be able to protect themselves when rule of law deteriorates. This tendency has affected the market in such a way that a Turkish/Chinese made AK47 can yield up to $2,500 the very same rifle used to cost around $800, the same goes for ammunition as we see prices triple and quadruple again and again. This creates a lot of problems for the government due to the fact that they don't have a steady supply of arms, so they usually get what they need from the very same market.

I currently live and work in Kurdistan Region of Iraq, so I see this trend first hand.

Now for my question to this forum is as follows

If i wanted to establish an M4 Rifle production company in Kurdistan what would I need in terms of money and technical skill? I have been doing a fair bit of research but since my technical knowledge is limited i can't even begin to estimate as to what the whole encompassing business plan would be. But what i have been able to understand is that there is more than 500 independent manufacturers in the US alone. Any thoughts on where to start or who to contact?

[Carpetcop617]

I'd look for a more lucrative business to jump into personally. I am of the firm belief that the US government will provide an M4 to everyone who needs one in that region of the world, regardless of whose side they are on.

[Cala]

I think it's lucrative enough, considering there are major government contracts to be announced

[LRRPF52]

The span of technical knowledge and manufacturing ability exceeds what is normally possible in developing countries, unless you have access to barrel suppliers, CNC machine shops, anodizing shops, precision kilns, and competent engineering & Total Quality Management staff. With the AK, it is much easier to manufacture in the developing nations, although its service life longevity reflects this as well.

[advntrjnky]

If I recall correctly that us US citizens can not legally give you the information you have asked for. Especially since you mentioned illegal black market trading. We have to follow the rules of ITAR (sp?).

Advntrjnky

[SilverCat]

If I recall correctly that us US citizens can not legally give you the information you have asked for. Especially since you mentioned illegal black market trading. We have to follow the rules of ITAR (sp?).

Advntrjnky

I'm not sure about this thread, but your comment caught my eye.
Isn't the internet already a one-stop-shop for any info you could possibly want on the subject matter??

This is just my curiosity, I don't know much about ITAR except that I can't buy certain products because of it.

[JusticeM4]

Most everything you need to build an AR15 is online using Milspec sheets. If you were serious about this, do your research on the cost of materials and equipment to build your AR15 from the ground up. I don't know the laws regarding buying parts from outside your country, and how to source them if you choose not to produce everything yourself.

Could be an expensive business endeavor unless you know exactly what you are doing, have a lot of $$ and connections.

[Iraqgunz]

It could be done, but something that was mentioned is that ITAR applies to U.S citizens, regardless of whether they are in the U.S or not.

There is plenty of information out there as to what it would take. You would need CNC machines, etc... There is a lot of millions involved in such an endeavor. Some components would best be purchased. It could be done as long as End User Certificates, BATF and DDTC approvals are obtained.

[Dead Man]

Surprised this hasn't been reminded yet: http://en.wikipedia.org/wiki/Darra_Adam_Khel

[TehLlama]

You're going to be up against ITAR for a few key components - startup cost for lathe and milling capability to make those parts yourself is going to be considerable (but can be recooped - less if you can buy used and find people with enough machining expertise to work around having worn equipment). Another issue will be sourcing raw materials (with a good enough papertrail that you can be really confident you're actually putting in the metalworking costs on metallurgically correct material), but that's a cost issue as much as anything else.

The number of 'manufacturers' in the US isn't as impressive if you narrow it down to a few really critical components (most barrels only come from 25 or so sources' bolts, carriers, and receiver extensions about the same; lower parts despite their comparative simplicity are economically sourced from one of just a few places), but there are still many different places.

Unless you have access to around $400,000 USD in combined capital, it's going to be extremely hard. That much with the right technical skill (machining, CAD/CAM, metrology, quality assurance, assembly; not to mention business and staffing, as well as surface coating firms to handle anodize/parkerize) and it's actually fairly straightforward if you have the right drawings to work off of and aren't having to worry about legal concerns.

FWIW, the machine shop I work at has the capability to make complete AR's if we source barrel blanks and outsource surface treatment (for us, OSHA concerns on any surface treatment); but we make other things instead because of the better profit margin. We make satellite parts regularly (complex, high precision, tight tolerance stuff), and still our most lucrative stuff is elsewhere.