In 2006 Ruger’s firearms sales, which make up about 80% of its revenues, fell almost 4% in the fourth quarter, says Motley Fool. The problem was Ruger had too much inventory and not enough consumer demand. The business model needed to change and Ruger has gone from an annual production cycle to a customer-demand driven, meaning new guns will be made to refresh supply on actual guns sold. The Fool says this is not necessarily worrisome since Ruger, like any manufacturer needs to tighten its belt with all its business segments. There are challenges is the firearm industry. Even Winchester, which is as American as apple pie and canned beer, wasn’t immune to the bottom line. The Fool suggest that Ruger might make itself a candidate for acquisition. Smith & Wesson recently consolidated with Thompson/Center Arms.