Editor’s Note: Today, Raul Mas, our newest editor, spends “A Few Minutes with….Jonathan Mossberg, CEO of Kalashnikov USA”

Jonathan Mossberg, CEO, Kalashnikov, USA

MAS: Let’s start with the obvious question, what’s the connection to the Mossberg family? Were you destined for the firearms industry by virtue of your surname? What other businesses have you been involved with?

Mossberg: I grew up in the firearms business. I started working at O.F. Mossberg & Sons when I was 16 years old for $4.00/hr. in the maintenance department scraping and painting the factory bathroom floors. I worked myself up to being a board member and the VP of Manufacturing in charge of over 400 people in three locations. It was a wonderful experience. Then I went off on my own and bought a bankrupt aerospace machining company. We ended up making AR-15 components for US military and commercial markets. We grew from bankruptcy to over 110 employees and then I sold it to a private equity firm.

Mas: So you’ve worked in the firearms industry for some time. What are the biggest misconceptions or myths surrounding the gun business?

Mossberg: The biggest misconception is that every day is shooting at the range and going on sponsored hunts and it is all fun and games. I have to admit that most days I am excited about going to work, but it is not easy and there is a lot of stress. The hunting and shooting trips, along with trade shows are fun, but they are work! Designing and fine-tuning new designs is really rewarding as is bidding on and winning government contracts. The best, nicest, most down-to-earth people are in the gun business. It’s great camaraderie.

MAS: In recent years, we’ve seen some of the biggest names in the firearms industry struggle to survive. Meantime, other companies, including some new entrants, are growing by leaps and bounds. What does it take to be a successful gun manufacturer in this day and age?

Mossberg: To be a successful firearms company, you need to be lean and nimble. So many of the larger companies are bogged down with excess management, too much debt, and people in charge that don’t even know which end of the gun goes “bang”. It’s really sad to see them go belly-up time after time, screwing their loyal employees and the debt-holders. It is also extremely important to listen to your customers. Many gun companies design guns and force them on the consumer. Meanwhile, the consumer is telling them at trade shows what they want to buy. If more companies listened to their customers, they would be more successful.

MAS: How did you come to be hired as CEO of Kalashnikov USA? When did you join the company? What changes did you make to improve the end product for consumers?

Mossberg: It happened to be good timing. I received a call that Kalashnikov USA needed some talent to achieve ownership’s goals. That was nearly 3 years ago. Since then we launched three major product lines, won two US government contracts, built a stellar management team and have multiple new projects in the pipeline. One of the most important things a firearms company can do to improve their products is test, test, and test. It seems obvious, but too many companies have a reputation of letting their customers find the problems. At KUSA, we want to solve those issues before they reach the consumer.

MAS: How has Kalashnikov USA has grown during your tenure as CEO?

Mossberg: I can’t mention exact numbers, but revenue and production are up over 500%, the number of employees has tripled and we are adding new equipment on a monthly basis. Between our direct growth and supplier growth we have contributed tens of millions of dollars to the Florida and national economy as well as hundreds of jobs that directly and indirectly rely on us.

Mas: This past year, characterized by the pandemic, social unrest and political upheaval, has led to a huge surge in demand for firearms and ammunition. Do you see the demand for firearms and ammunition slowing down anytime soon? What changes have you made at Kalashnikov USA to keep up with the buying binge?

Mossberg: I do not see demand slowing anytime soon. And when it does, KUSA will be insulated a bit because we have a product that people have been waiting years to obtain. We are adding employees, machinery and talent to keep up with demand, but costs are rising and certain materials are becoming scarce. The good news is that recently we have been reducing the time from order to delivery due to expanding our production capacity.

MAS: There is no question that the new administration is decidedly anti-gun. Biden has promised executive action on firearms and has called for more restrictive laws, including bans on semi-automatic weapons and magazines. He has also called for the elimination of liability protections for firearm manufacturers, subjecting your industry to costly lawsuits that could destroy it entirely. How do you manage as a CEO when you are faced with these regulatory threats that could potentially cripple your business?

Mossberg: I have faith in America, her laws and the patriotic citizens who will do their best to make sure our Second Amendment rights are not further eroded. In addition, we are entering new product markets that are more resistant to proposed restrictions.

MAS: In addition to the regulatory threats, many financial institutions and B2B service providers have “blackballed” firearm manufacturers and retailers. What impact has that had on your business? Has it curtailed your growth or brought added costs?

Mossberg: I feel that this is an illegal discriminatory process that has hurt our ability to freely conduct basic banking functions. It has definitely added cost to running our business. I am all for free markets, but the banking industry is regulated, and not free. Banks should supply services to businesses who meet basic financial measurements without regard to the type of business being conducted.

MAS: What is your vision for Kalashnikov USA? Where do you see the company in five years? Ten years? Will you stick to the Kalashnikov design or will you consider offering other operating systems, calibers and designs?

Mossberg: We are committed to our core focus of building a world class firearms company and maintaining “Russian Heritage, American Innovation.” There are other Russian designs outside of the AK platform that meet our criteria. Within 5 years, I see KUSA as a major player in the AK arena and within 10 years I see us as a top-tier manufacturer with a broad line of products.