The gun industry is finding its footing after sliding from a record-setting sales streak during the pandemic.

To attract consumers, many in the industry are betting on newer weapons and better marketing strategies.

According to FBI data analyzed by gun watchdog site The Trace, Americans bought 1.19 million guns in July, down 17% from the previous month.

In spite of this, the firearms business is still profitable as manufacturers adapt to changing consumer demands, develop new weapons, and employ marketing strategies that reach younger, more diverse consumers.

As a result, gun makers such as Smith & Wesson and Sturm, Ruger & Company have seen their declines stabilize. There has been a 40% increase in Smith & Wesson stock this year, while a 2% increase in Sturm, Ruger stock.

Their business models have weathered the slowdown, and a handful of positive trends will help the industry rebound.

As material costs rise and demand wane, several companies in the gun market are slowing production and slashing prices.

As a result of the pandemic, more Americans purchased firearms than ever before. The National Shooting Sports Foundation reports that new gun ownership reached a record 21 million in 2020, at the height of the sales boom. In order to estimate new gun ownership rates, the NSSF uses FBI data and background checks.

By 2022, however, feelings of insecurity and instability experienced by Americans amid the pandemic subsided, as did the surge in firearms sales. Gun purchases that year fell to 16.4 million, which is more akin to pre-pandemic numbers.

Smith & Wesson, the country’s largest firearms manufacturer by revenue, reported fourth quarter net sales of $144.8 million, a 20% decrease from comparable quarter last year.