Hidden Michigan Gun Manufacturers Raise Public Safety Concerns, Report Finds

A new VPC report reveals that hundreds of unused federal gun manufacturing licenses in Michigan pose potential public safety risks. Most license holders are not producing firearms, raising concerns about regulatory loopholes and home-based operations.

Hundreds of federal gun manufacturing licenses in Michigan are going unused for production, raising concerns about loopholes and public safety risks, particularly regarding Michigan gun manufacturers, a new report states.

VPC Study Uncovers Surge in Firearm Manufacturer Licenses Across Michigan

A new study by the Violence Policy Center (VPC) has brought fresh scrutiny to Michigan’s network of federally licensed gun manufacturers. The report, titled Michigan’s Hidden Gun Manufacturers, highlights that while 518 Michigan residents held Type 07 Federal Firearms Licenses (FFL) in 2023, the majority were not actively producing firearms. Instead, experts warn, these Michigan gun manufacturers may be using these licenses to sidestep key gun safety laws.

The license, issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), allows holders to manufacture firearms and purchase guns at wholesale prices across state lines. According to the study, 76 percent of Michigan’s license holders in 2022 reported producing no guns at all.

Josh Sugarmann, executive director of the VPC, noted, “We know that the vast majority of them aren’t manufacturing guns, so what are they doing? It’s long past time to find out.”

Widespread Home-Based Firearm Operations Cited as Safety Issue

Type 07 license holders in the Thumb region - Michigan Gun Manufacturers — Type 07 license holders in the Thumb region

The VPC’s analysis suggests that many license holders operate out of residential homes. Using ATF data combined with Google Earth map reviews, the study found that of the 425 Michigan Type 07 license holders in 2022, 324 reported no production, and 56 produced 10 or fewer firearms. A significant portion of these appeared to be home-based businesses, often without visible signage.

Ryan Bates, executive director of End Gun Violence Michigan, said, “Many of these license holders are working out of their homes in residential areas all across our state. This is a major public safety concern.”

License Growth Outpaces Oversight and Raises Accountability Questions

The number of Michigan Type 07 license holders rose 67 percent from 2019 to 2023, reflecting a nationwide trend. Nationally, Type 07 FFLs grew from 13,125 to nearly 20,000 over the same period. Yet the VPC notes that little is known about how these licenses are actually used.

In Michigan, 12 percent of license holders did not have a state business license listed with Michigan’s Licensing and Regulatory Affairs (LARA), raising additional questions about compliance.

VPC Tool Lets Residents Identify Local Gun Manufacturers

As part of its Campaign for Gun Industry Accountability, the VPC has launched an online tool that lets users search for federal firearm licensees by address or ZIP code. This resource aims to increase transparency and inform residents about possible neighborhood gun manufacturing activities.

Policy Recommendations Target Loopholes in Federal Licensing

The report concludes with recommendations urging state and federal policymakers to tighten oversight of gun manufacturing licenses. Proposals include requiring state business licensing for all FFL holders and enforcing zoning laws to prevent firearm manufacturing in purely residential areas.

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