New VPC Study Reveals Hundreds of “Hidden” Gun Manufacturers Across Michigan

Media Contact: Georgia Seltzer, (202) 822-8200 x104, gseltzer@vpc.org

Holders of Federal Gun Manufacturing Licenses Can Use Them to Evade Gun Laws, Buy Guns in Quantity at Wholesale Prices, and Undercut Restrictions on Sale and Possession of New Fully Automatic Machine Guns

VPC Online Tool Allows Users to Answer the Question, “Is my next-door neighbor a federally licensed gun manufacturer?”

Washington, D.C. — Hundreds of Michigan residents possess a federal license to manufacture firearms, yet relatively few actually produce any guns according to Michigan’s Hidden Gun Manufacturers, a new study from the Violence Policy Center (VPC) as part of its ongoing Campaign for Gun Industry Accountability. Instead, the license can be used to bypass requirements that apply to unlicensed individuals buying a gun, such as background checks. In addition, license holders can purchase firearms interstate from wholesalers at discount and in unlimited quantities and, by paying additional fees to the government, undercut the tight restrictions on the sale and possession of new fully automatic machine guns and firearm silencers.

The license, known as a Type 07 Federal Firearms License (FFL), is issued by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

In Michigan in 2022, according to ATF data analyzed by the VPC:

Nationally in 2022, 76 percent (11,684 of 15,445) of Type 07 license holders did not report producing any guns that year. From 2019 to 2023, the number of Type 07 FFLs nationwide increased 52 percent ─ from 13,125 to 19,997 license holders.

VPC Executive Director Josh Sugarmann states, “In Michigan, and across our nation, nearly 20,000 Americans possess a federal license to manufacture firearms. Yet little is known about how these individuals are actually using the powers associated with the license. 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.”

End Gun Violence Michigan Executive Director Ryan Bates states, “Michiganders ought to know that they could be living next to a gun manufacturing facility. 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. Our political leaders should pass licensing requirements to ensure that this dangerous work isn’t done in your neighborhood.”

Using a VPC online research tool that utilizes ATF’s FFL database and Google Earth, the VPC reviewed the “place of business” for the 425 Type 07 license holders in Michigan in 2022.

For license holders who did not report manufacturing any firearms to ATF (324 of 425), a significant number appeared to be operating out of homes.

For license holders who reported producing 10 guns or fewer (56 of 425), the review revealed that while the majority of FFL holders’ place of business appeared to be non-residential structures, a not insignificant portion appeared to operate out of homes, in a residential neighborhood, with no easily discernible signage as seen in the slideshow below. It is highly unlikely that the presence of the manufacturer would be known by local residents or passersby from sight alone. Other sites include unrelated commercial entities.

Click for slideshow of Michigan Type 07 license holders who manufactured
10 or fewer firearms who appear to be operating out of a residential structure

The study also contains an overview of applicable Michigan state regulations as well as general state and federal recommendations.

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The Violence Policy Center is a national educational organization working to stop gun death and injury. Follow the VPC on X/Twitter, Facebook, Instagram, and BlueSky.

End Gun Violence Michigan (EGVMI) is a coalition of 50 faith, parent, teacher, and student organizations working together to end gun violence in our state. Follow EGVMI on Facebook, Instagram, Twitter, and YouTube.