Ammo makers prepare for drop ?


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bg
July 23, 2007, 07:31 PM
This is an interesting article. That's a lot of ammo coming out of Lake City.
http://news.yahoo.com/s/ap/20070723/ap_on_go_ca_st_pe/the_bullet_business;_ylt=AiNAR1BVf1FCimYBcCRgtP7MWM0F
excerpt

Officials at the military's Joint Munitions Command in Rock Island, Ill., say there are now more than 170 commercial ammunition companies that make everything from gunpowder to grenades.

Adding to that base are 10 weapons production plants, including Lake City, that are owned by the government but managed by contractors. Three others are owned and run by the government.

Of these 13 facilities, four will close by 2011, victims of the military base closing round conducted by the Pentagon in 2005.

The experience at Lake City illustrates the renewed attention paid to ammunition producers. Built in 1941, Lake City is operated by Alliant Techsystems, a multibillion-dollar weapons company headquartered in Edina, Minn.

Spread over nearly 4,000 acres, Lake City is the largest producer of the small-caliber ammunition used by the Army and the other military branches. General Dynamics manufactures an additional 300 million rounds a year.

The bullets come in different types and sizes; the 5.56 mm round, used in the standard-issue M-16 rifle, is the most frequently fired by U.S. forces.

When Alliant began managing Lake City in April 2000, it had 650 employees there making 350 million small-caliber rounds annually. After the United States invaded Afghanistan, orders increased and continued to escalate after the war in Iraq began in 2003.

Alliant now has 2,500 workers in Lake City making four times as much ammunition as it did seven years ago. Current output is 120 million rounds a month nearly 4 million bullets a day.
I hope prices will drop if there is surplus..

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The Law
July 23, 2007, 07:35 PM
I'm hearing a 25% increase August 1st by Federal with others to follow suit.

I wouldn't get your hopes up. (although some relief would be nice!)

SaMx
July 23, 2007, 07:48 PM
25% increase! oh no! where did you hear that!

MD_Willington
July 23, 2007, 07:53 PM
I know the local ATK plant is hiring in my area so they can keep cranking it out...

BTW.. ATK is Alliant Techsystems Inc.


CCI
Speer
Lawman
Blazer ammunition
Speer bullets for re-loaders
Federal Premium, Fusion, and Estate Cartridge ammunition


If they are cranking it out, it looks like a 25% increase in civilian ammo is a way to pick up a bit of extra cash on top of fat defence procurements...

I've shot quite a bit of ATK ammo that is "hot off the press" from ATK so I have mixed views on a price increase... doesn't make sense if my friends at ATK can legally (they do not steal it from the plant) set up free ammo for us if they are in such a bind, now does it?

Some of the last stuff we shot was from a cancelled contract, I have since tried contacting my friend to see if a group buy option was available... he's pretty busy so no answer as of yet...

Sam Adams
July 23, 2007, 07:56 PM
I've been reading an increasing number of articles about a coming full-scale war in the Mideast. The continued meetings of the Iranians and Syrians on several levels gives credence to that. So where is the ammo going to be used, plinking at paper targets by the likes of us, or shooting at the enemy by our soldiers and the Israelis (including us massively increasing our pre-positioned stocks in Israel)? At the very least, demand from the war is very high and the generals probably want to not only supply them and train those coming to combat zones better (read "more"), but to increase general reserves.

I'd love to have a massive dump of ammo and components into the marketplace, but I don't think its going to happen right now. Maybe after we finish the lion's share of the fighting in Iraq, IF the rest of that part of the world calms down.

If you want cheaper ammo, assemble it yourself.

MD_Willington
July 24, 2007, 12:09 PM
I currently have on hand ~700 rounds .223, HSM LC headstamp (50 round boxes) and some Remington I picked up. Hopefully Sports Authority in my area will have another blow out at ~ $4.xx a box. All brass.. so I'll be trying to pick those up off the ground afterwards.

I plan on buying more when I can find some.

308win
July 24, 2007, 01:50 PM
Depending on what happens in the Middle East in the next couple of years we could see lower priced product or not depending on how the production capacity is employed. If the US military demand dries up I fail to see how US manufacturers would not be capable of supplying commercial or even milspec ammunition at costs competitive with foreign manufacturers (considering the cost of transportation). This would serve to: 1. Keep US workers and productive capacity employed; 2. Lower ammunition costs; and 3. Reduce the opportunity of companies such as Wolf etc. to profiteer.

DoubleTapDrew
July 24, 2007, 01:53 PM
Every gun round coming out of Lake City costs an average of 35 cents to make, according to military officials.

That's a shame if it's true. $350 a case just to break even?

If the military is using so much ammo why aren't we getting any? I thought all the XM193PD and XM855PD was from lots that didn't pass mil. spec. and was dumped on civilian markets. Are they just being more tight with quality control or are they giving the PD stuff to troops now for training?

TX1911fan
July 24, 2007, 02:33 PM
I don't like paying higher prices any more than the next guy, but increasing prices due to increased demand and decreased supply is not profiteering, it is capitalism.

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