Ammo Manufactures - Need More Supply

[12many]

I have read that the ammo makers have been running at 100% capacity for years and years now.

In the last few years the population is growing, poeple have money again with the economy picking up, and more guns than ever are being sold with many new shooters.

Irrespective of the latest ammo supply run which is temporarty, due to the other reasons listed above, there is a need for more supply. The market is increasing over time so we need more supply.

I know this blip will not last forever, but they were running 100% before this and there are more shooters, more people, more guns now than 2 years ago.

 

[oneounceload]

Plant expansion is expensive; complicated machinery has long lead times; mines can only produce raw materials so fast

While hate the term "perfect storm", that has been exactly what has happened. Add to that, the ammo makers have no idea what will happen with this current administration. One simple law or tax can make ammo too expensive for most and then they are left with machinery not being utilized efficiently

Add to that the demand from China for the same materials and you have a long-term shortage, especially when someone buys everything whether they need it or not

 

[X-Rap]

Expansion in this country is very difficult, couple that with industries that don't have favor with those who permit such things and it makes for a difficult situation.
It is probably cheaper to have it done overseas and ship it back.
I don't know when the last new ammo plant was built but it has been years since a refinery or smelter was built and coal plants are next.

 

[shotgunjoel]

Sure there is an increased demand, so manufacturers can charge more for what they are making. That means they can get paid more for the same amount of work, and who doesn't want to get paid more without having to do more? When expansion is expensive for all manufacturers, they're all inclined to simply increase prices instead of invest the money and risk to increase capacity.

 

[oneounceload]

Who gets paid more? Now they have overtime, increased utilities, increased taxes - and don't forget about all the new taxes associated with Obamacare driving up the cost of manufacturing. Manufacturers aren't really charging more, the RETAILERS are because there are those who think the sky is falling and they are buying anything, even if they do not shoot it. Stop trying to make it the manufacturers' fault - it is OUR fault for folks going crazy and acting stupid

 

[Magoo]

Remington is expanding: http://www.nrablog.com/post/2013/05...ease-ammo-output-build-plant-in-Arkansas.aspx

 

[Constrictor]

they are running at 100% because there has been a Democrat in office for 4 years. it really is as simple as that. if a republican gets in in 4 more years itsentirely possible they might cut off 25% of production.
just look at the sales and stock market charts for gun/ammo companies when
republicans are in office. you will be surprised.

 

[Alizard]

I have read that the ammo makers have been running at 100% capacity for years and years now.

In the last few years the population is growing, poeple have money again with the economy picking up, and more guns than ever are being sold with many new shooters.

Irrespective of the latest ammo supply run which is temporarty, due to the other reasons listed above, there is a need for more supply. The market is increasing over time so we need more supply.

Almost certainly not true. As soon as the widespread hysteria passes (when people realize the president can not outlaw guns without approval of congress) demand will drop like a rock. And as US involvement in the Iraq/Afghan wars ends, the ammo makers output being used to fill government contracts will free up.

So why the shortage? /// a "politically-induced buying panic." Although producers say they've seen buying panics in the past, nothing compares to what we're experiencing now.

http://www.breitbart.com/Big-Govern...nufacturers-We-re-Producing-As-Much-As-We-Can

 

[Alizard]

Sure there is an increased demand, so manufacturers can charge more for what they are making. That means they can get paid more for the same amount of work, and who doesn't want to get paid more without having to do more? When expansion is expensive for all manufacturers, they're all inclined to simply increase prices instead of invest the money and risk to increase capacity.

NO. If the demand was increasing in a sustained way, they would be investing in new production to be able to make more product at lower prices which enables them to grab market share from competitors. That's why a color TV cost $1000 in 1970 and costs $200 today. Ammo demand will not continue to increase, so they will not spend hundreds of millions to expand capacity..

 

[CoRoMo]

The market is increasing over time so we need more supply.

They know. They are not a fumbling group of idiot millionaires that have no idea how to make a profit in America's ammunition market. They are more knowledgeable about their market than any of us imagine to be. They have been increasing and are continuing to increase their production. Realize this.

 

[12many]

Capacity is needed not becuase of this latest rush but because of all the new gun sales and new shooters taking up the sport. If immigration reform goes through maybe there will also be millions more new shooters. More women are shooting now than ever before and more CCP holders too.

I recall supplies to be hit and miss before this latest crazy rush with not all stores having all calibers sometimes.

 

[Constrictor]

I gotta sit back and laugh when I see keyboard businessmen telling well established ammo companies they need to change their businesses strategy because I think they should.

 

[oneounceload]

Exactly,

 

[itsa pain]

I hope the "well established" monopolies oops I mean ammo companies run by such savy and astute business men admired by constrictor go under like our steel industry due to gluttonus greed and it shifts overseas while all the geniuses here that cry about the cost of this and that the regulations being able to make a profit etc. sit on the unemployment line. in china they do not worry like a group of old ladies knitting sweaters and that is why they will bury us. making a profit means to an American "business man" is making 2 trillion a week. henry ford was one of the last good American business man