Thoughts on current shortages.

[Graybeard]

I was pondering the current situation we find ourselves in and thinking back to the shortages during the Obama years. Since we were in almost the same situation for 8 years and things never really fully recovered under Trump, what the hell is going on with the manufacturers? Why wasn't manufacturing capacity increased to sell more product? Why isn't that in the works now?

I noticed on Midway's site that even though CCI primers are out of stock they are already listing the price as $60/1000. That's quite the jump from around $34/1000. It would seem that the manufacturers and retailers are pretty happy making more money on the same volume of product manufactured.

It would seem to me that we need some new players in the manufacturing game. Why is this golden opportunity being ignored? What other market that is this underserved, for this long, wouldn't attract investment?

[sqlbullet]

There are three factors at play here:

1.  Expanding manufacturing capacity is a long pole event that will take year(s) to realize and decades to recoup investment costs

2.  The ability to scale both production on existing capacity and creating of new capacity are seriously impacted by the global pandemic

3.  These events tend to be transient, especially compared to the timelines involved in item 1

That's how I see it.  This seems to be reinforced by articles I am reading in industry publications about the current shortages.

[The_Shadow]

The shortages will continue and many scalpers are buying what they can get their greedy hands on to inflate resale pricing.
The shortages will last a while, but careful watching and looking may provide products being needed over time...

[Kenk]

For sure, the ammo shortage in MN has lessened slightly, but still has a long way to go

[Graybeard]

Gentlemen, I respect your opinions, but respectfully disagree. I think this is a failed management issue. Perhaps I've become cynical after having seen so many reports from industry insiders, from the Big 3, that were boldfaced lies. I realize that may not be everyone's experience. Because of where I live and the people I associate with, it's what I've come to expect.

First, we have no major military conflicts going on right now. No 556/.223 brass/bullets/powders/primers being gobbled up for that.

Yes, we've had a surge in gun ownership, which one would thing would be partially offset by the lack of military demand.

It has been over 12 years since powder, primers, bullets, .22lr, etc, has been fully stocked on all store shelves. That's plenty of time to invest in some infrastructure. Unfortunately, the corporate mantra for years has been that infrastructure costs are evil. No one wants to actually make anything, except money.

[gadabout]

I would have thought by now the ammo company's would have built cheap warehousing and just kept the manufacturing up to fill the extra warehouse waiting for the next election or whatever, then cleanup selling the warehoused extra!!!!  Craig

[Kenk]

Vista Outdoor / Federal / Speer is is like 30 miles from us, and is a huge facility, just think catching up with the backlog is the issue, not to mention police and military contacts

[Rognp2]

I was pondering the current situation we find ourselves in and thinking back to the shortages during the Obama years. Since we were in almost the same situation for 8 years and things never really fully recovered under Trump, what the hell is going on with the manufacturers? Why wasn't manufacturing capacity increased to sell more product? Why isn't that in the works now?

I noticed on Midway's site that even though CCI primers are out of stock they are already listing the price as $60/1000. That's quite the jump from around $34/1000. It would seem that the manufacturers and retailers are pretty happy making more money on the same volume of product manufactured.

It would seem to me that we need some new players in the manufacturing game. Why is this golden opportunity being ignored? What other market that is this underserved, for this long, wouldn't attract investment?

It is a strange time, different than the Obama buying stimulus. One of the current hallmarks is the inflation of component pricing.
But the biggest issue I can see in the overall picture here is the loss of manufacturing. The one biggest deficit is the manufacture of smokeless  powders. We only have one domestic in US  powder manufacturer, that's Winny in St Marks FL. and Im not sure that's absolute. All the other powders come from abroad. Oz, Chec, Croati, Sweden, Belgium, Finland and so forth.That puts us in a delicate condition as a nation and is downright worrisome.

Our loving government could easily cut us off without legislation.
I would suspect Osha and other regulations are part of his scenario.

[Graybeard]

Our loving government could easily cut us off without legislation.

Interesting that you bring that up when Governor's executive orders re Covid, in several states, are being shot down by supreme courts and then enforced by health departments anyway. Allowing unelected bureaucrats to supercede laws, rights, the will of the public. Seems to be the new work around.