Thread: Is it true....
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Old December 25, 2012, 12:55 PM   #17
DPris
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Join Date: August 19, 2004
Posts: 4,779
Regarding expanded production, it has to be balanced out with projected demand over a period of several years.
New facilities & equipment are expensive, and the costs have to be absorbed by long term sustained demand.

Obama has skewed demand way beyond normal levels, but the market over the past four years & the current frenzy will not continue on indefinitely, and no maker wants to build new plants, buy expensive new equipment, and hire new bodies to meet a peak demand that may be all over with in two years.

From a business perspective, it's a more sound policy to stay a little behind demand than to grossly overexpand & then get caught with idle equipment & employee layoffs later on.

On a side note- I was told Ruger did hire over a hundred people this year.

And on the MIM- Ruger is expanding the use of MIM parts across the board.
Denis
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