Ammo production

RamItOne · January 8, 2013, 06:41 PM

Is there really a shortage, or more of an artificial scarcity.

I find it hard to believe that the big ammo mfg normally operate at close to their max capacity, so how much more can they produce.
Normal production X, ramped up production 3X? Did demand go up from Y to 10Y, I can't see demand going up by an order of magnitude.
Would be interesting when this all dies down to see how much ammo was purchased between mid Dec till whenever it settles down vs a historical chart.

I'm wondering if the ammo mfgs are looking at it this way. Would you rather produce 100 units at X or 60 units at 2X. If they churned out enough for supply to meet demand and bring prices down to Nov 2012 levels, then they would have over saturated their market and most people would be sitting on stockpiles (more than they normally would have) of ammo with no real need to buy more in the short term leaving the mfg with a lower demand than normal.

Any thoughts?

UtopiaTexasG19 · January 8, 2013, 06:58 PM

I assume they were already running at capacity before the Conn. incident because the bulk sellers I have bought from for years were occassionally out of popular calibers. There are only 24 hours in a day and machines can only run at a certain capacity. You get a quick demand for 300% of capacity and something has to give. I have acquantences who haven't shot their guns in years running around buying anything at any price and this is why this artificial panic is in full swing. Those that planned ahead aren't buying anything at these inflated prices.

Alabama Shooter · January 8, 2013, 07:09 PM

There are less than 4000 people employed in the entire US making small arms ammunition.

coachteet · January 8, 2013, 07:10 PM

There isn't anything artificial about the current ammo shortage any more than a battery and bottled water shortage during mass power outages is artficial. Demand rapidly increased overnight, and has stayed far above supply. There were similar discussions after the 2008 election, but the demand is even higher now than it was then, fueled by panic buying.

BarryLee · January 8, 2013, 07:39 PM

A manufacturer pays for their equipment whether it is making product are just sitting there, so most of them run pretty much at maximum capacity all the time. I also doubt that in this current climate any of them will be investing a lot in capital equipment to increase production.

ClydeFrog · January 9, 2013, 06:13 AM

Hornady states on their main ammunition site that they have extra shifts & are working around the clock.
People need to understand that gun & shooting industry firms want to make $$$. They can't grind out the staffs or burn through the materials to manufacture ammunition.
I recall a printed ad from about 2 years ago where a Black Hills employee said he worked 60hr work weeks making ammunition. That sounds far-fetched but in 2013 I'd bet a lot of US factories have OT,

.
These big companies(Winchester, Dakota Arms/Corbon, Hornady, Federal, etc) have huge profits too!

Clyde

January 8, 2013, 06:41 PM	#1
RamItOne Senior Member Join Date: May 24, 2011 Posts: 990	Ammo production Is there really a shortage, or more of an artificial scarcity. I find it hard to believe that the big ammo mfg normally operate at close to their max capacity, so how much more can they produce. Normal production X, ramped up production 3X? Did demand go up from Y to 10Y, I can't see demand going up by an order of magnitude. Would be interesting when this all dies down to see how much ammo was purchased between mid Dec till whenever it settles down vs a historical chart. I'm wondering if the ammo mfgs are looking at it this way. Would you rather produce 100 units at X or 60 units at 2X. If they churned out enough for supply to meet demand and bring prices down to Nov 2012 levels, then they would have over saturated their market and most people would be sitting on stockpiles (more than they normally would have) of ammo with no real need to buy more in the short term leaving the mfg with a lower demand than normal. Any thoughts? __________________ M&P- the other dark meat https://petitions.whitehouse.gov/pet...rtant/DJyvnHz0 Last edited by RamItOne; January 8, 2013 at 06:43 PM. Reason: Fat fingered the iPhone keyboard

January 8, 2013, 07:09 PM	#3
Alabama Shooter Senior Member Join Date: December 20, 2012 Location: Sweet Home Posts: 886	There are less than 4000 people employed in the entire US making small arms ammunition. __________________ Tomorrow is the most important thing in life. Comes into us at midnight very clean. It's perfect when it arrives and it puts itself in our hands. It hopes we've learned something from yesterday.

January 8, 2013, 07:39 PM	#5
BarryLee Senior Member Join Date: July 29, 2010 Location: The ATL (OTP) Posts: 3,946	A manufacturer pays for their equipment whether it is making product are just sitting there, so most of them run pretty much at maximum capacity all the time. I also doubt that in this current climate any of them will be investing a lot in capital equipment to increase production. __________________ A major source of objection to a free economy is precisely that it ... gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. - Milton Friedman

January 9, 2013, 06:13 AM	#6
ClydeFrog Junior member Join Date: May 1, 2010 Posts: 5,797	Hornady.... Hornady states on their main ammunition site that they have extra shifts & are working around the clock. People need to understand that gun & shooting industry firms want to make $$$. They can't grind out the staffs or burn through the materials to manufacture ammunition. I recall a printed ad from about 2 years ago where a Black Hills employee said he worked 60hr work weeks making ammunition. That sounds far-fetched but in 2013 I'd bet a lot of US factories have OT, . These big companies(Winchester, Dakota Arms/Corbon, Hornady, Federal, etc) have huge profits too! Clyde

January 8, 2013, 06:58 PM	#2
UtopiaTexasG19 Senior Member Join Date: July 3, 2011 Location: S.E. Texas Gulf Coast Posts: 743	I assume they were already running at capacity before the Conn. incident because the bulk sellers I have bought from for years were occassionally out of popular calibers. There are only 24 hours in a day and machines can only run at a certain capacity. You get a quick demand for 300% of capacity and something has to give. I have acquantences who haven't shot their guns in years running around buying anything at any price and this is why this artificial panic is in full swing. Those that planned ahead aren't buying anything at these inflated prices.

January 8, 2013, 07:10 PM	#4
coachteet Senior Member Join Date: March 7, 2008 Location: Cincinnati, OH Posts: 122	There isn't anything artificial about the current ammo shortage any more than a battery and bottled water shortage during mass power outages is artficial. Demand rapidly increased overnight, and has stayed far above supply. There were similar discussions after the 2008 election, but the demand is even higher now than it was then, fueled by panic buying.