Quote History Quoted: I get the point of the article, however I don't buy it 100%.
The .22 shortage has gone on to an extent that should have allowed vastly accelerated production.
I can't remember a single example outside of this .22 shortage where such an incredibly in-demand product went for such a protracted period of being largely unavailable. Not one example. Ever......except for .22 ammo.
Wonder WTF companies like CCI have been thinking. From a supplier perspective, this defies the most basic principles of capitalism and supply and demand.
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Not quite. .22"LR has several unique features that have combined to cause the lack of retail availability.
a) - It's not very profitable. There is a very small profit margin for manufacturers @ the current price points of .22"LR.
b) - Other products that can be produced w/ some of the same resources are more profitable - like primers, which are in huge demand right now.
c) - The demand for .22"LR is relatively price inflexible; ie, while some will pay much higher prices than before, many will not. .22"LR is a relative luxury item, ie, it's for fun, and if you can't get it for your preferred price, you'll just shoot other calibers or go fishing.
d) - It's cheap enough to build an ammo fort out of, when you can get it. Other calibers are too expensive for the average Joe to salt away.
e) - The longer the "shortage" continues, the more likely more folks will buy all they can when they can get it. So while before Sandy Hook, you might buy one bulk pack a year, the next time you see some, you'll buy every box they'll let you get your hands on - thus prolonging the "shortage".
f) - Because of a - not profitable, and c - no significant price rises, no one's willing to invest in a new several million $ plant to build significantly more .22"LR.
TL;DR? Primers are more profitable than .22"LR, and .22"LR is cheap enough to hoard.