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Posted: 1/16/2021 2:04:09 AM EDT
Are the ammo manufacturers going to add manufacturing capacity or are they holding off tooling up for that based on a belief that this is a bubble?

I’m no longer convinced that all the demand is a bubble. I think we’re looking at a new normal spawned by the addition of a lot of new gun owners.

What do you guys think? Any relief in sight or $0.70 a round of 9mm forever?
Link Posted: 1/16/2021 2:06:18 AM EDT
[#1]
Probably waiting to see if the gov will give them the axe. Happy times ahead
Link Posted: 1/16/2021 2:06:34 AM EDT
[#2]
The entire industry is standing by for higher regulation, restriction and operating liability. Nobody is increasing anything.
Link Posted: 1/16/2021 2:07:11 AM EDT
[#3]
No fucking way.
Link Posted: 1/16/2021 2:10:33 AM EDT
[#4]
I see them manufacturing as much ammo as possible given their current equipment. 24/7 production.

Will they add machines and facilities to increase production even further? Highly unlikely as it would likely be a very poor investment long term.
Link Posted: 1/16/2021 2:14:45 AM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I see them manufacturing as much ammo as possible given their current equipment. 24/7 production.

Will they add machines and facilities to increase production even further? Highly unlikely as it would likely be a very poor investment long term.
View Quote


^^^This! Not a chance in hell with the uncertainty of their future. They will produce maximum capacity with what they currently have.
Link Posted: 1/16/2021 2:18:54 AM EDT
[#6]
Damn, was hoping someone would say “yes.”

Going to be a bunch of grown men purchasing airsoft guns then I guess.

What about increasing importation from overseas?
Link Posted: 1/16/2021 2:19:55 AM EDT
[#7]
Not if they are smart
Link Posted: 1/16/2021 2:24:33 AM EDT
[#8]
Add debt for a problem that comes up every 4 years so that in time between it's idled and they sell at minimal margins? Sure.....
Link Posted: 1/16/2021 2:29:05 AM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Add debt for a problem that comes up every 4 years so that in time between it's idled and they sell at minimal margins? Sure.....
View Quote


So you think demand will return to 2019 levels?

I know some of this demand is a bubble, but not all of it.
Link Posted: 1/16/2021 2:38:39 AM EDT
[#10]
Maybe a little but I wouldn’t expect too much, the demand in their industry moves way too much for millions $ in machinery and people
Link Posted: 1/16/2021 2:38:54 AM EDT
[#11]
There are many levers they can pull to increase throughput and add capacity, but many of those levers require significant investment into new infrastructure and capital equipment.

Now i'm sure that if you're a domestic producer you have probably ramped up your hiring/training practices, purchased all the raw material you can possibly get your hands on, and likewise done your best to increase safety stock and employee segmentation to protect against CoV-19 related supply chain impacts.

That being said, I bet many of these same manufacturers understand this is a boom/bust industry. Setting up a new manufacturing line isn't cheap and my guess is it isn't done quickly (although purchasing a new facility may have a special allure during these times of dirt cheap comm real estate)  They may be afraid to make capital heavy investments if they may not materialize and increase throughput until we're half way through a very uncertain Biden Administration.

I know nothing about the ammunition industry, but that would be my take in terms of what their thoughts are. Business as usual with all facilities running at max capacity
Link Posted: 1/16/2021 2:39:53 AM EDT
[#12]
Capacity as in extra shifts maybe. Not extra equipment and space I wouldn't think.
Link Posted: 1/16/2021 2:53:03 AM EDT
[#13]
Just got 2k of wolf x39. Mfg date on box is 10/20 that’s not too bad imo. From factory to my door in 2-3 months.
Link Posted: 1/16/2021 2:53:45 AM EDT
[#14]
I wouldn’t.
Link Posted: 1/16/2021 2:56:32 AM EDT
[#15]
Quoted:
Are the ammo manufacturers going to add manufacturing capacity ... ?
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Attachment Attached File
Link Posted: 1/16/2021 2:59:16 AM EDT
[#16]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
What about increasing importation from overseas?
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Attachment Attached File


One of the easiest things to ban.
Link Posted: 1/16/2021 3:01:47 AM EDT
[#17]
Probably not. Investing in quality employees and materials would be my guess.
Link Posted: 1/16/2021 3:05:05 AM EDT
[#18]
Is it just domestic producers that are slammed or overseas too?
Link Posted: 1/16/2021 3:08:07 AM EDT
[#19]
Why add capacity when sales will be mostly banned soon.
Link Posted: 1/16/2021 3:17:04 AM EDT
[#20]
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Quoted:
No fucking way.
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Link Posted: 1/16/2021 3:22:45 AM EDT
[#21]
... "wanna buy a dime bag?"

Link Posted: 1/16/2021 3:24:30 AM EDT
[#22]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Is it just domestic producers that are slammed or overseas too?
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We buy the world's supply of ammo too
Link Posted: 1/16/2021 3:25:39 AM EDT
[#23]
Quoted:


So you think demand will return to 2019 levels?

I know some of this demand is a bubble, but not all of it.
View Quote

How do you know that? What makes you think it won't calm down again?
Link Posted: 1/16/2021 3:28:16 AM EDT
[#24]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


We buy the world's supply of ammo too
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Is it just domestic producers that are slammed or overseas too?


We buy the world's supply of ammo too


Afraid of that. So we are the neck beards of the world?
Link Posted: 1/16/2021 3:30:54 AM EDT
[#25]
It's not even showing up on shelves anywhere anymore.

It sure seems like they stopped production for the public, even if that's not the case.

HR 127 seems to mandate registration of all ammo. This bill is not good.
In the past i would say it would have no chance of passing. But in the current circumstance..who knows.

https://www.unclesamsmisguidedchildren.com/hr-127-firearm-ammunition-licensing-registration-and-banning-of-certain-ammunition/
Link Posted: 1/16/2021 3:32:47 AM EDT
[#26]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
The entire industry is standing by for higher regulation, restriction and operating liability. Nobody is increasing anything.
View Quote


This.  I wouldn't if I were them.

Also I keep hearing raw materials are a big part of the problem.  More production line capacity doesn't solve that.
Link Posted: 1/16/2021 3:33:32 AM EDT
[#27]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


Afraid of that. So we are the neck beards of the world?
View Quote View All Quotes
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Is it just domestic producers that are slammed or overseas too?


We buy the world's supply of ammo too


Afraid of that. So we are the neck beards of the world?


We're the only ones with shitloads of guns and ammo everywhere
Link Posted: 1/16/2021 3:34:50 AM EDT
[#28]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I see them manufacturing as much ammo as possible given their current equipment. 24/7 production.

Will they add machines and facilities to increase production even further? Highly unlikely as it would likely be a very poor investment long term.
View Quote


This.  Let alone the fact that the machines are essentially custom built and take around a year to be made and another several months in shipping, calibration, and testing.  That's not even touching the massive price tag.  That said, there are several outfits that have presses about to come online because they were ordered a few years ago and delivered during the coof shutdowns.  Federal/CCI and Hornady if memory serves right.  

The chokepoint is primer production though.  Unless regs have changed in the last few years, the production rate was severely cut after a factory kaboomed in Europe several years back.  Something like 1/10 of what the machines are designed for.  Sure they can still knock out thousands of primers a minute, but it's still significantly less than what they could do at capacity.
Link Posted: 1/16/2021 4:37:58 AM EDT
[#29]
Quoted:
Are the ammo manufacturers going to add manufacturing capacity or are they holding off tooling up for that based on a belief that this is a bubble?

I’m no longer convinced that all the demand is a bubble. I think we’re looking at a new normal spawned by the addition of a lot of new gun owners.

What do you guys think? Any relief in sight or $0.70 a round of 9mm forever?
View Quote


I don’t think so...
Link Posted: 1/16/2021 4:50:57 AM EDT
[#30]
Adding manpower to try and keep up with demand, yes. Once the demand has dropped, the ammo manufacturers can either let the extra workers go or reorganize them.

Adding more warehouses and/or equipment to keep up with the temporary demand, highly unlikely and just a bad business decision.

Unfortunately we just need to wait until this is over. Once that's done, start buying a little at a time so you have some stock for the next surge in demand.
Link Posted: 1/16/2021 7:01:37 AM EDT
[#31]
Doubt it they are raking in the cash right now.
Link Posted: 1/16/2021 7:04:58 AM EDT
[#32]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
What about increasing importation from overseas?
View Quote

Under Biden?
Link Posted: 1/16/2021 7:09:39 AM EDT
[#33]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Damn, was hoping someone would say “yes.”

Going to be a bunch of grown men purchasing airsoft guns then I guess.

What about increasing importation from overseas?
View Quote


They will ban ammo importation with an executive order.  Expect it by March.
Link Posted: 1/16/2021 7:17:17 AM EDT
[#34]
No, they will be producing less under a Biden administration.
Link Posted: 1/16/2021 7:21:47 AM EDT
[#35]
When is the Remington line in Arkansas supposed to be back online? That will help some and probably the closest thing to "adding capacity" that we're going to get in the near term.
Link Posted: 1/16/2021 7:22:45 AM EDT
[#36]
Ammo mfg’rs are just holding their breath.  Definitely not the environment one wants to start investing in capital equipment.  

Their only hope is to land an exclusive govt contract.  If that contract involved ceasing all civilian ammo sales there’s not a single mfg’r that wouldn’t give a salute and spout a hearty “Yes, Sir!!”
Link Posted: 1/16/2021 7:26:05 AM EDT
[#37]
I would think this has increased to a point where global manufacturing has hired more and increased capacity - they aren't worried about US regulating a manufacturer - just import restrictions which are also coming.

I'd think China (who can't import ammo legally) and Russia (who can and does) would be glad to undermine the US by throwing huge piles of ammo in an effort to create strife and money.
Link Posted: 1/16/2021 7:48:01 AM EDT
[#38]
Link Posted: 1/16/2021 7:56:04 AM EDT
[#39]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
The entire industry is standing by for higher regulation, restriction and operating liability. Nobody is increasing anything.
View Quote


Exactly.  Business thrives on certainty as to what the rules and regulations and laws will be.  (That's why business loves gridlock in Washington.  Nothing changes).

We don't have much of that right now.
Link Posted: 1/16/2021 8:04:46 AM EDT
[#40]
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Quoted:
I know nothing about the ammunition industry.
View Quote

Which should have been the entirety of your response.
Link Posted: 1/16/2021 8:10:31 AM EDT
[#41]
Did they get rem/umc spun back up yet?
Link Posted: 1/16/2021 8:21:25 AM EDT
[#42]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Add debt for a problem that comes up every 4 years so that in time between it's idled and they sell at minimal margins? Sure.....
View Quote

I guess you haven't been paying attention. This is now permanent problem. The left successfully stole an election there's now nothing stopping them from remaining in power indefinitely. We're now ruled by a totalitarian regime.
Link Posted: 1/16/2021 8:23:11 AM EDT
[#43]
I have no information myself but if I were in the business, I would be waiting. Kind of foolish to invest in equipment, materials and staff if the government is going to impose such draconian new laws that will cut demand for my product. Even if such laws were eventually found unconstitutional, it would take years for the cases to work their way through the courts and that is money that could be invested elsewhere.
Link Posted: 1/16/2021 8:23:22 AM EDT
[#44]
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Quoted:
The entire industry is standing by for higher regulation, restriction and operating liability. Nobody is increasing anything.
View Quote


+1

This is a business.  They don’t care if you personally don’t have ammo.  They are going to do what’s in their best financial interest.  If the environment allows them to increase capacity, they will do so.
Link Posted: 1/16/2021 8:24:14 AM EDT
[#45]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Damn, was hoping someone would say “yes.”

Going to be a bunch of grown men purchasing airsoft guns then I guess.

What about increasing importation from overseas?
View Quote


“Watch this one neat trick.” ~ Biden
Link Posted: 1/16/2021 8:25:52 AM EDT
[#46]
Most have already said they won't invest in more infrastructure because they have seen these bubbles before and that finding and training more employees that can be trusted is the hardest part and takes up to one year of experience.
Link Posted: 1/16/2021 8:27:22 AM EDT
[#47]
Nope they are investing in beanie babies
Link Posted: 1/16/2021 8:27:30 AM EDT
[#48]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


Afraid of that. So we are the neck beards of the world?
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Is it just domestic producers that are slammed or overseas too?


We buy the world's supply of ammo too


Afraid of that. So we are the neck beards of the world?


@veritas_rasa

The U.S. appetite for guns/mags/ammo is insatiable.  Think of all the surplus that we’ve soaked up from around the world as well as new production.  It’s quite a sight to see!
Link Posted: 1/16/2021 8:30:04 AM EDT
[#49]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


So you think demand will return to 2019 levels?

I know some of this demand is a bubble, but not all of it.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Add debt for a problem that comes up every 4 years so that in time between it's idled and they sell at minimal margins? Sure.....


So you think demand will return to 2019 levels?

I know some of this demand is a bubble, but not all of it.

No it has to be a slightly higher demand than 2019. 39 million NICS checks last year. Those newbs need to stockpile a little ammo and shoot some. That's why this panic is so long.
Link Posted: 1/16/2021 8:46:49 AM EDT
[#50]
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Quoted:
The entire industry is standing by for higher regulation, restriction and operating liability. Nobody is increasing anything.
View Quote

Biden / BloJo will cripple every business but Green.
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