I am not seriously thinking of opening an ammo company. But what would it take to open an ammo manufacturing company? Assuming things were normal and components and primers were available. Smaller Companies HSM, or any smaller ammo manufacture and plenty of other places had to start somewhere.

What would the equipment needed? I doubt they use hand presses so automated I assume.  

I think if we had a shooters Co-Op similar to what farmers use to have large purchasing power of many shooters, which is owned by the shooters?

If a group combined their buying power 2,000 members (40 from each state) providing $5K that would be $10,000,000. That surely enough money to start I assume.

Millions of dollars.

Great insight, thats why i mentioned Co-Op. What would one need to buy with the millions of dollars regarding equipment besides cases, powder, primer, and bullets? can you tell me about the equipment needed who makes it etc..
Thanks!

Assuming you would want to control your supply chain billions

I assume you are talking about manufacturing your own components, brass, bullets, primers, powder etc, and assembling commercially.

I have no idea but that's a shitload of investment $$$. And I assume you are talking about something "smaller" like Black Hills and not Olin.

And a week after you are up and running, Biden and the gang impose a 1000% ammo tax and limit private sales to 10 rounds per month. Then what?

I think a large scale reloading company would be more reasonable but again you would be at the mercy of the supply chain. Try and buy 100K primers now days.

I dont understand why the current manufacturers are not getting new faster manufacturing machines, looking at manufacturing videos their machines look old.  New faster machines would probably pay for themselves in a couple of months.  People say they will not be needed later but has this been happening every 3-4 years lately, plus it would allow cheaper manufacturing cost.

Probably cheaper to strike a deal with China.

Like i said if things were not in short supply, starting something like Blackhills or hunting shack munitions size new and reloaded rounds.

I mean buying brass,powder,bullets, primers already made from another manufacture.  The purpose of the Co-op is to sell to the members of the co-op, not the general public.

As far Biden imposing something, well its a risk spread across the board of thousands of people vs. just a handful of people.  Biden hasnt even taken office and we have nothing we can affordably shoot, why not risk it?

China?,  if you can import it,  don't understand why we are not seeing all kinds of foreign ammo and primers.

Agreed.  It's a lot easier to spin up a manufacturing operation when you have your government putting up the working capital.

You ain't gonna get that kind of financial support from the U.S. government.

You could also get it drop shipped to a freight company in Venezuela and bring it north by truck.  It would save you a shit load of money in excise taxes.

 Although I'm not suggesting that you break the law.

I know your joking but that would be illegal probably, not interested in that.

Yes, that would be seriously illegal.  At least in the U.S.   Rest of the world?  Who knows.

Too many variables.  Across the board.  2018 and 2019 ammo was cheap and abundant.   Couldn't hardly sell it without sales.

Toured the CCI plant here in ID, and talked to one of their engineers.  They do use some very old equipment.   They also use some very modern equipment.   The old equipment just worked.  The new equipment required babysitters and wasn't that reliable or efficient.

OP:

I'll answer your question seriously, though in the next 3 months or so, you might get a radically different answer.  

To start a business like that you'd need atleast a couple hundred thousand to start, assuming your comment of component availabilty.

- A Building...
- INSURANCE...... (unfortunately once someone buggers a rifle or themselves with the ammo, watchout.....lawsuits a-comin).
- equipment :  Dillion 1050's or better..........  for sure.
- components....  

To be honest, It wouldn't work.
Realistically to pay for the building, insurance and equipment, you'd need a large member base to make it affordable for each member.
But the reality is VERY few shooters truly shoot enough to justify that membership fee.  

10? years ago, I knew a guy that would rent out his Dillon gear to shooters.  
He'd sit there and advise you (so you didn't $%^& up his gear) and otherwise you'd go-to-town.  
That would be your best bet.............  
BUT even prior to the current nonsense...........  
THE LIABILTY OF THAT NOW WOULD BE INSANE..........  

   

Do people here not understand red tape on local, state and federal levels?

No I don't know the red tape is, which is why i ask someone informed like yourself to educate me.

Insurance, bonding. $$$$$.  You can start with a single press, nobody cares. They want to see you're BONDING. Fast production for the masses or precision and slow.

I think what you’d ultimately find is that some parts wouldn’t be terribly difficult to get going and some equipment to do things like draw cases would be all but impossible to get.

Here’s an example, albeit a little bit different: go try to find a sine-bar rifling machine. This is what they use to make cut rifled barrel blanks. The “big guys” doing this are using ancient machines(think WWI-WW2). These machines are just not available. Sure, they rebuild the periodically. But for As old a design as it is, it’s not like they’re just laying around for sale either.  The machines to actually make some of the components are just like that.

Though, if you’re not going to make your own cases, that would alleviate a lot of that. The trade off there is obviously that then you’re at the mercy of whoever you’re getting them from.

But, bullets could be done. Obviously cast bullets are not terribly difficult if you wish to use them. You can make jacketed bullets at home if you’re so inclined(which reminds me, I need to figure out my swaging stuff). Corbins sells the equipment(anything from hobby level to actual commercial stuff), though there are probably others as well.

I honestly have no idea where to begin with making powder, if you wanted to go that far. Primers, the first step would be a stamping machine that stamps the primer cups and anvils out of the material. That wouldn’t be too difficult to get. As for the priming compound, and the machine to insert it, that I don’t know. Again, if you’re not actually making your own, this becomes easier, but then you’re at the mercy of your suppliers.

Maybe the answer here is to start with what you know you can get-like bullet making equipment. Components on the whole are hard to get, so even just making bullets could be profitable (or one would think, at least). Then start looking at expanding.

I’m not sure any of that helps, but hopefully helps you a little.

Im fairly sure that you need to go through some pretty significant (potentially years worth) of government approvals. In the same way a gun manufacture has to have different parts approved by the ATF and other three letter departments, ammo makers have to have each product approved as well (i think). You're talking legal fees up the wazoo. Equipment would be the least of your worries.

Now if you were able to link arms with an existing major manufacture to open a new location, that might be something worth looking into.

Thank you for the information, the information you supplied is new to me.. So it seems many of the manufactures are making their own cases, powder,and primers and bullets themselves? If that is the case then this may be unobtainable. I was thinking of an ammo maker loading components from a contractor minus the possible exception of bullets and maybe cases.

Check out grindhardammo on Instagram. They post videos of the machines running all the time. It can give you an idea of what it takes.

The purpose of the cooperative is provide ammunition to shooters I think as a for profit company linking with a establish company would be an avenue to pursue.

If a group combined their buying power 2,000 members (40 from each state) providing $5K that would be $10,000,000. I consider 5k an obtainable amount from many, maybe not all though. If an established member decides to opt out they may transfer their membership. Unused ammo does not need to be purchased on a monthly basis. Waived ammo can be sold to other members or even commercailly sold to contractors like a sub contractor of ammo  buying a GE washer made by Electrolux corp. See what I am saying.

I will say, If more people were making good, solid, reliable basic ammo in the major calibers, I think they would make buckets of money. In fact I'm not sure why the major manufactures don't significantly cut back (or stop completely) making the odd ball rounds and put all their energy into producing the major rounds only. And I don't think tons of people right now are interested in the weird and expensive specialty self defense rounds that split into 12 miniature spears and explode on contact, then kill you instantly from COVID. Just make the basics to satisfy the demand.

My opinion.

Yeah right! I'm hoarding my last twelve cases of Super Spear ++P- Dragon COVID rounds forever!!

I had some friends who did set up a small shop, got the licenses, insurance, etc. etc. and installed about two dozen coaxial driven 1050's, all back in early 2013 in that ammo shortage.   Components and powder were indeed their problem.  Made it into production finally, but failed in the distribution/sales model because they were avid reloaders and not good business people.  It went belly up within a year.

Their plan had been to sell regionally to the LGS, but without any understanding of how those stores worked with their distributors, the door never opened wide enough for them once the components were not in such short supply.  By the end of the year the big manufacturers were crushing them on price and that was the end.  Chapter 13 and the agent of the court sold off the Dillons and their remaining kegs of titegroup and trays of primers...

Yes 100%. The old equipment needs baby sitters too. I know for a fact since that's what I do.

Excellent story. It goes to show that you can be an excellent ammo reloader/maker OR you can be an excellent business person. But it's hard to be both. Like a fantastic chef opening a restaurant and going bankrupt in a year.

Granted the co-op aspect is different and may make things easier at least at first. But it's hard to get dozens or hundreds of people to agree to anything much less a complex operation.

OP, I think you should try to start "small" in maybe getting into one element of the production: Making bullets or brass or maybe just reloading. Once that is successful, branch out to the next one. But I suspect making powder or primers will be the impossible hurdle.

That makes sense if I start reloading. Many businesses started of as hobbies. I do think on the co-op, it would be run like a company with a "board of directors" and others as "shareholders/memebers". With the board having the "final word" for how things will be run would make sense. Wages for employees who make the ammo would be paid out by ammo sales to third parties, or small monthly dues .

Tell me about your job, and who you work for please.

I do, sortta, see what you are saying.  
BUT:
I assumed when you said Co-op that we (as members of said co-op) would do the work to make "our" ammo.
And you are making this a nation-wide thing.....  

So I pay my money and you ship me ammo?
Then why not simply get a group-buy going ...... get a say 1,000,000 round order from XXX company???
Then dole it out to the paying members?  
(And skip all the machines etc etc)

Or I send you my components and YOU (or your team) make it and send it back?

Code of Federal Regulations 27 CFR Part 447 deals in why we don't import arms and ammunition from China and Russia.  (learned a lot trying to import from Afghanistan)

To make ammunition first you need a 06 FFL (manufacture of ammunition license) $30.00 from ATF.   Don't remember if that was yearly or 3 yrs.  (just looked at this last week)

Local/state license, insurance, building and machinery.  For components not hard to make your own bullets either cast or jacketed.  Forming brass cartridge cases going to take extruding the brass and forming.  Powder and primers, need special vaults and land away from everything.  Priming compound very pressure sensitive/explosive.

You might be able to start small locally with a few shooting clubs and work as a second job.  Won't pay for itself with just a small crew.  Build/expand when you can.

CD

Join date. Post count. You aren't suspicious at all are you?

How about how some large companies purchase fuel?


Southwest Airlines for example used to negotiate fuel at a set price by contract. Because they purchased bulk quantities when other companies were getting hit by fuel cost some spikes they continued at the original cost.  They gambled but the assumption was they would come out ahead in the long run.  

Shooters pooling their purchasing power at a set price and quantity is a better cooperative.  Small electricy companies do this all over the nation so it isn't unprecedented. My guess is  ammo companies would balk at it.

My local range got an 02/07 and reloads ammunition for range rental guns.  It helps keep them in business

Most likely the same range my uncle often shoots at.

I appreciate and understand you paranoia.

Imho.  You would be better off making Coated Bullets.  You just need a casting set up and a way to coat them.  

I think this has run its course.