[Article10]

The issue is demand is way out stripping capacity. The cost to put in a 22LR manufacturing line is about $8.0M USD and lead time is 30-36 months, the ROI is 18-22 years...so ammunition manufacturers are really slow to put in new capacity for 22LR.

I know because that is what I do every day for a living. The ROI just takes so long on a large capital investment... the manufacturers do not benefit by the high consumer prices, the middle-men do...

[rktman]

LOL! You got some spares? :>}

[Carry_Okie]

The issue is demand is way out stripping capacity. The cost to put in a 22LR manufacturing line is about $8.0M USD and lead time is 30-36 months, the ROI is 18-22 years...

I don't believe that lead time number. Nor do I believe the ROI number at these prices. I've put in chemical processing lines that paid for themselves in three months. Design and construction took three months, and that was for an unprecedented process. This is a very well-established technology with drawings on the shelves, established vendors and plenty of available industrial real estate begging for occupation.

No, I don't buy those numbers for a second.

[mad_as_he$$]

http://www.guns.com/2013/05/02/armscor-rock-island-armory-adding-third-manufacturing-facility-doubling-ammo-production/

http://www.guns.com/2013/05/10/light-at-the-end-of-the-tunnel-remington-expands-ammo-plant-foreign-ammo-imports-double/

[Gaffer]

Profit margin on a 22LR has to be the least profitable for popular calibers, IMO.