[CharlesWayneCT]

Except you can’t just “ramp up” production if your lines are already pretty full. You’d have to build a new line. But if you know that the shortage is hyped, and that the actual long-term demand is steady, building additional capacity won’t be a good decision, by the time you are ready you’ll spend 3 months making up the backlog, and then your new line is useless.

So the fact that the shortage still exists probably argues FOR the shortage being artificial, in that the manufacturers do not seem to believe the shortage is a long-term increase in purchasing.

[ArtDodger]

Seems to me, ‘ramping up production’ of bullets isn't quite the same level of investment as building another automobile plant. Should be easy to increase and shut down when necessary without undue overhead. I am curious, though, if individuals (cottage industry) could ‘start up’ 22 long production to fill the niche created for whatever reason.

[ChildOfThe60s]

Except you can’t just “ramp up” production if your lines are already pretty full. You’d have to build a new line.

I imagine the capital investment in expanding production facilities is pretty steep. It's also a long term investment, not for a couple of years of what may be temporarily greater demand.

I am also assuming that the mfg are paying more for components, but still are realizing (somewhat) greater profits also. A prudent approach would be looked at as taking the higher profits for the sort term and waiting a year or two to see which way the market is going. Investing $$ in new production and then seeing prices drop is to be avoided.

[Buffalo Head]

Good post, written with either experience, wisdom or both, unlike most of the input on this thread.