Posted on 11/16/2020 8:16:00 AM PST by rktman
Vista Outdoors, the parent company of ammunition brands Federal, CCI, Blazer, and Speer (among others), announced during an earnings call last week a yearlong backlog of ammunition orders worth $1 billion.
“We currently have over a year’s worth of orders for ammunition in excess of $1 billion,” CEO Chis Metz said during the Nov. 5 call, calling the backlog “unprecedented.”
“With demand far outstripping supply and inventory levels in the channel at all-time lows, we see strong demand continuing, and this metric informs our viewpoint of what a recovery or normalization could look like,” he continued.
He added that he was providing the additional context “to convey an underlying strength and strong foundational element to our business.”
All ammunition manufacturers are feeling the squeeze of a massive spike in demand driven by the COVID-19 pandemic, social unrest, and the presidential election.
Arizona-based Ammo Incorporated reported in October that the relatively small company is facing an $80 million backlog despite operating 24 hours a day, 7 days a week.
Company CEO Fred Wagenhals named COVID, the election, and unrest as the drivers of the spike in demand in an interview with AZFamily.com.
(Excerpt) Read more at gunsamerica.com ...
If I find a pallet “staged” someplace I might share. :-)
AS stated previously. I can’t say it was because I saw this coming, but I have the capacity to reload large numbers of cartridges in a fairly short period of time. I stocked up enough on components to keep myself busy when everything was easy to get. The only factory assembled cartridges that I have a lot of are Eastern Block in water proof cans with berdan primers that were designed to last for many decades.
I didn’t realize that the prices on primers had gone up so much before they became basically impossible to get. Some of my favorite powders are still available. Some of my molds for casting projectiles now are going for a lot on eBay these days as well. I see that new Lee 12 guage shotgun slug molds are currently selling for $55. They were $19 not long ago. I am tempted to sell some of this stuff while the Biden shadow is still hanging over our heads and the price is high.
***A 20 rd box of 30-30? $99.99***
I got a coffee can full of reloads! May keep them for a “rainy day”. Also found three boxes of Federal .22 LR I forgot I had. They may be 40 years old. That year Federal quality was not good.
Alas, no .223 except a few reloads for a super accurate bolt action rifle.
M2 Ball, I wish I had back the 400 rounds I burned up this early Spring. I’m on blood thinners and they do bruise my shoulder.
I may have to do some reloading, in 55 year old brass cases the way things are going.
I remember shooting up WW II nazi ammo back in 1968. Alas it was so corrosive it messed up my pistol bad.
Got a couple bottles of Jack I can trade. Uh, disinfectant I meant.
***Hot Pants Harris, well...I can’t say it here***
Ever wonder what would have happened if SHE had been VP for Bill Clinton?
Hoping next year ain’t 2020.2 but it ain’t looking good.
How about a Groucho Marx pair of glasses and mustache? No?
Every day would have been Wednesday. LOL! New meaning for the term “Vice” president.
Hi.
I apologise in advance...
If you don’t have weapons, ammo and other stores by now, you haven’t paid attention to the last 12 years.
By now you should be totally acquainted with and comfortable with your weapons. Wether a K-Bar or a M-60, you have familiarized yourself with basic operation and cleaning. You have zeroed the weapon, tactically practiced with it and have learned some small arm squad tactics.
You will also need like minded friends.
I could go on, but I don’t want to bore you.
Bloat.
5.56mm
one BILLION with a B dollars in back orders. Plus of course this ammo “crisis” has been going on mostly non-stop for 8 years.
Frankly all these companies who haven’t expanded are just Fing stupid. They’ve blown a clear opportunity. And they KEEP blowing it. The company that builds up to be able to fulfill that back orders in under a month will own the market.
We good. Friends are good. Up hill, down hill, to the east but not sure about the western front.
Send a spy and a decoy to the Western front to determine threat.
8^)
5.56mm
So you build a $300 million dollar factory. Add a hundred million dollars in resources and staff per year.
Your profitability on THAT factory is going to be marginal in an environment that is detrimental to your business.
That is about as short sighted a financial plan as you are going to hear.
It isn’t even hitting the wholesalers.
But it is being made and sold.
The only common caliber that I do not reload is 5.56. You have to use copper jacketed projectiles to protect your barrel. There is a system now available these days for swaging your own copper jacketed 5.56 bullets however. It costs a lot compared to what I paid for most of my molds and dyes but considering the popularity of 5.56 and possible difficulties procuring factory built cartridges in the future, it would probably be worth it for many people.
Blackmon Swaging System
Last of a series of videos on the process.
https://bulletswagingsupply.com/BULLET%20SWAGING%20SUPPLY%208.5x11.pdf
Not to mention the social pressure to shut down ammo makers. Hard to get you grandkids into an ivy if you run an ammo maker
Buy a mold. Make your own..reliad
Clark Brothers or Greentop?
No it’s not. Your own math shows you’re wrong. With a billion in additional sales that new factory clear $600 million profit the first year. Now your factory is paid for, and you’ve still got the billion in sales a year PLUS whatever else they’re doing. That’s $900 million a year in cleared profit.
The short sighted financial plan is YOURS. This shortage has been going on for nearly a DECADE. But cowards and idiots keep thinking it’s gonna fix itself so they aren’t increasing capacity. The long view is America and the world love they’re freaking bullets, nobody has EVER gone broke in that market while making an even decent product. INCREASE CAPACITY. Nobody in the market should have gone past the first year of the shortage without building up. Any shortage that doesn’t correct in 6 months is going to last, that’s a change in demand, not a surge.
“I had planned on doing an inventory this week.”
I polish the brass on all three of my bullets at least once a week.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.