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.
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
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.