Federal Cartridge lays off 110 workers in Anoka

icyclefar

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http://http://www.startribune.com/federal-cartridge-lays-off-110-workers-in-anoka/415518844/

I wonder if this is more a return to normal levels sort of thing?



Analysts have noted that Federal Cartridge and other ammunition makers had expected that an election win for Hillary Clinton in November might have spurred sales as gun-rights enthusiasts stocked up on guns and ammunition for fear of tougher gun regulations to come. Such forecasting was thrown to the wind when President Donald Trump won the election
 
I personally am not slowing down WRT ammo- there is always another Hillary being groomed in the cesspool of the American leftivist regime
 
Ya, so, what about CCI? and where are my 5000 round cases of minimags?

I see that 5k round CCI SV cases are readily available for $400 shipped....No case deals on minimags yet though...
 
If I were a liberal hack I'd be writing about how Trump is gutting the firearm industry.

Worse gun salesman ever.



Exactly! Gun stocks are in the toilet, Colt is filing for bankruptcy (again), ammunition companies are laying off people, the whole industry is IN THE TOILET!!! Worst POTUS ever!
 
I used to drive by that plant every day on my way to high school. A friend worked there for some time in the past and they had that plant working 24x7 for a long time.
 
lol, read "broomsticks" and I was thinking you bought more sport cars. [smile]
 
Why aren't those workers put on a 22lr assembly line? I still can't find any good deals on 22 at my local WM. I remember 550 packs form18 bucks? I'd settle for just seeing the 550 packs back on the shelf even if they are more money.
 
Why aren't those workers put on a 22lr assembly line? I still can't find any good deals on 22 at my local WM. I remember 550 packs form18 bucks? I'd settle for just seeing the 550 packs back on the shelf even if they are more money.

Maybe because nobody has built a 22lr line in many decades and they are already going full out. Manufacturing center fire is actually a lot simpler than rimfire.
 
Why aren't those workers put on a 22lr assembly line? I still can't find any good deals on 22 at my local WM. I remember 550 packs form18 bucks? I'd settle for just seeing the 550 packs back on the shelf even if they are more money.

I don't know what it is about WM but even down here their 22 availability has been really sparse. However, for some unknown reason, Academy sports has had bricks on the shelves at all times over the past 3 yrs that I have been here and at regular prices. Since the election Cabelas and the local stores have been stocked too. WM not having 22 is a WM problem not a 22 availability problem. I would be willing to bet that their stores in MA aren't a priority to them when it comes to where they send the limited ammo they get.
 
Why aren't those workers put on a 22lr assembly line? I still can't find any good deals on 22 at my local WM. I remember 550 packs form18 bucks? I'd settle for just seeing the 550 packs back on the shelf even if they are more money.

Because like 42! says the lines are maxed out, and have been maxed out since Obamascare 1. To use more workers you have to build another line. Building another line requires a shitload of capital, including either buying a building or reconfiguring an existing space. If they are basically meeting demand just about, building another line is stupid because all that's going to do is cause the price of the product to go down. [laugh]

If you want .22LR to come back and the price to go down (and at that, it's only going to come down another 10% or so maybe, because of sticky price etc. ) get all the post sandy hook newb skinflints to stop buying .22s. That's where all the .22 is going.

-Mike
 
when I see bricks of .22LR selling for $5 a brick again, I'll know we are back to normal...[wink]
 
I was at Cabela's yesterday (first last and only time there - felt like a glorified Dick's with a penchant for guns) and they had a whole end-cap of .22LR ammo. Not a lot of any one, but it was available. $60-something for 1,000 M22 rounds. Not terrible. Not great. (I think I paid $49 2 years ago at a Walmart.)

It has to be easing somewhat. There is inventory of virtually everything BUT .22 at this point.
 
I don't know what it is about WM but even down here their 22 availability has been really sparse. However, for some unknown reason, Academy sports has had bricks on the shelves at all times over the past 3 yrs that I have been here and at regular prices. Since the election Cabelas and the local stores have been stocked too. WM not having 22 is a WM problem not a 22 availability problem. I would be willing to bet that their stores in MA aren't a priority to them when it comes to where they send the limited ammo they get.

Wal mart doesn't buy it's ammo it's put on consignment and element just gets a percentage of the sales. If Walter mart was actually buying their inventory they would only have
223,308,12g,9,45,380 and 22lr and then a small inventory of seasonal offerings for the hunters.
Wal mart probably does not see as large a demand for ammo or they would have more than a 1/4 rack of shelves full....plus we have no idea in MA what each town's FD Chief puts on restrictions on how much ammo they can store in house.
 
Because like 42! says the lines are maxed out, and have been maxed out since Obamascare 1. To use more workers you have to build another line. Building another line requires a shitload of capital, including either buying a building or reconfiguring an existing space. If they are basically meeting demand just about, building another line is stupid because all that's going to do is cause the price of the product to go down. [laugh]

If you want .22LR to come back and the price to go down (and at that, it's only going to come down another 10% or so maybe, because of sticky price etc. ) get all the post sandy hook newb skinflints to stop buying .22s. That's where all the .22 is going.

Most of the online sellers have had a decent supply of .22's for the last several months.
Some of them are still way on the high side, but others have dropped their prices down to reasonable levels.

Last month PSA was selling Federal 325 round boxes for $20, with free shipping if you bought 5 or more. That worked out to 6.15 cents a round delivered to your door.
More recently they had full bricks (500) of American Eagle for $30 (6 cents a round) with free shipping on 3 or more, and no limit on quantity.
 
Because like 42! says the lines are maxed out, and have been maxed out since Obamascare 1. To use more workers you have to build another line. Building another line requires a shitload of capital, including either buying a building or reconfiguring an existing space. If they are basically meeting demand just about, building another line is stupid because all that's going to do is cause the price of the product to go down. [laugh]

If you want .22LR to come back and the price to go down (and at that, it's only going to come down another 10% or so maybe, because of sticky price etc. ) get all the post sandy hook newb skinflints to stop buying .22s. That's where all the .22 is going.

-Mike

I did business with Olin (Winchester) years ago. The individual production cells were actually not that big. Yes, some capital necessary for new machinery and install but not much for floor space. For obvious reasons, when visiting the plant I had to wear static disapating boots or drag a brass cane around.

I agree that the post Sandy Hook skinflints are still hoarding.
 
I don't know what it is about WM but even down here their 22 availability has been really sparse. However, for some unknown reason, Academy sports has had bricks on the shelves at all times over the past 3 yrs that I have been here and at regular prices. Since the election Cabelas and the local stores have been stocked too. WM not having 22 is a WM problem not a 22 availability problem. I would be willing to bet that their stores in MA aren't a priority to them when it comes to where they send the limited ammo they get.

How far is cabelas from walmarts price....? Because if the Cabelas price is still high compared to market floor (which walmart isn't that far away from, more than likely) then the reason is obvious, Walmart is getting blown clean because the 'flints aren't buying their ammo from other parts of the channel, and the other vendors are sitting on overpriced stock. I've seen this a few times now. I don't know about Cabelas, but I know that most LGS tends to way overprice .22 LR, although a lot of it isn't their fault, it's because of the shitty mid levels, trying to fool people into believing the ammo is still scarce, etc. Basically the further away walmart is from the rest of the market you can be more assured that some kind of industry hose-job is going on.

Another fun example... at the end of an Obamascare panic, there were a lot of dealers (particularly smaller ones that don't move guns as fast) stuck with AR-15s that were distributor overpriced. Instead of just eating the loss and changing the price, they turtled and sat on this overpriced inventory for awhile. The same thing might be happening with .22 LR right now. The mids probably won't drop their shit prices until a bunch of dealers call up and say "hey the walmart down the street is selling boxes of X for $3 bucks a box less than my cost, you asked me why I haven't bought any .22 and that's pretty much why " Of course from a "marketing perception" kind of standpoint, .22 LR is easier to get people to suck for an overprice on, because they've been paying shit price going back to 2012 and even further; that and .22LR is still going to be cheaper than other calibers. So it's easier to position the product because the basic act of someone buying a brick of .22 LR is less price sensitive, because of the "ZOMG I just got FIVE HUNDRED rounds for $40!!! im RIIIICH!" skinflint excitement factor.

"HONEY I GOT A BAWX of 22LR LOOK AT ALL THE MONEY I SAVED!!!!"







-Mike
 
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I did business with Olin (Winchester) years ago. The individual production cells were actually not that big. Yes, some capital necessary for new machinery and install but not much for floor space. For obvious reasons, when visiting the plant I had to wear static disapating boots or drag a brass cane around.

I agree that the post Sandy Hook skinflints are still hoarding.

That must've been a cool tour, were they making .22 LR in there too?

Yeah, I know the cells aren't that big... but think of the bigger picture... in order to actually increase output (beyond what you can do by running the factory 24/7, you still need to beef up various parts of the operation to increase the output. Also things like priming likely rate limit the whole thing. Then you need to hire (and train) an entire new crew of people to run (and maintain) the machines. None of that stuff is cheap, and everyone is constantly looking at ROI. Let's say it costs them a few million bucks, the investors are gonna be awful pissed if that line gets shut off before it pays for itself. Not to mention they're also gonna be pissed when you have all these (expensive, pretty specialized) machines sitting around doing nothing- and it's not like they can be re-pourposed to do anything except make .22 LR. (at least with some of the centerfire stuff it can get retooled to run a different cartridge, if they really want to).

Hadn't seen this in awhile, didn't realize all the steps involved!

CCI .22 Factory Tour:

 
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