The President of Federal, CCI and Speer is sick of the ammo shortage rumors.

[Dadstoys]

I did hear stories during Obamascare of places sitting on pallets of ammo and only putting a few boxes on the shelf at over the top prices while telling customers they couldn't get stock.
True or not I don't know .

 

[oldguy68]

I did hear stories during Obamascare of places sitting on pallets of ammo and only putting a few boxes on the shelf at over the top prices while telling customers they couldn't get stock.
True or not I don't know .

I would believe that some unscrupulous gun shops did that more than any manufacturer.
Or that they were sitting on large quantities to fill a huge retailer's order.

 

[Sterg]

No manufacturer is going to store inventory in a warehouse. The cost of doing so would be too expensive for them. JIT manufacturing is where it’s at.

 

[pastera]

If they lose customers over that video then those were the customers that needed to be fired in the first place.

The reason we have Karens is because we treat all of these self important a-holes like they are actually important.
Business needs to build or fix shit and stay out of politics, religion or morality - if a "customer" pushes any of that then send them down the road.

 

[oldguy68]

Yep, oh to the no's. Boycott Federal!
Rest of us, be like, more for us!

Smart move snowflake, boycotting the largest American ammo manufacturer!
Might as well blame them on the current retail prices as well!

 

[NHKevin]

No manufacturer is going to store inventory in a warehouse. The cost of doing so would be too expensive for them. JIT manufacturing is where it’s at.

That and customers CAN store inventory. Buy it cheap and stack it deep.

 

[Sterg]

Who knew Federal, CCI, Speer, and Remington were under the same roof. It kills the one brand is better than the other argument, unless they use different components for each “brand”.

 

[Bt74]

I DO remember Riley's only putting a half dozen cases on the floor at a time.

 

[btnh6668]

It's not. And it's incredibly stupid and poor optics on their part. You can easily come out and explain everything without starting off like he did.

Edit: Cut out the first minute or so and it's a much better video.

I suppose. I would imagine after months of being berated with false accusations he probably got fed up. Its understandable. I had no problem with it.

 

[Rob Boudrie]

I did hear stories during Obamascare of places sitting on pallets of ammo and only putting a few boxes on the shelf at over the top prices while telling customers they couldn't get stock.
True or not I don't know .

I've heard stories of people holding on to publicly traded stock and only selling a few shares at market pricing, hoping they could sell their remaining inventory at a higher price later.

 

[DW357]

Jesus Christ bro, in 2020 do you know how many f***ing business people would die to be in your shoes and here you are bitching about being bought out? Holy shit.

I was thinking the same. What a "great" problem to have.

 

[DW357]

There are billions of rounds of ammo out there.
Sorry, if you waited to buy till even the soby boy libtrards could see the writing on the wall and are now escared!

I used to have that same attitude but with so many new gun owners (especially in MA where one needs an LTC to buy/possess ammo), they didn't know any better or weren't able to buy beforehand.

 

[Eddie_Valiant]

He needs a better marketing department. Here's Hornady's video on the exact same subject. Now, THIS is how you message without insulting your customers.

Definitely a better way to explain what's going on. My first reaction to the CCI video was negative. I would not have written such a script.

 

[weekendracer]

I wasn't listening, did he mention when I would be able to get some .380 or .300AAC?

"Soon"

I agree the Hornady video was much better, but the man from federal/CCI dispelled "selling only to specific customers".
Anyone have any stats on how much of that ammo .gov is buying ???

Most of the .fed went to 9mm this year. I know my agency is still buying 'large' allotments of 9mm and holding off transferring to new gun in certain places to burn off existing 40.

I've given the numbers before:
20,xxx agents
4 quals a year @ 72 rounds
6 million rounds a year, just to meet minimum firearms training.
I bet our academy puts that much downrange in multiples. I'd leave the range with a sore index finger and thumb (from loading) for 3 weeks.
Our 'special' people shoot a metric butt ton of bullets in training.

This is just one segment of a large agency. Customs has more people, but shoot less, so a similar amount of ammo goes to them. My agency likes to buy in 5 year cycles, so there are huge orders on the books and we are getting ammo from different manufacturers at different times as they can fill the orders.

That said, I'm willing to bet they are not focusing on the .gov orders, since those were locked into pricing before the Retard Invasion of 2020. Besides, where else is the government going to go to get ammo. I sure as hell don't want Wolf in my duty gun. I barely shoot that crap through my AK.

I DO remember Riley's only putting a half dozen cases on the floor at a time.

Smart move, put it all out at once, some retard comes in and buys it all at once. Now you have zero product to bring customers into the store. Gun shops don't stay in business selling guns. I've seen wholesale pricing sheets from multiple distributors. The mark up on a single firearm is minimum, in some cases it's about what would cover a transfer fee. Obviously, some guns do have mark ups, I'm talking stuff like Glocks and Midrange AR's.

 

[AHM]

Meh. What we're seeing now has happened before. I would say the real issue is these companies don't seem to have contingency plans to deal with something that happens literally every 5-10 years. Coupled with most gun owners being giant skinflints on stocking ammo.

This is far worse than a 5-10 year event, IMHO. Also, it's capital intensive to make a contingency plan for something at this scale. Unless the plan involved having an extra billion rounds
of ammo just sitting around in warehouses that they never touched in case of a demand spike. Even that probably wouldn't have been enough.

If this was just something on the scope of another Obamascare the price of ammo would have probably just hopped up a bit and stabilized. This is on another planet. Remember the industry has tooled up big time since Obamascare 1, 2, and Sandy Hook.

@xtry51's comment gave me something to think about; something to think about overnight.

His statement contained an assumption that I haven't seen questioned here.
And I don't blame him for seemingly making the assumption,
because I haven't seen it questioned here.

The question it highlighted for me has its roots in economics:

Q:
If Biden is inaugurated, will he go so FR on things like assault weapon bans
that certain forms of ammunition become illegal to sell in the public sector?
(And eventually, illegal to possess, even in component form).

Why would I wonder about that?
Two reasons.

One reason is the example of the several Third-World Sh¡tholes
that ban private ownership of guns in "military" calibers.
In some of those countries, the definition of "military" caliber
is often interpreted quite literally by the bureaucracy.

This results in a really deformed landscape
where some super-killy cartridges are common
because they don't seem to have been adopted by any nations.
But more importantly, there are some incredibly weak-ass calibers that are illegal
because they were the bee's knees in 1905 or something.

So the popular calibers for private ownership are so strange
that we'd expect gun stores to also stock porcelain pedestal sinks.

Can it happen here?
-----

The other reason I wondered about ammo bans is from manufacturing economics.

Manufacturing machines must be flexible enough to produce
a wide variety of ammo types.
Change some dies, jigs, fixtures, and you're churning out something else.
For all I know, some machines are changed on a daily or weekly schedule.

The kind of capital investment that increases supply
in reaction to a forecast permanent long-term increase in demand
may be a significant expense that can't be covered by just
shaving a few cents off the expected stock dividend.
And so before making such an investment,
the factory has to consider whether they will be allowed
to use the new gear to the max.

Unlike all other ammo shortages in recent memory,
are manufacturers worrying about making a capital investment
whose demand may be significantly outlawed?

I did hear stories during Obamascare of places sitting on pallets of ammo and only putting a few boxes on the shelf at over the top prices while telling customers they couldn't get stock.
True or not I don't know .

I know of a New England gun store whose ammo supplies
may from time to time resemble
the Great Hall of Thráin from the Hobbit.

If they lose customers over that video then those were the customers that needed to be fired in the first place.

Beggars can't be choosers.

 

[45Badger]

If the consumer won’t pay a bit more for 9mm, why on earth would any investor pay more to make sure you are not inconvenienced? If you think you have a better way, feel free to raise the necessary capital and open your own ammunition business.

I have a very small ammunition business in my garage. It consists of two XL650's, one dedicated to 9mm, the other used for .38SPCL, .357Mag and .357Sig depending upon market demand.

Like many other small businesses these days, my primary problem is my supply line. Plenty of powder on hand, good quantity of bullets on hand with more coming in - but primers are scarce.

I only have two "customers", more properly defined as "consumers" - my wife and me. That's my "better way".

I was referring to a real business. I’m with you. Only factory ammunition I purchase is .22 for plinking and critters.

I’ve got enough components to last me a decade of every thing I will probably do. 15 years ago I was burning through 8-10,000 rounds a season in assorted pistol matches and games. Too busy do do that now. Motorcycles take up a lot of my nice weather free time. Ski season almost here....⛷

 

[enbloc]

I actually liked the video... warts and all.