$1 Billion ammo backlog

[KillerFord1977]

Waiting on the profits to roll in. Don't expect ammo soon

Vista Outdoors reports ammunition backlog of over $1B

Big-name shooting sports company Vista Outdoor Inc. reported “over a year’s worth” of backlogged ammunition orders worth more than $1 billion.

www.foxbusiness.com

 

[benstt]

Well, that's just great. Hopefully the buying pace slows and some of that $1B in ammo stays on the flippin' shelves. Damn panic buyers and hoarders.

 

[wmg1299]

I'm happy to see firearms and ammo companies making a profit, but I'd feel a lot better if they mentioned that the profits had allowed them to build and equip new facilities to meet the excess demand. So far, ammo companies all seem to be implying that we are in this for the long haul.

 

[HansGruber]

I'm happy to see firearms and ammo companies making a profit, but I'd feel a lot better if they mentioned that the profits had allowed them to build and equip new facilities to meet the excess demand. So far, ammo companies all seem to be implying that we are in this for the long haul.

But they know we aren’t in this shortage for the long haul—this demand is temporary.

People said the same thing during the last ammo scare (post Sandy Hook)...”Why don’t the build more ammo plants?”.

Because a few years later (2016-19/early 20), there was a glut, with incredibly low prices due to oversupply. Those new facilities would have been idled.

 

[wmg1299]

But they know we aren’t in this shortage for the long haul—this demand is temporary.

People said the same thing during the last ammo scare (post Sandy Hook)...”Why don’t the build more ammo plants?”.

Because a few years later (2016-19/early 20), there was a glut, with incredibly low prices due to oversupply. Those new facilities would have been idled.

I hope you are correct, but I see the current situation lasting longer than the post-Sandy Hook shortage. A larger number of new firearm owners have been added to the customer base than after Sandy Hook, and politicians in anti-2A states seem more emboldened. I think an overreaction to a single tragic event is less of a threat than the general consensus among the left that attacking gun rights is one of the core planks of their political platform. Right now, there are more people needing ammunition than ever before, and many of them are convinced that they may not be able to acquire any in the future due to either shortage or new legislation. I'm hoping I'm wrong, but this one feels different.

I wish I had been paying attention to politics when the 1994 Assault Weapons Ban was passed, but I was still in high school. I'd be interested in hearing from people who were active in the 2A community at that time if the political situation was similar to the current one.

 

[benstt]

I hope you are correct, but I see the current situation lasting longer than the post-Sandy Hook shortage. A larger number of new firearm owners have been added to the customer base than after Sandy Hook, and politicians in anti-2A states seem more emboldened. I think an overreaction to a single tragic event is less of a threat than the general consensus among the left that attacking gun rights is one of the core planks of their political platform. Right now, there are more people needing ammunition than ever before, and many of them are convinced that they may not be able to acquire any in the future due to either shortage or new legislation. I'm hoping I'm wrong, but this one feels different.

I wish I had been paying attention to politics when the 1994 Assault Weapons Ban was passed, but I was still in high school. I'd be interested in hearing from people who were active in the 2A community at that time if the political situation was similar to the current one.

I'm convinced the pandemic and fear of civil unrest are the two big drivers of the run on ammunition. People have been worried about riots and political violence. The riots seem to be dying down and the election is over. I see the ammo demands lightening a lot in the future. Maybe not in the next two months as we watch to see if there is the customary peaceful transfer of power or not, but I bet it will get a lot lighter shortly after that. With more and more GOP officials acknowledging the results of the election I see a peaceful transfer being more and more likely. A lot of the new owners who bought because they were scared will probably lose interest quickly.

 

[KillerFord1977]

When companies run on thin margins for years and then experience a windfall, I dont see them investing in huge capital just to go back to thin margins a short time later

 

[Lchtus]

Supply and demand basics for sure, but those capital investments in infrastructure to meet those short term demands is not good business. More shifts, run machines 7x24 maybe. Maybe a few extra machines for capacity, but pour millions into something with instability of future sales I would not do it. A little sure, but mostly on man power and flexible infrastructure that can adjust to peaks and valleys.

Either way buckle up for at least 2021 given many on this board probably has pre orders in various places and will not cancel those orders combined with the general industry orders.

economists must be giddy at these numbers.

 

[benstt]

The nice thing to come out of this is some of the smaller manufacturers might be able to build out a bit with the extra income they might be getting. I'm looking at companies like Underwood. I've loved every one of the products I've gotten from them. If boutique manufacturers can manufacture at a larger scale after this the prices of some of their products might come down a bit when the panic ends.

 

[Lchtus]

The nice thing to come out of this is some of the smaller manufacturers might be able to build out a bit with the extra income they might be getting. I'm looking at companies like Underwood. I've loved every one of the products I've gotten from them. If boutique manufacturers can manufacture at a larger scale after this the prices of some of their products might come down a bit when the panic ends.

i just picked up some Underwood a few weeks ago direct. They are actually in IL. Have not had a chance to shoot it yet but interesting 90gr I picked up.

have you had positive experiences and quality in their ammo?

 

[benstt]

i just picked up some Underwood a few weeks ago direct. They are actually in IL. Have not had a chance to shoot it yet but interesting 90gr I picked up.

have you had positive experiences and quality in their ammo?

Oh yes. I've gotten 10mm hardcast and extreme penetrator, .357 magnum hardcast and extreme penetrator, and .45-70. I've liked it all. It's all hit where I wanted it to and packed plenty of punch. I was looking at getting some of their 9mm extreme defender a few weeks back when they had some but passed. I have plenty of Gold Dots.