Are Ammunition Companies Stockpiling Ammunition?

[Recusant]

Makes me wonder.

 

[KillerFord1977]

I was informed by a buddy who runs a group of gun ranges/shops that they were informed from their ammo supplier that no more 5.56 will be avail for near future.
Their orders will not be fulfilled

 

[powerboatr]

bulk ammo has a good supply of quantities, although its pricey.
but it makes sense

 

[mikep]

hmmmmm.... i don't know what to believe anymore.

 

[Talyn]

Ammo companies don't make money stockpiling, but .gov agencies and distributors buy and can stockpile.

 

[Old_Me]

1) tons of ammo in trailers?
i hope they are refrigerated trailers, as ordinary trailers get super hot inside, when that sun is beating down on them.

2) one maker of ammo doing this?
sour grapes from an employee that wanted a pay raise, or other stuff and was denied?
how does he really know what's going on?

i can "see" any of the ammo makers producing stock for the Israeli/Hamas war, and the Ukraine/Russian war.

i can "see" a valid slow down for the wars, but not to inflate prices.

 

[Recusant]

Ammo companies don't make money stockpiling, but .gov agencies and distributors buy and can stockpile.

I think the assumption for the video was that the ammo companies could stockpile and reduce the supply and because of rising demand prices would stay high. That's why diamonds are so expensive despite the fact that they are not rare.
DeBeers controlled the production and marketing of diamonds. They bought much of the rough diamond product from mines around the world. They carefully released enough rough diamonds on the market as to keep prices up, and carefully controlled the supply that was available to the commerial markets. The cure can be summed up in one word: Competition.

 

[TEXASforLIFE]

Control the demand, control the price! It's not necessarily stock piling, it's not producing as much as fast! If Hornady can spit out so many bullets and ammo, then Nosler should be able also! Their component prices are ridiculous! It's more of a 1 time sell, than volume sales! I'm glad I DON'T need or buy that .

 

[Bassbob]

If the plandemic taught us anything it's that ammo companies do not feel beholden to the 2A community.

 

[TEXASforLIFE]

The 1.5-2 million rounds of 9mil is a drop in the bucket! If you divide that by 500 rounds per purchase, that's 4,000 buys and 2,000 per 1k buys. That is an easy sell per month or less!

 

[Talyn]

If the plandemic taught us anything it's that ammo companies do not feel beholden to the 2A community.

What the pandemic taught use is when .gov causes a panic and forces an economy to shut down demand skyrockets.

Besides toilet paper everything is affected depending multiple factors.

Ammo companies had to deal with very high demand on top of the supply-chain limitations on base-metal, (e.g. commodities) and component availability for reloading dried up since everything was going to build complete ammo. As we all know back-orders were multi-year, and factories were working 24/7 to fill them.

Prices went up on all ammo until the most commonly used types became more available then prices dropped, but hunting types have generally stayed up even though availability has increased.

Now, as in the past, any political uncertainty influences the market.

 

[jschmidt]

All ammo shortages are caused by suckers. But I find it's the little local gun stores that stoke the paranoia. I assume they're being suckered by distributors. AFA manufacturers, there is no good reason for them to stockpile inventory.

I am glad the most recent paranoia fest went bust. Let's hope it is a trend.