View Single Post
Old 07-10-2013, 4:32 PM
Merc1138 Merc1138 is offline
I need a LIFE!!
Join Date: Feb 2009
Posts: 19,762
iTrader: 9 / 100%

Originally Posted by Ford8N View Post
If the demand for ammo is so high, I'm wondering why Ammo manufactures are not building more production to meet this demand? There is money to be made.
Even though this has been asked and answered dozens of times(really, it has), here's the short version:

Ammo companies are currently running at full capacity. That doesn't mean they're making all calibers at all times. Buying more equipment requires more building space, and then requires more employees to be trained and then operating that equipment. That costs a buttload of money. Expanding a building or buying/leasing a new facility is not done overnight. Buying specialized manufacturing equipment(it's not like this stuff is just stocked on shelves at the local machine shop) costs a crapload of money plus installation.

This is also assuming that material suppliers can keep up with the increased demand from the manufacturers.

If the demand ever drops back to previous levels, or even just anything below current levels, you end up with equipment and employees sitting idle.

A 6 month spike in sales is not worth making an investment that could take years to pay for itself, if ever. Even if a company was planning to make such an investment, it could take months to bring the new manufacturing capability online once someone signs off on all of the paperwork.
Reply With Quote