$80,000,000 worth of ammunition backorders

[Mad Charlie]

https://bearingarms.com/came/2020/09/30/...ck-orders/

Just one corporation facing huge amount of back orders.

[Double Naught Spy]

This quote was pretty funny, only because it is so misrepresentative...

The problem right now seems to be a simple matter of supply not being able to keep up with demand, and it’s good to see manufacturers being proactive in addressing the problem by increasing supply rather than waiting for demand to subside.

It is good to see manufacturers being proactive and increasing supply? Being $80,000,000 behind the curve indicates that they are being reactive or have otherwise failed miserably at being proactive. Plus, it isn't like they are trying to do a good deed by increasing supply, rather than waiting on demand to subside. This is a HUGE opportunity to make a lot of money. They don't want to miss out. If they don't produce, somebody else will and they will end up with 10s of millions of dollars in cancelled orders.

If manufacturers felt like this was only a short-term run on ammunition, they might keep their cash in reserve rather than spending it on new equipment, but at least for Ammo Inc, that’s not the case.

We are several months into this and they are just now deciding this isn't short term? Or is it that they have more in backorders than they could have ever imagined? Ammo inc. only had $4.6 million in revenue for fiscal 2019 and $14.5 million for fiscal 2020. So backorders of $80 million represents many times the revenue than they have EVER generated in a year.
https://www.globenewswire.com/news-relea...sults.html

[keystone183]

Ammo inc. only had $4.6 million in revenue for fiscal 2019 and $14.5 million for fiscal 2020.

Someone correct me if i'm wrong, but these numbers would seem to make them a small time player in the industry.

[mdram]

i read that article, i have never heard of the ammo that company makes

[Dinny]

Why is this the first time I have ever heard of Ammo, Inc? Did they just land a $79M gov't contract?

Thanks, Dinny

[montana]

Talking with my law enforcement friends, the county and city is having a hard time procuring practice ammunition. They have resorted to low round count practice.

[Double Naught Spy]

They didn't prepare, either.

[dammitman]

i really cant believe that the last shortage "22's" a few years back and the other calibers that were also hard to find didnt teach a lesson. it sure taught me. especially the handloading supplies part too. i think it shows the difference between a casual firearm enthusiest and one who actually shoots several hundred rounds a month or even more and doesnt want that to be interupted at all.

[Wethepeople]

My small LGS owner told me he has over 300k in just ammo and reloading components backordered. A few things trickle in each week and promptly gets wiped out. He doesn't expect it to change anytime soon. I only wished I hadn't been complacent about buying a 5k brick of small rifle primers. Down to a little less than 750. Won't make this mistake again.

[LRRPF52]

A big problem is betting on the election results, which is the main contributor to volatility in the firearms market.

A lot of start-ups and small-time businesses invested in AR parts leading up to 2016 because everyone assumed Hillary was going to take the WH and begin a campaign of anti-gun legislation.

When Hillary didn’t end up in the WH, demand for certain segments of the market went down and created “salad days” for AR15s, parts, and even ammo at certain seasons outside of peak summer months.

Companies who extended themselves for the Hillary panic ended up with excess supply, well ahead of the demand after fears subsided in a lot of people.

Ammo demand ebbs and flows with the summer shooting season and the hunting season, but over the past 20 years, it has had to adapt to the demand of high-volume shoot courses trending more and more each year.

Handgun sales are the hottest market in firearms sales for a number of reasons, so production for pistol calibers should not really be a betting proposition.

Due to population growth alone, rifle sales have been on a steady increase, most of which are semi-automatic actions that eat more ammo faster, so....

Businesses I know who are preferred dealers say that there is basically a sort of auction-effect right now on getting parts and components. If you’re not logged in with your cart ready to go even as a preferred dealer and you miss the 20 minute window when things become available, sucks to be you.

[BluntForceTrauma]

If you’re not logged in with your cart ready to go even as a preferred dealer and you miss the 20 minute window when things become available, sucks to be you.

Same with consumers! Didn't see my email notification that Aero stripped slick-sided uppers were available from Primary Arms until the next day. Yay! Went to order. All gone. Grrrr.....

Fascinating to see that Wolf 65G steel-case doubled in price to 50¢ per before it completely sold out.

The owner of SGAmmo foresaw this and warned his buyers in, oh, March to get their ammo now, cuz shortages were coming. He wasn't kidding and it wasn't just marketing.

[jasper2408]

Got an in stock notification this morning at 9:15am from Midway for large rifle primers and saw it immediately and tried to put them in my cart from the email notification and they were gone before I ever clicked on the "Add to Cart" button.

[Harpoon1]

Got an in stock notification this morning at 9:15am from Midway for large rifle primers and saw it immediately and tried to put them in my cart from the email notification and they were gone before I ever clicked on the "Add to Cart" button.

Basically, the same thing happened to me today. Literally, 5 minutes from the time stamp on the email alert sent out to me, I was signed into my account at Midway and the product, federal small rifle primers, was already sold out! 5 minutes! :mad:

I got an alert a couple of a days ago, at 2359, EDT that CCI #450 we’re back in stock.....rolleyes: Fair enough, the guys on the west coast must have wipe them out ASAP!

Absolutely crazy, with no end in sight!

[Old Bob]

I bid $100 on a 1K box of CCI 450s on Gunbroker the other day. Got an almost immediate response that I had been outbid. That was kinda funny 'cause that particular box of primers hadn't been bid on yet... was still at 0$. I just looked on Gunbroker a few minutes ago, the latest bid on that box is $175. Oh Well...

[Lemonaid]

How much would you pay for small rifle primers? I saw a classified local ad for cci 400, one brick of 1000 for $60.00. I might have bought them if they were cci 450's.

[Sinclair]

How much would you pay for small rifle primers? I saw a classified local ad for cci 400, one brick of 1000 for $60.00. I might have bought them if they were cci 450's.

O.K.. I am curious, what is the big deal about everybody using CCI 450s? There was a thread awhile back about slam fires. My take on the comments is that slam fires are essentially nonexistent. Am I wrong or does everyone use the 450s for some other reason.

[Lemonaid]

I have had one instance of slam fire, SKS reloads using Fed 210 primer. It was profoundly unsettling. Think about hearing a break in to your home, getting your firearm and loading a round and it goes off unexpectedly.
The CCI 450's are not only safer for gas guns, they are used by the pros for usually producing low SD's. for example. https://precisionrifleblog.com/2019/09/0...load-data/

[Harpoon1]

From the President of Federal, CCI, Speer and Remington Ammunition.

https://youtu.be/KIgvoJKovIg

[CMoor]

From the President of Federal, CCI, Speer and Remington Ammunition.

https://youtu.be/KIgvoJKovIg

Good video it sheds light on just what is going on. Something we also have to remember is the military has been using more than it has in the past too...

[PVBoom]

Great video, thanks for the link.