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$80,000,000 worth of ammunition backorders
#10
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.
NRA Basic, Pistol, Rifle, Shotgun, RSO

CCW, CQM, DM, Long Range Rifle Instructor

6.5 Grendel Reloading Handbooks & chamber brushes can be found here:

www.AR15buildbox.com
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$80,000,000 worth of ammunition backorders - by LRRPF52 - 10-06-2020, 07:58 PM

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