Some Firearm and Ammo Shortage Insight

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1Self

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It's too bad. The companies could pay off the new manufacturing overhead within a month if they start today. The other two months would be gravy. Just hire some temps and give us more ammo!
 
Glenn B

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1Self said:
It's too bad. The companies could pay off the new manufacturing overhead within a month if they start today. The other two months would be gravy. Just hire some temps and give us more ammo!
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New manufacturing overhead would likely require new machinery, new experienced employees, new space. The cost likely would not be recouped in a short time. It's explained in the linked article: Why is the Ammo Gone? | RECOIL - the 2020 Ammo Shortage
 
Jchrisls

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Glenn B said:
New manufacturing overhead would likely require new machinery, new experienced employees, new space. The cost likely would not be recouped in a short time. It's explained in the linked article: Why is the Ammo Gone? | RECOIL - the 2020 Ammo Shortage
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I may be wrong, and I'm sure others here could correct me, but the investment in machinery can now be written off within the year of purchase VS amortized over what was believed to be its lifespan. This was one of trump's changes in regulation a couple of years ago. So if true, machinery is a wash. Its just the amount of time to execute VS return on investment. That is where a business encounters risk. Implementation is at least a 6 month + timeframe.
The other mitigating factor is raw material supply. I believe this is more where the hangups are. Lack of available raw materials due to shutdowns and purchasing based upon projections throughout the entire supply chain partially leaves us where we are at, and will be, fir a long time to come.
 
wizrd

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Add to 'shortage' - Winchester just received 38 million dollar contract for frangible 9mm. from the government. - That's a lot of brass the civilian market won't be seeing.
 
nortatoga

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wizrd said:
Add to 'shortage' - Winchester just received 38 million dollar contract for frangible 9mm. from the government. - That's a lot of brass the civilian market won't be seeing.
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One of the major ammo companies would have had this contract, so I'm not to sure it would matter! I may be wrong??
 
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