Federal's new business model. Making YouTube videos that get 2 million views.

Are they actually doing anything to catch up? He already stated they are “at capacity” and still can’t keep up and do not have plans to expand manufacturing. If they started when this whole ammo craze hit, they might have some equipment operating by now.


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How much money would you be willing to invest on a 3-4yr return with the possibility of the Federal government banning/taxing the crap out of your product?

Would you invest your entire 401k to start a new ammo company?


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Its not just this shortage. There have been a few over the last 12 years, each one worse than the last. There was plenty time for the ammo manufacturers to get a return.


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6 months ago 223 was $0.30 a round......You ever paid inventory taxes?


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I don’t own a major business, so no. But you mean to tell me that ammo manufacturers, some of which are over 100 years old (Winchester 1860’s and Federal 1906), cannot figure out how to ramp up production beyond normal operating levels?
And they wouldn’t be sitting on excess inventory. Having the ability to produce is one thing. Actually producing it is another. Each cycle, “the president is the greatest gun salesman ever”, especially since Obama.


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Yes. They are trying to get their newly purchased Remington factory up & running.

Supply chain has been dificult for everyone this year. Resource supplier's (aka vendors) employees get sick and slow production/cause delays, shipping and transportation industry employees get sick and cause delays, and it just goes on up the mfg chain to the ones that actually produce the product (who's employees get sick and slow production). Then back to transportation and retail distribution who's employees get sick and cause delays. Throw in over demand due the the public thought process, and, well, it's basic Economics 101 where supply is greater than demand.


I'm glad I can ride this one out, too. (hopefully). Ain't gonna do no good getting upset about it.

Another update from Federal et al.


I work for one of Houston’s oldest Oil and Gas manufacturing companies. In the late 90’s the Family owned business was sold to one of the Largest and Oldest publicly trade Companies in US history. At that time the decision was made to move the manufacturing facilities from the Old Katy Rd. location to a new more compact location off of 290 and the Beltway. All of the machines, close to 24 CNC’s and over 36 manual milling, grinding and turning centers were to be moved. Add a full Code fab shop with two dozen fitting and welding hands you get the idea. The move was made in the 2000’s prior to my arrival in 2005 as a Manufacturing Superintendent. When I started in December of 2005 we had a 60 million Past Due Backlog largely because of the loss in production attributed to the physical move. We were literally running 24/7-7 days a week, machinists were pulling in close to 200k per year with all the overtime that was put in. The market was robust back then and sales was still booking 5-7million a month on top of the 50 million Past Due bookings. My point is that this went on well into 2008 and we were throwing everything we could in terms of man power, resources, out sourcing etc. Capital was spent and new machines were purchased and operators were added to run them. Customers were still bent on late orders the hole seemed never ending. Eventually in 2009 we got current with booking and sales.

Our situation was a little different because the foresight was there with a hard date for the move. Months prior to any disruptions in production associated with the physical move guys were working 55-70 hrs. a week to try to get ahead to minimize the impact, it never made a dent. Manufacturing is a fickle thing.....throw in meeting an increased demand all the while still producing a quality product is where the rubber meets the road.

In the end it’s in their interest to produce as much as possible with the demand as high as it currently is. They will sell every bullet, every round, primer and they will be happy doing it. But they aren’t going to reinvent the wheel to meet a temporary spike in demand only to have a surplus of equipment and hands once the demand is met, and it will be met eventually.


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I feel the best thing that ever happened to ammo mfgrs is the increasing demand and backlog. It's a mfgr's dream as it keeps prices high due to no competition and profit is the name of the game. Why would any mfgr want to flood the market and drive prices down?

Not sure that manufacturers are charging any more for ammo, post today of 50 rd boxes of 9mm brass at academy for $15, doubt academy is selling below cost

Ramping up production for most would most likely require new facilities. Now you have to staff those facilities, power those facilities, manage those facilities etc. Not to mention materials, inventory and all of the .gov BS.

All for what historically has been a very temporary demand increase. Then one day, that demand falls back to normal. Now you have extra staff, overhead and liabilities that aren't producing anything.

Even if not entire new facilities at the very least new/more machinery and equipment. Same boat but on a smaller scale

No they are not charging more and they are not charging less either and don't intend to. If the market gets flooded then that would drive prices down. This way the mfgr can maintain the status quo long term with no repercussions. They in it for the long haul. Now if people were to suddenly quit buying ammo then you might see a gradual price drop from the mfgr and certainly from the retailer to clear out taxable inventory but that would take a very long time and people ain't gonna stop buying.
One also needs to remember that the last lead smelter on US soil was closed in 2013 because of the bunny fornicators and tree huggers outrage so raw material for making bullets has to be imported and that is a whole nuther problem itself. Why build more factories when there is a shortage of raw material. One big ball of wax is what we have here.

I bought 5 boxes of Hornady 143gr ELD-X at Atwood’s in Kilgore today. $34.99/box. Didn’t seem like it was marked up at all. Same thing I paid March.


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