"We are making ammo" videos from Hornady and Federal

[revchuck38]

On Monday, I was talking to a guy who was picking brass off the ground at my local outdoor range.

I talked to him about the difficulties in the supply chain with ammo, and he said he had 153,000 primers on hand. He also said that he had located a store in a small town south of here, that had components in stock with no limits. He had taken full advantage of it and bought more. He planned to spend the next couple weeks reloading (with three non-automated presses). I can't imagine he will be able to load 153k rounds in couple weeks.

I don't want to besmirch the guy, because he seemed like a nice dude. But the reality is that the ammo panic-buying stuff has occurred (at least that I remember) in 2009 and 2013. It's a weird psychological problem that has crept up in every market this year. It probably has some reason behind it, because of what might happen with the Georgia Senate race.

For about two weeks after the Presidential election, there was no toilet paper on the shelves in local stores. Your guy was in the same mindset.

[Borderland]

It is an issue but I can't blame the guy.

I remember when Sandy Hook happened and I had primers but was running out of WSF powder. As soon as some became available in 2013 I bought 48 pounds of it. 7 years later and I still have 16 pounds on the shelf. But I don't hoard. If someone I know needs some then I will share.

Jeezus, I thought I was the only one that had more powder, by weight, than food. I'll run out of food in a natural disaster or Armageddon, but I'm not running out of powder. I just sleep a lot better at night knowing that.

[Baldanders]

Seriously?!?!?

This is one of the stupidest threads I have ever seen at PF.

Obviously, you've never read some of my handiwork in RR. 🤪

Good move. 👍

[GJM]

Latest video from Federal. Cliff notes version is:

1) we are looking after our employees

2) primers are going to their own ammo manufacturing and not to reloaders

3) Federal isn’t increasing capacity any time soon

[JAD]

That was a very good video; while I’m not surprised by any of the content, it’s simple truth plainly said.

[GJM]

That was a very good video; while I’m not surprised by any of the content, it’s simple truth plainly said.

I think that depends on your definition of “good.” Primers that used to go to reloaders diverted to production, and no increase in manufacturing capacity, mean this ammo shortage is going to be with us a long time. I saw Cheaper than Dirt had Winchester white box 9mm for just $100 per box of 50 today. Not sure how shooting is going to work at $700+ per 1,000 of 9mm.

[JAD]

Well, sure, bums me out too, but it is very unlikely that it’s rational or in the best interest of the companies to:
1) make additional capital investment which us unlikely to bear fruit before the next demand trough
2) sell primers into aftermarket before filling their internal capacity to clear hours with and create margin with those primers

So good in the sense that I believe him, he seems to have a good grasp of reality, and it was nice of him to be transparent and straightforward.

[Flamingo]

He was much more personable in this video.

[GJM]

Well, sure, bums me out too, but it is very unlikely that it’s rational or in the best interest of the companies to:
1) make additional capital investment which us unlikely to bear fruit before the next demand trough
2) sell primers into aftermarket before filling their internal capacity to clear hours with and create margin with those primers

So good in the sense that I believe him, he seems to have a good grasp of reality, and it was nice of him to be transparent and straightforward.

I agree — why would Federal invest capital to increase supply when they can sell every cartridge they make now at peak pricing. This is where competition brings new investors to risk capital to reap peak pricing.

He was much more personable in this video.

Definitely — clearly his marketing folks worked with him as he seemed a whole different guy on this video.

[JAD]

I agree — why would Federal invest capital to increase supply when they can sell every cartridge they make now at peak pricing. This is where competition brings new investors to risk capital to reap peak pricing.
.

How long are you willing to bet this is going to last before demand subsides to current capacity? It seems like there would be a million better bets for your money in terms of sustained demand. We’ll see, I guess, if a dark horse supplier emerges in the next year or two.