Message from President of Federal

[Randy Tidwell]

Not a red flag to me, production capacity is a secret in lots of industries. From pharmaceutical to firearms, there's no reason to release those numbers for competitors (or foreign governments) to see.

What he did say is what many have suspected all along, primers are used for internal production first and reloaders second. That makes perfect sense, the margins on primers can't be very high compared to margins on ammo right now.

I ran a printing equipment manufacturing company for 25 years, surges in demand are hard to respond to.

Between the increase in gun sales, the increase in the number of reloaders (preppers) today, and the pandemic, I can only imagine the productions problems they are facing.

Ask yourself, if you were CEO of a company like Federal, would you entertain spending billions to build a new plant for a demand that will prob be caught up to in 6-12 months. I certainly wouldn't.

We need to all give the manufactures some slack, they are responding as best the can.

JMHO

 

[Another Casual]

I ran a printing equipment manufacturing company for 25 years, surges in demand are hard to respond to.

Between the increase in gun sales, the increase in the number of reloaders (preppers) today, and the pandemic, I can only imagine the productions problems they are facing.

Ask yourself, if you were CEO of a company like Federal, would you entertain spending billions to build a new plant for a demand that will prob be caught up to in 6-12 months. I certainly wouldn't.

We need to all give the manufactures some slack, they are responding as best the can.

JMHO

Agreed on all points

 

[Mostly Tailfeathers]

Mr. Tidwell,
Thanks for posting the video, I to thought it was well done. I am sure that Mr. Vanderbrink is a pretty busy man and appreciate him taking the time to address the concerns of his customers. I don't think he could have been any more direct.
Internet forums are certainly a tricky area for any business to navigate. In only 12 post on this thread Mr. Vanderbrink's character, honesty, and that of his business were questioned by people who have never met him. Disrespectful and rude name calling of the President and Vice President of our country were thrown in for who knows what reason. MT

 

[Sockeye66]

I applaud the fact that he is forthright enough it give an update, whether we as reloaders like the news or not. He could have been a silent ghost leaving us in the dark but chose not to, good for marketing? Yes it is, but I'll have no issues buying CCI/Federal products.

 

[Charles De Salme]

I for one appreciate the honesty coming from the CEO. He's flat telling reloaders, like myself, primers are going towards manufacturing of ammo. Unfortunately we do have gougers out there and people willing to pay the price for components. Fortunately we do have folks willing to trade components or help a fellow reloader out if need be.

 

[41magnut]

sounded like a politician, said what you wanted to hear but no subsistence. when they say without getting into numbers we did this much that should be a red flag

In all honesty what would you have liked for him to say? "The gubberment is guarding the gates, holding our employees hostage, and taking all the 9MM & 223 ammo out in black helicopters!"

He didn't have to produce the two videos.

I'm glad he did, good PR if nothing else.

Nothing he said is controversial, ground breaking, or rocket science for that matter. I heard the basics of the manufacturing & business process.

It takes a certain amount of time to increase the delivery & amount of raw material, down time for repair & upkeep of current machines, delivery and set up of new machines, hiring and training of new people.

The land procurement, planning, permits, competitive bidding, financing, construction delays, infrastructure & what ever else is required to build a new or even expand an existing plant could take a year.

 

[JakeC]

Not a red flag to me, production capacity is a secret in lots of industries. From pharmaceutical to firearms, there's no reason to release those numbers for competitors (or foreign governments) to see.

What he did say is what many have suspected all along, primers are used for internal production first and reloaders second. That makes perfect sense, the margins on primers can't be very high compared to margins on ammo right now.

Right. Primers are the stew meat and hamburgers of the shooting industry. It's what they had leftover. They'd be in violation of shareholder trust if they kept selling us primers when they had value-added product waiting for them. If they let us have access to them right now they'd need to charge 35 bucks a hundred, not 4. Then we'd all s*** ourselves to death clutching our pearls.

 

[can1010]

In all honesty what would you have liked for him to say? "The gubberment is guarding the gates, holding our employees hostage, and taking all the 9MM & 223 ammo out in black helicopters!"

He didn't have to produce the two videos.

I'm glad he did, good PR if nothing else.

Nothing he said is controversial, ground breaking, or rocket science for that matter. I heard the basics of the manufacturing & business process.

It takes a certain amount of time to increase the delivery & amount of raw material, down time for repair & upkeep of current machines, delivery and set up of new machines, hiring and training of new people.

The land procurement, planning, permits, competitive bidding, financing, construction delays, infrastructure & what ever else is required to build a new or even expand an existing plant could take a year.

gun shops have nothing why because they cant get anything from distributers. the distributers have nothing to supply because they have nothing because the manufactures aren't supplying anything.
distributers are telling gun stores that they have no clue when it will have anything. all they hear from manufactures is we are making more than ever before but still have nothing
my state is still half rifle half slug gun and I personally know a lot of people that didn't hunt this year because nobody made slug ammo and many that went in the woods with only 1-2 slugs and the second was given to them.
they never added a third shift or went to a 7 day work week. they just keep poking along as usual and putting out videos. what is really sad is that guy has control of three quarters of domestic primer production
not sure what happened to the foreign primers they don't have the shortage we do but they aren't coming here
so bad domestic production and no imports leaves us high and dry for god knows how long

 

[JakeC]

I ran a printing equipment manufacturing company for 25 years, surges in demand are hard to respond to.

Between the increase in gun sales, the increase in the number of reloaders (preppers) today, and the pandemic, I can only imagine the productions problems they are facing.

Ask yourself, if you were CEO of a company like Federal, would you entertain spending billions to build a new plant for a demand that will prob be caught up to in 6-12 months. I certainly wouldn't.

We need to all give the manufactures some slack, they are responding as best the can.

JMHO

Exactly what I've been telling people about factory capacity. Let's say they could sign the papers and have a new factory dropped from space tonight. Why would they do that only to furlough the entire place in six months after they've caught up, glutted the market, and driven their own profits down without paying for their investment? If everyone calmed down and used their disposable income on some decaf instead of their scrooge stashes we'd be back to normal in no time.

 

[Another Casual]

gun shops have nothing why because they cant get anything from distributers. the distributers have nothing to supply because they have nothing because the manufactures aren't supplying anything.
distributers are telling gun stores that they have no clue when it will have anything. all they hear from manufactures is we are making more than ever before but still have nothing
my state is still half rifle half slug gun and I personally know a lot of people that didn't hunt this year because nobody made slug ammo and many that went in the woods with only 1-2 slugs and the second was given to them.
they never added a third shift or went to a 7 day work week. they just keep poking along as usual and putting out videos. what is really sad is that guy has control of three quarters of domestic primer production
not sure what happened to the foreign primers they don't have the shortage we do but they aren't coming here
so bad domestic production and no imports leaves us high and dry for god knows how long

I can't speak for everywhere, but where I am the ammo is coming and going. Stores do get shipments but people line up at opening and buy it all. I see ammo on the shelves all the time. May not be what you need, but it's being produced and sold. I saw 280ai, 6 creedmoor, 300WSM, 300 win mag, 7 mag, many types of shot shells, yesterday. It's definitely being made and shipped, the main issue is the increased demand.

 

[bthemongrel]

I'm not seeing ammo or primers where I live. A couple of years to get back to normal is going to be tough to ration what's left on my shelves. Makes a person not want to invest in a new build or even a new off the shelf purchase. Kind of hurts the whole chain of the shooting/ hunting industry for a long time. Don't even want to burn anything up at the range anymore not knowing if the bottom round in my magazine could be the last I get to pull the trigger on.

 

[can1010]

by me we haven't seen 308, 3006, 270 the basics on the shelves since oct. what is available is not legal to hunt with. here the hunting crowd is older and the basics are what they grew up with and need and it is not available here or many other areas around the country based on the number of started threads and the type posts in the treads and not just here it is on all the forums
you buy hunting ammo before the season and hunting seasons have been over for most of the country for months and still nothing available not even the supplies to role your own
every where you look there is limits on purchases and been that way for a while so lets not blame hoarders nobody is buying thousands of rounds at a time. if they increased production that much where is it
the cabalas 20mi. away have nothing neither does the sportsman that is 70 mi away or the bass pro that is a 100 mi away and nobody in between is doing any better

 

[Len Backus]

ultimately China Joe and the Hoe will attempt to impose a $10 per bullet tax to pay for their mandatory "buyback" confiscations.

Riflehunter1776 is banned

 

[jasonco]

I'm good with this explanation and I'm good on components for a long while.

If you didn't plan accordingly from the the last powder shortage, what were you thinking?! There were still plenty of components to be had, through mid August or right before hunting season's started happening.