Message from President of Federal

[frostop]

Not sure how much truth there is to his statement

 

[PNWdude67]

Well done!

They said "it's not possible to have a vaccine by the end of the year, it will take several year". Yet the leader of the free world pushed to make it happen in spite of all the obstacles and nay sayers. Making more primers is a lot easier than creation and distribution of a vaccine. Just saying. He just does not see enough in the bottom line to motivate him to make it happen. He said reloaded get "the excess" the leftovers and since they have no leftovers we get to go hungry until they do. So quit begging for primers, we will get them to you when we get them to you is his message.

 

[PNWdude67]

Did you watch the video? He specifically talked about that for almost 2 min. Answer was they were not.

Uhhhh, I think the comment you replied to was in response to the answer from the video. We don't like the 2 minute explanation of "well we just don't have enough excess and until we do no primers for you unimportant to our business reloaders."

 

[Stammster]

Not sure how much truth there is to his statement

Which statement? The cost increase from Federal to their distributors, or the comment that the video is a professional PR video featuring a diversity of people - that cost a bunch of money to make vs his first simple video in the plant.

2021 Ammo Price Increases: Federal, CCI, Speer, Remington

Ammunition prices are set to increase in 2021. Federal, CCI, Remington, and SPEER ammo increases of 3-15% starting in April.

www.internationalsportsman.com

 

[Stammster]

Uhhhh, I think the comment you replied to was in response to the answer from the video. We don't like the 2 minute explanation of "well we just don't have enough excess and until we do no primers for you unimportant to our business reloaders."

I realized that after I posted. It was addressed, just not the answer we all wanted. I misread the poster's comment thinking that he didn't belief it was mentioned.

 

[PNWdude67]

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

He never had or does federal have a factory to "meet our demand" in the first place. We were and are a nice little cash cow for the "excess". Federal handles primer demand like this, Joe forgot to turnoff the primer line again and we have 5 million excess.... dang, ok send them through packaging and get them to distribution. Now they just need them all to meet factory demand. He never has or never will care about the reloading market with regard to the primer. What he has yet to realize because this demand has been historically short lived, we need the primer to warrant all the upstream stuff including a new teir one optic or custom rifle build. He just doesn't care and his business model may never suffer from that complacency to selling primers alone.

 

[dgr416]

I have asked 30 different stores from bass pro shop ,Wal-Mart ,dicks sports ,sportsmans warehouse ,cabelas to all the gun stores for a 100 miles if they are getting ammo .They are getting very little ammo .I know from a neighbor how worked for home land security during oboma the companies had billion dollar govt contracts and the 5.56 ,40 SW , 9 mm 7.62 x51 was the majority of what the ammo companies were making .He was shooting 500 rounds a day when there was no ammo .There are 2 billion rounds of 40 SW hp ammo some Where if they didbt dump it some Where .It does not add up if they are running triple shifts that there is no ammo anywhere .

 

[nksmfamjp]

I have asked 30 different stores from bass pro shop ,Wal-Mart ,dicks sports ,sportsmans warehouse ,cabelas to all the gun stores for a 100 miles if they are getting ammo .They are getting very little ammo .I know from a neighbor how worked for home land security during oboma the companies had billion dollar govt contracts and the 5.56 ,40 SW , 9 mm 7.62 x51 was the majority of what the ammo companies were making .He was shooting 500 rounds a day when there was no ammo .There are 2 billion rounds of 40 SW hp ammo some Where if they didbt dump it some Where .It does not add up if they are running triple shifts that there is no ammo anywhere .

To me, this is where the story is exposed.

Federal says they made more ammo than ever before. No store has ammo meaning no distributor has ammo.

This means that ammo companies owe somebody else the ammo being made or they are warehousing it. I do kind of wonder if they are warehousing a fair amount of ammo to release at targeted times. Basically you could send 1/2 trucks of ammo out now because you don't have the stock to deliver full trucks or you warehouse for some time to get full trucks going out. I'm not sure. The other thing a shortage and new shooters creates is the opportunity to more easily raise prices.

As a manufacturer, if you see your 9mm ammo sold out at $60/box, why bust your butt to make it for $10/box.....just change wwb to Winchester Gold Box and list it for $30/box. It would sell like hot cakes for a couple years. That is what they did with the 22 ammo.

 

[General RE LEE]

Maybe the big ammo companies are holding popular hunting ammo till summer so hunters can buy for the 2021 deer season?

 

[PNWdude67]

They have to be selling it to distributors to have income. The theory they are creating a shortage doesn't make sense. Somebody is buying it faster than they can produce it. Is that the "new gun owners" like they claim? IDK ....it's what they want us to believe right now.

 

[dgr416]

It does no add up you should see ammo some Where .They say they are running three shifts .I asked cci the last time how much 22. They were making it was a million a day but there was none anywhere. it is going some where but not to us .I don't trust heads of companies they are for one thing money .The prices of ammo and reloading stuff will be there times as much and will stay that way if we ever see any at the stores .

 

[JMW67]

rest assured you know and see exactly what they want you to know and see

 

[Idaholandho]

rest assured you know and see exactly what they want you to know and see

Nailed it.

 

[LiveToHunt7]

Is there ammo plant really that small?

That's what I got out of it. I imagined a giant mega Costco sized building.