Message from President of Federal

[Magnus777]

Blah-blah-blah! Yadda-yadda-yadda! "Can't respond to demand that fast..."..."... won't be able to meet demand for 2-3 years". But...what about the increased manufacturing capacity brought online between 2008-2016? Which...lead to; "... an oversupply in the marketplace prior to March". But did prices drop with that oversupply in the market? NO! And with historic demand, have retailers raised prices for what little product is available? YES! And will retail prices likely ever drop to pre-crisis levels after manufacturing catches up with demand...whenever that is? NO! I'm no fortune teller, but what I see here is manufacturers not only taking advantage of an opportunity to sell more product, but taking advantage of their end customers by milking the crisis for all it's worth! They're going to drag this out as long as possible to make sure demand outpaces supply, and keep prices artificially inflated. Then they're going to have to keep prices high to placate investors who have become used to the increased profits.

 

[orkan]

Considering there was 10% inflation in general, in 2020... I wouldn't expect anything to be cheaper going forward.

 

[Another Casual]

I see ammo here, drive by stores and the line is out the door before they open. It's out there, but so are a record number of new shooters and panic buyers. I don't get the conspiracy theories, they make money by selling ammo, they're selling it as fast as they can make it. Sure, they may not want to expand for what will be a relatively short lived demand (right after a 4 year lull that saw record low prices for many things), but they're running their factories at capacity. Ammo gets posted by retailers and sells out quickly, demand is artificially high right now.

You want a reason for the shortage? Hornady closed for a shift due to a snow storm last week, so it must be that.......or the record high demand.

 

[Idaholandho]

Considering there was 10% inflation in general, in 2020... I wouldn't expect anything to be cheaper going forward.

Winchester recently posted there will be a price increase within their products. Thankfully you can now expect to pay 1600.00 for 5k primers instead of 1200.00 on GB

 

[cboom]

there are two types of people when it comes to these conversations. One is the group that think corporate profit and share holder are all that matters and they have there excuses and reasons why. Second think that the customers are who should be the most important and be treated that way. we know which side vista outdoors is on and it aint their customers first.
this has been happening for so long that if they cant prepare and be able to ramp up production then maybe they need better planning and leadership. they know every time within a year of an election when gun control and buybacks become part of the campain this happens and depending on who wins will determine how long it will last.
personally I am getting tired of there **** pore planning becoming my problem. if you cant lead get out of the way

They are a private company and they produce what they produce. Most of the time it is more that enough some times it isn't enough to keep up with the demand temporarily. Clearly they have decided economically it isn't worth investing in more production for those rare times. So it really isn't poor planning on their part, it just is what it is. Really the only poor planning is of the consumer that didn't stock up on enough extra stuff to get them through these times they know can happen.

 

[can1010]

They are a private company and they produce what they produce. Most of the time it is more that enough some times it isn't enough to keep up with the demand temporarily. Clearly they have decided economically it isn't worth investing in more production for those rare times. So it really isn't poor planning on their part, it just is what it is. Really the only poor planning is of the consumer that didn't stock up on enough extra stuff to get them through these times they know can happen.

you sound just like the rest of the sheep in the flock. blaming shooters for not having thousands of dollars of disposable income for ammo and supplies.
blah, blah, blah and blah

 

[cboom]

you sound just like the rest of the sheep in the flock. blaming shooters for not having thousands of dollars of disposable income for ammo and supplies.
blah, blah, blah and blah

Honestly you come off as extremely entitled. You expect a private company to harm their business model so you can get what you want exactly when you want. They absolutely don't owe you this.

Why don't you go into business making that stuff? Then in the lean times you could over produce and fill up warehouses and sit on it for the temporary time in the future when demand is high.

 

[can1010]

Honestly you come off as extremely entitled. You expect a private company to harm their business model so you can get what you want exactly when you want. They absolutely don't owe you this.

Why don't you go into business making that stuff? Then in the lean times you could over produce and fill up warehouses and sit on it for the temporary time in the future when demand is high.

read post #70 your the guy smashing his thumb. you know you can only do it so many times and then they have to amputate it

 

[tcmikey]

Just thinking out loud. These shortages have happened in the past. That's a fact. Another fact is that not everyone here has the same experience or knowledge base. Just look at the thread of the guy that went hunting for the first time. Pretty amazing. So, if there have been shortages, and you were aware that there have been, then you should have prepared to the extent you were able. But if you recently took up this hobby did you familiarize yourself with the historical fluctuations in equipment availability prior to buying your 6.5? Does the person that takes up fishing need to worry about this crap? My point is that this hobby is different. Now toss in a pandemic to the mix not seen in 100 years. How many anticipated that? For those that had 100k primers stashed, how many rolls of toilet paper did you have? (Someone's going to chime in and say 1500! Lol) It's nice to see some guys helping others out during this. People need to chill a little bit. Buy popcorn and a pellet gun.

 

[aaronmcoleman]

1. This was not unexpected.
2. If I was a CEO with a billion dollars of sales in jeopardy instead of spending my time in front of a camera making excuses I would be, on the phone, in the car, or in the factory making it happen.

I have spent my life in manufacturing, I don't know everything but I know enough to know delivery counts.

If Federal fails to deliver someone else will.

I wish that were true. If federal fails to deliver most are too.

 

[59FLH]

I wish that were true. If federal fails to deliver most are too.

I suspect if the imports show up most won't wait on the domestic stuff.
I hope the retailers, ranges, instructors and the Class III businesses can hold out. It's hard to sell a firearm, instruct and operate a range if there is no ammo. Primers be damned, where is the ammo?

IMO LR 3 shot re-loaders, 1,000yd Elk Hunters and milk juggers are a smaller part of the business than basic every day lead slinging bulk ammo. I wonder if the current $1B back log will still be wanted or needed by the time Fed gets around to it. Instead of spending resources in 2019/2020 on 130 new designer catch phrase ammo lines trying to make a splash a SHOT maybe they should have focused on 130 times more 9mm and .223/5.56?

The irony is the 130 new products are also unavailable. Any one remember the Zombie fad?

It will be a shame if the new shooters loose interest because they cant.



Edited because typing on a telephone is a pain.

 

[JMW67]

I just wonder why nobody on the site chimes in and says hey ammo showed up at the LGS today if in fact all this ammo is being made I think at least one or two of us would have seen something granted I dont go looking for ammo but I do stop by the gun stores and visit I have to believe they are building ammo this is the business they are in just wonder were it is going to

 

[59FLH]

Its possible they are holding on to it to ship by the contract date, I assume they plan, manufacture and ship according the the contracts. My guess is there are caveats that cover fire, flood, war, etc.. as reasons they can't deliver according to the deal. Maybe at the fiscal or calendar quarter they will dump one fourth of the years supply or maybe more?

There must be a penalty for early delivery, right?

 

[JMW67]

Time will tell I would not hold on to long with uncle joe at the wheel