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by Krampus
Sun Jan 20, 2013 3:52 pm
Forum: General Gun, Shooting & Equipment Discussion
Topic: The (Not So) Great Ammo Shortage of 2013
Replies: 73
Views: 12951

Re: The (Not So) Great Ammo Shortage of 2013

punkndisorderly wrote:I understand the reasons for the demand side, but not the supply side of the equation. It seems weird that the supply side hasn't even begun to catch up. When you consider that supplies haven't been normal for probably 4-5 years (though better at some times than others) I would think established companies would have significantly added to capacity and/or new ones would have popped up and/or some enterprising companies/individuals would be partnering up with foreign makers to pull in supplies from outside America (the shortage isn't global, is it?).
The capital investment is not small. For new companies, there's also ATF hoops to jump through. For current manufacturers, if a company is going to invest in equipment that depreciates over ten years or more, they usually want to think the equipment will be needed over that time. In other words, a permanent increase in demand so they don't have expensive machinery sitting idle. Many times with temporary shortages, the return on investment isn't there. That's across all kinds of manufacturing businesses. However, if you think different, you can go into the business and get rich if you bet right.
punkndisorderly wrote:Yes, the demand is high, but I don't even remember the last time I've seen a fully stocked ammo counter.
I don't rememebr any real shortages before Labor Day.

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