Federal fires back

[KMaC]

[video=youtube_share;KIgvoJKovIg]http://youtu.be/KIgvoJKovIg[/video]

 

[mbkintner]

I don't recall seeing anyone on INGO saying they thought Federal (or any other manufacturers) weren't making ammo. Was that an ARFCOM conspiracy?

 

[Winamac]

Very interesting. He seems genuine.

 

[Expat]

Methinks he doth protest too much

 

[KMaC]

I haven't seen any comments here or otherwise that said any manufacturer wasn't running full speed.
But the twitterverse probably has some conspiracy theories out there.

 

[indyjohn]

Methinks he doth protest too much

Oh stop. Why can't you give the man half a chance?

 

[Expat]

I put a smiley face...

 

[mbkintner]

I put a smiley face...

Maybe we need a purple smiley face? Or would that be like a double negative?

 

[gregkl]

Well, I for one applaud this senior level executive for publishing his statement.

I don't know what every other manufacturer is doing to be able to handle the increased demand for their products in the midst of a pandemic.

What I do know is our company is being asked to increase production in certain segments anywhere from 35-50% and in one case doubling current volumes. Like most manufacturers that know what they are doing, we don't sit on unused capacity so when these requests come, we have to make a decision whether to invest or politely refuse the business. We stay at 85% of capacity so that we can handle 20% spikes from customers periodically. So basically to accept more business, we have to add weekend work. And that gets expensive in more ways than salaries.

If we accept, then we go to work. Increasing output is not just an issue of money. Actually money is the least of the problems. Getting the plant set to handle increases like this takes time. Sometimes so much that by the time one can be geared up, the demand has passed and now it's no longer needed. It cost $1,000,000+ to add a press to be able to accept a new piece of business. Add to that, wiring, plant space, plumbing, hiring and training people to run it, and well it's easy to see that you can't just flip a switch or hire more people to meet increased demand.

There is a delicate balance and more than a few great companies have been brought to their knees because they jumped on the bandwagon and tried to capacitize for the demand and not see it sustain over enough time to get their ROI.

Now, roll in covid. People are out sick, or having to call in because they may have been in contact with someone expected to have covid. When they are at work, they have to maintain "social" distancing, sanitize their work area, leave time between shifts to deep clean, work around barriers, slow production, the list goes on. This has the effect of reducing output when they need to be increasing it.

These are the times we live in. Look around; it's not just ammunition that is hard to find.

End of sermon.

 

[KMaC]

Huh, there must be some internet buzz about witholding supply from the market.
Hornady has also created a "we promise" video.
[video=youtube_share;cCgQ2DV0n6Q]http://youtu.be/cCgQ2DV0n6Q[/video]

 

[frenchiectfd2203]

If Keanu Reeves would stop making movies there would be an abundance of ammo.!!

 

[42769vette]

It's not just ammo, it's guns, optics, etc. Somewhere on the net someone convinced someone else that there was/is a conspiracy to keep Joe blow shooter from being able to get ammo, limiting his 2A rights.

No kidding, I bet I field this call 30-50 times a day. Folks just don't seem to grasp that when demand tripples, you can't just turn a dial to speed up the manufacturing process. You can't build a new factory, and have it staffed, and producing in 1 month.

Would it be a wise business decision to spend millions to build a factory, staff it, etc for a temporary market bubble? Maybe it's not temporary. If its not temporary then yes it makes sense. If it is temporary then no it absolutely does not. These are all things to consider before thinking "x company is stockpiling, so I can't shoot". Sitting of inventory = lost revenue. Most companies are not striving to lose as much revenue as possible.

Where the conspiracy does get some traction is reloading components. The markup is less on components than manufactured ammo. The machines that made primers for sale to reloadeders, not makes primers that go into manufactured ammo.

 

[churchmouse]

It's not just ammo, it's guns, optics, etc. Somewhere on the net someone convinced someone else that there was/is a conspiracy to keep Joe blow shooter from being able to get ammo, limiting his 2A rights.

No kidding, I bet I field this call 30-50 times a day. Folks just don't seem to grasp that when demand tripples, you can't just turn a dial to speed up the manufacturing process. You can't build a new factory, and have it staffed, and producing in 1 month.

Would it be a wise business decision to spend millions to build a factory, staff it, etc for a temporary market bubble? Maybe it's not temporary. If its not temporary then yes it makes sense. If it is temporary then no it absolutely does not. These are all things to consider before thinking "x company is stockpiling, so I can't shoot". Sitting of inventory = lost revenue. Most companies are not striving to lose as much revenue as possible.

Where the conspiracy does get some traction is reloading components. The markup is less on components than manufactured ammo. The machines that made primers for sale to reloadeders, not makes primers that go into ammo.

We have become a microwave society. We are used to getting it "Now"

 

[42769vette]

We have become a microwave society. We are used to getting it "Now"

The microwave has broke, and it will take it a year or so to catch up with the meals in line to be warmed up.

I've been in this industry for about 11 years now. No one has ever seen anything like this buying crazy. Obama doesn't hold a candle to the storm we have brewing now.

 

[churchmouse]

The microwave has broke, and it will take it a year or so to catch up with the meals in line to be warmed up.

Yes sir.

 

[avboiler11]

"Gun guys" as a group are gawd awful at understanding an Econ 101 supply & demand curve.

Guess what, when demand goes up, supply goes down and prices go up. That isn't "gouging", that's the free market at work ESPECIALLY now with lack of supply due to COVID, along with spike in supply due to (also) COVID, social unrest, and an election year.

I'm sorry you don't want to pay $80/1k primers when they're "usually" $40/1k or $0.60/rd for 115gr FMJ 9mm, but this ain't usual times and if you want something bad enough, you'll pay the *current market price*.

 

[Tombs]

I like it when a company comes out and doesn't ***** foot around with shutting down ridiculous things said about them.

People are going to have to get used to the fact that if you want to buy ANYTHING gun related during election season, it's going to be a pain.
If you're going to wait to buy something until a global pandemic, riots, economic crisis, AND an election season, then something is just wrong with your brain.

 

[Twangbanger]

"Gun guys" as a group are gawd awful at understanding an Econ 101 supply & demand curve...

It's not just gun guys. An incredible number of people think manufactured goods grow on trees powered by sunshine, water, and air, or are dug out of the ground like crude oil...things which are in natural abundance. Then, when scarcity occurs and "nature's bounty" bubbling from the Earth is interrupted, it must be the malevolent action of some human trying to "corner" the market, either shutting down production or hiding product so they can gouge people.

Crude oil, Gibson guitars, many things have trained peoples' minds this way.

Many people have no idea how hard it is to staff up a manufacturing plant with people, paid the price the consumer is willing to pay, and keep it running, with absenteeism running what it does today, FMLA (thanks Bill Clinton) and the general attitude of people. The wages the consumer is willing to pay do not generate a large pool of applicants who can pass a background check, _and_ drug test _and_ are willing to show up every day (you need all 3).

Example: couple years back, a manufacturing plant in Lafayette (OK let's call it Subaru) needed to hire 300 additional assembly line workers to support volume growth for introduction of the 2020 Outback model. In the time it took to hire those 300 people, 600 other employees quit. They had to hire 900 people, to net 300. And most applicants will not even show up for the entire orientation class.

Anyway, as unpleasant as this current situation is, sometimes people need reminding that most things don't grow on trees.

 

[churchmouse]

It's not just gun guys. An incredible number of people think manufactured goods grow on trees powered by sunshine, water, and air, or are dug out of the ground like crude oil...things which are in natural abundance. Then, when scarcity occurs and "nature's bounty" bubbling from the Earth is interrupted, it must be the malevolent action of some human trying to "corner" the market, either shutting down production or hiding product so they can gouge people.

Crude oil, Gibson guitars, many things have trained peoples' minds this way.

Many people have no idea how hard it is to staff up a manufacturing plant with people, paid the price the consumer is willing to pay, and keep it running, with absenteeism running what it does today, FMLA (thanks Bill Clinton) and the general attitude of people. The wages the consumer is willing to pay do not generate a large pool of applicants who can pass a background check, _and_ drug test _and_ are willing to show up every day (you need all 3).

Example: couple years back, a manufacturing plant in Lafayette (OK let's call it Subaru) needed to hire 300 additional assembly line workers to support volume growth for introduction of the 2020 Outback model. In the time it took to hire those 300 people, 600 other employees quit. They had to hire 900 people, to net 300. And most applicants will not even show up for the entire orientation class.

Anyway, as unpleasant as this current situation is, sometimes people need reminding that most things don't grow on trees.

Your example of employees is spot on. The desire to work is fading away rapidly. My son and SIL have some interesting stories to tell about new hires at their places of employment. When I was coming up my desire to work/make a living was hard driven through my childhood. If you want anything past what we provide here at home there is the door. The world awaits you. Go out and get it.

What have we done. Not you and I per say. But there has been a terrible break down of that message. Terrible.

 

[spankys56]

None of us should be surprised by what is happening and we should have been ready for it. The days of going out doing mag dumps are long gone and will probably never return. Every round should be thought of like it is your last. Get the pellet guns out for some trigger time and conserve what you have which should be obvious. This is where the riflemen shine. 1 shot