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A Message From Federal, CCI, Speer And Remington President Jason Vanderbrink On Ammo Demand

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  • rp-

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    Good for him for making that video and trying to out some of the bullshit to bed. I talk to the guys at the local gun shops and they say they're getting ammo but it's being bought up as quick as they get it. It's not a supply problem. It's a demand problem.

    Kind of like people asking $0.18/primer.
    You saw that, too? Sadly, somebody is going to pay him for it

    Sent from my LM-G820 using Tapatalk
     

    66vette

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    Coincidence they are all putting out videos on the same day?
    Maybe it's damage control.
    They're not smart enough to keep making ammo. in the good years when demand falls.
    So many now complaining of "no ammo" around here.

    Sounds like he can't stand the heat of being on the receiving end of other people's frustrations from everything going on these days.
    If I could make a suggestion to him it would be get some sunglasses & ear plugs. That way he couldn't see or hear what people have to say...............Problem solved.

    Talks of 7mil new shooters at 2 boxes per but, nothing of the 50mil-75mil who are still buying ammo.
    Consider also they're buying 1000's of rounds each, not just 2 boxes a year.

    Instead of making 700mil more rounds a year, they really need to make 700000000000000000000 a year to keep up.
    Never gonna happen in this life time or the next.
     

    mitchntx

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    From a guy who spent last 37 years in communication and marketing, it seems bad PR when your message is we are making record profits and manufacturing is at record levels and look, I can walk out to the floor and grab handfuls of any ammo I want. So stop your whining, sit down and shut up.
     

    66vette

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    From a guy who spent last 37 years in communication and marketing, it seems bad PR when your message is we are making record profits and manufacturing is at record levels and look, I can walk out to the floor and grab handfuls of any ammo I want. So stop your whining, sit down and shut up.
    Bingo
    It's a BIG slap in the face to consumers when that guy rants about what "we the people" are saying.
    Sounds like someone who was born with a silver spoon in his big mouth.

    I'm going to send him a not so nice email with choice words of my own.......just so he knows there's 2 sides to every story.


    Dies in popular calibers can be hard to find
    I searched for 9mm & 223 dies to see if any were available.
    Couldn't find any.
    I have a RCBS 9mm carbide set I don't use anymore.

    I searched 9mm & 223 brass also.
    Very little if any to be had.
    Same with bullets.

    I bet a year or 2 from now it will be same same.
     

    Charlie

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    Bingo
    It's a BIG slap in the face to consumers when that guy rants about what "we the people" are saying.
    Sounds like someone who was born with a silver spoon in his big mouth.

    I'm going to send him a not so nice email with choice words of my own.......just so he knows there's 2 sides to every story.



    I searched for 9mm & 223 dies to see if any were available.
    Couldn't find any.
    I have a RCBS 9mm carbide set I don't use anymore.

    I searched 9mm & 223 brass also.
    Very little if any to be had.
    Same with bullets.

    I bet a year or 2 from now it will be same same.

    "I bet a year or 2 from now it will be same."
    Or worse!
     
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    Dougw1515

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    I had no problem with his video at all. There is not a boogie man under every bed. I believe he was openly and honestly addressing a problem, acknowledging it, for which at this time there is no solution. I believe these manufacturers are doing all they can with the resources they have available. The demand is simply huge to the 12th power.
     
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    Fished

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    I liked both videos. He's right there have been a lot of new guns bought by people who normally don't buy guns and ammo. That has created a huge amount of demand. Then there's also the people who buy all they can get to sell at marked up prices. It will most likely take a year or two to get any better.
     

    SQLGeek

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    I'd think reloading equipment would be flying off the shelves.

    It is. This is about the worst time ever for anybody trying to get into reloading.

    Seems like a couple of us respect his attempt to defend his position and other's respond with surly indignation about the exact thing he created the video for.

    I’m a little surprised at that myself. I’m not sure what they’re supposed to do about the massive demand they’re facing. Probably the same types going to the factory and trying to accost the employees.

    The customer isn’t always right.
     

    gambler

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    I think his biggest concern should probably be that one day this demand will drop off and people will likely have more ammo than they will need in the short term. Consequently his sales are like to drop through the floor, his equipment will be cut back or idled completely, people will have to be laid off and suppliers will be shut off.

    His biggest management challenge is ahead of him and nothing he can do to avoid the problems he will face.
     

    twain55

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    I think his biggest concern should probably be that one day this demand will drop off and people will likely have more ammo than they will need in the short term. Consequently his sales are like to drop through the floor, his equipment will be cut back or idled completely, people will have to be laid off and suppliers will be shut off.

    His biggest management challenge is ahead of him and nothing he can do to avoid the problems he will face.


    This is true. But, it's the same for any business that deals with seasonal, panic, emergency, etc. purchasing situations. We, as firearms enthusiasts, can support these businesses by shooting the shit out of all our ammo and buying more. (I'm kidding. sort of.) haha
     

    etmo

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    I think his biggest concern should probably be that one day this demand will drop off and people will likely have more ammo than they will need in the short term. Consequently his sales are like to drop through the floor, his equipment will be cut back or idled completely, people will have to be laid off and suppliers will be shut off.

    His biggest management challenge is ahead of him and nothing he can do to avoid the problems he will face.

    Managing the drop off in demand is certainly on his mind, but I have to wonder about their economic models. If we agree that demand will again drop off, can we also agree that a coupla years after that, we'll again have some political BS which causes another spike and shortage?

    In the past decades (remember we had 2 terms of Obama) there have been several gun and ammo shortages. And yes, two years ago ammo prices were cheap and supply was plentiful, Federal was running only 1 shift a day instead of the 3 shifts they are now running.

    And that's my question about their economic models. Since we now have over a decade with these ammo shortages on a recurring basis, I have to wonder if keeping production high during the slow years (and paying to ship / warehouse the ammo for a coupla years in a reasonably dry environment, like say the desert of Arizona) makes economic sense.

    If we can agree that there is a demand for billions of rounds that is currently unmet, and billions of rounds takes months or even years to manufacture, then had they continued a modestly-elevated level of production during the Trump years and stored the surplus, they would be able to sell every single one of those stored rounds in the present market. Obviously if they had that kind of supply then it would be impossible to demand the ultra-premium prices at which ammo is presently being sold, but could they sell that warehoused ammo at a modest markup to cover the transport/warehousing costs when demand got high enough to exceed normal production?

    It's easy to say, "Obviously not, because they're not doing it", and that may in fact be true, but it is also be true that companies often encounter resistance when contemplating changes to entrenched practices, and companies that are politically incorrect might be more risk-averse than companies in other industries. Maybe after another decade of shortages someone will take a flyer on increasing production....we'll see.
     
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