Arizona Ammunition Maker Facing $80-Million In Back Orders

Discussion in 'The Okie Corral' started by cbetts1, Sep 30, 2020.

  1. cbetts1

    cbetts1

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    Scottsdale-based ammunition company Ammo Incorporated is facing an $80.1 million order backlog amid record demand for ammunition.

    “We’re working right now seven days a week, 24 hours a day in all the manufacturing plants,” said CEO Fred Wagenhals.


    Ouch. The good news, if there is any to be found here, is that ammunition companies like Ammo Incorporated are now investing millions of dollars in infrastructure upgrades to increase their output. If manufacturers felt like this was only a short-term run on ammunition, they might keep their cash in reserve rather than spending it on new equipment, but at least for Ammo Inc, that’s not the case.

    “We just bought 2.8 million dollars worth of machinery and equipment last week to increase our production and increase our volume,” Wagenhals said.

    According to the National Shooting Sports Foundation, the year has already seen a boom in gun purchases, up 95% in the first half of 2020 compared to the same time period of 2019.

    But ammo sales skyrocketed even higher, up 139% compared to 2019 during that same time period.
    “The start was the pandemic that was going on. But there was always that fear of the election. Of who’s going to be elected of the next President of the United States,” Wagenhals said. “But thirdly, I think the unrest in this country right now. And as you’ve seen in a lot of cities, the looting and the burning, and I think people are just scared.”

    https://bearingarms.com/came/2020/09/30/ammunition-maker-80-million-back-orders/
     
  2. Doc Holliday

    Doc Holliday CLM

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    Nothing about 'employment' on their website...guess they're not hiring anyone to help catch up on orders.
     

  3. Kevinr20

    Kevinr20

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    I'd imagine most of the work is automated and need few hands to run things. They have a plant in payson...that'd be kinda cool to work in.
     
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  4. Glock-O-Rican

    Glock-O-Rican

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    Trumps fault for boom in biz.
     
  5. Pete Perfection

    Pete Perfection

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    Ammo will never be cheap again.
     
  6. willie_pete

    willie_pete NRA Life Member

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    Those are the kinds of problems a business needs.
     
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  7. cbetts1

    cbetts1

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    If Trump wins, it will slow down, if Biden wins look out. When Kamala takes over, things are going to get interesting.
     
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  8. Ranger357

    Ranger357 Just pixels

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    In a way it really sucks. Invest millions in new equipment, overtime/extra shifts adds to your product price (compared to “normal”) then say republicans stay in power, covid calms down, orders are canceled and your stuck with a bunch of bills and overpriced inventory you can’t sell.

    Money to be made of course, but I don’t think the ammo companies enjoy this cycle as much as people think.
     
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  9. willie_pete

    willie_pete NRA Life Member

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    OR,

    The Dims take control of both houses, Biden wins and immediately strokes out, Harris is in charge, WuFlu turns half the world into zombies, they don't make calculators with enough zeros to calculate how much money they are making and the principles buy desert islands with private armies to retire to.

    Please, Br'er Bear, please don't throw me in that briarpatch.



    :D
     
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  10. larry_minn

    larry_minn Silver Member Millennium Member

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    Well they are already going 24/7.
    New machines need to be set up, adjusted... likely they are 2x+ as fast as old? (Which might be worn from 24/7 use)
    So take experienced workers to new machines, idle old machine for cleaning, replace worn parts.. then if panic still on hire more, or sell if badly worn. (I of course don’t know condition of equipment).
    Do they just do the loading? (Buy components elsewhere?). Maybe they can’t get enough to run old, and new 24/7?
    Automated reloading is not a people heavy industry. I have seen private owned units that you dump loose virgin brass into 10 gallon hopper. It sets them on base, primes, flares, powder, bullet, drops into huge hopper. (How it set bullet correct I couldn’t get close enough to tell with safety shields). Guy dumped brass, Primers, powder, bullets Into correct hoppers. I could figure everything but how it properly set bullets. He was loading SWC softball loads for .45 acp at that machine. Iirc I got 7000 of them, and 5000 38 lite lead swc loads for the range I belonged to. I forget the 9mm. Wasn’t many. Cases of shotgun...
    But I wondered if pulled over. “What’s in those boxes on the floor pass, both sides of back seat”?? (FORD Escort, I had to spread load for safety)
     
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  11. DaveD

    DaveD Ex-Mod Moderator Millennium Member

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    I'm on GunBroker a lot. I can't believe what people are paying for ammo. 9mm is nuts .380 is insane. I've seen 9mm go from $.32 to $.55 a round in the last 2 weeks.
     
  12. Kevinr20

    Kevinr20

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    5.56 55 grain went from 30 cents to $1.75 on some sites. Ridiculous.
     
  13. Victor Dubya

    Victor Dubya The Kindly Curmudgeon

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    Hmmm. Maybe I should start selling my stash that I've been accumulating for the last 50 years. Looks like it pays to be obsessive compulsive.
     
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  14. BigBluefish

    BigBluefish

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    One major online retailer I checked out had only two types of .40 S & W available in “service calibers” and it was going (slowly though) @ about $ .93 per round.

    The only 1 variety of .22 LR left, and not even pricey target ammo, was going for
    $ .29 per round. For .22!
     
  15. pugman

    pugman

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    Lets compare to the tp run started in Feb-Mar.

    TP usage and growth are very, very stable and slow. My uncle was an engineer in the paper/fox valley area of WI for 40+ years and annual useage varies by population growrh and increases maybe 1-2% a year. TP machines are expensive and built as needed. No manufacturer has 50 TP machines laying around. This is why, among other reasons, while manufacturers were running 20+ hours a day they didn't add capacity.

    If Trump wins I think you will see strong demand for even 1-2 years out. Most of my friends are shooting way less. Many people were STILL caught short and tell me they have a couple of boxes for their hand guns and buy ammo for deer, duck or phesant hunting every year. A group of friends all shoot .270 Winchester or .308 and split boxes. I don't get this at all. Obama, a threatened Clinton win in 2016, COVID, new firearm owners...you think gun owners would finally figure this out.

    I never thought I would have a hard time finding my pheasant load (3" Steel, #4 Winchester). Some suddenly appeared at Cabelas and based on what I shoot (and I'm a bad shot) annually I bought a 2 decade's worth.

    Orders won't be cancelled if shooters wise up
     
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  16. Scott1970

    Scott1970

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    My guys told me today a local gun store had 115 gr. 9mm on their shelves for $.32 a piece. The also a had a few other calibers including.45-70 Govt.
     
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  17. OXMYX

    OXMYX

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    My thoughts are that prices will continue to rise if Trump wins and cities burn. Then, as a lame duck President he'll deploy the FBI and Army to clear the streets. Then it all settles down.

    If he loses then ammo goes through the roof. And when Warren, the Attorney General invokes a $10 per box surcharge for a background check then holy Toledo.

    After the surcharge goes into effect ammo prices will deflate.

    The problem for us reloaders is primers and powder are hoarded by folks that don't reload.
     
  18. BobbyS

    BobbyS Truth always sounds like lies to a sinner

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    Won't all those ammo buying folks be feeling bad when kunta what's her name bans gunz
     
  19. bababoris

    bababoris

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    So that’s like 20k rounds of 9mm?


    Sent from my iPhone using Tapatalk
     
  20. DaveD

    DaveD Ex-Mod Moderator Millennium Member

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    This is probably well known to most of you but I just found www.ammoseek.com. I'm in the communist state of NY and half of the dealers are paranoid so they won't ship to NY even though only New York City has restrictions.