I saw in a somewhat recent Olin Corp annual report that retail sales accounted for just under 25% of their ammunition sales. While it is certainly substantial, it still means that over 75% of their revenue is from government contracts (military and law enforcement). I haven't seen any stats from ATK, but I tend to believe they are pretty similar to Olin's. This being the case, I am sure the "brass" (no pun intended) at these corporations are well aware of which side of their bread has the butter on it!

To open a new plant would cost hundreds of millions of dollars and unless the bean counters can see a return on their investment within a reasonable amount of time, it just isn't going to happen. I just don't believe that this temporary bump in the retail market is enough to justify a major investment by Olin or ATK.

Scott