A Message From Federal, CCI, Speer And Remington On Ammo

[PPS1980]

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

[ame="https://www.youtube.com/watch?v=KIgvoJKovIg"]https://www.youtube.com/watch?v=KIgvoJKovIg[/ame]
Sorry for not commenting myself, I wanted the message from Federals CEO to speak for itself. Just wish he hadn't whined at the beginning, particularly given the winfall of profit his company is expected to reap as a result of this unprecedented demand.

 

[PPS1980]

Hornady has also posted (coordinated posts?) on the same issue:

[ame="https://www.youtube.com/watch?v=cCgQ2DV0n6Q"]https://www.youtube.com/watch?v=cCgQ2DV0n6Q[/ame]

 

[BC38]

I like the simple math explanation of the demand problem.
Over the last 9 months:
7 million NEW gun owners x 100 rounds (2 boxes) each = 7 HUNDRED MILLION rounds of ammo sales in 9 months. And that is assuming that on average they only bought two boxes each, which seems like a pretty conservative estimate.

What he didn't point out is that just to satisfy that demand would require making an average of almost 2.6 million rounds of ammo per day 7 days a week over the last 9 months (270 days).

And that's just to supply the people who have become NEW gun owners this year - it doesn't include supplying ammo to the other 100 million people in the US that already owned guns before this year. It certainly doesn't account for any of the panic buying that has been going on.

 

[PPS1980]

I like the simple math explanation of the demand problem.
Over the last 9 months:
7 million NEW gun owners x 100 rounds (2 boxes) each = 7 HUNDRED MILLION rounds of ammo sales in 9 months. And that is assuming that on average they only bought two boxes each, which seems like a pretty conservative estimate.

What he didn't point out is that just to satisfy that demand would require making an average of almost 2.6 million rounds of ammo per day 7 days a week over the last 9 months (270 days).

And that's just to supply the people who have become NEW gun owners this year - it doesn't include supplying ammo to the other 100 million people in the US that already owned guns before this year. It certainly doesn't account for any of the panic buying that has been going on.

Yes, that all makes sense. I think the video would have been FAR more effective if he hadn't started off complaining. Let's be clear, they are making more money then ever before during this high demand period. Please don't complain to me when YOUR business is going extremely well and mine is suffering from constant government intrusion and my income is down as a result.

 

[TX-Dennis]

I agree that he did sound a little whiny - especially at first. A more upbeat tone would have been better public relations IMO.

I've no doubt they're making and shipping ammo as quickly as they can. Without doing so they would soon go bankrupt. A market economy is a beautiful thing, but sometimes things get out of balance for a bit. They'll come back around, though eventually.

 

[MTC(SS)Ret]

I disagree with PPS1980 that Federal and all the rest are raking in the profits. If they are making more ammo they also are spending more on raw materials, production costs and labor than they did before. They have invested in increasing their AMERICAN labor force instead of moving production to a third world country.
I for one have no problem spending a little more for AMERICAN made products to keep jobs in America instead of boosting the Chinese economy.

 

[PPS1980]

I disagree with PPS1980 that Federal and all the rest are raking in the profits. If they are making more ammo they also are spending more on raw materials, production costs and labor than they did before. They have invested in increasing their AMERICAN labor force instead of moving production to a third world country.
I for one have no problem spending a little more for AMERICAN made products to keep jobs in America instead of boosting the Chinese economy.

Sorry, but if they did that at a loss they should be fired. They're for profit companies. Increased production without new factories should increase profit.

 

[peterGun]

I believe ammo manufacturers will be tentative about increasing output as long as there's the threat of banning online sales.


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[Farmer17]

I think the ammo bought by new gun owners is minimal compared to the ammo bought by hoarders. When I saw the riots every night on TV I certainly started buying more.

 

[BC38]

Sorry, but if they did that at a loss they should be fired. They're for profit companies. Increased production without new factories should increase profit.

Depends.

If the increased production is having to be done with overtime labor until they can hire and train additional workers, production labor costs go up - which reduces the percentage of profit. Maybe more dollars in profit, but a lower percentage.

Same with raw materials. When demand drives the price of lead, copper, powder, etc. up, increased production comes at an increased materials cost, and increased cost reduces profit margins.

In any production environment there is a 'sweet spot" level of production where profit is maximized. Produce at either less OR more than that optimal rate and profit margins decrease. Most factories are set up to run within that optimal range.

Often times the operation can be re-optimized to a new higher level production "sweet spot" but it takes time to sort out and establish that new optimal level of higher production. Training new employees, and sourcing new supplies of materials don't happen overnight.

 

[HorizontalMike]

As I have stated in another thread about the above, $0.70rd for 5.56x45mm is NOT a bad price at this point in time.

For those who expect "everyone" to hold off buying, in order to drive prices down...
"...dream on 'cause it ain't goin'a happen so get used to it.

On the other hand, 7 million new gun owners this year, does NOT sound like, "...we're goin'a take all yer guns away..." to me. Far from it.

 

[shocker]

Factories also can't be run flat out indefinitely. Machines need maintenance and repair. A factory has what is known as a nameplate capacity for whatever, typically, running at about 90% of that is ideal over the long term. Burst activity of 100% or more can be sustained for short periods but that just means postponing the inevitable shutdown(s) for maintenance.

 

[6string]

What a JERK!!

I turned it off after 22 seconds!

How unprofessional!

Maybe if these were independent companies again, rather than a monopoly owned by one big conglomerate there'd be a bit more free market competition?
Also, if that were the case, he might be a bit less inclined to tell off his customers.

I can tell you from firsthand knowledge, if this guy was the president of Remington back in the 80s when it was owned by DuPont, he'd be fired for his behavior and attitude.

 

[Neversink n Klapperthal]

New employees are not always the answer to increased production.Young people today dont stay with a manual labor job long,and it can be especially hard to keep people on night shift. You have to hire 5 new people to get 1 that will stay.In the meantime,all the hours spent training that individual are lost.I spent most of my life in a major wood shop,and we had to deal with these labor problems. In the meantime,the customers demand their products.

 

[Faulkner]

I thought this was a very good message dated December 18th from the president of Federal, CCI, Speer, and Remington ammo. Worth the 4 minutes to watch.


[ame]https://www.youtube.com/watch?v=KIgvoJKovIg&feature=share&fbclid=IwAR3feNOYwR20IDdhoAENn4JIvwonD4tUj_73qrro6gYqX6JWkNSyEyPxfLo[/ame]

 

[PPS1980]

Posted yesterday with the Hornady video as well.
A Message From Federal, CCI, Speer And Remington President Jason Vanderbrink On Ammo

 

[URIT]

A good video that everyone needs to view to understand why we are experiencing a shortage of ammo at this time.

 

[prairieviper]

Informative videos both but I have to say that Jason Hornady is a lot more diplomatic in his video than Jason Vanderbrink from Vista Outdoor. I was a bit put off by Mr. Vanderbrink's arrogant, "I am getting tired" rant, which I perceived as "Look, you ignorant hillbillies, quit bothering me with your stupid rumor and conspiracy theories but please continue buy our ammunition anyway whenever it's available." I can understand his frustration but maybe he should take the time to brush up on his verbal communications skills before making another video. Addressing customers like that doesn't work for me.

Maybe starting off with "Thank you for being a customer" as Mr. Hornady did, would help.

 

[rockquarry]

Maybe his opening presentation wasn't ideal, but I think the representative depicted in the video is right in his commentary regarding Internet information. His explanation regarding current ammo status offers some insight and makes a lot of sense. The non-believers may think he's just part of the big conspiratorial effort, but these same folks are probably among those that enjoy spreading erroneous information on the Internet.

 

[lrrifleman]

Last night, I watched both of these videos, and the messages made logical sense. One of the thoughts that needs to be entertained is, "is the current demand for ammunition that is being attributed to 7 million new gun owners a demand that will be sustained or is it an anomaly?" That is a significant question that needs to be answered before the existing producers contemplate facilities expansion.

In my opinion, the best move for our ammunition manufacturers is to run three shifts, lay in a supply of extra parts for the machinery, and do the best they can to do scheduled maintenance during the weekends. Meanwhile, we as the consumers, need to bite the proverbial bullet while the industry stabilizes.