The Guy From Federal Again

[cmj8591]

Just in case you haven't seen this yet:

Jason Vanderbrink, President of Federal, CCI, Speer and Remington Addresses Your Questions - YouTube

 

[reddogs]

Thanks for the update they make a lot that i use.

 

[yeti]

Glad to hear they are working hard to try to keep up with supplying us all.

 

[AlHunt]

Glad to hear they are working hard to try to keep up with supplying us all.

Judging by my LGS and every online source I can find, they're failing abysmally.

 

[Hair Trigger]

I'd be happier if they'd divert a couple million pistol primers to the reloader's market and let the hunters learn to reload.

 

[Golphin]

I'd be happier if they'd divert a couple million pistol primers to the reloader's market and let the hunters learn to reload.

I would think they make much more money selling the finished product then they do the components. By reloaders not having primers they have eliminated some of the competition for their ammo . When they have a surplus of ammo that creates a surplus of components so they will then sell primers and bullets to prop up sales.

 

[Dfish1247]

Something will give eventually. I'd figure there are several underhanded acts going on between the factories and the consumer, if you all catch my drift. For everything to be gone, out of stock everywhere, but no shortage on auction sites, just vastness of space sized prices, and people bidding, just blows my mind.

What happened to the supposed ship load of foreign primers? Somali pirates nab it?

 

[Bozz10mm]

He talked about masks, social distancing, hunting ammo, and primers. Really not much info there.

 

[Telecaster]

Ammo does seem to evaporate somewhere between the factory and the store.

 

[Jon651]

Judging by my LGS and every online source I can find, they're failing abysmally.

How so? Apparently they are producing more than they ever have, before the surge in demand there was actually excess capacity so they had no plans back then to expand, and even if they could expand now it would take several years before any of that new production could possibly hit the market.

Frankly, if they could have seen this situation coming then they would better serve their shareholders by picking Lotto numbers.

 

[6string]

What about the good old free market?

Am I the only person bothered by the fact that this guy represents a corporation that is almost a monopoly?

Remington. CCI-speer. Federal.

These companies used to be competitors, working hard to make a better product for a better price, and get it to their customers in a way that met their needs. They used to have customer service phone numbers answered by humans that were actually happy to speak to you.
Now, the guy who told us how "sick and tired" he is of the complaints from frustated customers, after having put these companies under one ownership, is telling us how hard they're working.
Sorry, but CAPITALISM doesn't work that way. Eliminate the competition and what do you get?
Product shortages, price gouging, etc.
Do you realize how much money they're making by not having to inventory production? They just ship to fill standing backorders, typically to big box stores and online mega-stores.
No wonder the "Mom and Pop LGS" is fading into oblivion.
And, what happens once demand tapers off? First, there are lay-offs. Then, their subsidiary holdings get sold off for brand rights and capital assets. Why do you think Remington Arms recently went bankrupt?
Then, everyone will be scratching their heads wondering why all the primers are being made in China!
Good Grief, Charlie Brown!

Economics 101 right before our eyes!

 

[Dave Lively]

For everything to be gone, out of stock everywhere, but no shortage on auction sites, just vastness of space sized prices, and people bidding, just blows my mind.

I think a lot of people are buying ammo to flip it on the auction sites. Its not going to stop until people quit paying crazy high prices at auction.

Judging by what ammo and houses are going for right now a lot of people seem to have a lot of money they normally would have spent on vacations and eating out burning a hole in their pockets.

 

[Dave Lively]

Am I the only person bothered by the fact that this guy represents a corporation that is almost a monopoly?

Remington. CCI-speer. Federal.

That bothered me too. I knew CCI/Speer were one company but didn't realize Federal and Remington were part of the same company. I think Remington might be a new acquisition.

Who's left that can make both ammo and the components? Is Winchester the only one?

 

[Alton]

While I was waiting inline at a LGS to purchase my new model 29 this week a phone order came in to one of the workers. The guy on the phone wanted three pistols and four boxes of ammo sight unseen. It took me an hour to get through the line after being the second one to sign up, fill out paperwork and pay. When I left there was 20 people in line waiting to get in. This is why we have a shortage.

 

[ACORN]

The thing I'd like to know is how much they raised their prices during this insanity?

 

[typetwelve]

I think a lot of people are buying ammo to flip it on the auction sites. Its not going to stop until people quit paying crazy high prices at auction.

Judging by what ammo and houses are going for right now a lot of people seem to have a lot of money they normally would have spent on vacations and eating out burning a hole in their pockets.

I have conflicting feelings with these panics.

On one hand, I despise price gouging...

On the other, I despise the fools that willingly give their money for these gouged prices.

Honestly, looking at it logically as "one cannot exist without the other", I have to side against the fools.

If everyone just collectively stopped paying insane prices for stuff, the market would adjust and correct itself. As long as morons are willing to pay these absurd prices and just keep gobbling up ammo...this will never end.

I'm pretty confident that it will end eventually...but at this point, it's going to be years before the market settles down.

I don't blame the manufacturers, sellers, or politicians for this one. I blame the guy willing to pay $67 for a $12 box of ammo.

 

[waffles]

I've been in Cabela's twice now when they brought out the ammo cart, just a wheeled shelf with the ammo they received in that day. It gets descended on by customers like vultures, and absolutely everything gets picked up, even bizarre calibers and pricey defensive ammo that the LGS would have on their shelf for years without moving. The ammo is making it out, but it's not lasting.

This question of increasing production comes up every time this nonsense happens, and while I'd like more ammo now, if we can stretch our memories to the salad days of late November 2016 to February of 2019, ammo was as cheap as its been. I was routinely buying brass cased 9mm for under $150/case, .45ACP for $210/case, etc. They know this panic will end, and that it doesnt make financial sense to do an extremely costly expansion just so the machines and employees can sit idle when the panic subsides.

 

[2ndshift]

Ah, the Mitt Romney of the gun industry is back!
Am I the only person bothered by the fact that this guy represents a corporation that is almost a monopoly?

Remington. CCI-speer. Federal.

These companies used to be competitors, working hard to make a better product for a better price, and get it to their customers in a way that met their needs. They used to have customer service phone numbers answered by humans that were actually happy to speak to you.
Now, the guy who told us how "sick and tired" he is of the complaints from frustated customers, after having put these companies under one ownership, is telling us how hard they're working.
Sorry, but CAPITALISM doesn't work that way. Eliminate the competition and what do you get?
Product shortages, price gouging, etc.
Do you realize how much money they're making by not having to inventory production? They just ship to fill standing backorders, typically to big box stores and online mega-stores.
No wonder the "Mom and Pop LGS" is fading into oblivion.
And, what happens once demand tapers off? First, there are lay-offs. Then, their subsidiary holdings get sold off for brand rights and capital holdings. Why do you think Remington Arms recently went bankrupt?
Then, everyone will be scratching their heads wondering why all the primers are being made in China!
Good Grief, Charlie Brown!

Economics 101 right before our eyes!

EXACTLY! I could not have stated better.

 

[uncleted327]

I know locally, hunting ammo is just as unavailable as handgun ammo. Bought a new 30-06 in late August. Local BPS had loads of 06 ammo available. Two weeks later they had half the selection, two weeks more they had two options, since then I've yet to see a single box of 06 ammo in their store. Took me months to scrounge up 5 boxes of my desired Federal load and I haven't found any since.

 

[rockquarry]

I see nothing wrong with paying higher prices for primers or other components when shortage & demand situations like this occur. Hard to put a price on the enjoyment of a hobby. Paying outrageous prices is very different, however.

It seem some are overwhelmed by a compulsive need to buy now regardless of price and they do just that. Their actions are based on the current "want it now" mentality and other poor reasoning ability. Such behavior harms everyone's chance at securing products.

One may wonder what those who are willing to be badly gouged and apparently have unlimited funds were doing when components were plentiful and more affordable. This is the fourth or fifth (and worst) component shortage that we have experiences since the mid-'90s. Unless they are very new to the shooting/handloading sports or shoot very little, it seems they would be aware that the current situation is just part of a regular cycle.

I don't know what percentage of shooters are handloaders and I doubt anyone else does either, but I'm pretty sure the numbers are very, very small in comparison with those that don't handload. The far bigger market is and always has been in commercial ammo.