I work directly on the manufacturing floor for a/the major producer of 22 Short, 22 LR, 22 WMR, .22 WRF and .17 HMR. The company is also a major player in CF ammo, but that isn’t my department. A good sleuth will be able to identify the company from the platforms I listed.
Anyway, management had seen an interesting trend of new firearm registration without increased demand for the corresponding ammo. We had HUGE surpluses in warehouses waiting to be ordered throughout 2011, and the first part of 2012.
There was an underlying fear among employees that a major layoff would occur, as that happened in 2007-2008 for similar reasons. (We also produce power loads for construction applications, and when housing bottomed, that sector did, too). It was horrible, short runs, level loading limiting our production to so much per day. People being sent to CF for a shift to help inspect the ammo (believe it or not, many of the ammo is inspected individually by hand. millions and millions of rounds, all by hand) and a lot of broom handling in that period to keep people busy.
In mid-2011: Since CF ammo demand remained in steady and even increasing demand; they shut down a shift and transferred a large portion of employees out of the RF group to CF, froze all hiring, and avoided lay-offs. Nobody was ordering rimfire anything.
Then we hit April 2012. The warehouse emptied almost over night and production demands were increased to 2009 levels. We were treading water for most of the spring/summer while they hired up, trained and restarted the 4th shift. We had a goal of approx 4 million LR rounds, and 1.5-2 million WMR/HMR per day. By the time the hiring and the additional shift had warmed up to productive levels, we found ourselves 50-60 million rounds in the hole across all groups for the year. We are still just breaking just slightly above even for a production goal. That means there is a 50ish million round deficit that will take a very long time to make up.
This is also why you are seeing a huge amount of loose pack “bulk” cartons being introduced for WMR where it hadn’t been previously available. The packaging turn around for those are, as you can imagine, incredibly faster than individual rounds in 50 ct plastic trays and boxes, those being individually packed and labeled. It takes no time at all to open a cardboard box, and glue it shut. (Don’t worry about the quality, just because it is faster doesn’t mean it isn’t with as much care.) But, that means we can easily outrun our loading capacity, which can’t be sped up any faster. When something goes out of spec, we shut it down until its right. No shortcuts.
I thought you guys would find it interesting to see an insider perspective of this ammo shortage, and a little of the situation on our end. We, on the floor, are working our asses off to turn this thing around.
Thanks to the comment left by That One Guy
does make a lot of sense i work in milk production and we also hit hard with low demand and had to cut down productions runs and layoff a lot of people.we are still in a recession and its getting worse not better. just pick up ammo when you can its always better to buy a box or two every check so you help support ammo company’s and have a stockpile when shortage comes around.
I CALL B.S!!!
This shotage involves ALL ammo suppliers! LOOK ANYWHERE!
Some arrangement with the Govt is in play here.
SHENANIGANS!!!
RE-LOADERS UNITE!!
It is! The factory that the article is refering to is owned by Dick Cheney’s group. I have strong suspicions that all other manufacturers are being paid off or getting tax concessions for non-production.
BTW; there was a guy on here named “BentSpear” & he discovered that there are 25 shipping containers sitting in Long Beach HazMat dockyard awaiting delivery to Hodgen’s Powder Company. Been sitting there since last October.
Keep up the good work, were going to need all you guys can make..
The man who sent this in is correct in some ways. I live up the road from him. The town where this factory is located has ZERO .22 rim-fire on shelves of local vendors. Out of towners came in 2 weeks ago & bought ALL .RF off shelves. One town to the north of factory is black-marketing 100 rounds in plastic boxes for $20/100. ALL reloading components & tooling is either being sold at black-market prices or is not available. Those vendors who have some stocks of components are limiting purchases to locals & restricting quantities. SO much for “Factorys” taking care of local economy.
I mentioned this shortage of 22rf and was savagely attacked and ganged up on by 5 guys here saying I was a govt plant etc. what do you think now?? I bet this does not get posted
Stopped by Turners this afternoon. No 22LR, just a few boxes of shorts, 5 boxes of hollow point mags, and that was it.
However, one of the customers told me he had picked some LR’s at Ammo Bros., and said there were plenty to be had there.
There is a recorded interview with WalMart on YouTube and their Rep said:
” The Company is withholding restock of AMMO supplies pending the current proposed legislation in DC with regard to Gun/Ammo Controls”!
So it would seem the Govt is strongarming suppliers in these regards!
Rotating Helix U Obama!
I still get ammo from walmart, but its hit or miss.
1 day a few boxes of .223 sat unbought for a good portion of the day,
So far 5 visits, and 3 oppurtunities for .380 9mm and Federal 22lr and Winchester 325 packs
975 Federal 22 for $45 out the door
500 Winchester for $30
prices went up a couple bucks but still 1/3 of what the auction sites are getting,,I’m checking every morning and buying when available, but they do get some in 2 times a week or so,,,