Upcoming Ammo Shortage

[Grdbreaker]

I love .40 and everybody else hates it...problem solved.

 

[wolfmanrogers]

Ammo manufactures orders must be backing up a little since dealer warehouses and storerooms are starting to get full. The ammo manufacturers themselves like to plant this seed in you tubers every time the ammo production consumption pipeline starts to dwindle...

Thats one of the reasons you start to see it and hear about it all in the same couple of week period. Between social media people copying each other to not feel left out and the actual planting of the seed, it comes to a crescendo and gets the pipeline moving a little quicker.

You'll see the gun shortage rumors coming along any time now as well.

Why would manufacturer orders be backing up if distributor and retail orders are down?

This isn't something ammo manufacturers do. They have plenty of business and get nothing out of having 12 month long backorders waiting.

 

[joeabarno]

anyone have any spent brass they want to get rid of?

I have a lot, 30-06, 280 Rem, 300 WSM, 308 + more. I recently bought out a big load from a family whose father passed away. Most have been cleaned and sized, you can reach me at 770-295-8444.

 

[jaxyaks]

Why would manufacturer orders be backing up if distributor and retail orders are down?

This isn't something ammo manufacturers do. They have plenty of business and get nothing out of having 12 month long backorders waiting.

Ok switch terms with distributors and retailers driving this, as a back log starts I probably should have said manufacturer production. They may be having a little trouble adjusting to the new push/pull production/consumption schedule. I know it is reaking. havoc with other industries that saw an uptick in the take rate and now that capacity is catching up, the consumption is dropping like a rock....RV's being one example.

Ammo manufactures are pretty much like any other thing that is manufactured and suffered from the same issues as everyone else, material/labor shortage combined with unprecedented demand= shortages. Labor and materials situation better speeding up production, combined with lower consumption= overstocks. That is literally a good part of the economy right now, production up, demand down and an imbalance they are trying to navigate. That can equal pulling out all the stocks to make sales and move money around.

Just a theory

 

[palmettomoon]

I see most of y'all need to stick to neckbeardin' economics and stop trying to explain supply chain for ammunition manufacturers.

The Fuddlore is overwhelming.

 

[jaxyaks]

You do have to split the domestic consumer market and the military market when you are looking at the ammunition companies. Just a fancier way of saying we are making more than people will buy...

Just a snippet of 3rd quarter (AMMO INC) (Gunbroker)

Third Quarter Fiscal 2023 vs. Third Quarter Fiscal 2022

	●	Net Revenues decreased 40% to $38.7 million.
	●	Gross profit margin of approximately 32.3%.
	●	Historical Adjusted EBITDA of $7.9 million compared to $20.1million.
	●	Updated Adjusted EBITDA of $4.8 million compared to $10.7 million.
	●	Net loss of ($4.1) million, compared to net income of $9.1 million.
	●	Diluted EPS of ($0.04), compared to $0.07.
	●	Historical Adjusted EPS of $0.05, compared to $0.14.
	●	Updated Adjusted EPS of $0.05 compared to $0.08

GunBroker.com “Marketplace” Metrics – Third Quarter 2023

	●	Marketplace revenue of approximately $15.4 million.
	●	New user growth averaged 40,000 per month.
	●	Average take rate increased to 5.7% compared to 5.4% in fiscal 2022.

Fred Wagenhals, AMMO’s Chairman & CEO, commented that “[t]he entire ammunition market is currently facing significant headwinds primarily due to the current inflationary and recessionary drivers impacting the consumer.

 

[BigMike]

Eh, someone is always crying wolf. Its always available, it's the cost the varies. That's not a shortage, that's a shortage of people willing to pay the price.

 

[JBWJr]

 

[Bulldog Man]

There's a ammo shortage coming just when and how long will it last In my opinion the cycle has started