Ammo Shortage & Decline Q&A
I'm aware that some of you may already get this e-mail from Tim @ USCCA. I thought I would copy it to here so it might help answer some other folks questions about the scarce ammo issues.
April 22nd, 2009
"To put it simply: Understanding the Ammo Shortage..."
Dear Robert,
I have been getting a TON of questions from USCCA members and Armed American Report readers on the subject of the ammo shortage.
There are all sorts of theories out there, but the two resources that I'm about to share with you, I believe, are a couple of the most accurate explanations available.
Here we go...
Some More Ruminations
on the Ammo Shortage...
by Tamara K.
of booksbikesboomsticks.blogspot.com
Die Time: In comments yesterday, Ed Foster mentioned "die time". This is exactly why you can't get, for example, .380 right now. At most manufacturers, the machinery they use to load .380 (which uses different "dies" to load different calibers) is only used for that purpose for a small portion of the year; the rest of the time it's used to load more high volume stuff, like 9mm. They churn out .380 for a couple of months, say, at the end of the year, and it's enough to hold the market over 'til the next winter.
Rumor has it that this past year's demand for 9mm FMJ was so great that Winchester didn't bother tooling up for .380 and kept the presses pumping out 9x19 ball. Even if the other two companies didn't do likewise, what percentage of the .380 market do you think that Winchester represents? Federal and Remington certainly don't load enough to take up the slack, and that causes the supply to crash to nothing.
Case Lots: Believe it or not, the kind of people that read gun blogs, post on internet gun forums, go to the range every weekend, and name their gun "Vera", are a small minority of gun owners. For fifteen years I tried to convince Joe and Jane Public to buy ammo by the case. I failed miserably. No matter how much you explain the price savings when buying a thousand rounds at a lick, or the fact that ammo doesn't go bad, most people would look at you and say "I don't know, $100 seems like a lot of money, and what am I going to do with a thousand rounds of 9mm?"
The ammunition manufacturing and supply pipeline is simply not set up for the average consumer to walk into Wal-Mart and buy two cases of ammunition. If your average shooter normally bought 100rds/month to take to the range and decided to buy two cases instead, "just in case", he has just bought more ammunition at one lick than he would normally buy in two years. Think about that for a second, and then multiply it out over several million shooters suddenly buying way outside their normal pattern.
Production Capacity: The manufacturers are running full tilt. The only way they could make more ammunition is to build more plant, and they are not going to do that for several reasons. The first is that this bubble will contract sooner or later. Joe and Jane Sofaspud are going to realize that they really don't need 10,000 rounds of Winchester .45 in the basement, and that minivan payment isn't getting any smaller. They'll sell it to Annie Appleseed and Ivan Ipsc and demand will cool down.
The second reason they won't build more plant is financial. Remember that economy thing? Yeah, well it's still bad. Business loans aren't really easy to get right now, especially for businesses that are square in the middle of the Media-Congressional Complex's crosshairs. When the stroke of a pen could cut your sales by 50%, you are not what lenders call a "good risk".
Supply & Demand: Right now prices are high not because of transport costs or raw materials costs, which drove the price spike of '05(really an honest adjustment, as ammo prices had stayed almost artificially flat for the better part of a decade,) but because of simple supply and demand. If I put my widgets out for $1, and the first guy that walks in the store buys them all, I'm obviously not charging enough for my widgets.
As demand stays high and supply stays small, prices keep going up. They will go up until they become high enough to cool demand. As demand cools, supply will build back up. In order to move the new supply, prices will come back down somewhat until they reignite demand. This is Econ 101, folks, and it's as predictable as 32 ft/sec² or π*r².
......................................
The second resource, is another write up on the matter from a slightly different perspective- written by a Revolver Smith named Grant Cunningham.
I've shared some of his work with you in the past- it's always great stuff, and I encourage you to have a look at the rest of his site after you've given this a read.
It's called "Supply Chain Management 101: on the ammunition shortage". Visit HERE to read this article.
I hope you find these articles enlightening!
Take care and stay safe,
Tim Schmidt
USCCA - Owner / Founder
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P.S. - Get prepared while you still can.
FROM: Patrick Kilchermann, USCCA
co author, Beat the Ban.
Friends- I am not an alarmist. On the contrary- I am an iconoclast. My personal policy is to never over-react- period.
That is why I can safely say that NOW is the time to get prepared. Seriously though, let me explain...
1) The biggest stimulus bill to ever burden the American Tax payer was dropped into the Obama-River, and swept away into law before anyone could object.
I don't know about you, but I just have this weird feeling that a trillion-dollar bill would be a LITTLE harder to pass than another gun ban. And, if "Oh Bummer!" could pass this bill in as little time as he did... well, *gulp*.
2) Obama is exactly this much more antigun than Bill Clinton was: ->____________<-.
Spooky.
3) Supplies are running low. It's even harder now to find ammo, magazines, and rifles than it was a month ago when I stocked up.
4) The U.S. Dollar is weakening. Every time our federal government prints off another batch of $100 bills, the amount of ammunition that bill will buy decreases a little bit more. And, if Obama and his stimulus bill has the effect on our economy and the U.S. Dollar that I'm afraid it will... well, your ability to buy supplies might be hindered even further, for lack of tradable currency!
THESE are just few of the reasons why a few of us saw fit to create "Beat the Ban". We wanted to give a launch pad to those of you who want to prepare but aren't sure where to start, what to buy, or how much to buy.
You can get your own copy for just $17 using the link below.
I REALLY hope that all the supplies we are buying go to waste in our basements as we live out our days in peace, happiness, and freedom.
But- isn't it better to be safe than sorry?
http://deltamediallc.com/products/be...eattheban.html
WHAT YOU'LL GET:
As soon as you purchase "Beat the Ban", you'll get an email with a special download link. Using that link, you will be taken to a web-page where you can instantly download you PDF copy of 'Beat the Ban', as well as links for every chapter's audio file on .mp3.
Why Digital? The information in so incredibly time sensitive in this report that by the time we shipped something to you, it might already be too late. We wanted to really go the extra mile to ensure that you receive "Beat the Ban" quickly enough to put the information into practice. Not only that- but since it's a digital product, we can afford to get it to you for MUCH less than if we had to ship it!