Update on powder supply from Hodgdon

[Darrell]

POWDER UPDATE

We have and will always appreciate feedback from our community, and we hear you and your suggestions for us to make more powder. With this post, our goal is to clear up several items and dispel misinformation.

WHY CAN’T HODGDON MAKE MORE POWDER?

We wish it were that simple - what we have experienced since 2020 is a demand issue and not a supply issue. The reality is we are doing everything possible to maximize shipments to our customers, including running overtime in production, packaging and shipping areas and working with our shipping partners to add new inbound and outbound shipping options. We are absolutely shipping more powder to our customers.

The issue is this powder is quickly purchased when our retailers place it on store shelves or on their websites. Hodgdon will continue to ship powder, but the inventory situation will likely continue until demand begins to normalize.

WHY CAN’T HODGDON BUILD ANOTHER POWDER PLANT?

A new powder production facility would require an investment far beyond our finances and no financial institution would finance this type of building project. While the current demand appears to be different from demand spikes in the last 20 years, the “normal” powder demand for the U.S. would not support an additional manufacturing plant. Most companies cannot afford to build a new production facility and then have it sit idle until demand spikes. An additional complicating factor would be locating this plant – there are only a handful of these facilities in North America and none have been built in the last 30 years.

WHY CAN’T HODGDON SHIP MORE POWDER?

As we’ve shared in many responses to our social audience, this is a demand issue and not a supply issue. Demand for ALL ammunition and reloading components is at historic levels. The fact is we continue to ship more powder to our customers, but this powder is quickly purchased by end consumers as soon as it is offered for sale.

WHY IS HODGDON SELLING POWDER TO AMMUNITION MANUFACTURERS?

Our focus is the handloading enthusiast. Yes, we sell some powder to strategic, mostly smaller ammunition manufacturers, but that is a small part of our business. The heart of our business is smokeless powder for the handloading enthusiast. Every day, we receive calls from potential OEM customers who are looking for powder to load in ammunition. Every day, we politely decline this new business so we can focus on our long-term customers and sales channels and most importantly, our costumers who have supported us for decades.

WHY IS HODGDON SELLING POWDER ON AUCTION SITES?

Hodgdon does not sell powder on any online auction sites. We sell through traditional sales channels to wholesalers, retailers and dealer customers. While we recently began selling direct-to-consumer on our own websites, we prioritize our shipments to our traditional sales channels to maximize powder availability at sporting goods and gun shops everywhere.

WHY IS THE PRICE OF POWDER SO HIGH ON THE INTERNET?

Hodgdon has increased prices over the last several years to partially offset our increased labor, raw materials and transportation costs, but we are not and will not gouge our consumer end users who are looking for powder to load for their own use. We sell through traditional sales channels to wholesalers, retailers and dealer customers. We do not encourage any of our retailers or dealers to sell on auction sites, but we cannot control what happens after we sell to our traditional sales channels. On our own websites, we have placed product limits on purchases so that we can maximize the number of customers who can buy our powder.

CLOSING NOTES:

Hodgdon is still a small business, with fewer than a hundred employees between three facilities in Kansas and Montana. We are not driven by profit-margin spreadsheets, but rather tradition and a genuine love for our jobs and what is made possible because of the work we do.

Serving you is our privilege and a blessing. In the current political climate, demand for our product has never been higher. Coupled with COVID restrictions, we have what some might refer to as “the perfect storm.” Regardless, we remain steadfast and resolute in our purpose to put powder in your hands, our shooting community.