WHAT'S THE DIFFERENCE?????

[G27]

The Ongoing Ammunition Shortage :: Guns Holsters and Gear

In the past year, I have run ammunition price updates every few months. I can’t do that anymore. None of the cartridges I had followed are in stock, or expected to be in stock, in the near future. In fact, a lot of ammo of all types is sold out at most locations.

The WalMart stores near me seemingly have people lined up at the ammo counter every morning, waiting to buy ammunition that is on the daily truck delivery. Online vendors can’t keep ammo in stock, either.

Unable to find any .223/5.56 ammunition locally for a head-to-head test of AR-15 magazines later this month, I contacted some of the ammunition manufacturers to ask for their assistance in procuring some. The responses I received were almost exclusively apologetic, as very few manufacturers have any .223, and those that do are shipping them to fulfill backlogged contracts.

I traded e-mails with Ed Grasso, the majority owner of Sellier & Bellot, USA. Sellier & Bellot, USA is the exclusive importer of Sellier & Bellot (S& ammunition.

Grasso said that S&B decreased the allocation of .223 to the US market by 60% from the 2008 allocation. The reason? Politics. According to Grasso, the devalued US dollar and the Obama administration’s anti-gun goals caused S&B to shift the sales of .223 to other, more stable markets. With worldwide demand up, manufacturers like S&B can choose where to sell their products with little, if any, consequences on their bottom line.

“From past experience, [sellier & Bellot] is also very aware that the administration can impact importers through Custom’s, BATF, and the State Department, without Congress ever getting involved,†said Grasso. And with the uncertainty in the U.S., “they cannot be dependent upon the business in the U.S. Obviously, the factory needs to make a profit to survive.â€

The bottom line on the import reduction of .223 ammunition from S&B? “We are meeting less than 20% of the current demand from our wholesale customers. We do not have one box of .223 in inventory, and will not have any in inventory during 2009,†said Grasso.

Sellier & Bellot is not alone. A company representative at Aguila said “We do not have this round (.223) in stock, and we will not have it until… maybe next year.â€

Erik Leslie at Magtech said “…we do not have any inventory in our commercial warehouse.†Leslie said Magtech has focused all of their production on fulfilling military contracts.

Winchester Ammunition is running their ammunition production facilities 24-hours a day. Even at this pace, they are having trouble meeting demand. “We are so far behind on .223/5.56 ammunition orders,†said Paul Nowak. Other manufacturers expressed similar situations to me as well.

So, you want to know why ammunition prices are up? Supply and demand. Demand is through the roof, while supply is, at best, constant. For every Winchester increasing production, there is a S&B reducing imports.

Companies like Magtech are just trying to keep up with military contracts.

There is no easy solution. Few, if any, of the manufacturers are willing to invest in new ammunition making facilities, because (1) this current demand is unlikely to continue indefinitely, and (2) no one trusts the government to treat their business fairly. Meanwhile, it is unlikely that people will stop buying ammunition in the commercial market.

Reloading is a great alternative. Too bad you can’t find primers…

[enfield]

I, for one, won't pay the inflated prices. If you look enough you can still find places to buy at a fair price.

"Fair" is just an opinion.

Actually it becomes price gouging when folks start charging more then whats a normal fair value with no increase in cost to support the price.

In a free market, there is NO relationship between cost and price.

Edited April 21, 2009 by enfield

[Guest mustangdave]

if you think this is price gouging...wait until you have to buy your ammo on the black market....ya'll save your brass now