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Guest Hunter2

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Guest Hunter2
Posted

It seems when looking for a AR everybody is out of stock of 90% of all models. From a consumer point that is not good buisness, why is this so? Should nt the manufactures meet the demand and raise production. It seems the Manufacturer that can do this would increase market share. It doesnt make sense.

Posted (edited)

Can't keep up with the demand.

As i heard a wise man say " it's going full retard"

Edited by Mike.357
  • Like 1
Posted

I suspect there is some true demand spike, but i also think some of the distributors are hoarding a few specific things to drive up prices for a profitable year. I would not be amazed to find out that ammo is sitting in warehouses while the shelves empty, for example...

Posted

I suspect there is some true demand spike, but i also think some of the distributors are hoarding a few specific things to drive up prices for a profitable year. I would not be amazed to find out that ammo is sitting in warehouses while the shelves empty, for example...

Distributors do not 'hoard'. Profit for a distributor comes from how often they can turn over their inventory. Stock that sits still is lost profit. For a distributor, the ideal day is when inventory is delivered in the morning and shipped out in the afternoon. for a manufacturer, the situation is similar. They want to have raw materials arrive just as they are needed, and have inventory sold as soon as it is made into product.

When demand spikes, like now, it means that the dealers place more orders with distrubutors, who place more orders with manufacturers, who place more orders with their suppliers. When materials are received, they are manufactured as quickly a possible. If the manufacturer is already at 90-100% capacity, then there are additional delays as added machinery or people are brought in.

Some things like ammo have very long lead times. That is because the larger the lot of a particular load, the cheaper it is to make. But again, they do not want to make too much, as inventory that is not sold is lost profit. These are the reasons Production Schedulers and Purchasing Managers have white, or no, hair! :pleased:

  • Like 1
Posted

I think a lot of it boils down to inventory reduction. Manufacturers are keeping less raw materials on hand, distributors are keeping less inventory, shops are keeping less stock. Then when you see a slight up tick in demand it equals a shortage.

Because there is no surplus further back in the supply chain delivery times grow exponentially.

Couple that with an already reduced work force in manufacturing and you end up with no AR's available for under $1000 wholesale and 60-90 lead times. '

Guest TNdad
Posted

No manufacturer will spend the $ to increase productivity to satisfy current demand that most likely be a loss if progressives get their way in legislation. I know that I wouldn't expend major capital on something that might be illegal in a couple years. That might change if a conservative takes residence in la casa blanca.

Posted (edited)

No manufacturer will spend the $ to increase productivity to satisfy current demand that most likely be a loss if progressives get their way in legislation. I know that I wouldn't expend major capital on something that might be illegal in a couple years. That might change if a conservative takes residence in la casa blanca.

+1, plus there more companies making AR type rifles than ever, and all these i am sure can not afford to make 100% of there on own parts which also increases demand on the companies that say make trigger parts.

i know that, for exsample when Ruger got in the AR market, they told Nordic they would take all the stocks ( i think it was) they could make. they added people and equipment just to meet Ruger's demand and just as new equipment was starting up, Ruger says okay we do not need anymore right now.

also i am not trashing any company, it is just business. and this was what 2 or 3 yeas ago. and just giving an exsample.

Edited by RWF

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