Mega Arms comments on supply, demand and an uncertain political climate.

[TGO David]

It's funny... MacGyver and I were talking about these very facts the other day over lunch.  We knew we were right, but here's a company confirming it:

 

Via Facebook at http://www.facebook.com/MegaArms

 

[quote]

We here at MEGA understand everyone’s frustration with the high demand and low supply of our products. Please let us explain what is causing the current situation. 

We are currently running 24/7 at our facility. Unfortunately we do not have any more floor space within the facility we occupy, so it’s not as easy as buying machines and “hitting go”. In the few weeks before the recent tragedy we were just weeks away from acquiring a new facility and more machinery. This would be a financial commitment that would take years to recoup. The machines we use range in cost from 400k-1million dollars, not including tooling, operators and training. 

 

We have determined that due to the attitude of the current administration, it would not be fiscally responsible or in the best interests of our valued employees to take the risk of adding a new facility. We value our employees and do not want open a new facility, and hire a new crew to then turn around and lay them off if there is new legislation passed. 

 

We hope that all of our customers and fans understand. We will continue to do our best to get parts out to you guys. 

 

We also encourage anyone who comes across one of our “authorized dealers” (on our website) price gouging to contacts us via email @ sales@megaarms.com
Thanks for your support!
Mega Arms[/quote]

 

 

Emphasis, mine.

 

As I was saying, Mac and I had both commented to the effect that were we in charge of a company like Mega Arms, Magpul, etc. we'd be running 24/7 to meet demand right now too but there's absolutely no way we'd look at expanding operations until the political climate sorts itself out.

 

It's pathetic that Congress will even give thought to dropping the axe on what is one of the few profitable industrial sectors right now.  Any new legislation could displace hundreds of thousands of workers across the US and absolutely shut down vital cash flow.

 

[Seabeejason]

Yup, the Liberals want to destroy yet another industry that employees tens of thousands of people.  California and Illinois have already taxed the industries out of their states and now their states are going under.  

 

Now they want to take down the rest of the country.  I have came to the conclusion in the past year that liberalism is a cancer.  It kills everything it touches.  

[R1100R]

I was talking to a friend the other day about the same thing. I bet they are all reluctant to order more

raw materials or parts until the outcome of this. I know they are all at 24/7 but there is a chance they could be a out right ban with no grandfather clause. I feel for all the workers in this industry.

Edited January 9, 2013 by R1100R

[Lumber_Jack]

I spoke with with the manager of Dave's Pawn in crossville today. He said he talked to magpul on the phone and they echoed this. They said they weren't going to expand manufacturing until political uncertainties were settled.

[Rightwinger]

Rock River Arms has stated the exact same thing in the past (election 2008)  You don't go out and make capitol expenditures during a bubble.

[ShamGlock]

I was having a similar conversation with some friends the other day. We were talking about not only the firearms industry but businesses around it such as training institutes and ranges. We were wondering how many trainers have slowed down since people might be hesitant to sign up for classes based on an inability to get or replace the ammo consumed during a course right now.