Statement From Ammo Maker ATK

[Rowdy]

ATK sent out a statement to all dealers and distributors regarding the shortage of ammunition that is plaguing our industry. Here's the word straight from the horse's mouth:

"Dear Valued Customer,
As you are aware, the unprecedented demand for commercial ammunition has exceeded the industry’s ability to service the marketplace in the near term and has resulted in an industry‐wide shortage at most retail outlets. With more than 2,000 dedicated employees working diligently around the clock, we continue to take appropriate action across our manufacturing enterprise to increase and align production capacity in response to this demand and, ultimately, service your needs – this is our first priority!

Despite our consistent and dedicated efforts, there remains much speculation and misinformation regarding the availability of commercial ammunition. In one example, there are a vocal few who believe that the Department of Homeland Security (DHS) is buying excessive quantities of ammunition thereby restricting availability to the commercial market. Simply stated, this is a false and baseless claim. In fact, we do supply the DHS with a small percentage of ammunition in select calibers consistent with our contractual requirements. However, the commercial market receives the vast majority of ammunition produced to serve the needs of civilian hunters and shooting sports enthusiasts.

As a committed partner to the shooting sports industry, we thank you for your support in dispelling unfounded rumors relating to the supply and demand of commercial ammunition. We continue to support the National Shooting Sports Foundation (NSSF) in representing the legislative interests of our industry."

[Guest K7Sparky]

Rowdy

Thanks for posting this

[monkeylizard]

but...but....Glenn Beck...but...WND...but....

 

 

Seriuosly though, I'd like to know if that's true more-or-less across the board with ammo manufacturers. I don't know ATK's sales mix, so gov't contracts might be a small part of their production, but a major part of company X, who was a major civilian supplier but now isn't. I really don't know, just wondering.

Edited May 3, 2013 by monkeylizard

[Slappy]

I feel like that message was cut short. Seems like the only reason they sent that out was to say its not the gov's fault we can't find ammo, but fails to explain anything further. Maybe my tinfoil hat is on a little too tight, but I don't like this.

[Kopis]

I saw a guy at Walmart buy three boxes of 22s(550 count), his wife bought three and he came back in and bought the last three. People like this are causing the ammo shortage. What are you going to do with 5000 .22s? I bought two 550s over a year ago and still have 1.5 boxes left.

[Greg_Mid_TN]

Hopefully that guy will now be out of the market for a few months. As those people become fewer, I've got my fingers crossed that this will ease up. Not holding out for the 'good ole days' of full shelves, low prices and a warm glow coming from the ammo case, but maybe we'll see fewer spikes of high privces and completely bare shelves.

 

Greg.

[Guest confidence]

ATK sent out a statement to all dealers and distributors regarding the shortage of ammunition that is plaguing our industry. Here's the word straight from the horse's mouth:

"Dear Valued Customer,
As you are aware, the unprecedented demand for commercial ammunition has exceeded the industry’s ability to service the marketplace in the near term and has resulted in an industry‐wide shortage at most retail outlets. With more than 2,000 dedicated employees working diligently around the clock, we continue to take appropriate action across our manufacturing enterprise to increase and align production capacity in response to this demand and, ultimately, service your needs – this is our first priority!

Despite our consistent and dedicated efforts, there remains much speculation and misinformation regarding the availability of commercial ammunition. In one example, there are a vocal few who believe that the Department of Homeland Security (DHS) is buying excessive quantities of ammunition thereby restricting availability to the commercial market. Simply stated, this is a false and baseless claim. In fact, we do supply the DHS with a small percentage of ammunition in select calibers consistent with our contractual requirements. However, the commercial market receives the vast majority of ammunition produced to serve the needs of civilian hunters and shooting sports enthusiasts.

As a committed partner to the shooting sports industry, we thank you for your support in dispelling unfounded rumors relating to the supply and demand of commercial ammunition. We continue to support the National Shooting Sports Foundation (NSSF) in representing the legislative interests of our industry."

 

Can we get more detail on the horse's mouth? Was this an email? How did you come by it?

[monkeylizard]

I saw a guy at Walmart buy three boxes of 22s(550 count), his wife bought three and he came back in and bought the last three. People like this are causing the ammo shortage. What are you going to do with 5000 .22s? I bought two 550s over a year ago and still have 1.5 boxes left.

 

This x1000.

 

I've long thought that my local Wally might get in 2 or 3 boxes of .22 bulk packs a week. When they have 10 in stock, sell a few, then get a few in to refill the stock, it all works fine. When the shelves are bare and they get those same 2 or 3 in, they get snapped up and the shelves remain bare. Eventually the guys snapping up 5000+ at a time will (1) have a stockpile they're comfortable with and stop buying more or (2) have sold to everyone willing to buy from them at crazy prices and stop buying more. The question is how long until both of those things come true?

[Slappy]

Yes demand is up, way up. That may be it. But why specifically can't manufactures keep up with demand better? Shortage of raw materials? Why don't manufactures of raw materials ramp up as well? Seems they should be able to adapt to this boom better. I was thinking that letter would have addressed those questions better. Edited May 3, 2013 by Slappy

[monkeylizard]

Adding a 3rd shift increases production, but not enough to fully meet demand, so supplies continue to dwindle. To really keep up the manufacturers have to add new capacity in the forms of newer equipment, additional factory floor space, and more people. When supply catches up and the panic dies down and demand goes back to what it was before, they're left with an oversized factory, business loans on new equipment, and too many employees.

 

A manufacturer will expand capacity only when the new demand appears to be sustainable long-term, or when the short-term profits are so high that they're worth the expense of expansion followed by contraction. Neither applies to ammo manufacturers right now.

[monkeylizard]

An example of what would be a long-term change would be a law passing that severely restricts all ammo importation. Then all the cheap Wolf and Tula supply for .223 and 7.62 would dry up. Winchester, S&B, Federal, Hornady, etc. would then add real long-term capacity to produce more .223 and 7.62 to meet the already present demand that was formerly being met by imports.

[Rowdy]

Can we get more detail on the horse's mouth? Was this an email? How did you come by it?

This was sent out by a gun store in FL I do business with on line. This statement was in their weekly e-newsletter. By the way, the store is called On Point Firearms.

[crossfire]

I saw a guy at Walmart buy three boxes of 22s(550 count), his wife bought three and he came back in and bought the last three. People like this are causing the ammo shortage. What are you going to do with 5000 .22s? I bought two 550s over a year ago and still have 1.5 boxes left.

There is nothing wrong with a guy buying 3 boxes, or his wife buying 3 boxes. But letting him come back in and buying 3 more is wrong by WM's limit of 3 boxes per person per day.

I found that if you call 1-800-WAL-MART and make a complaint about a store and the way they are selling ammo you will get a call back from the store manager.  It worked for me anyway.

As far as "What are you going to do with 5000 .22s?" I used to go thru a brick per trip to the range and I was going to the range 2 times a month. Plus I shoot .22 in my back yard with the Grandkids, your 2 bricks wouldn't of lasted a weekend with them. Get a Smith M&P 15-22 and see how fast you can go thru 500 rounds. :)

Edited May 4, 2013 by crossfire

[dlm37015]

keep in mind atk makes most of it money by being a goverment contractor