270 Ammo Shortage - Because of the epidemic and its one-two punch on the economy; In the middle of last summer, I was laid off from my day job at a large health care provider in Michigan. to pass the time He took a seasonal gig behind the gun counter at a local sporting goods store. As the weeks wore on, ammunition became scarce, and the morale of our mostly good-natured and loyal customers began to sour. every day, Trading partners say, “What the hell? "You can sell me a gun but not the ammo" or "What good is a gun if you can't shoot it?" There are allegations of staff hoarding, secret inventories and even government conspiracies. So what's the truth behind this national ammunition shortage?
The arms shortage is the result of a perfect storm that originally occurred during the first quarter of 2020 as the pandemic took hold around the world. The plunging COVID-19 outbreak and the restrictions that came with it have put the brakes on the booming U.S. economy. Businesses that were considered financially sound before the pandemic have closed their doors for good. masks, hand sanitizer isopropyl alcohol; toilet paper, food and yes In the frenzy for weapons, the world's supply chain was cut like a dry branch.
270 Ammo Shortage
Widespread civil unrest gripped the country over the summer, the intensity of which had not been seen since the 1960s. Buildings were set on fire. Stores were robbed; Reports of rising violence and crime made national headlines. All the while, some have asked local and regional law enforcement agencies to borrow money, and many municipalities have followed suit. fear of the virus; Fear of food shortages and fear of riots—real or imagined—grip the hearts and minds of many Americans. Guns and ammunition flew off the shelves in record numbers, many of them going to first-time gun buyers. I can't tell you how many times I've said, "I never thought I'd buy a gun," when I spoke to the first customers behind the counter where I worked.
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The storm has been upgraded to hurricane status as it faces the most contested national election in U.S. history. Among other diverse political topics for the 2020 election is gun control. During the presidential election, Joe Biden proposed federal gun registration under the National Firearms Act (NFA) and a $200 tax stamp on modern sporting rifles like the AR-15 with 10-round or more magazines. Whether these propositions gain traction or hold up in the courts is another question. But now, with most gun control supporters in Washington, New and old gun owners are paying special attention. This heightened awareness is fertile ground for rooting out misinformation about the lack of ammunition on store shelves. The most popular crackpots claim that the big munitions companies are colluding with a secret directive from the Biden administration to stockpile and increase demand and withhold ammunition from citizens. Although these conspiracy theories are delicious to chew on, Truth is as soft as a slice of bread without butter.
The National Shooting Sports Foundation (NSSF), one of the leading trade associations in the firearms industry, estimates that by 2020, 8.4 million people will have purchased their first firearm. This number is staggering. While gun sales traditionally increase in election years, The unexpected pressures created by the 2020 events are unprecedented; A history-making claim was created and it was impossible to see what was coming.
According to Tom Taylor, Chief Marketing Officer and CEO with Sig Sauer; There is no such thing as a bad plan. "Contrary to what we hear from the rumor mills, the ammunition situation is not the result of a government conspiracy," he said. "Although Sig is not a large ammunition manufacturer, we do good business with individual dealers and our direct-to-consumer channel. There is no shortage of weapons and ammunition – we are producing more than ever. [The problem] is really demand on an unprecedented scale. Supply cannot keep up with demand."
Big manufacturers like Vista Outdoor are experiencing the same challenges related to supply and demand. Vista owns the ammunition brands Federal, CCI, Speer and (as of October 2020) Remington. Jason Vanderbrink, Vista's president of ammunition, echoed Taylor's comments about supply and demand for customers in a YouTube post.
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"I'm sick of all the hate mail," Vanderbrink said. “We are tired of people coming to our factories. I am now tired of reading misinformation on the internet [suggesting that we are not trying to fill the need we are facing. It's getting old when we keep hearing that our ammunition companies don't make ammunition in secret warehouses.”
Vanderbrink urges frustrated consumers to focus on some basic economics: "Since March [2020], 7 million new shooters, a conservative estimate of two bucks [per customer], is 700 million new rounds of ammunition needed to help our three factories. Produce," he added. (Note the words "new rounds" in his comments. This 700 million rounds exceeds what was needed to meet previous production values.)
The move to meet these demands will not happen overnight. Expanding production means extra shifts, which require large staff who need to be trained. Complicating those efforts is Vista's job of turning around a recently acquired Remington plant in Arkansas that failed after Remington Outdoors filed for bankruptcy. Finally, Vanderbrink pointed out that his reinforced infrastructure only works efficiently when the relevant raw material stocks are available - specifically, Primer and brass are scarce.
"We are doing our best to meet this demand," he said. "We're producing more ammunition than ever before."
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Pushing munitions factories beyond production capacity is only part of the problem. Hungry and (in some cases) greedy customers also share some of the blame. Just as the "Black Tuesday" stock market crash of 1929 sent panicked Americans running to the banks; A combination of events in 2020 has prompted gun owners to stockpile ammunition.
I met a young shopper at the store over the holidays who didn't own a rimfire gun, but felt he should buy a bunch of .22 LR cartridges because they were the only handgun ammo he had on hand. In fact, many gun owners have developed a "see it, buy it" mentality, whether they need it or not. alcohol, Tobacco With some skepticism tied to some recent debacle over the Bureau of Firearms and Explosives' AR-15 pistol, and the new president coming to Washington and Congress promising gun control -- well, you seem
Stocking doesn't necessarily help the situation, though. That kind of reaction is understandable, especially considering that the last 12 months have been a rollercoaster of anxiety. More worrisome are the opportunists who have chosen to take advantage of a crisis to line their pockets. Scalping is a process that involves buying tickets to sporting events and concerts at high prices and reselling them at higher prices. The munitions crisis was tailor-made to attract this kind of unscrupulous entrepreneurship. To combat the itchy scalp, many stores have introduced strict purchase limits for customers and have chosen to remain tight-lipped about scheduled delivery dates.
Unfortunately, Some brick-and-mortar stores around the country are also safe from hostage-taking. In a recent article
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Author Chris Mudgett describes how the incredible demand for bullets created a secondary market: "Let's say a local customer is paying .50 cents a round in the spring and is out of work because of COVID. He made a decent profit on the original purchase and sold it back to the dealer at 0.75 cents a round. He knows he can make some money on the other side. Then the store adds up the margin and says it's just 0.25 cents a round, and it's just a smart round of business." Why would you find a $100 bulk package of 115 grain FMJ Winchester White Box for $25 per 100?
Of course, This practice does not represent all retailers. Many outsourcers do what is necessary to avoid customer churn. According to Taylor, "Sig Sauer has made a very conscious effort to avoid price increases. We have experienced cost increases with manufacturing, but for the most part - we have been able to absorb those increases without passing them on to our dealers. Buy directly from customers who encourage us and our online store at sigsaer.com."
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