Comments on: Why Can’t I Find .22 LR Ammunition? Sierra VP Speaks Out

By: Henry

Henry — Wed, 16 Apr 2014 05:23:29 +0000

This is typical of today’s corporations regardless of industry. The focus is only on the short-term.

There is little long-term planning, few even have departments capable of analyzing the factors that will drive future demand and have staffing recommendations seriously considered by the Boards.

Regardless of the reason for the increased demand, they have no one but themselves to blame for not reacting to it.

Can you imagine if just ONE player had gotten ahead of the curve on demand? A fortune lost.

Also, “F” the hoarders/preppers……….;)

By: Guy

Guy — Wed, 09 Apr 2014 15:21:54 +0000

Powder Valleys take on the ongoing shortage

Powder Valley

I have a few tidbits of “opinionated statements” to make regarding the powder shortage. Matt makes some great points on how the primary problem is demand driven. The difference between 22LR and components is that manufacturers must make a choice on what components go to their ammo or other manufacturers ammo and what goes to reloaders. If you look at the supply of Winchester and Remington components you will find that there just aren’t hardly any to be had anywhere. Based on that the only logical interpretation is that Winchester and Remington are allotting their components to ammo. In order to produce their ammo and leave the reloaders with nothing they must have a great supply of powder. I believe the primary supplier of powder to Remington and Winchester is St Marks in Florida. All of Winchester powders are produced by St Marks. St Marks also produces powder such as Titegroup, H335, H110 and you can pretty much say if it is a spherical powder it probably comes from St Marks. Every US packager of powder I have spoken with states they have received hardly any canister powder from St Marks since the third quarter of 2013. In addition, Hodgdon has been limited to one container of power per vessel out of Australia since December 2012. Typically Hodgdon had two containers of powder on each vessel. This is due to port authority rule changes in New Zealand and now Australia. Why these changes were made is anybody’s guess. However, in a recent conversation with Hodgdon they believe this is going to be resolved in the very near future. Hodgdon is the largest player in the US market for smokeless powder. You just took the largest player in the market and cut their supply in half. Take into account the fire at ADI that burned the Clays and you can see that the high demand is not the only driver in the supply shortage for smokeless powder. Thankfully the supply out of General Dynamics in Canada has been much better. However no increase in production from a single manufacturer will make up for the drop in supply to Hodgdon and the extreme powder allocation St Marks is making to the ammo manufacturers vs the reloaders. Again this is one mans opinion. So, feel free to fire away and I will provide you my two cents.

By: Charles

Charles — Wed, 09 Apr 2014 12:52:06 +0000

What is going on is business analysis 100. If demand is greater than your production capabilities adjust your production to maximize profits. Utilizing existing capacity makes more money than increasing it. This is why you could get 45 ammo at the height of the shortage and you couldn’t get 9mm. Both are very close in production costs but the contribution margin is much higher for 45. How much do they make on .22, 9mm ball or 5.56 ball? Any more or less premium ammo? If you reload you know the answer. And guess what… they also manufacture firearms using the same analysis. There simply is no need for them to increase capacity (in their business model) – they are selling all they can make of the best of their lines. We will get more 22 when people quit buying 22 firearms. Eventually you kill off product lines as demand for them falls.
I for one am transitioning to air rifles more and more. No need to reload, no need to drive to the range, just as accurate in match guns, a fraction of the cost and no regulations. Field target is just as challenging as any centerfire game.

By: Steve

Steve — Tue, 08 Apr 2014 22:38:18 +0000

Hodgdon don’t make Varget, Australian Defence Industries (ADI) make it (ADI AR2208 as we know it)for them and re-badge it.
The US demand has soaked up all the supplies here in Oz as well, and the Mulwala plant is operating at full capacity in a vain attempt to keep up. I hope your situation settles down soon. If we can’t get ADI powder, we can’t get anything!

By: Ed

Ed — Tue, 08 Apr 2014 22:36:38 +0000

At this point there is no explanation that I find acceptable, considering that we supposedly have a free economy. The ammunition suppliers have FAILED the shooting public. My own theory is that the manufacturers are being threatened with loss of government contracts if they don’t curtail supply to the general public.

By: Stephen

Stephen — Tue, 08 Apr 2014 00:04:36 +0000

Sorry, I messed up my last thought and pushed submit. What I was trying to say is, it is still very hard to find reloading powder in any quantity. I would normally buy 16 or so pounds of Varget during any particular year (8 Pound containers). Most recently I have not found any at any price. Can demand continue at this pace or is Hodgdon cutting back on production.

By: Stephen

Stephen — Mon, 07 Apr 2014 23:55:22 +0000

I can almost believe what Matt Reams is saying in his article. What I can’t figure out is why there is no high end rimfire ammunition to be found. Do hoarders really have the money ($15 per box of 50) to stockpile Eley, Lapua, and Federal match grade ammunition. The reloading powder producers are suffering in a simeler .

By: Steve

Steve — Mon, 07 Apr 2014 23:13:03 +0000

The lead free conjecture isn’t helping either …

By: buster

buster — Mon, 07 Apr 2014 20:56:17 +0000

Any company would only dream of a demand for the their products as huge as this. To not capitalize on the increase in market is plain nonsense.
Not fair to employees? Wow that just not even a consideration. Jobs are in demand even if there only temp. Machinery and tooling will always be assets.

By: Rikky Lee

Rikky Lee — Mon, 07 Apr 2014 20:49:05 +0000

Classic panic buying model. Suddenly people will realise that the “shortages are over” and will stop buying in bulk and things will get back to normal for a while – then the manufacturers will work out that they are over producing etc etc.