What Caused the Ammo Shortage? When Will Things Get Better?

In a recent Federal Season Podcast, Federal Ammunition’s President Jason Vanderbrink discusses the shortages of loaded ammunition we have experienced for many months now. And it’s not just loaded ammo — powder and primers are very hard to find and prices are crazy, with 1000 primers selling for $300 or more in recent Gunbroker auctions.

This Federal Podcast episode attempts to answer key questions about the unprecedented demand for ammunition. Ammo buyers want to know what caused the shortage, when supplies will become normal again, and what Federal and its sister brands are doing to meet consumer needs.

Click Green Arrow to Start Podcast Audio:

Fast forward to 00:45 to skip intro.

We applaud Federal for addressing the issue. Many shooters think there is some kind of conspiracy — suggesting that the Federal Government is buying all the ammunition, or that companies such as Federal or Hornady have halted production. That’s nonsense. In fact Federal, Hornady, and Olin (Winchester) are all running at full capacity.

However, consumer demand has increased dramatically. This is because of political developments, with tens of millions of gun owners fearful that the new Democratic administration will impose new taxes or restrictions on ammo. In addition, demand has been driven by new gun owners. The NSSF tells us that over 7,000,000 Americans purchased their first firearm in 2020. If each new gun buyer purchased just two, 50-round boxes of ammo, that equates to 700,000,000 rounds of ammo. Think about that… the gun industry would have to produce an additional 1.91 million rounds of ammo EVERY DAY just to fill the demands from new gun owners.

In the podcast Federal’s President Vanderbrink emphasized that Federal is running at full capacity. Vanderbrink also discusses the shortages of components, particularly primers, which are produced by both Federal and sister company CCI.

Vanderbrink pointed out that Federal had been at less than full capacity in 2017-2019, but Federal had also invested in new capacity over the last five years and that investment is now paying off: “We are investing where we need to invest… we have hired hundreds of new workers.”

Primers Are in Short Supply Because They Are Being Used in Loaded Ammunition
Vanderbrink explains why primers are not getting to retail outlets. The answer is that Federal is using a larger percentage of its own primer production for loaded ammunition. “We are making a lot more ammunition today. Our internal primer needs have gone up exponentially as we are shipping more ammunition. [Previously] we’d sell excess [primer] capacity to the reloading market. As the ammunition business picked up in March 2020, it came at the expense of the reloading primers. We are taking a bigger share just to make our ammunition” (Podcast 08:30 – 09:50)

Remington Bankruptcy DID Affect Ammo and Primer Supplies
Remington’s business problems HAVE reduced ammo supply said Vanderbrink: “When we acquired Remington, that factory wasn’t making hardly any ammunition, so that just starved that market already that was constrained. As we’re getting Remington up and going right now, we’re going to make more ammunition, so the market WILL have more ammunition[.] Along with the social unrest, along with the Pandemic fears that people had… you had Remington not making much ammunition, so that just added to the backlog.” Vanderbrink noted that Federal acquired the Remington factory in October and it plans to increase Remington ammo production significantly over previous levels.
(Podcast 10:20 -11:20)

Ammunition Shortage is NOT Caused by Federal Government Buying Everything
Vanderbrink also said flat out that the shortage has NOT been caused by huge new government ammo buys or Federal redirecting production to the government. The allocation to the commercial sector is actually higher than in recent years.

Vanderbrink asked for patience. While conceding that the pandemic has created challenges, Vanderbrink declares that the ammo plants are running at full capacity: “We know, ammo seems hard to come by right now. But rest assured, we are building and shipping more and more every day[.]”