Originally Posted by dkf
Have you heard of any of the ammo ammo companies expanding their operations and adding more machinery? Or are they just doing what they usually do, produce what they can with what they have.
WHy would they? It is never a good business model to spend money w/o a sustainable market. They are doing studies, gauranteed, but they also know what many of us do, this is temporary & they would be foolish to start spending capital if there is no future demand. Big companies like ATK, ammo production is a drop in their economic bucket. When you are selling missle systems to the US Govt @ 100-400% profit, why worry about ammo manuf & it's relatively small profit margins of 20% or so.
So short answer, look for this to continue thru the 2014 election cycle. Dems win congress, it will get A LOT WORSE. Dems lose the Senate & House, things could be back to "normal" in as little as a 3 month from then. Prices are NEVER coming back, sorry guys. You can't print $40B a month & not expect inflation. So anything commodity based will continue to go up in price. Lots of commodities in ammo.