This just keeps getting more interesting. I don’t anticipate e-bay auctions on ammo just yet…

Ammunition Tight, Will Stay Tight

Written by Gary North on May 13, 2013

Ammunition manufacturers are not adding capacity. They think this run on ammo  is temporary. So, buyers cannot buy it.

The buyers want it. Retail sellers are imposing rationing: limits on  purchases.

There is no let-up in sight.

Ammunition manufacturers are reporting record profits and sales, with  increases that number in the double and sometimes triple digits. Olin, which  owns Winchester, reported last week the company’s first quarter earnings climbed  190 percent over the same period last year. Federal Premium Ammunition’s annual  earnings for ammunition last year climbed 24 percent over 2011.

“Our sales are only limited by the amount we can produce,” said Joseph Rupp,  Olin chairman and chief executive officer in a conference call last Friday.

Ammunition manufacturers are struggling to make enough and have hundreds of  millions of dollars in backorders. They’ve added hundreds of employees and  equipment and increased overtime, and, in some cases, are running factories  around the clock. Producers have posted notes on all their web sites assuring  customers they are working as fast as they can.

The demand is coming from existing gun owners. There may be an increase at  the margin from new owners of guns. But the percentage of gun owners in the U.S.  is below  40%.

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