From an email
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This is cut from an article on ammunition Bubble
I called a few ammo manufacturers to get their views on future supply and demand, but they’re press-shy in the wake of the Newtown shooting tragedy. Olin Corp. is one of the biggest U.S. manufacturers of civilian ammunition, generating about a third of its revenue from bullets. Olin’s Winchester division is in the midst of a $110 million upgrade of its ammunition business, in which it is centralizing its operations in Oxford, Miss.
Once the upgrade is done, Olin says in its most recent 10-K, it will reduce Winchester’s annual operating costs by $30 million. “Winchester expects to have the most modern centerfire ammunition production facility in North America,” the company says.
How long will the shortages last? Given flat hunting participation, and assuming there hasn’t been a step-change increase in target shooting in America, the hoarding will have to come to an end sooner or later. Consumers will run out of room to store the stuff. Olin projected in its 10-k that supplies will be tight “at least into the third quarter of 2013.”
By then the Olin’s 1,000-employee, 500,000 square-foot plant in Oxford should be humming. Will the guys who stuffed their garages with cases of Super-X Power Points and .38 magnum loads then be looking at it all and wondering, what have I done? Can I really shoot all this stuff?
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ear
