Federal Ammunition Boss Delivers a State of the Ammo Nation Update

[M-Tecs]

No political comments here please. If you want to get political start a new thread in the pit.

https://www.thetruthaboutguns.com/fe...cKH44CHeXPaTPs

Jason Vanderbrink, president of Vista Outdoor’s ammunition brands, has dropped a new video giving gun owners and update on what his companies, including Federal and Remington, have done and continue to do to crank out more ammo for eager gun owners. They’ve overcome a number of challenges including supply chain issues to produce 40% more ammo at Federal, CCI and Speer. And they aren’t easing back on the throttle.

The video, with some breathtaking shots inside Federal facilities, is well worth your four minutes. It looks almost as exciting as printing money.

“And if you add Remington into that,” he continued, “that’s substantially more ammunition.” The Remington plant in Lonoke, Arkansas produces a lot of ammunition on its own.


They’ve added fifteen hundred new employees in the past 18 months. That’s even more remarkable considering the Biden regime has stagnated American economic growth.

In addition to producing up to 40% more ammo, Vanderbrink says they’ve shipped hundreds of millions of primers to the market, too.

He addressed the common sentiment among gun owners who have been desperate for ammo: “Why don’t you build another factory?”

Instead of building them, they bought two; both Remington and Heavy Shot. This, he explains, is helping them add hundreds of millions of new rounds to the market.

This despite many of supply chain challenges that every other industry is facing in today’s Biden economy. It would make no sense to acquire more manufacturing capacity if they couldn’t provide raw materials to their existing facilities.

He also addressed the common gun store rumor that they’re selling all their ammo to the government.


“That’s not the case,” Vanderbrink explained. They’re selling to the same customers they’ve always supplied. At the same time he made it clear their support for American law enforcement is unwavering. “It’s our obligation to keep supporting law enforcement.”


He closed with how we all need to embrace the 12 million new shooters in America. Her urged us to “Take kids hunting. Take kids shooting. And embrace the new demographic that we have” since the surge began.

[megasupermagnum]

I didn't realize Vista bought Hevishot. Kind of odd considering Federal already has multiple better shots, and now acquired Remington's HD shot. I guess they really have the heavier than lead, non-toxic market all to themselves now.

[Bmi48219]

Good of Vista to publish an update.
Wonder what percentage of the ‘hundreds of millions’ of primers shipped to the ‘commercial market’ went to the various market segments? Are smaller ammo manufacturers part of the commercial market. Either way a couple hundred million primers won’t go far with 450 million firearms in the country.
At least they’re trying.
I read somewhere that US ammo manufacturers were importing primers for production of their ammo. Somewhere of the coast of California there’s a container ship full of primers waiting to be unloaded.

[Omega]

Wait, so is the 40% due to increased output or the purchase of more factories? Seems to me that the factories they purchased didn't increase supply since they were already producing ammo.

[kevin c]

Maybe I misunderstood, but I thought the Remington plant was shut down?

[M-Tecs]

Maybe I misunderstood, but I thought the Remington plant was shut down?

Vista purchased it and reopened it.

[jonp]

Wait, so is the 40% due to increased output or the purchase of more factories? Seems to me that the factories they purchased didn't increase supply since they were already producing ammo.

That was my question. How can adding existing ammunition producers to your company increase the supply? It will increase the amount your company is selling but not the overall number, the new employees you have hired will do that.

Remington stopped production last year but has been back in full production since April. That's a neat video. My question is that at this point where is the ammo going? I know there are hundreds of thousands of new users but let's face it, most will buy a firearm, try it out and that will be about it. Hoarders can only buy so much then they are full, scalpers are losing their shirts, now. Where is that ammo?

[buckwheatpaul]

A great post...thanks for the update!

[JonB_in_Glencoe]

12 million new shooters in America

I guess that says it all, but still ...I find it difficult to comprehend the shortages happening this long.

[kevin c]

Vista purchased it and reopened it.

That’s I thought I’d read. So reopening the Remington facility is an addition to overall ammunition production rather than just a change of ownership with no net gain.

Was Hevishot still producing goods when bought by Vista?

[dswancutt]

That was my question. How can adding existing ammunition producers to your company increase the supply? It will increase the amount your company is selling but not the overall number, the new employees you have hired will do that.

Remington stopped production last year but has been back in full production since April. That's a neat video. My question is that at this point where is the ammo going? I know there are hundreds of thousands of new users but let's face it, most will buy a firearm, try it out and that will be about it. Hoarders can only buy so much then they are full, scalpers are losing their shirts, now. Where is that ammo?

As of September, firearm sales are still 13.4 million units over 2018 sales at the same point, which is down from the 15 million over 2018 for 2020. So over the last two years, close to 28 million guns have been sold over 2018. Of that, 8.5 MILLION where first time buyers in 2020 alone. As of June of this year, close to 3.2 MILLION were first time buyers, so it's not hundreds of thousands of new gun owners, its close to 12 million. That is where all the ammunition is going.

[megasupermagnum]

Man, I hope they take a good hard look at buying Goex.

[slim1836]

Man, I hope they take a good hard look at buying Goex.

I second that, hope they're reading this.

Slim

[45workhorse]

I second that, hope they're reading this.

Slim

We can only pray they do.

[BunkTheory]

last i checked Vista was anti gun..

Now the thing is, with production "up 40%", why cant i find any american made amunition or primers on the shelf?

if they ARE making ammunition or primers, the only place they could be going is

store shelves in the US

an unknown government stockpile, like when they started buying up all that "surplus" 40 sw ammunition and hi cap magazines before magazine laws came into effect.

foreign source,

why do i feel all they are making is stuff for the chinese or taliban military system

[M-Tecs]

last i checked Vista was anti gun..

Now the thing is, with production "up 40%", why cant i find any american made amunition or primers on the shelf?

if they ARE making ammunition or primers, the only place they could be going is

store shelves in the US

an unknown government stockpile, like when they started buying up all that "surplus" 40 sw ammunition and hi cap magazines before magazine laws came into effect.

foreign source,

why do i feel all they are making is stuff for the chinese or taliban military system

I am throwing the BS flag on this one. Please post some real evidence?????????

I do know the current President of Vista and you would be 100% incorrect. Vista did sell Savage , Stevens and it's bicycle-related brands in 2018 since they didn't fit the current business model. Federal still gives its employees firearms for longevity rewards. That was with Savage but in 2022 it will be Rugers.

Currently they are running 24/7 with a 5 year backlog.

Maybe your are thinking if Visa not Vista?????????? Yes, Visa is Anti-Gun. Vista not so much.

[MUSTANG]

And I am throwing the Flag back to you. If there is actually a 5 year backlog; that represents Tens - if not Hundreds - of Billions of Dollars not accruing to the operating companies and the holding companies in the near future. If this backlog actually exists/ed; then some form of expansion would not only be warranted - but demanded as "Immediate Profit" is the modus operandi of the Mega Corporations. Taking a chance that the 5 year backlog and those many many forecast billions could be impacted by foreign producers, alternative solutions, emerging competitors (of significant size), or the market disappearing because the "Customer Base" migrates to other alternatives (let's say Black Powder, or Archery, or....) are all unacceptable from a business perspective.

There is more at play than many new shooters and hoarders buying up all the Ammo and Components.

[M-Tecs]

And I am throwing the Flag back to you. If there is actually a 5 year backlog; that represents Tens - if not Hundreds - of Billions of Dollars not accruing to the operating companies and the holding companies in the near future. If this backlog actually exists/ed; then some form of expansion would not only be warranted - but demanded as "Immediate Profit" is the modus operandi of the Mega Corporations. Taking a chance that the 5 year backlog and those many many forecast billions could be impacted by foreign producers, alternative solutions, emerging competitors (of significant size), or the market disappearing because the "Customer Base" migrates to other alternatives (let's say Black Powder, or Archery, or....) are all unacceptable from a business perspective.

There is more at play than many new shooters and hoarders buying up all the Ammo and Components.

Fair enough. Currently the biggest two issues Federal/Remington has is getting enough employees followed by material stoppages.

Yes they are expanding production on a limited basis. Other companies are also doing the same and foreign producers are racing to fill the demand. That means a oversupply and crash is coming.

Capital investment and the time it takes to permit and build 100% new facilities is significant. Lets roll the clock back pre-Covid and pre-political unrest. Federal was laying people off 2 1/2 years ago. The 300 or so AR parts manufactures were just about giving their parts away since the market was saturated.

If the R's take back the House and Senate in 12 months the panic buying is over. If Trump gets in 2024 and has control of the House and Senate gun control politics and the panic demand with be a thing of the past. If politics goes badly keeping your firearms will be a much bigger problem than getting ammo.

How do you pay for all the capital investment when demand goes way down? That is a cycle they are very familiar with and they have been burned in the past. Same for what you do with all the excess employees when demand returns to normal levels? Panic buying is always followed by a very flat dead market that has lasted years in some cases. Short term profits mean little if you go bankrupt long term.

During one of the earlier panic buying sprees I read an article interviewing one of the Ammo Company CEO's about expansion. He stated that their business model was to operate at 85% to 90% of normal demand. That allowed them some increased capability and if need with overtime they could increase significantly more without incurring additional overhead. If they expanded too much the additional overhead would lead to operating at a loss.

Not your claim but I am still waiting for evidence that Vista is Anti-Gun and US Companies are producing for the Chinese or Taliban military system??????????? If true I believe that would violate both US and International law.

The first shortage I went through was in the 70's when there was talk of adding tagnet's in gunpowder same as they did with with Dynamite. There have been lots of shortages since but none had Covid and and the social unrest. It was/is a perfect storm nothing more.

A year ago it was about 1 Billion backlog. https://www.gunsamerica.com/digest/v...ition-backlog/

Six month it was about 2 Billion backlog. Both the 1 & 2 Billion figures are for Federal, CCI, Blazer, and Speer. That was pre Remington

The current claim of 5 Billion is most likely correct for Vista when Remington orders are added into the backlog

[GL49]

M-Tecs,
Good answer.
I've worked 50 years in the wood products industry, when Covid hit we were laying people off and reducing the salaried workforce by 10%. Everyone had a week off work because market prices were too low to operate successfully, in addition 40 people lost their jobs due to production restrictions. Then everything changed, we couldn't produce enough plywood or lumber, prices skyrocketed. Same situation, and you can't just flip a switch to satisfy the demand. A couple/three years to get a new plant operational, try to get a supply of raw materials, and then the demand is gone. At that point you still owe millions on what may turn into mothballed equipment.

So we lived with what we had, ran it 24/7, now demand is slowing and prices are coming down. The hardest part when trying to increase production was finding a workforce. Good, steady, experienced, employees are hard to find. In our industry there will be lean times again, and we'll be wondering how many of us will still have jobs. That's just the way the system works.

When this shortage eases, prices will drop, I'll replenish my stash and wait for the next big crisis. The only thing I wasn't prepared for this time was ammunition for my .22 magnum. It doesn't see much use and spends most of it's time sitting in the safe looking pretty. That was my fault, not the fault of the ammunition manufacturers.

[BunkTheory]

And I am throwing the Flag back to you. If there is actually a 5 year backlog; that represents Tens - if not Hundreds - of Billions of Dollars not accruing to the operating companies and the holding companies in the near future. If this backlog actually exists/ed; then some form of expansion would not only be warranted - but demanded as "Immediate Profit" is the modus operandi of the Mega Corporations. Taking a chance that the 5 year backlog and those many many forecast billions could be impacted by foreign producers, alternative solutions, emerging competitors (of significant size), or the market disappearing because the "Customer Base" migrates to other alternatives (let's say Black Powder, or Archery, or....) are all unacceptable from a business perspective.

There is more at play than many new shooters and hoarders buying up all the Ammo and Components.

and that backlog was supposedly based upon them working a 10 hour workday, 5 days aweek. and NOT the near continous 24/7/365 schedule they have claimed since the ammo shortages started with obama 15 years ago after sandy hook..

kind of makes you wonder...