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/federal-ammunition-boss-delivers-a-state-of-the-ammo-nation-update-video/?fbclid=IwAR1-vXovNIHpEqgEYwX0VN-gDrT_qdeIKzUfNLorfSUDYcKH44CHeXPaTPs

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/vista-outdoors-announces-1-year-1-billion-ammunition-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...

[M-Tecs]

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...

Again what actual evidence do you have? How many of the Federal/Remington employees do you talk to? Ever talk to the President of Vista?????

The storages did not start with Obama after Sandy Hook. Yes that was one of them. In between panic buying phases both the firearm and ammunition makers had some very rough times and no they have not been working 24/7/365 since Obama. How many laid off ammo workers do you know that have gone thru the lean verse feast times? I know several. Also how do you know the "backlog was supposedly based upon them working a 10 hour workday, 5 days aweek"??????????????

If you are not aware that we have not been in a continuous shortage for the past 15 years it's for one reason and one reason only. You weren't paying attention.

Sounds like you're the type that has other priorities when the stock is good and the prices are low. Are you really stating you could not find a time in the last 15 years when everything was in stock at low prices???????

I like to purchase component in volume once a year. Mid-Jan thru Mid-March seems to have the most free shipping and no hazmat offers plus the inventory is normally good. I never order less than 32 pounds of powder at a time and or 20K of primers unless I can find both free shipping and no hazmat. It normally is one or the other. I was planning on ordering 20K of Remington 7 1/2's in early 2020 but the election went the wrong way and Remington went under. Last time I purchased was in early 2019 but I have more than a 10 year reserve I have a few years before I will get concerned. Point is in the last 15 years I and most others found lots of times were prices and availability was very good.

Until Covid I didn't bother loading 9mm ammo since I could get it at $7.99 a box in volume for ball type ammo locally. I did order 2K of 9mm ball for $119.99 free shipping about three years ago. The limit was 2K at that price. After that it was $159.99 per thousand. At $119 add free shipping I would have order at least 10 K.

[No_1]

Easy there fellas.

[Bmi48219]

Point is Vista is trying. Faced with this kind of demand who wouldn’t be?
Ten million new firearm sales times 100 rounds per firearm equals an ADDITIONAL demand for a billion more rounds above customary production. Add in primers for guys like us. Fifty thousand reloaders times 2,000 primers each is a million primers.
It took a while to see toilet paper supply catch up with demand. It’ll take a while for our requirements to be met too.
Just pray Vista doesn’t have a fire in one of their plants.

[snowwolfe]

A shooter can pretty much find any ammo or primer size/brand they want in today’s market. The caveat is most don’t want to pay the current price.

[Handloader109]

I'll turn the discussion just a slight bit. My daughter has been trying to a new house built this year. One of the worst times in my life to do so since Jimmy carter left office. We are over budget roughly 40%. And we have been trying HARD to keep things as cheap as possible. Instead of one or two days to deliver concrete, both pours were 3 weeks from order. CONCRETE! Windows were 16 weeks at order, 17 when they showed up. Cabinets varied from 10 to 17 weeks, we found local company and got in 7. Appliances were a month. Countertops, granite and other stone were up in price 30% over 2 years ago, and 8 weeks to get, we went with corian,, simplest white we could get. Estimated 4 to 6 weeks, we are at 8 and counting..... We'll be 3 months over time expected due to delays.
Ammo? I bought 22s early last year cheap. nothing much available till last month anywhere close to me...

Sent from my SM-G892A using Tapatalk

[country gent]

it is interesting to see the amount of time energy and money that goes into a new factory and manufacturing.

It starts in the design phase of what could be done changed to improve the product. This is usually a outside firm that goes thru and has experience in this.
From here it goes to the planning stages buildings, machines, other equipment ergonomics"flow" lighting heating safety ingress and egress, bring materials in shipping. At this point the basic improvements and "flow" of the product are set and defined. Also support buildings and equipment are designated.
Now its on to permits and dealing with the powers that be to get approval.
Once they are done building can start and the ordering of machines and or equipment, this can be a long wait as equipment may be made to order from the ground up.
Then the lines come in and set up can start. setting lines is a big process in itself. It may even require trades and worker to travel to manufacturer for training. as the lines are being built.
Also other things have to be considered and met. Is there an available capable workforce available that is also sustainable. Is the community support there, I would imagine an ammo plant would be about the same as a prison, nuclear facility, public shooting range. A lot of communicates dont want the added traffic and heavy trucks.

It can be a long process when everything goes right and only longer if it dosnt go right...

I ws part of the original start up of Prego spaghetti sauce. No new buildings needed but new lines and technology. From start to full production was close to 1 1/2 years for the first shift then faster to train second and third shifts.

[Handloader109]

There is NoOne in the gun industry that is going to build new ammo plant. I would hazard to say if someone wanted to, and just make brass, buy powder, primers and bullets, and then just load up, it would take 3 to 6 years. It would take at least a year and probably 2 to order and receive machinery to put in the plant. buying land permits, infrastructure around plant and then building, installing equipment and hiring and training would be a long road. Ain't gonna happen. Heck tire plant in central MS opened up in late 2019. Took over 3 years just to get door open. 400 employees and full capacity is 2500. Almost 2 years in and at 20% capacity.....

Sent from my SM-G892A using Tapatalk

[kevin c]

Fifty thousand reloaders times 2,000 primers each is a million primers.

One hundred million actually, and I sure hope there’s more than a thousand of us per state.

[Bmi48219]

One hundred million actually, and I sure hope there’s more than a thousand of us per state.

Kevin, I did intend to say one hundred million, thanks.
I chose 50,000 reloaders to make it personal since there are about that many CB forum members.
Point is the gentleman from Vista said they had shipped hundreds of millions of primers which would by my calculations be enough for each CB member to buy 2,000 primers.

[M-Tecs]

Kevin, I did intend to say one hundred million, thanks.
I chose 50,000 reloaders to make it personal since there are about that many CB forum members.
Point is the gentleman from Vista said they had shipped hundreds of millions of primers which would by my calculations be enough for each CB member to buy 2,000 primers.

The vast majority of the primers are not making it to the individual reloaders. Re-manufacturing companies like Black Hills are getting the majority.

Black Hills is very large compared to some. http://www.sadefensejournal.com/wp/black-hills-ammunition/ They produce ten's of millions if not hundreds of million per year. Companies like Buffalo Bore, Garret, Super Vel etc need a lot of primers to keep the doors open.

I know of one small no name company with just a couple of employees that produce's 3 to 5 million rounds a years.

[Winger Ed.]

it is interesting to see the amount of time energy and money that goes into a new factory and manufacturing.

.

Building a new factory for anything is not for the timid.
A buddy was down near Austin the other day and went by the new Tesla factory.
I think its an assembly plant, not where all the parts & components are actually made.

He said it looked like it was 1/2 a mile long.
Before we get to training and employing people, the cost is beyond belief.... 1.1 billion so far,,,
and that's before one finished car or truck rolls out the door.

If it only cost 10-15 million to build a primer or ammunition factory, and the prices fell back to what
they were a couple years ago, it wouldn't be cost effective or profitable to build it.

[Bmi48219]

The vast majority of the primers are not making it to the individual reloaders.

Don’t think you’ll get an argument on that. Realistically we reloaders are at the bottom of the customer list. Manufacturers are happy to sell us primers when the primer inventory exceeds ammo requirements, we are then a source of revenue and a profitable outlet for excess inventory. Until all the ammo manufacturers have plenty of primers we likely won’t.

If a new, uncommitted source of primers comes on the scene we MIGHT get lucky since we are will pay more than Winchester or Vista, who both appear to be able to produce enough primers to run wide open 24/7. The fact that Brownells, Midway etc, occasionally and momentarily have primers available means someone is occasionally producing excess-to-current-requirements primers. If Vista is looking at a multi-year backlog we are, at a minimum, facing the same wait for reasonably available primers.

[Bmi48219]

Kevin, I did intend to say one hundred million, thanks.
I chose 50,000 reloaders to make it personal since there are about that many CB forum members.
Point is the gentleman from Vista said they had shipped hundreds of millions of primers which would by my calculations be enough for each CB member to buy 2,000 primers.

Expanding on the above calculations, if 500,000 reloaders order 2,000 primers each the total ordered would be one Billion primers. (Kevin c, please check my math). If M-Tec’s post #18 estimate of a 6 Billion round backlog for Vista is accurate we’re in for a long dry spell.

[M-Tecs]

This will help some.

https://www.ssusa.org/articles/2021/9/22/fiocchi-ammunition-s-renaissance-in-the-us/?fbclid=IwAR1zEG252xhlVmZFXgfeK1YuLYNQLzMv-pnudQMRYTcVzAVOMgNzjGQi6dU

Fiocchi Ammunition’s Renaissance In The U.S.
by John Parker - Wednesday, September 22, 2021

Fiocchi Ammunition’s Renaissance In The U.S.


Fiocchi significantly increased its production capabilities in the United States last year after acquiring an existing ammunition plant in Little Rock, Ark. Not long after that, it made waves when it purchased upscale ammo maker Baschieri & Pellagri, an Italian company and a Fiocchi competitor in the shooting and hunting sector.

Approximately 80 percent of Fiocchi-brand products sold in the United States are loaded either in Ozark, Mo., or at the new plant in Little Rock. The Ozark facility alone manufactures more than 300 million center-fire rounds and shotshells per year.

Says Anthony Acitelli, the president and chief executive officer of Fiocchi USA: “Many people don’t realize how much of Fiocchi’s output is made in the United States. We are essentially a U.S. company with an Italian supply chain.”

Renowned worldwide for performance and reliability, Fiocchi’s ammunition is popular with competitive shooters. The best examples are drawn from Fiocchi’s shooters securing multiple Olympic medals in biathlon, trap and double trap events, along with world and national titles. Besides manufacturing ammunition for competition, law enforcement, personal defense, training and hunting, Fiocchi is a top cartridge component producer. The company expanded internationally in 1983 when Fiocchi USA opened its doors in Missouri.


Today, Fiocchi USA is mostly independent of the supply chain from Europe. Acitelli has committed to vertically integrating the company’s U.S. production. The new manufacturing operation in Arkansas is just the beginning.

“Current expansion plans that we have in place with Fiocchi are intended to capture a bigger share of the U.S. market,” said Acitelli. “When we look at the supply chain in Italy and the branding here in the United States, it makes sense to do more in the market that most of our sales are. For Fiocchi, the strategy is to expand here.”

Armed with 27 years of experience navigating domestic and international ammunition markets, Acitelli is about as qualified as one can be to helm a large ammo company. A Navy veteran and MBA graduate, he joined Fiocchi in 2019 after his tenure as chairman and CEO of the Remington Outdoor Company. Before that, Acitelli was the president and CEO of Taurus Holdings and senior vice-president of sales for Colt Defense, along with holding several executive positions within Alliant Techsystems’ security and sporting divisions. (He’s also a great shot when flushing Thomasville, Ga., quails.)

While the company’s plans to increase manufacturing output were announced during the ammo shortage, pre-pandemic Fiocchi’s predictions on the U.S. ammunition market have displayed remarkable prescience. One thing is for sure—Fiocchi USA has gone all in with integrating production and using every available resource.

“The new Arkansas facility doubles our capacity for handgun ammunition,” said Acitelli. “We’re going to add machines in Ozark, too. We’re looking at expanding our supply chain. In the future, Fiocchi USA will be a totally vertically integrated U.S. company.”

Some History
Fiocchi is an international leader in producing small-gauge ammunition, but it took time to get there.

Classic Fiocchi of Italy photo
Fiocchi’s original factory is located in northern Italy near the Swiss border—an area historically known for arms and ammunition production.

Fiocchi Munizioni was founded by Giulio Fiocchi in 1876 when he took over the ammunition producing department of a firearms and ammunition company in Lecco, Italy. The trend in firearms was moving from muzzleloaders to breech-loading rifles. By 1880, Fiocchi had begun manufacturing shotshell cases with primers for reloading. The company added gunpowder to its line 10 years later, and soon after extended its manufacturing to include primed cartridges loaded with both shot and bullets.

As mentioned, Fiocchi ammunition has contributed to several World Cup and Olympic medals. Employees pride themselves on helping customers, taking their requests and turning them into reality. One of Fiocchi’s goals is to continue producing ammunition with the same entrepreneurial energy and enthusiasm as it has done over the past 145 years. I say mission accomplished.


New Arkansas Facility
The new operation in Arkansas operates in tandem with Fiocchi’s ammunition manufacturing facility in Ozark, Mo. Located in southern Little Rock near Interstate 530, Fiocchi has invested $15 million in the Arkansas facility, purchasing new machinery for center-fire cartridge production. Expanding with purpose, the company tapped regional talent to fill many roles in its new initiative by hiring 85 employees right off the bat, followed by more workers as the operation cruised towards its theoretical capacity.

From a bird’s-eye view, the new Arkansas facility, along with the soon-to-be-finished headquarters in Ozark, has doubled the Fiocchi USA footprint.

Fiocchi USA is one of many in the firearms and ammunition industry to find a new home in Arkansas. “Fiocchi identified Arkansas as a primary target for its expansion based on the skilled labor of the state, business climate and geographic location. This investment is a unique opportunity for Fiocchi,” said Jared Smith, Fiocchi’s general manager.

A key figure in the company’s renaissance, Smith has been on point for Fiocchi USA’s transition from a family-owned company into a professionally managed one owned by shareholders.

“As I came on board, Jared Smith was instrumental,” said Acitelli. “Developing the formalized processes necessary for a company with shareholders is easier said than done. He really did a great job in setting up the team before I got here and making the transition go smoothly.”

Buying Baschieri & Pellagri
The ink was barely dry on the Little Rock facility press release when Fiocchi struck again with big news—the acquisition of B&P. Established in Bologna, Italy, in 1885, Baschieri & Pellagri is known throughout Europe and the U.S. for its high-quality shotshells and advanced components—including powders, wads and the innovative “Gordon case” developed to reduce recoil for hunting and competitive shotgun applications. Baschieri & Pellagri, as with Fiocchi, combines a rich heritage and old-world craftsmanship tradition with focused research and development to foster technological innovation.


In terms of product lines, management said that it will maintain B&P as a luxury ammo brand, complementing Fiocchi’s premium and high-end, yet more affordable, offerings.

With the purchase of B&P, Fiocchi expanded to a $235 million company with more than 800 employees (200 in the U.S. alone) that owns four manufacturing plants on two continents. Two are in Italy: the historic manufacturing plant of Fiocchi in Lecco, and B&P’s hunting and shooting center in Marano di Castenaso, along with the new Fiocchi USA manufacturing plant in Little Rock, Ark. Fiocchi USA also maintains its Ozark, Mo., facility, which was built in 1983 on an old dairy farm. The merger should generate significant competitive advantage for both brands in the red-hot ammo markets on either side of the pond.


While Fiocchi USA has some big names on its shooting team, past U.S. Olympic biathlete and action-shooter extraordinaire Lanny Barnes is one of the best in the business. Not only is she an IPSC World Shoot gold medalist and talented multi-gun competitor, Barnes (you may know her as “Lanny Oakley” on social) is also a big hunter. She swears by Fiocchi ammo for competition, especially the Jerry Miculek low-recoil 12-gauge slugs and .223 Rem. loads with 69-grain Sierra Match Kings. “In all my years of shooting and hunting, I haven’t found anything more reliable or accurate. There is a reason why Fiocchi has been around since 1876,” said Barnes. “I rely on Fiocchi to help me make that shot of a lifetime in competition and in the field.”

Another top Team Fiocchi member is Dianna Muller, of 3-Gun and IPSC fame (as well as the D.C. Project), who favors Fiocchi’s .223 Rem. 77-grain cartridge for multi-gun competition. “For peak performance in competition or in the field, ammo can separate the men from the boys, so to speak,” said Muller. “Fiocchi’s ammunition is accurate and consistent. And surprising to some, they have a full line of products—not just shotgun ammo.”

Learn more at fiocchiusa.com, call (417) 725-4118 or write the U.S. main office at 6930 N. Fremont Rd., Ozark, Mo., 65721.

Since 1983, Fiocchi USA has been based at its Ozark, Mo., facility. The company’s new headquarters there will be finished by end of year.
Since its 1876 founding in Lecco, Italy, Fiocchi has developed a reputation for producing high-quality ammunition. In the 1950s, Fiocchi began importing ammunition for sale in the United States. By the 1980s, the demand was high enough to build a manufacturing facility stateside to help satisfy the ever-hungry U.S. ammo market. Now the company produces ammunition and cartridge components in Italy and in the U.S. through Fiocchi USA. Remaining true to its Italian roots, Fiocchi USA focuses on quality craftsmanship and building innovative products for its dedicated fanbase.

[kevin c]

That’s an existing facility that Fiocchi bought; was it running or are they rebooting a decommissioned plant? The first means no net change in production unless they upgrade, the second would increase supply for sure.

[savagetactical]

Those of us who work in the business world are familiar with the concept of artificial scarcity. For those unfamiliar with the term you might want to read up on it so you can understand how it helps influence demand for a product .

I have no doubt the ammunition industry has suffered issues with supply and labor shortages... However I also believe that the industry wants to sell their product for all the money they can and artificial scarcity is used by many companies to accomplish that end. The greater the demand the more you can charge.

[ulav8r]

That’s an existing facility that Fiocchi bought; was it running or are they rebooting a decommissioned plant? The first means no net change in production unless they upgrade, the second would increase supply for sure.

Finally found the address of the Fiochhi plant. A Duck Duck Go search on the address found 3 different businesses mentioned for that location: Grandeur Fasteners Inc., Portable Storage of Arkansas, and Blackstone Ammunition.

"Doing Business As: Blackstone Ammunition
Company Description: Blackstone Ammunition is located in Little Rock, AR, United States and is part of the Industrial Machinery Manufacturing Industry. Blackstone Ammunition has 10 total employees across all of its locations and generates $696,208 in sales (USD). (Sales figure is modelled).
Key Principal: Nina Kazuzzi " Looks like Fiochhi will be doing a lot more than Blackstone will. During my search trying to find where Fiochhi would be I found references to the Sig Sauer ammunition plant in Jacksonville. Knew about the Sig Sauer plant but had forgotten who they were.

"Although headquartered in New Hampshire, Sig Sauer is investing millions and adding jobs in their ammunition plant in Jacksonville, Arkansas.

The expansion, coming after an unprecedented nationwide ammo shortage now dragging into its second year, comes as the company is investing millions in “The Natural State." As reported by local media, Sig has shifted its shipping and storage operations for its ammunition plant to 53,000 square feet of nearby office space to free up floor space for more manufacturing space at its existing facility. In all, the company is investing over $12 million in the expansion and hired both new operators and supervisors for the plant's staff of 220.

Daryl Hanna, chief strategy officer for Sig Sauer, told the Arkansas Democrat the plant will be adding an in-house primer-making facility while new high-speed horizontal cold forming equipment to produce pistol brass, along with machining and laser inspection machinery, will double the production of pistol-caliber ammunition. To help flesh out the line, Sig is looking to hire more than 40 new workers at the plant. "

[kevin c]

I’ve seen the occasional SIG head stamp on pistol brass. As best I could tell by plain inspection, it looked to be of good quality. Haven’t reloaded any, though.

USA made SIG primers being planned, eh? I wonder if any will trickle down to the reloading market.

[BunkTheory]

I’ve seen the occasional SIG head stamp on pistol brass. As best I could tell by plain inspection, it looked to be of good quality. Haven’t reloaded any, though.

USA made SIG primers being planned, eh? I wonder if any will trickle down to the reloading market.

thats all for the ammunition they wanna make in that plant.

[kevin c]

Know that.

But, provided you have the raw materials and the manpower, letting what I imagine to be a pricey production line stand idle when there is a secondary market available doesn’t make good business sense.

We can hope, can’t we?

[MUSTANG]

Given the dearth of Primers on the market; perhaps the industry producers could sell their "Seconds" at 2019 prices to get rid of them in a productive manner that does not impact their production line sales.

[kevin c]

The occasional dud in a bulk pack of cheap .22’s doesn’t faze me, but I’m less sure I’d be willing to accept a bad centerfire round because of funky priming.

But maybe I’m just not desperate enough, since I have primers enough to meet my current needs.

[Cosmic_Charlie]

I did see some new production Remington primers at a Scheel's a few months back. Took that as a positive thing.

[Bmi48219]

Given the dearth of Primers on the market; perhaps the industry producers could sell their "Seconds" at 2019 prices to get rid of them in a productive manner that does not impact their production line sales.

A few months back one of the supply houses (Midway?) showed CCI ‘Blems’ primers at decent prices, of course they were Out Of Stock. I’ve heard of blemished bullets and brass but can’t imagine blem primers.

[jonp]

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.

Hundreds of thousands of people that might actually travel to the range on a regular basis. Millions will buy a gun, shoot it few boxes and that will be it.

[M-Tecs]

Since I retired I work part-time at a gunshop. The store policy is that if it's on the shelf the only limit is your pocket book. A large percentage of the first time buyers would also purchase 3 to 5 thousand rounds of ammo per firearm. That has slowed somewhat due to significant price increases for ammo but lots of first time purchasers are still buying ammo by the case.

[mjwcaster]

Artificial scarcity theory only works if the manufacturers get the profit increase, which in the firearms world they normally don’t.

Ive always thought the issue with ammo and ‘price gouging’ is that the wrong people profit.
The manufacturer and retailers still only make their few bucks off of a case of ammo while a flipper can make hundreds with little work and investment.
If the ammo manufacturers could sell cases of 9mm for $500 during panics they could afford to have secondary plants waiting offline just to fill in spikes in demand.

As far as large factory expansions, from an outsider that looks like a foolish investment during a temporary spike in demand.
The firearms world is cyclical.

Anyone else remember 2019?
Ammo every where at the lowest prices in 10+ years.
$180 cases of 9mm shipped, sales and rebates on everything.
CCI had 20% rebates, and their products were already on sale at retailers, discounted/free hazmat or shipping.

2017 was the year of oversupply on firearms. Over supply, lowered demand after the election, low prices and rebates galore.
The next few years prices were still nice and low, the era of $500 AR’s.

Basing your capital investments on short term spikes in demand is a great path towards bankruptcy during lulls in the market.

And historically there will be large downturns in the very volatile firearms market.

Now an investment strategy built around filling a warehouse with ammo during cheap times and selling during panics could work out well.
Imagine investing a few hundred K in 9mm at $150 a case in 2019 (we bought local at that price).
Then selling off at $500-800 per case just a year later.
If your crystal ball worked well it would have been a nice profit.

Just my thoughts.


Sent from my iPhone using Tapatalk

[gwpercle]

I see your lips moving but I'm not hearing a danged thing you are saying .

I'm tired of excuses of why we can't ... Do something

[armoredman]

$500 ARs?
https://palmettostatearmory.com/psa-ar15-freedom-classic-lower-flat-dark-earth-7779346.html It IS a daily deal, but they are running a LOT of Daily Deals, and some are actually cheaper. $125.99 for an FDE classic AR lower.
Then...
https://palmettostatearmory.com/psa-16-classic-freedom-m4-fde-upper-with-bcg-and-charing-handle-7779344.html Another daily deal, the matching FDE carbine length gas system classic upper, complete with BCG and CH.
But need...
https://palmettostatearmory.com/troy-rear-fixed-battlesight-ssig-frs-r0bt-00.html Troy fixed rear Battlesight.
Minus tax, shipping and receive fee for the lower, price tag is $484.43. Just add mags and ammo

[dverna]

Artificial scarcity theory only works if the manufacturers get the profit increase, which in the firearms world they normally don’t.

Ive always thought the issue with ammo and ‘price gouging’ is that the wrong people profit.
The manufacturer and retailers still only make their few bucks off of a case of ammo while a flipper can make hundreds with little work and investment.
If the ammo manufacturers could sell cases of 9mm for $500 during panics they could afford to have secondary plants waiting offline just to fill in spikes in demand.

As far as large factory expansions, from an outsider that looks like a foolish investment during a temporary spike in demand.
The firearms world is cyclical.

Anyone else remember 2019?
Ammo every where at the lowest prices in 10+ years.
$180 cases of 9mm shipped, sales and rebates on everything.
CCI had 20% rebates, and their products were already on sale at retailers, discounted/free hazmat or shipping.

2017 was the year of oversupply on firearms. Over supply, lowered demand after the election, low prices and rebates galore.
The next few years prices were still nice and low, the era of $500 AR’s.

Basing your capital investments on short term spikes in demand is a great path towards bankruptcy during lulls in the market.

And historically there will be large downturns in the very volatile firearms market.

Now an investment strategy built around filling a warehouse with ammo during cheap times and selling during panics could work out well.
Imagine investing a few hundred K in 9mm at $150 a case in 2019 (we bought local at that price).
Then selling off at $500-800 per case just a year later.
If your crystal ball worked well it would have been a nice profit.

Just my thoughts.


Sent from my iPhone using Tapatalk

One of the best posts on the subject IMO.

Most will not understand (or want to understand) because they have been caught short and want someone to blame...when they caused their situation by not preparing. What's sad are those who have been around for years and seem to forget the cyclic nature of ammunition and component supply.

[Four-Sixty]

At the public range I use, attendance is way down. The Range Officer I talked to blamed it on ammo being hard to obtain. Attendance is down enough they're reducing staffing at the range to only the weekends now.

At some point, does the lack of capacity inhibit growth of the firearms hobby?

[jgstrug]

One of the best posts on the subject IMO.

Most will not understand (or want to understand) because they have been caught short and want someone to blame...when they caused their situation by not preparing. What's sad are those who have been around for years and seem to forget the cyclic nature of ammunition and component supply.So much has been said about hoarding that people who had a reasonable one year supply a year ago should get a little understanding.

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[M-Tecs]

So much has been said about hoarding that people who had a reasonable one year supply a year ago should get a little understanding.

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Having been through various shortages through the years I recommend a 5 year supply to be comfortable and a 3 year supply as a minimum. I shoot competitively and a really real slow year I expend 5,000 rounds but most years that is double or triple so yes it is a major investment and it does require sacrifices. My first gunpowder shortage was in the mid-70's when the BATF planned on requiring tagnets in the powder.

[Iowa Fox]

Did you guys see the red powder coated bullets? Sure would like to see a vid on the process they use for their volume.