There are two main reasons for the shortage, and the industries inability to get 'caught up'. The first is all the new gun owners, and the increased buying capacity of the consumer customer base. The second is that governments of the world have put in record breaking orders for ammunition, and they're paying these current prices. The consumer market is slow to recover because if you make 10 million rounds a month, would you like to sell them retail, at about 50 cents a round, or your whole months supply to a government for full market value?
The ammo industry is also recovering from some bankruptcies of companies that didn't make it through the forced shutdowns, and the inability to get loans to expand operations.
There are two main reasons for the shortage, and the industries inability to get 'caught up'. The first is all the new gun owners, and the increased buying capacity of the consumer customer base. The second is that governments of the world have put in record breaking orders for ammunition, and they're paying these current prices. The consumer market is slow to recover because if you make 10 million rounds a month, would you like to sell them retail, at about 50 cents a round, or your whole months supply to a government for full market value?
The ammo industry is also recovering from some bankruptcies of companies that didn't make it through the forced shutdowns, and the inability to get loans to expand operations.
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