Quote:
Originally Posted by fiveohwblow
Appreciate the insight. If this is a repeat occurrence, why have many more not thought ahead and became manufacturers of the primers themselves rather than rely on the thin distribution? Is it difficult to do so? Even so, doesn't seem like a bad business idea but there has to be something I am missing...
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Maybe
Rhidium can comment on this.
Ammo demand is cyclic, similar to a commodity. That means capital investment in new production capacity (factory space, machinery) is a risky proposition.
Additionally, I imagine there is open/unused capacity available for ammo production when looking at average demand over a multi-year period. This means new production capacity is not truly "needed" but rather a nicety for consumers.
Consumers binge buy ammo based on fear. It would be a speculative and risky investment to buy into a fear play.
In addition to the above, not everyone wants to invest in a highly regulated and potentially dangerous (property and injury damage) business.