It may mean a big surplus if and when the demand goes down.
http://www.statesman.com/business/conte ... upply.html
DES MOINES, Iowa — Ammunition shipments to local gun shops and police departments are being delayed for months because the Army has more than tripled its demand for small caliber ammunition.
Ammunition plants have dramatically ratcheted up production, but company officials acknowledge delays to police and retailers of up to a year.
"There are millions of rounds backordered because the war has put such a demand on the manufacturers," said Lana Ulner, manager of Rapid City, S.D.-based Ultramax Ammunition, a distributor for several manufacturers. "In some cases, it can take eight to 12 months."
The Army's demand for small caliber ammunition has soared from 426 million rounds in 2001 to 1.5 billion rounds in 2006, according to the Joint Munitions Command at the Rock Island Arsenal in Illinois.
The government spent $688 million on ammunition last year, up from $242 million in 2001, said Gail Smith, a Joint Munitions Command spokeswoman. The most common rounds ordered are 5.56 mm, 7.62 mm and .50 caliber, she said.
Much of the ammunition used by the Defense Department comes from a plant in Lake City, Mo., owned by Alliant Techsystems Inc. The plant's production has increased nearly fourfold, said company spokesman Bryce Hallowell.
"We have ... hired hundreds of people and turned our plants into 24/7 operations where they weren't just a couple of years ago to meet that demand," said Hallowell, whose company also has plants in Anoka, Minn., and Lewiston, Idaho. "We're running full-out."
He said the war, depleted ammunition reserves and the lack of foreign competition have all contributed to the surging demand.
The strong sales helped Minnesota-based Alliant's ammunition systems group see a 10 percent increase in sales for the fourth quarter and a 15 percent for the last fiscal year.
"The increase reflects higher volumes in medium-caliber gun systems and ammunition, civil ammunition and military small-caliber ammunition," the company said in a statement.
Ann Pipkin, a spokeswoman for East Alton, Ill.-based Winchester Ammunition, said the company also is seeing a backlog on orders for certain types of ammunition, but she wouldn't give specifics.
Because of the increased demand, police in Des Moines said it's taking twice as long to get ammunition orders as a few years ago — up to eight months. Still, the department has not decreased it use of ammunition.
"We're not experiencing any shortages, but they are planning ahead to accommodate for the delay caused by the war," said Sgt. Todd Dykstra, a police spokesman.
Larry Maynes, owner of JLM Gun Shoppe in Urbandale, said military ammunition and weapons are popular with his customers because the mass production makes them less expensive.
"I have some in stock, but it won't be easy to replace," he said.
In most cases, customers buy the military-style weapons for target practice, but some people use them to shoot small animals, Maynes said.
"Guys like those for prairie dogs and coyotes primarily," he said.
At Darr's Shooting Supply in Chattanooga, Tenn., the wait for some types of ammunition was four months at the end of 2006, said salesman Jeff Brewton.
Given the Army's need for ammunition, he said few customers complain.
"There hasn't been a whole lot of problems," Brewton said. "They ... understand what's going on."
Jeff Lepp, chief executive of Specialty Sports & Supply, a high-volume dealer in Colorado Springs, Colo., agreed.
"I certainly concur that the military should have the ammunition in a situation like this," Lepp said.
