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news story - Ammunition makers bracing for downturn

Posted: Tue Jul 24, 2007 9:10 am
by BobCat
http://www.star-telegram.com/national_n ... 78901.html

First couple of paragraphs only, owing to copyright concerns:

Ammunition makers bracing for downturn
By RICHARD LARDNER
The Associated Press

The Lake City Army Ammunition Plant in Independence, Mo., makes 120 million rounds a month. It's the largest producer of the small-caliber ammunition used by the military.

WASHINGTON -- The Lake City Army Ammunition Plant in Independence, Mo., driven by the demands of war, produces nearly 1.4 billion cartridges a year.

"It's actually mind-boggling," said Karen Davies, Lake City's general manager.

The question is, for how long? Although no one knows when the conflicts in Iraq and Afghanistan will end, Davies and other ammunition industry executives understand that the heavy orders won't last forever. So as they churn out the military's most essential hardware, ammunition makers are preparing for a downturn in business.
<snip>


--- What effect do you think this will have on retail prices of ammunition?

Re: news story - Ammunition makers bracing for downturn

Posted: Tue Jul 24, 2007 9:37 am
by seamusTX
BobCat wrote:--- What effect do you think this will have on retail prices of ammunition?
Little to none. The price of ammo is not driven entirely by the demand for ammo. Metal prices have been going up like the Space Shuttle for years. Those prices are driven by car and electronics manufacturing and other uses.

- Jim

Posted: Tue Jul 24, 2007 9:42 am
by HighVelocity
If there is a sudden multi billion round surplus, the price will go down but don't hold your breath.

Posted: Tue Jul 24, 2007 9:50 am
by wjmphoto
The article ignores the fact that there is always the next conflict that we will be going to. Regardless of who is in power, the US is always involved in something somewhere and it still involves ammo so there is little to worry about.

As has already been said, surpluses of ammo would be a good thing, but don't hold your breath because there's always someone who needs some shootin' somewhere in the world! ;-)

Posted: Tue Jul 24, 2007 10:51 am
by stevie_d_64
Wouldn't it be great years from now to have a thread here that could be something like...

July 24, 2018:

Hey, got some surplus (vintage 2008) Lake City 5.56 (3 cases, 3K rounds) $450.00 at Walmart!!!

Who knows...Cheaper than Dirt might have this too in the future...(Cheaper than Dirt haters are mobilizing...I can feel it! :lol: )

We just need to make sure we stay vigilant and protect that future so this very well might be a reality...