In an industry that has flat lined since the mad rush of last year, ammunition
continues to be in short supply. The limited supply of ammunition has significantly added to the current slump in firearm sales
The Impact on the Industry
Many of our dealers have expressed their frustration with the lack of ammunition available and how it has compounded the already slow market. For example, a customer comes and selects a firearm to purchase, but before completing the sale they ask if they have any ammunition for the firearm? If the answer is no they usually will stop the purchase. Not only does the dealer lose the firearm sale but the accessories sales as well. Many customers that may buy the firearm may also purchase additional magazines
, ammunition, holsters, slings, scopes, rails, rings, gun cases, cleaning kits, and targets just to name a few items. As illustrated this has far reaching effects on more than just the firearm manufacturers.
Is there any light at the end of the tunnel?
While attending the NRA Show in Indianapolis I spoke to three of the major ammunition manufacturers and all three said that they were working at maximum capacity. However, only one said that they were expanding their operations by opening a new plant to increase production.
Due to the BATFE stopping the importation of 5.45x39 Russian ammunition and with Wolf announcing a new line of 6.5 Grendel ammunition, we have recently seen a dramatic drop in 5.45x39
magazine sales and a substantial increase in 6.5 Grendel
This is just to show how this works in reverse and how ammunition drives the trends in firearms and accessory sales.
Having sufficient production and consistent availability of ammunition will definitely help rejuvenate the firearms industry and revive sales.