Conspiracy theories are running rampant on the internet that the shortage of ammunition and firearms must be a result of the United States government buying all of the available manufacturing capacity. We understand that the availability of ammunition is very low and the demand is at an all-time high. Most of the spike in demand appears to be caused by the current political push at the Federal, State and local levels to restrict the future rights of law-abiding shooting enthusiasts in many different facets of legislation. Please let us explain our answers to most of the questions that we have received via email or phone calls since January 2013:
Question: “Are you selling most of your capacity to the United States Government?”
Answer: Absolutely not. We don’t have any contracts with the Federal government at this time as most of these contracts are granted to domestic manufacturers”
Question: “Have you stopped production or are you limiting production?”
Answer: Absolutely not. We continue to manufacture ammunition and components at highest output rate that our factories can provide and that means running shifts 24 hours per day and 7 days per week. We deliver product every week to our distribution channel.
Question: “Why can’t you make more?”
Answer: Capacity is limited to the production facility, machinery, and the availability of highly skilled and trained operators. The factories will not sacrifice safety or quality to raise the overall manufacturing output. Over the last decade the CBC Group has invested tens of millions of dollars in new machinery, new technology and new employees in the effort to deliver increased capacity of ammunition and components for the shooting sports market. The CBC Group will continue to invest in new equipment, however, please understand that it can take up to one and half years to have the equipment built, installed and the production lines fine-tuned before we deliver a single round of high quality, affordably priced ammunition on this new line
Question: “Have you significantly raised prices to take advantage of the high demand?”
Answer: Absolutely not. Every year we analyze our cost structure of raw materials, production costs, logistic costs, sales and marketing costs, government costs and general and administrative costs to determine our distribution price for each item that we sell. Over the past year, we have not changed the overall selling costs of our items by more than the standard cost of living index in the United States, which is currently averaging between 2-3% per year. The exaggerated price of ammunition on online auction sites is not a result of higher selling prices from us!
Question: “When will you catch up on demand?”
Answer: We don’t know as the back orders from our distribution channel continue to increase. As we mentioned earlier, we are shipping products each and every week to our distribution partners. We do not have control over their allocation process so we are unable to know when and where our ammunition is shipped after it leaves our warehouse.