Post by: Alchase on October 20, 2023, 07:51:32 PM
"According to multiple news sources, the Lake City ammo plant has cancelled all of its commercial contracts.
This means that stores will no longer be able to purchase ammo from Lake City, which currently supplies 30% of the civilian market for 5.56 ammunition.
The Lake City ammo plant is owned by the US Government, but operated by Olin Winchester. Winchester produces ammo and sells it to the government.
When the facility is able to produce more ammo than the government requires, they sell it either to consumers or distributors.
If it’s true that they’ve cancelled their commercial contracts, this means the US Government is requiring more ammunition, enough that they can’t produce enough to sell the excess.
I haven’t been able to confirm this with Lake City or Winchester themselves, but I’ve reached out to hear what they have to say. I will update this article as soon as I have something.
Stores Will No Longer Be Receiving Ammo From Lake City
Winchester 5.56 is, or was, one of the most abundant brands of 5.56 in the country.
Lake City is not only the largest supplier for the US Government and Military, but is the largest small arms ammunition factory in the world.
Winchester has three facilities for making ammo, but as far as I can tell only makes 5.56 at Lake City.
This all means that as Lake City cancels contracts, you’ll stop seeing Winchester 5.56 on the shelf at your local gun store.
Distributors won’t be able to purchase new shipments, so as they run out of their current stock, the shelves will slowly, or quickly, dry up.
Prices Are Only Going Up
I’m no economist, but if 30% of a goods’ supply disappears overnight, the price of said goods are sure to rise.
We’re also heading into an election year, which almost always provides positive pressure for guns/ammo prices.
The same week that Winchester started cancelling contracts, a Hornady ammo facility had an explosion that caused one fatality. It’s not certain how this will affect the market, but it definitely won’t cause prices to lower.
Why Cancel the Contracts?
As I mentioned earlier, ammo plants that are government owned but contractor run are only able to sell ammo commercially when they produce an excess over what the government requires.]
This means that they’re either having production problems or the government is requiring, or anticipating to require, more ammo.
This is announced the same week as the conflict with Israel and Palestine. Is the government anticipating US involvement? Is the government supplying Israel, or someone else, with millions of rounds of 5.56?
Either way, I’m not able to say the real cause, but something is happening to cause the US Government and Military to require millions of more rounds than they required last week."
https://stapledefense.com/lake-city-plant-commercial-contracts/
:bash:
Post by: callturner on October 21, 2023, 06:04:30 AM
Post by: boneaddict on October 21, 2023, 08:01:47 AM
Post by: hughjorgan on October 21, 2023, 09:54:23 AM
Post by: Alchase on October 21, 2023, 10:06:32 AM
The plant, one of the biggest employers in Independence, makes small-caliber ammunition for the U.S. military.
"The operator of the Lake City Army Ammunition Plant in Independence, Missouri, is terminating 70 workers after the prime contractor lost its contract to run the facility.
In a WARN Act notice filed last week, XPO Logistics Supply Chain Inc. said the terminations will take effect beginning September 30 and extend over two weeks.
The plant, one of the biggest employers in Independence, makes small-caliber ammunition for the U.S. military.
Joe Checkler, a spokesman for XPO, said at least some of the workers will likely be hired by the new contractor.
“Typically in these cases the new company that takes over just hires these people,” he said. “But we’re required to file this notice anyway.”
Checkler added that there was a process already in place for the employees to apply for jobs with the new contractor.
In September, Olin Winchester won a U.S. Army contract to operate and modernize the plant, which opened in 1941 and sprawls across nearly 4,000 acres. The plant had previously been run by defense contracting giant Northrup Grumman.
XPO had a subcontract to run the plant, which employs roughly 2,000 people. The 70 employees slated to lose their jobs work for XPO.
XPO, a publicly traded company based on Greenwich, Connecticut, manages supply chains for 50,000 customers around the world. The company last week reported second-quarter revenue of $3.5 billion, down from $4.24 billion a year earlier, and a net loss of $132 million compared with $122 million in net income a year earlier."
https://www.kcur.org/news/2020-08-06/seventy-workers-lose-their-jobs-at-army-ammunition-plant-in-independence
Civilian sales get only the excess after the Government contracts have been met. Hopefully that will continue.
Post by: Alchase on October 21, 2023, 10:12:34 AM
Published: Oct. 13, 2023 at 11:48 AM CDT|Updated: Oct. 13, 2023 at 12:38 PM CDT
GRAND ISLAND, Neb. (KSNB) - Crews from at least four local fire departments were called to a Hornady Manufacturing plant west of Grand Island for an explosion just before 10 a.m. Friday.
Hall County Emergency Manager Jon Rosenlund confirms that Cairo, Wood River, Alda and Grand Island Rural Fire Departments as well as the Hall County Sheriff’s Office were called to the scene. They also requested the State Fire Marshal’s Office and the Hall County Attorney’s Office. A Grand Island fire department ambulance was also dispatched.
The fire was reported at a plant located in the 8300 block of west Old Potash Highway on the site of the former Cornhusker Army Ammunition Plant. That site is four miles northwest of Alda.
Emergency radio traffic indicated that one man had a head injury, but was conscious and breathing.
https://www.1011now.com/2023/10/13/fire-crews-called-hornady-manufacturing-plant-west-grand-island/?outputType=amp
:o
Post by: follow maggie on October 21, 2023, 05:16:38 PM
Post by: MeepDog on October 21, 2023, 05:52:18 PM