Most of his policies have done little to put people back to work or to expand the economy. Except for his attempts at gun and ammunition control. Ironically, every time that Obama opens his mouth about the subject, the industry grows. Businesses related to the industry grow, sales go up and more people get jobs. And more people that have been sitting on the fence about owning a firearm jump to the side of the second amendment and make their first purchase.
The following article that appeared on Forbes.com back in October of 2013. It notes a series of events and statistics that illustrate the affect that the Obama administration has on the firearm industry - and in particular the beginning of an especially severe ammo shortage. Frank Miniter uncovers some surprising facts in his roundup of how it happened.
The reason for the ammunition shortage should be obvious. After all, with gun sales continuing to break records all those people buying semiautomatic rifles and handguns need a lot of ammunition. Anyone who has used a semiautomatic rifle or handgun to shoot self-resetting steel targets knows that ammo always seems to be in short supply.
Nevertheless, finding bare shelves that have always been stacked with boxes of ammo has made some wonder if the government has been up to something.
It’s easy to understand this worry. As gun sales break records—partly because of fear of coming gun control from the Obama administration—supplies of ammo ran so low that gun stores and ranges have to ration ammunition. Meanwhile, rumors of mass purchases of ammunition made by government entities began to fly around the Internet. Making all this even worse is that fact that it hasn’t been a short-term supply problem. Now well over a year since the shortages of popular types of ammo began there are still empty shelves and rationing here and there around the United States.
Mix this series of events with a media that doesn’t understand the issue enough to explain it (even if they could drop their biases long enough to try), add a pinch of understandable paranoia from some gun owners and ka-boom!
Such an explosion, in fact, that many ammo makers have felt compelled to publish explanations. Also, the National Rifle Association (NRA) felt compelled by its membership to investigate and the National Shooting Sports Foundation (NSSF), the trade association for gun, ammo and related businesses, decided to look into the problem. There was even a congressional hearing.
At the hearing, Rep. Jason Chaffetz (R-Utah), who chairs one of the House oversight subcommittees, noted that the Department of Homeland Security (DHS) is using roughly 1,000 rounds of ammunition more per person than the U.S. Army. “It is entirely … inexplicable why the Department of Homeland Security needs so much ammunition,” said Chaffetz.
Chaffetz noted that DHS bought more than 103 million rounds in 2012 and used 116 million that same year for about 70,000 public employees. Chaffetz said the DHS is shooting up between 1,300 and 1,600 rounds per person, while the U.S. Army goes through only about 350 rounds annually per soldier. These numbers led some gun bloggers to cry conspiracy; though, many others noted that 350 rounds per soldier is a pretty stingy way to train people to shoot automatic weapons.
Also, the DHS buys ammo for its own police force, for Customs and Border Protection, for the Federal Emergency Management Administration, for Immigration & Customs Enforcement, for the U.S. Secret Service, for the Transportation Security Administration and for other federal entities. Meanwhile, U.S. Army personnel train for a long list of job responsibilities, many of which have little to do with small arms.
Nevertheless, Nick Nayak, chief procurement officer for the DHS, didn’t push back against Chaffetz’s numbers. Nayak said that DHS, on average, buys roughly 100 million rounds per year. He said claims that DHS is stockpiling ammo are “simply not true.” DHS buys in bulk to save money, but overall its purchases are actually slightly down. In fact, a letter from DHS explained that in 2010 the DHS purchased 148,314,825 rounds. In 2011 the DHS bought 108,664,054 rounds. And in 2012 the DHS purchased 103,178,200 rounds of ammo.
Federal Premium Ammunition, an American ammo manufacturer founded in 1992 that now has 1,400 employees in Anoka, Minn., published a statement saying the rumor that the DHS is “buying excessive quantities of ammunition thereby restricting availability to the commercial market” is a “false and baseless claim.” They say, “The Department of Homeland Security contract makes up a very small percentage of our total ammunition output. This contract is not taking ammunition away from civilians. The current increase in demand is attributed to the civilian market. Our production volumes on government contracts have been stable since the mid-2000s.”
So if this shortage of ammo isn’t a sinister government plot, what’s going on? For answers I interviewed manufacturers, gun-store owners, members of gun-rights organizations and more. Here’s what they have to say and what’s to come.
American Ammo Makers Are Expanding
The increased demand has prompted ammunition makers in the U.S. to expand facilities, add new shifts and streamline production. Federal Premium says, “Our facilities operate 24-hours a day. We are continually making process improvements to increase our efficiency and investing in capital and personnel where we have sustained demand. We are bringing additional capacity online again this year.”
As they work to catch up with demand, Federal posted a statement on its website saying, “We are currently experiencing high demand for our products. We appreciate your patience and support and remain committed to serving all of our customers, from hunters and sport shooters to those who protect our country and our streets.”
Winchester Ammunition’s official answer is: “Like many manufacturers in the shooting sports industry, we are experiencing an extremely high demand for our products. We are working as hard as we can to produce an increased supply of quality ammunition to meet our customers’ needs.”
Scott Blackwell, president of Freedom Group, an American firearms manufacturer holding company that includes Remington, Bushmaster and DPMS, said, “Most of the ammunition we make at Remington goes to the consumer market. Our supplies, therefore, haven’t been affected by government contracts. It’s clear to us that any lack of supply in the marketplace has been from consumer demand for our quality products. To meet this increased demand we’re investing and growing.”
Remington Arms Company announced it’s spending $32 million to expand its Remington Ammunition Plant in Lonoke, Ark. The expansion includes the construction of a new building. The expansion is projected to be in operation by the second quarter of 2014.
Steve Hornady, president of Hornady Ammunition, told the NRA: “We’re working as hard as we can to get as much out as possible…. People walk into the store, they don’t see as much as they want so they take everything they can get. The next guy who comes in can’t get anything, so he panics…. But there is no government conspiracy.”
There has certainly been price gouging by enterprising individuals. Some people have bought up all they can find and are reselling the ammo over the Internet. Other people are simply stockpiling when they can to avoid future problems.
Here Come the New Gun Owners
There are now more than 5 million women participating in the shooting sports, an increase of 46.5 percent since 2001. The number of gun owners in America surpassed 100 million a few years ago, according to the NRA. Reportedly, NRA membership now exceeds 5 million. More gun owners means more ammo being shot.
A recent survey by the National Shooting Sports Foundation (NSSF), the trade association that represents firearms manufacturers and related products, found that the primary motive for recent handgun purchases is concealed carry (32 percent), followed by non-competitive shooting (28 percent) and then home defense (24 percent). Two thirds of handgun owners said they are likely to purchase another handgun within the next year. Also, 30 percent of single handgun owners purchased their first and only handgun within the past year.
Bruce Hammond, director of marketing and communications for the National Sporting Goods Association (NSGA), explained that, between 2010 and 2012, the percentage of rifles purchased at specialty sports shops (gun shops, outdoor stores, etc.) increased from 31.8 percent to 37.3 percent, while online purchases increased from 5.1 percent to 7.8 percent.
There are a lot of other numbers tracking the growth of gun sales and gun ownership. For example, July 2013 was the 38th straight month that the number of background checks called into theNational Instant Criminal Background Check System (NICS) increased when compared to the same month the previous year. Not every background check results in a sale, but NICS numbers are a good indicator for overall gun sales. (For more on why guns are selling see my column “What The Left Won’t Tell You About The Boom In U.S. Gun Sales”)
How Retail is Changing
As the number of gun owners in America has been growing gun stores have been expanding, adding indoor ranges and new training programs. These new consumers are buying more ammo.
At the end of 2013 Cabela’s, a publically traded corporation, had 50 stores with plans to open 13 more in 2014. Bass Pro Shops, a privately held company, had 59 stores and had plans to open about a half dozen more in 2014. One of Bass Pro’s latest store openings was a 104,000-square-foot store in Round Rock, Texas—the second fastest growing city in 2012, according to the U.S. Census Bureau. Bass Pro estimated that 116 million people would visit its 77 stores (including Tracker Marine Centers) across America and Canada in 2013—about 40 million more than attend a Major League Baseball game during a typical year.
Ralph Castner, Cabela’s chief financial officer (CFO), says, “A lot of people drive 100 miles or more to go to our stores. We’re expanding to make their drives shorter and to reach new customers. They come a long way because we offer deals on gear, large firearm selections and because our stores host a lot of events and attractions.”
Though many small mom-and-pop gun stores have disappeared over the last few decades, some local stores have been growing their way to prosperity. Bill’s Gun Shop and Range is a good example. It has two locations in Minnesota (Robbinsdale and Circle Pines) and one in Hudson, Wis.—each location has 64 lanes in its indoor range. You can rent guns and take firearm safety and other courses on site from NRA-certified instructors.
John Monson, owner of Bill’s Gun Shop, says, “Guns are still selling, but sales have eased off a bit. For a while it was challenging just to keep guns and ammo in stock. We ran out of ammo twice—I nearly had a stroke! We’re fully stocked now. We have ranges at all our stores, host a ladies night every Wednesday and cherish our customers here in Minnesota and Wisconsin. I could sell more guns and certainly more ammo online, but I don’t want to do that. I serve the customers who come to our stores.”
Gat Guns in Dundee, Ill., located about an hour and half west of Chicago, is another good example of what increased gun sales has done for some stores. Gat Guns has expanded several times since first opening in 1979. After a recent expansion it now has 63 indoor shooting positions.
Greg Torino, owner of Gat Guns, says, “We’re the 50th state to win our right to carry concealed. This is a boon to freedom and to our bottom line.”
Randy Potter, Gat Guns’ store manager, says, “Ten years ago we had two women working behind the counter. We now have nine. We have women-only classes taught by a lady who is an International Practical Shooting Confederation shooter. We’ve also opened up our aisles, added more lights, put in granite counter tops and more. We’re catering more and more to suburban moms and dads. We now rent 160 firearm types and have instructors available for anyone who needs them.
“Over the last few decades our consumers have changed and we’ve changed with them,” says Potter. “I just sold an AR-15 to a guy who has hunted all his life but now wants a rifle for home defense. We used to get mostly hunters. Now we also get a lot of women and young men who want to shoot recreationally and to defend themselves.”
Other chains like Dick’s Sporting Goods, Gander Mountain and Sportsman’s Warehouse are also competing for market share in the hot and growing gun market. According to the research firm Southwick Associates, Inc., ammo sales were up 15 percent from 2011 to 2012, shooting accessories were up 30 percent and the share of rifles sales chambered in .223 was up 14 percent (most AR-15s are chambered in .223).
“The biggest change I see this year is that people in their twenties and thirties have become a bigger part of the market,” says Rob Southwick of Southwick Associates, Inc. “Those in this demographic are now buying rifles—especially modern sporting rifles—and they’re shooting for fun.”
One little-noted benefit to the surge in gun and ammo sales is that every time someone buys a gun or a box of ammo they’re paying a tax that must be used for wildlife conservation projects, gun ranges and other such outdoor-related programs. This tax on firearm and hunting related goods was created in 1937 when Congress passed the Federal Aid in Wildlife Restoration Act (often referred to as the “Pittman-Robertson Act”). In 2013 the U.S. Fish and Wildlife Service estimates this tax will generate $376 million for conservation programs, land acquisition and other outdoor-related expenditures and projects. So, in a way, all these new gun owners are pulling the trigger for conservation more and more often.
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