State of the Gun Industry

Hey everyone, I am an employee at a large firearms manufacturer and I wanted to give everyone a view of what is currently happening in the gun industry. I have worked in the industry for awhile and have been in manufacturing for over 10 years. I am seeing some crazy things currently and the market overall is about to change. I think anyone who is currently buying guns should be aware of what is currently happening and what is about to happen.<br><br>Currently prices are spiking and manufacturers are running at 110% capacity. This is due to the massive surge in sales the last two years and the war in Ukraine. Remington is currently shut down due to being sold off and they were the largest manufacturer of cartridges and ammunition components (primers, powder, bullets). This caused a massive shortage which is forcing companies to produce on less than normal capacity due to a lack of raw materials and components. So we have currently supply and demand way out of balance. Prices are spiking due to this and it is currently showing no end in sight.<br><br>Dependence on Russian Powder and Bullets:<br><br>Most people don't know but the majority of cheap ammunition sold at Walmart uses Russian powder and bullets. Due to the sanctions placed on Russia all of that is currently halted. This powder and bullets made up a large percentage of the cheap cheap ammo you could get at Walmart. This is disappearing quick and TulAmmo and other brands that use these components are massively spiking in price due to this.<br><br>Remington:<br><br>Remington was the largest manufacturer of primers in the world. They are currently shut down. This has caused 5 of the 6 major ammunition companies to stop or massively slow production. Remington was the only company that could fill the demand for primers. This caused almost every manufacturer to shut down their ammunition line until they could get a new source for their primers. This has now caused a massive shortage of ammunition.<br><br>"Green Box" and "Cheap" Ammo:<br><br>Most of the cheap ammunition is currently going away. The manufacturing cost for this ammunition is currently higher than what you can buy it for. Most of these brands are 100% dependant on Russian components to keep prices low. A lot of the cheap brands will be going away or massively increasing in price. Brands like Federal Champion, American Eagle, and others are already making massive price hikes and quality changes to maintain production. This is due to component shortages.<br><br>New Manufacturers:<br><br>There are a lot of new manufacturers about to pop up in the US and abroad. This is due to high demand, high profit margins, and people having money. This currently is fueling new companies and plants popping up. This is the good news, the bad news is licensing components and opening a plant is a multi-year process and it will not bring relief to the shortages currently.<br><br>The Market is About to Correct:<br><br>The market is about to see a large correction. Prices are going to come back down to earth. There is a lot of companies dumping guns that they bought at high prices on the used market and are selling them at a loss. There is also a lot of people who bought into the hype and are going to flood the market with used guns. This is going to cause prices of used guns to drop. The new manufacturers are also going to bring competition and increase supply. This is going to cause prices to come down in the future. If you're looking at buying a gun or ammo now I would say hold on it might be a good idea to wait.<br><br>I think that's about it. I wanted to give everyone a first hand view of the industry. I think it's important to remember that companies do business and if they can't keep it profitable they will stop. I think that is the biggest thing that is killing the industry is the cost of doing business is currently higher than what you can buy finished products for. I don't think that is sustainable for companies. Anyways thanks for reading and I hope this helps everyone. I think the best thing to do is wait and let the market correct itself.<br><br>EDIT: I am going to stop monitoring this post as I have responded to all the questions I can answer. I also have gotten off work for the day. Thank you all for the kind words!<br><br>EDIT2: A lot of people are asking my opinion on the market in various other industries. I have no knowledge of other markets outside of the gun industry. I don't think I would be the best source of information for other markets. I do think that the high cost of living is also a major issue outside of the gun industry. I also think there is a massive labor shortage outside of the gun industry. I have only really worked manufacturing for the last 10 years and have been in the gun industry for 2 years.