Thread: Primer price?
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Old 02-02-2023, 11:25 AM
marky_mark marky_mark is offline
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Quote:
Originally Posted by elkhunter11 View Post
The current shortage is a lot different than the previous shortages, the companies are actually making more product than ever, but the military and law enforcement contracts put a huge demand on production. Combine this with a lack of production , from the covid period, and a couple of years of back orders, and there just isn't enough product to go around. The companies will not be spending huge capital to increase production, because once the military and law enforcement contracts are filled, the back orders will all be filled, and there will no longer be a shortage. Then the manufacturers will resume normal production, and prices will stabilize, although the new normal prices won't be what they were a couple of years ago. Our problem, is that it may take another year or two for this to happen, to where production actually exceeds demand.
100%
It would be very poor business to invest tons of money into increasing production. You never know when the demand would slow down. It makes much more sense to run your equipment 24/7 so that what you have is at max capacity. I’m sure it would take a couple of years before you set up another facility that was able to add to production anyways
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