Hodgdon Powder Update Direct From the Horse

[Dean2]

Got this in an email form Hodgdon, thought some others might like to see it.

POWDER UPDATE
We have and will always appreciate feedback from our community, and we hear you and your suggestions for us to make more powder. With this post, our goal is to clear up several items and dispel misinformation.
WHY CAN’T HODGDON MAKE MORE POWDER?
We wish it were that simple - what we have experienced since 2020 is a demand issue and not a supply issue. The reality is we are doing everything possible to maximize shipments to our customers, including running overtime in production, packaging and shipping areas and working with our shipping partners to add new inbound and outbound shipping options. We are absolutely shipping more powder to our customers.
The issue is this powder is quickly purchased when our retailers place it on store shelves or on their websites. Hodgdon will continue to ship powder, but the inventory situation will likely continue until demand begins to normalize.
WHY CAN’T HODGDON BUILD ANOTHER POWDER PLANT?
A new powder production facility would require an investment far beyond our finances and no financial institution would finance this type of building project. While the current demand appears to be different from demand spikes in the last 20 years, the “normal” powder demand for the U.S. would not support an additional manufacturing plant. Most companies cannot afford to build a new production facility and then have it sit idle until demand spikes. An additional complicating factor would be locating this plant – there are only a handful of these facilities in North America and none have been built in the last 30 years.
WHY CAN’T HODGDON SHIP MORE POWDER?
As we’ve shared in many responses to our social audience, this is a demand issue and not a supply issue. Demand for ALL ammunition and reloading components is at historic levels. The fact is we continue to ship more powder to our customers, but this powder is quickly purchased by end consumers as soon as it is offered for sale.
WHY IS HODGDON SELLING POWDER TO AMMUNITION MANUFACTURERS?
Our focus is the handloading enthusiast. Yes, we sell some powder to strategic, mostly smaller ammunition manufacturers, but that is a small part of our business. The heart of our business is smokeless powder for the handloading enthusiast. Every day, we receive calls from potential OEM customers who are looking for powder to load in ammunition. Every day, we politely decline this new business so we can focus on our long-term customers and sales channels and most importantly, our costumers who have supported us for decades.
WHY IS HODGDON SELLING POWDER ON AUCTION SITES?
Hodgdon does not sell powder on any online auction sites. We sell through traditional sales channels to wholesalers, retailers and dealer customers. While we recently began selling direct-to-consumer on our own websites, we prioritize our shipments to our traditional sales channels to maximize powder availability at sporting goods and gun shops everywhere.
WHY IS THE PRICE OF POWDER SO HIGH ON THE INTERNET?
Hodgdon has increased prices over the last several years to partially offset our increased labor, raw materials and transportation costs, but we are not and will not gouge our consumer end users who are looking for powder to load for their own use. We sell through traditional sales channels to wholesalers, retailers and dealer customers. We do not encourage any of our retailers or dealers to sell on auction sites, but we cannot control what happens after we sell to our traditional sales channels. On our own websites, we have placed product limits on purchases so that we can maximize the number of customers who can buy our powder.
CLOSING NOTES:
Hodgdon is still a small business, with fewer than a hundred employees between three facilities in Kansas and Montana. We are not driven by profit-margin spreadsheets, but rather tradition and a genuine love for our jobs and what is made possible because of the work we do.
Serving you is our privilege and a blessing. In the current political climate, demand for our product has never been higher. Coupled with COVID restrictions, we have what some might refer to as “the perfect storm.” Regardless, we remain steadfast and resolute in our purpose to put powder in your hands, our shooting community.

[colt45]

Thanks for that
Nice to see the powder makers perspective

[CNP]

Thanks Dean. I am maybe a little guilty of having a few too many grains of powder in my lockup. Probably enough to take me a few or more years into the future. But I'm certainly not a hoarder or huckster selling powder on the interweb at an inflated price.

[catnthehat]

I think a lot of the questions in that email come from the internet , people assuming stuff and posting like it is fact, so the coompany needed to set the record straight.
Hodgdon has always been a top shelf outfit, their ability to manufacture powder however is a different kettle of fish.
One does not simply " build another powder factory" or "increase production", as I have seen on the internet forums.
Cat

[Dean2]

Originally Posted by catnthehat

I think a lot of the questions in that email come from the internet , people assuming stuff and posting like it is fact, so the coompany needed to set the record straight.
Hodgdon has always been a top shelf outfit, their ability to manufacture powder however is a different kettle of fish.
One does not simply " build another powder factory" or "increase production", as I have seen on the internet forums.
Cat

I agree. All the Foil Hat crowd does is post endlessly about crap they make up. Really tough to get the right message out any more. AO is getting just as bad, I studiously avoid a number of the threads in the general section just because you can never reason with people who never use reason.

[gunluvr]

Like they say- it's a demand issue. That demand would quickly diminish if gun-hating liberals would back off on the fearful rhetoric. Want less guns? Live and let live; as in: be tolerant or broadminded, accept, ignore, allow and tolerate. Obama was the US's best gun salesman, now its Biden.

[elkhunter11]

And the really unfortunate part, is that Canada is a very small part of the market, so very little of what is produced, actually makes it to Canada. And it's not just Hodgdon products, it's all powder manufacturers, and all of the ammunition manufacturers. I have seen several shortages of certain components over the years, but this is turning out to be by far the worst.

[DLab]

Hodgdon doesn't make powder ,never has, not one grain. ADI in Australia makes pretty much all the Extreme line and some IMR, like 8208xbr and some pistol powders. The problem hasn't been entirely due to new shooters or hoarding, part of the problem has been due to Covid and the Aus. plants being under restrictions and that created issues for employee's being able to get to the plant, also supply issues with the country in full lock down. Shipping issues, increased costs and powder not being an essential commodity to start with, the fact it's dangerous goods has added to situation we're in as of late. Shippers have the luxury of cherry picking shipments, DG loads aren't at the top of the list.

Border closures here has added to the supply/shipping issues in the American plants. Alliant powders from Bofors in Europe, General Dynamics in Quebec and Florida ,same issues.
When shipments do come in the back orders eat that up instantly with still more waiting to be filled.
Anyway ,you get the idea and there seems to be no end in sight for the immediate future.
The Aussies have lifted the lock downs for the country so production/ supply chains may get back to normal as the year goes on, we'll see.

Personally, I have been switching my current and new cartridges over to VV powders to try to work around this issue and I won't be switching back.

[CNP]

Originally Posted by DLab

Hodgdon doesn't make powder ,never has, not one grain. ADI in Australia makes pretty much all the Extreme line and some IMR, like 8208xbr and some pistol powders. The problem hasn't been entirely due to new shooters or hoarding, part of the problem has been due to Covid and the Aus. plants being under restrictions and that created issues for employee's being able to get to the plant, also supply issues with the country in full lock down. Shipping issues, increased costs and powder not being an essential commodity to start with, the fact it's dangerous goods has added to situation we're in as of late. Shippers have the luxury of cherry picking shipments, DG loads aren't at the top of the list.

Border closures here has added to the supply/shipping issues in the American plants. Alliant powders from Bofors in Europe, General Dynamics in Quebec and Florida ,same issues.
When shipments do come in the back orders eat that up instantly with still more waiting to be filled.
Anyway ,you get the idea and there seems to be no end in sight for the immediate future.
The Aussies have lifted the lock downs for the country so production/ supply chains may get back to normal as the year goes on, we'll see.

Personally, I have been switching my current and new cartridges over to VV powders to try to work around this issue and I won't be switching back.

Incorrect.

[Dean2]

This is some of what is on the Hodgdon site. Would appear to me that they do in fact make powder. They started out buying surplus powder and packaging it, and I think they still buy and package but also produce some.

Hodgdon Powder Company offices are located at 6430 Vista Drive in Shawnee, Kansas. The Powder magazine, packaging and manufacturing facilities are maintained about 140 miles southwest of the main office, in Herington, Kansas. Additional magazine space, located on a closed military base, is also leased from the City of Topeka, Kansas.

To better serve our reloading customers Hodgdon Powder Company continues to grow. Hodgdon purchased IMR® Powder Company in October 2003. IMR legendary powders have been the mainstay of numerous handloaders for almost 100 years. IMR powders continue to be manufactured in the same plant and with the same exacting performance criteria and quality assurance standards that shooters have come to expect.

In March 2006, Hodgdon Powder Company and Winchester® Ammunition announced that Winchester® branded reloading powders would be licensed to Hodgdon. Winchester smokeless propellants, the choice of loading professionals, are available to the handloader to duplicate the factory performance of loads from handgun to rifle and shotgun.

In January 2009 Hodgdon acquired an American icon GOEX Powder, Inc. GOEX has a rich history dating back to 1802 where E.I. Du Pont de Nemours broke ground on his original black powder plant along the Brandywine River in Delaware. Goex Powder, Inc. manufactures black powder used for sporting applications such as civil war re-enactments and flintlock firearms, and is a vital component for industrial and military applications. Located in Minden, Louisiana, GOEX Powder, Inc. is the only U.S. manufacturer of black powder. Hodgdon then sold the GOEX plant and brand in 2021.

In October of 2020, Hodgdon purchased the Accurate Powder and Ramshot smokeless brands from Western Powders, along with the Blackhorn 209 black powder substitute brand.

The company continues to drive innovation in smokeless powder through the Hodgdon, Ramshot, Accurate Powder, IMR and Winchester brands. On the black powder substitute product side, brands Blackhorn209, Hodgdon Pyrodex, Hodgdon Triple Seven and IMR White Hots continue our history of bringing technologically advanced and unique propellants to the marketplace. Today, as over the last seventy-five years, the success of the Hodgdon Companies depends upon the goodwill and satisfaction of our loyal customers. Thank you for the trust you continue to give our products; we hope our products are a part of the reason you enjoy your chosen sport of hunting or shooting.

[DLab]

Incorrect, are you certain? Label states made in USA(General Dynamics-Florida) ,packaged in USA, made in Canada(General Dynamics-Quebec) ,packaged in USA, made in Australia (ADI- New South Wales).
Hodgdon buys from them and packages into smaller units for retail.

Maybe google the Hodgdon family history on how they got started in the industry, it's interesting.
I may stand corrected, but I think they sold Goex, they may still have the Western line.
But they don't make the powders shown in the pics.
edit:
I was not aware they bought General Dynamics.

[saskbooknut]

All the ball type powders sold by Hodgdon are made in St. Marks, Florida by General Dynamics.
Extruded and flake powders are made in Canada at the General Dynamics, Valleyfield, Quebec plant.
Some of the powders, formerly made by ADI in Australia, are made in Canada now.
Many, if not all of the Accurate and Ramshot powders, are made in Belgium.
The Goex plant was sold to Estes Energetics, an offshoot of the Estes Model Rocket business.

[Grizzly Adams1]

Originally Posted by elkhunter11

And the really unfortunate part, is that Canada is a very small part of the market, so very little of what is produced, actually makes it to Canada. And it's not just Hodgdon products, it's all powder manufacturers, and all of the ammunition manufacturers. I have seen several shortages of certain components over the years, but this is turning out to be by far the worst.

At one time Hodgon powders were produced in Quebec, exported to the US and then re imported for our use. Bit of a head shaker for me.

Grizz

[saskbooknut]

They still are made in Quebec, and distributed by Hodgdon, shipped back to Canada.
You can buy some of the same powder, marketed as Dominion powders, but not cannister grade.
Dominion powders are ok for rifle reloading, where you can work up a load.
The Dominion powder like 700X are not suitable for shotgun loading, unless you are the rare guy with pressure testing equipment.,