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The Range
Firearms Chat
Hornady Suspends Production
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<blockquote data-quote="okietom" data-source="post: 2238845" data-attributes="member: 18710"><p>I said this a while back that they would be making more of their higher profit margin products. Not just Hornady but all of the ammo makers. I may mean that we have to use different components but we might find something we like better. It can be fun to play around with new loads. I can read between the lines and I see that Hornady is saying that other companies have already done this. They are bragging that they are simply telling us what they have done.</p><p></p><p>I am sure that "high demand" means higher profit and that this will benefit Hornady more than it will benefit me but it is good to see gun industry companies make money. With new production and new machines and fewer changeovers their overhead will go down and they will make more money even if they don't raise prices which they will.</p><p></p><p>It may mean that we will start seeing more high demand products on the shelf sooner. If it is something that others have not done yet besides me being wrong about that it may get others to focus on high demand ammo and components too. </p><p></p><p>Another factor in doing things like this is to gain market share. When this boom is past a bigger market share will put them in a better position to keep the higher production levels. That is a risk of increasing production when you don't know how long the levels will last. You still have to pay for the new floor space and machines and try to keep new workers. Higher market share will help with that.</p><p></p><p>If they can keep more lines dedicated to one product it will be a good deal too.</p></blockquote><p></p>
[QUOTE="okietom, post: 2238845, member: 18710"] I said this a while back that they would be making more of their higher profit margin products. Not just Hornady but all of the ammo makers. I may mean that we have to use different components but we might find something we like better. It can be fun to play around with new loads. I can read between the lines and I see that Hornady is saying that other companies have already done this. They are bragging that they are simply telling us what they have done. I am sure that "high demand" means higher profit and that this will benefit Hornady more than it will benefit me but it is good to see gun industry companies make money. With new production and new machines and fewer changeovers their overhead will go down and they will make more money even if they don't raise prices which they will. It may mean that we will start seeing more high demand products on the shelf sooner. If it is something that others have not done yet besides me being wrong about that it may get others to focus on high demand ammo and components too. Another factor in doing things like this is to gain market share. When this boom is past a bigger market share will put them in a better position to keep the higher production levels. That is a risk of increasing production when you don't know how long the levels will last. You still have to pay for the new floor space and machines and try to keep new workers. Higher market share will help with that. If they can keep more lines dedicated to one product it will be a good deal too. [/QUOTE]
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