A little news on a coming AR glut....

[CJS3]

I just hope the market doesn't sink and people end up out of work and companies go under.
I'm waiting on an order from Model 1 sales.  I called this week and they are still working on shipping orders from January.  They are now getting out about 2 days worth of orders for every day they work.  When I called in April because I had to give then a differant CC number they were still workink on December's orders.

I know that barrels are still a holdup for some companies.  For what ever reason 20" barrels for some companies are a problem.  I wonder if that may be to everyone concentrating on M-4 style and carbine barrels.

Unfortunately the market will sink and people are going to be laid off. The companies that survive will be the ones that are able to come up with the "new" add on gadget that everyone has to have. Companies like Ruger that assemble their AR's from aftermarket parts won't be as affected as dedicated manufacturers.


I've always been surprised that with the slow market saturation of the AR platform, we don't see more emphasis on the selling of upper assemblies for different calibers.

[ericire12]

Food for thought:

At the IDPA shoot today, I spoke to a manager of a local gun shop about the AR market and what he told me about the state of the market was enlightening.

He told me his store is sitting on at least 100 (new) AR rifles and another, larger store in our area, is sitting on even more. He told me that in the next few weeks or months I should start seeing significant discounts on good quality ARs. He likened the situation to the housing bubble. He told me if I was holding off on purchasing any new ARs that the near future holds good promise.


If his store is typical, and I think it is typical of the tactical-focused shop, I believe this same situation may be playing out all over the country. I think I would keep a sharp eye out for deals in the coming weeks.

-FA

Told ya so!

[Texas_Bryan]

How many companies hired on extra hands to meet demand?  That should give an idea if layoffs or company failures are in the future.  But over all I think this is great, the market is flooded with inventory, factories are cranking at super high rates, and when prices start to come down hopefully more folks will get into the tactical rifle game.  The more AR's we put into different hands, the harder it'll be to legislate them, maybe.  On the same note the speculators that hoarded weapons and ammo won't like the news if they haven't yet cashed in on their investment.  Companies may just have to sale more product at a lower price to meet their budgets.  And if anything, at least people some folks have woken up and started to see guns for what they are, not some antique hunting implement, but a tool to be used because you have a right to self protection and defense.  Ten or fifteen years ago, would most of you thought that the market would be this tactical and focused on self defense?  Entire companies have changed their operation to meet a more aware public's demands.

[tombogan03884]

Bryan, I think the manufacturers tried to limit the hiring the same way they and ammo manufacturers have not engaged in plant expansion which is what lead to the huge back order lists. They tried to make up as much as possible by working overtime. I heard that some companies had added week end shifts, if those are eliminated the lay offs will only effect a few hundred relatively new and inexperienced workers, as opposed to idling thousands of skilled workers.

[Texas_Bryan]

Bryan, I think the manufacturers tried to limit the hiring the same way they and ammo manufacturers have not engaged in plant expansion which is what lead to the huge back order lists. They tried to make up as much as possible by working overtime. I heard that some companies had added week end shifts, if those are eliminated the lay offs will only effect a few hundred relatively new and inexperienced workers, as opposed to idling thousands of skilled workers.

Then those manufactures did right, hard to imagine that companies can do that now a days.  Rather have the back order list than have a major company reorganization to meet a relatively short term surge in consumer interest.  Hopefully it'll be less of a lay off than letting temp workers go on their way, I expect they've thought this out from the get go.

[Sponsor]

[fightingquaker13]

I really think Tom's right here (did I just type that?). The same paranoia  that drove the buying had to be telling the makers that spending a lot of long term capital to produce something that could be banned tommorow was unwise.
FQ13

[tombogan03884]

Then those manufactures did right, hard to imagine that companies can do that now a days.  Rather have the back order list than have a major company reorganization to meet a relatively short term surge in consumer interest.  Hopefully it'll be less of a lay off than letting temp workers go on their way, I expect they've thought this out from the get go.

That's what I'm figuring, except for companies that moved, like Para, or introduced new lines of product like FNH, I did not here about any of the building expansion that would have been needed to add new machinery. I HAVE heard that some, Like Black Hills Ammo are using the increased profits to replace older machinery, while they have the chance.

[Ping]

I am with you Rastus. I would love to own a AR-10. Congrat's FQ on finally getting a AR. DPMS rocks in my opinion.

[tombogan03884]

I really think Tom's right here (did I just type that?). The same paranoia  that drove the buying had to be telling the makers that spending a lot of long term capital to produce something that could be banned tommorow was unwise.
FQ13

                         

[tombogan03884]

I am with you Rastus. I would love to own a AR-10. Congrat's FQ on finally getting a AR. DPMS rocks in my opinion.

The one MB mentioned in his Podcast, CMMG. Gas Piston system that uses G-3 mags at $5 -$10 per instead of M-1a or proprietary mags at $50+ each