20mm wrote:This is ********, pure and simple. Manufacturing a .22 long round is fairly simplistic compared to lets say a Tesla Model 3 electric car. When exactly does it make sense for a manufacturer to invest in increasing rim fire production capacity in your wonderful view of things? 50 years from now?
If Tesla is anything like the other automakers, they don't "manufacture" nearly anything on their vehicles. They outsource to suppliers and are, basically, assemblers. Ammunition plants produce nearly EVERYTHING that goes into their ammunition. There are internal and external logistics that have to be managed when you're talking about increasing capacity. Also, remember that rimfire isn't the only ammunition vying for capital in plants. Pistol, shotshell, and rifle are all trying to get money to buy equipment or make improvements.
20mm wrote:How big of an investment would they have to make in MODERN machinery to recoup their losses and make a profit in today's market? If you ask me, it's an oligopolists market that will never change until more competitors enter it, and less ATK's (Vista Outdoor) exist in the world."Vista Outdoor was the top seller of ammunition in the United States from 2008 to 2013. As of March 2015, it controlled about 40% of the ammunition market."
Just a conservative guess but I would imagine that you're in the neighborhood of millions of dollars to retrofit and modernize those load lines. You're only getting farther behind once you take one old line down while the new one is getting set up. Most companies require an equipment payoff of a year (maybe a year and a half on the outside). In that year, you're only paying off equipment and not making money. Part of the justification for the new equipment is that it's a sizable improvement in capacity over current. JJ's point was not the equipment is inefficient, it's that nobody makes an off the shelf solution. Everything has to be re-engineered, adding time.
But if it's so easy, feel free to open up an ammo plant and become competition to the Vista's and Freedom Groups out there. You can show them how it's done...