Originally Posted by Trixie
It's one thing to add shifts and increase utilization, another thing entirely to invest capital for expansion. I imagine the Gun Mfgs are doing the former, not the latter right now.
That said, organic expansion has its pains as well. New machinsts and operators may not produce things exactly the same way as the current crew, which can be a QC issue until the bugs are ironed out.
The company I work for ramped up their production lines a while back, even putting on second shifts in some of their plants to meet demand. Now demand is down again and some orders have been cancelled, so a large backlog has almost evaporated.
The result? Layoffs in production plants. Possibly that may expand to the office and other non-production staff as well, including me. Boom and bust. It is a big risk to ramp up production. Much better to be struggling to meet demand than to to have to scale back because demand suddenly evaporates.
That said, I am not going to be doing any panic buying. I will be selling a few rifles while the prices are high, but I will still be staying below what many are asking. Later, when the panic subsides I will get some different rifles, but right now I have other uses for that money - like making mortgage payments if I get laid off.