A message from Hodgdon Powder

[Dgod]

WHY CAN'T HODGDON SHIP MORE POWDER? The current powder situation is due to a record demand for all reloading components and NOT a reduction in the supply of powder. With long- time handloaders looking to stock up and new gun owners looking for ammunition, there is an unprecedented demand for powder and other reloading components. We shipped a record amount of powder in 2020 and will ship even more in 2021. We are doing everything in our power to get the most powder into consumer hands this year. We are running overtime in our facilities, have hired additional staff and have leveraged relationships with shipping partners to add new shipping options.

WHY CAN'T HODGDON BUILD ANOTHER POWDER PLANT? The "normal" powder demand for the U.S. would not support an additional plant. Hodgdon, like most companies, cannot afford to build a new production facility then have it sit idle until demand spikes.

WHY IS HODGDON SELLING POWDER TO AMMUNITION MANUFACTURERS? The heart of our business is smokeless powder for the handloading enthusiast. Yes, we sell some powder to ammo manufacturers, but that is a small part of our business. Every day, we receive calls from potential OEM customers looking for powder to load in ammunition. We politely decline so we can focus on our long-term, handloading customers.

WHY IS HODGDON SELLING POWDER TO THE GOVERNMENT? Hodgdon does not sell powder directly to the government. We sell some powder to manufacturers making ammunition for our military, but that is a small part of our business.

WHY IS HODGDON SELLING POWDER ON AUCTION SITES? We don't. Period. We recently began selling a limited amount of powder on our own websites but prioritize our shipments to our traditional sales channels to maximize powder availability at sporting goods and gun shops.

WHY IS THE PRICE OF POWDER SO HIGH ON THE INTERNET? We do not set sale prices or MSRPs for the price of our powders at retail, nor do we 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.

This (I hope), provides some clarity to Hodgdon users.

Dan

 

[gpo1956]

Thank you. Really pretty simple. QUIT HOARDING!!!

 

[Mrvmax]

Thank you. Really pretty simple. QUIT HOARDING!!!

And send me some Retumbo!

 

[FEENIX]

IBTL!

 

[VALKYRIETP]

The above message from Hodgdon was from Feb 26 2021 not an update.
T.P.

 

[nakneker]

Great post!

 

[nksmfamjp]

I hate to say it, but I think Hodgdon is wrong in the short term and maybe wrong in a longer term. This is not a shortage situation. Unless makers can prove this hoarding thing, I believe we have truly created a situ where people want to use more and will continue until demand is satisfied.

I think we are undersupplied in powder by 25% and in primers by 50%.….maybe more. The makers can continue to blame unprecedented demand or they can fill the orders.

I'm not trying to stock up, but I would love to see each powder in stock for more than 8 hrs a month and primers the same. If they allow this to go on for much longer, they risk a mass bailout from reloading and shooting.

They need to quite talking about overtime and start talk8ng about capital investment.

 

[ontarget7]

It's a cycle and will continue through the rest of numb nuts term in office. However, the mentality in society currently, this could go on for years to come do to the uncertainty of our countries future and the fear driven into society.

The crash in 08 ish was hard for many. With that experience many businesses are very cautious of further expansions that increase overhead to a level that would be a disaster for the next crash.

Then throw in all the lazy people that want handouts these days and don't want to pay their dues in society to earn their keep, working up the ladder of success. This mentality, has every business looking for help and we now have a huge lack of workforce in society.

If I was Hodgdon... why on earth would I build another production facility In these current times ?
IMO, although I'd want more powder available, I feel they are going about it the right way.

 

[Shane Lindsey]

I never, ever had more than four pounds of any given powder on hand. I don't have that many to feed. Since this last year, I have bought three 8 pounders just to ensure I could continue to feed mine. Have to buy it when you find it or else you risk not being able to shoot.

Am I a hoarder, no I am a shooter. This whole thing has taught me when building my next rifle, I will find the components to shoot that barrel out or at least close so that I don't run into this again.

 

[Mike D Texas]

It's a cycle and will continue through the rest of numb nuts term in office. However, the mentality in society currently, this could go on for years to come do to the uncertainty of our countries future and the fear driven into society.

The crash in 08 ish was hard for many. With that experience many businesses are very cautious of further expansions that increase overhead to a level that would be a disaster for the next crash.

Then throw in all the lazy people that want handouts these days and don't want to pay their dues in society to earn their keep, working up the ladder of success. This mentality, has every business looking for help and we now have a huge lack of workforce in society.

If I was Hodgdon... why on earth would I build another production facility In these current times ?
IMO, although I'd want more powder available, I feel they are going about it the right way.

I agree. I'm not convinced something else isn't a play here. So you are telling me that every powder, primer, bullet manufacturer is operating at full capacity some even 24 hours a day and they can't support the market?

I ain't buying that.

 

[nksmfamjp]

I ain't buying that.

Well, like all manufacturers, I would guess Covid and Covid tracing is hurting their submaterial supply and their own ability to run the line. You get a positive worker and you can lose 3-15 with the tracing until they are all tested, follow the protocol, etc. Depending on staff, union rules, submaterial supply, etc…you could lose 2 weeks production.

Once they mandate the vaccine and/or daily testing, that should improve this a lot. I know people don't want to hear that, but now you have chaos with the tracing and verbal, I was in contact stuff.

 

[Mattbowen61990]

I know this is an old update, but I'm fairly certain that a company in the position of hodgdon could completely fund an expansion on election years alone. It doesn't matter if it sets idle for 3 years, if you make enough money in 1/4 years to make a decent profit over the 4 years, it's worth it. There is a pile of money out there to be made on election years and not a single manufacturer is capitalizing on it. If there was an 18 wheeler load of primers at my LGS they could sell them at $10 over normal price and the trailer would be empty in a week.

 

[ontarget7]

I agree. I'm not convinced something else isn't a play here. So you are telling me that every powder, primer, bullet manufacturer is operating at full capacity some even 24 hours a day and they can't support the market?

I ain't buying that.

Not sure how you got that out of what I said. With the shortage of employees all over the place, I can assure you they are not operating at full capacity.
I know quite a few people directly in the industry and they have never, ever, seen this kind of demand. Far surpassing Obama days. Sales are through the roof and due to the lack of workforce it is compounding the problem.
The opposite is taking place, you are seeing some businesses forced to go to modified hours, some shutting down altogether cause they can't find the help to sustain current demand.

 

[isaaccarlson]

None of what I am hearing is adding up, and that's:
Record gun sales
Record ammo sales
Active/Imminent tyranny
Military contracts are taking 100% of winchester's capacity (seems very strange)

This means permanent increased demand. Now add in panic buying and stockpiling and target shooting for new gun owners and you have multiplied the demand several if not many times. And yet there is ZERO increase in manufacturing capacity. Companies are tooling up like crazy to make more guns, but there is no increase in ammunition production.

I think the number of guns in the US has doubled in the last 10 years? (That's a ballpark statement as an example) But no increase in ammo??? Something stinks here. What makes them think they will ever catch up? Or have they been running at 20% capacity for years with the reserve capacity already there and they just try to play catch up? There are so many questions I want to ask, but nobody will answer them with any kind of answer that inspires confidence in what they are saying. It's easy to cast doubt and point fingers, but right now it's hard to to anything else because of what we are shown/told.

Crazy times and crazy people, right?