Update from Hodgdon Powder Company - Jan 12th

An update as of this afternoon.

POWDER UPDATE 2023

QUICK SUMMARY: In 2023, we anticipate powder availability to return to Pre-COVID conditions. Our powders will be readily available on dealer shelves and for purchase on our website. While demand has remained at a record high for now nearly 3 years, we look forward to closing the gap between demand and supply and thank you for your patience.

WILL ALL YOUR POWDERS BE READILY AVAILABLE?
While there are some exceptions such as our Enduron and Trail Boss powders, the majority of our powders will be easily located via various retailers.

WHY CAN'T HODGDON MAKE MORE POWDER?
We wish it were that simple - what we have experienced since 2020 is a demand issue and not a supply issue. The reality is we are doing everything possible to maximize shipments to our customers, including running overtime in production, packaging and shipping areas and working with our shipping partners to add new inbound and outbound shipping options. During the past 3 years, we broke record after record for powder shipments. We learned what worked best in terms of distribution and will continue to maximize all efforts to maintain this high level of shipping.

WILL HODGDON BUILD ANOTHER PLANT TO KEEP UP WITH FUTURE SPIKES IN DEMAND?
A new powder production facility would require an investment far beyond our finances and no financial institution would finance this type of building project. While the past 3 years of demand appears to be different from demand spikes in the last 20 years, the "normal" powder demand for the U.S. would not support an additional manufacturing plant.

WHY IS HODGDON SELLING POWDER TO AMMUNITION MANUFACTURERS?
Our focus is the handloading enthusiast. Yes, we sell some powder to strategic, mostly smaller ammunition manufacturers, but that is a small part of our business. The heart of our business is smokeless powder for the handloading enthusiast. Every day, we receive calls from potential OEM customers who are looking for powder to load in ammunition. Every day, we politely decline this new business so we can focus on our long-term customers and sales channels and most importantly, our costumers who have supported us for decades.
What a load of Propaganda Curry Coated Horse Balls!
 
We ll find out how the free market system does or doesn't work soon. If folks keep buying and stocking years and years worth of components on their shelves prices won t correct….. if demand moderates then over the short term we ll get a better idea of what future pricing should look like assuming raw materials stay stable.

Let's hope for some relief.
 
Seems like capturing venture capital from or going JV with OEMs to build a new facility might solve several industry wide problems, add production capacity, and justify the capital investment of a new facility.
 
Seems like capturing venture capital from or going JV with OEMs to build a new facility might solve several industry wide problems, add production capacity, and justify the capital investment of a new facility.
A poor, and high risk investment. The regulatory issues connected to the EPA/OSHA/UL involved in the construction of a new facility means multiple years project in all likelihood.Remember that our current administration is of a similar mindset of the Obama administration - who infamously created the regulations that closed all of the last remaining lead smelters in the USA. SO ALL lead, lead bullets, etc - now come from other countries. By the time a powder facility could wade thru the neck deep bovine feces of government colo-rectal examination , demand will return to sanity - leaving the investors with a wind-suck hole in their wallets. And - for the record..."venture capital" RUINED companies like Remington and others by gobble up and merge tactics - then the board ( big "investment capital" backed stockholders...) drives for profits...screw quality....kind of thinking. NO, we need to all take a deep breath, recognize that WE have created a short term hyper-demand....Calm down, relax and stop buying. If enough folks just sit and wait a little while - maybe 4-6 months - we will see more powder and somewhat lower prices. Never as low as pre-pandemic...but lower than now.
 
Like to weigh in here.
Lots of panic buying went on when Obummer got elected. Then more when re -elected. Then even more when it looked like that crazy b#:!%€ from Arkansas might win. Then DT got elected, and things calmed down a bit. More shooters got involved in reloading, during all this. And DT seemed to smooth all lot of people's feathers, things calmed down, and shelves were magically restocked, although at somewhat higher prices. Personally, the prices are what kept ME from stocking up. Anyway, then the Great Pandemic hit. Yup...more panic buying. So, in a nut shell, I think we did it to ourselves.
Wish to heck I had bought more back when EVERYBODY had an inventory. Now I gotta watch the net like a hawk, and pounce when I can.
 
An update as of this afternoon.

POWDER UPDATE 2023

QUICK SUMMARY: In 2023, we anticipate powder availability to return to Pre-COVID conditions. Our powders will be readily available on dealer shelves and for purchase on our website. While demand has remained at a record high for now nearly 3 years, we look forward to closing the gap between demand and supply and thank you for your patience.

WILL ALL YOUR POWDERS BE READILY AVAILABLE?
While there are some exceptions such as our Enduron and Trail Boss powders, the majority of our powders will be easily located via various retailers.

WHY CAN'T HODGDON MAKE MORE POWDER?
We wish it were that simple - what we have experienced since 2020 is a demand issue and not a supply issue. The reality is we are doing everything possible to maximize shipments to our customers, including running overtime in production, packaging and shipping areas and working with our shipping partners to add new inbound and outbound shipping options. During the past 3 years, we broke record after record for powder shipments. We learned what worked best in terms of distribution and will continue to maximize all efforts to maintain this high level of shipping.

WILL HODGDON BUILD ANOTHER PLANT TO KEEP UP WITH FUTURE SPIKES IN DEMAND?
A new powder production facility would require an investment far beyond our finances and no financial institution would finance this type of building project. While the past 3 years of demand appears to be different from demand spikes in the last 20 years, the "normal" powder demand for the U.S. would not support an additional manufacturing plant.

WHY IS HODGDON SELLING POWDER TO AMMUNITION MANUFACTURERS?
Our focus is the handloading enthusiast. Yes, we sell some powder to strategic, mostly smaller ammunition manufacturers, but that is a small part of our business. The heart of our business is smokeless powder for the handloading enthusiast. Every day, we receive calls from potential OEM customers who are looking for powder to load in ammunition. Every day, we politely decline this new business so we can focus on our long-term customers and sales channels and most importantly, our costumers who have supported us for decades.
With powder in such demand the prices shouldn't be record highs. $50 a pound is gouging. I won't pay it. Same for primers.
 
With powder in such demand the prices shouldn't be record highs. $50 a pound is gouging. I won't pay it. Same for primers.

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