I ran a printing equipment manufacturing company for 25 years, surges in demand are hard to respond to.Not a red flag to me, production capacity is a secret in lots of industries. From pharmaceutical to firearms, there's no reason to release those numbers for competitors (or foreign governments) to see.
What he did say is what many have suspected all along, primers are used for internal production first and reloaders second. That makes perfect sense, the margins on primers can't be very high compared to margins on ammo right now.
Between the increase in gun sales, the increase in the number of reloaders (preppers) today, and the pandemic, I can only imagine the productions problems they are facing.
Ask yourself, if you were CEO of a company like Federal, would you entertain spending billions to build a new plant for a demand that will prob be caught up to in 6-12 months. I certainly wouldn't.
We need to all give the manufactures some slack, they are responding as best the can.