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.
I would consider expanding, they run a risk that the dealers generating the demand may not be around to purchase by the time they get caught up. IMO the profit from 1B in gross sales is nothing to sneeze at. A new factory may not need to be built but the currently unneeded warehouse space could house a few more presses. Otherwise the wholesalers and big internet retailers will have to build the warehouses to handle the inventory for retail sales. It could create one heck of a distribution bottleneck if the retailers cant weather the storm. One can only sell so many holsters.