NRA News Cam & Co | Mark Keefe on What’s Going on With .22 Rimfire, October 3, 2014

Published on October 3, 2014
Duration: 10:12

Mark Keefe, Editor-in-Chief of American Rifleman, discusses the persistent shortage of .22 rimfire ammunition. He explains that unlike other calibers, .22 rimfire production is complex, capital-intensive, and limited to a few global plants. Increased demand, driven by a cultural shift towards shooting more .22s with modern firearms like tactical variants and Ruger 10/22s, coupled with hoarding and speculation, exacerbates the scarcity. Manufacturers are hesitant to invest in new capacity due to low profit margins on promotional loads and the long-term nature of such investments.

Quick Summary

The shortage of .22 rimfire ammunition stems from its complex, capital-intensive manufacturing process limited to a few global plants. Increased demand, driven by modern firearms and a shift in shooting culture, combined with consumer hoarding and speculation, creates significant scarcity. Manufacturers are reluctant to expand production due to low profit margins on standard loads.

Chapters

  1. 00:00Introduction: .22 Ammo Shortage Discussion
  2. 00:43General Rush on Firearms and Ammunition
  3. 00:519mm Ammunition Availability vs. .22 Rimfire
  4. 01:10Complexity of .22 Rimfire Manufacturing
  5. 01:30Capital-Intensive Rimfire Cartridge Production
  6. 01:32Shift in Shooting Culture: Tactical .22s
  7. 01:57Increased Demand from Modern .22 Firearms
  8. 02:27Consumer Behavior: Hoarding and Speculation
  9. 03:01Hesitation to Expand .22 Rimfire Production
  10. 03:13Difficulty and Profitability of Rimfire Production
  11. 03:29Market Conditions: High Demand and Inflation
  12. 03:53Supply Chain Dynamics and Rapid Evaporation of Stock
  13. 04:02Estimating .22 Ammunition Production Numbers
  14. 04:14Investment Decisions for New Manufacturing Lines
  15. 04:43Low Profit Margins on Rimfire Loads
  16. 04:57Long-Term Investment Decisions for Manufacturers
  17. 05:09Current Retail Pricing vs. Speculative Pricing
  18. 05:28Manufacturer Pricing and Retailer Contracts
  19. 05:50Local Retailers with Consistent Ammunition Stock
  20. 06:04Conclusion and Thanks

Frequently Asked Questions

Why is .22 rimfire ammunition so hard to find?

.22 rimfire ammunition is difficult to find due to its complex and capital-intensive manufacturing process, which is concentrated in a limited number of global plants. Increased demand from modern firearms, coupled with consumer hoarding and speculation, further exacerbates the scarcity, while manufacturers are hesitant to invest in new capacity due to low profit margins.

What factors contribute to the increased demand for .22 rimfire ammunition?

Demand for .22 rimfire has risen due to a shift in shooting culture, with more people purchasing firearms that mimic tactical platforms, such as AR-style .22 rifles and the Ruger 10/22. These firearms encourage higher round counts, driving up overall consumption of .22 ammunition.

Are ammunition companies making money on .22 rimfire?

While companies produce .22 rimfire, the profit margins on standard promotional loads are often very low, potentially less than a penny per round. This makes significant capital investments in expanding production capacity a risky proposition for manufacturers.

What is the role of hoarding and speculation in the .22 ammo shortage?

Hoarding by consumers and dealers, along with speculation where individuals buy ammo at retail to resell at a markup, significantly inflates demand. When .22 rimfire is scarce, these behaviors intensify, making it even harder for average consumers to purchase ammunition.

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