Ammo shortage is worldwide?
from strategypage.com
The Great Global Ammo Shortage
March 6, 2009: While the United States is a major supplier of weapons to Israel (nearly half a billion dollars worth a year), there are many other nations that also supply weapons and ammunition to Israel.
Most of these other nations supply small quantities, worth less than $10 million a year. During the last five years, a major supplier, among these minor players, was Serbia, which shipped up to $8.6 million worth of ammunition, mostly 5.56mm, one year. This was needed to rebuild Israeli stocks. That's because five years ago, after the U.S. invaded Iraqhttps://www.milsurps.com/images/impo...ss_10x10-1.gif, American troops suddenly needed much larger quantities of small arms ammo.
Early on, the U.S. Army had a lot of trouble getting enough 5.56mm ammunition for combat operations in Iraq and Afghanistanhttps://www.milsurps.com/images/impo...ss_10x10-1.gif, as well as increased training with weapons for troops headed there. More ominous was the need to maintain a "war reserve" of billions of bullets for wars that have not broken out.
The one 5.56mm ammo plant the government used (the largest one in the world, in Lake City, Missouri) could produce a maximum of 1.2 billion rounds of 5.6mm ammo a year, and was already operating 24/7.
But the army wanted to have the ability to get 3.2 billion rounds a year for surge situations (like a war.) To get the extra ammo, the army bought from other American and foreign manufacturers. One of the major overseas suppliers was Israel Military Industries Ltd. (for 70 million rounds in 2004 alone). There are over a dozen major manufacturers of 5.56mm ammunition worldwide, and the army had no problem getting what they wanted in short order. But Israel shipped so much 5.56mm ammo that they had to turn to other suppliers to keep their own war reserves topped off.
During World War II, sixteen different companies supplied small arms ammunition for the United States, although in that war, there were eight times as many divisions to be supplied. But the U.S. demand for billions of rounds of 5.56mm ammo after 2003, caused major shifts in the usual patterns of who sold to who, at least for a few years.
Copper prices, past five years; go figure!
5 Year Copper Trend
If ammo makers had been stocking up on copper through 2008, on the usually wise assumption that copper would continue to escalate in price, then they got screwed when the price plummeted in 2009 due to the recession.
The same thing also happened to some airlines that purchased futures for jet fuel, to protect themselves from the crazy escalation. Now they are competing against one or two airlines that did not.
It's called Risk. That's what business people have to engage in.
https://www.milsurps.com/images/impo...copper5y-1.gif
Military goods manufacturing capacity
I have the Time/Life series of books on the "Vietnam Police action" that my mother in law bought for me.
In it, it states that back in 1969 already, the US Army needed more turrets for M60 tanks and they had to OUTSOURCE this work to "West Germany" (some of you young guys might not know but there was an East and West Germany) way back then already as we no longer had the "industrial capacity" to produce these items.
We have been becoming a 3rd world country for quite a long time with our "free trade agreements" and etc.
Bob
There was/is another reason for outsourcing
Quote:
Originally Posted by
Mk VII
We can't have ammunition plants standing idle, year after year, fully staffed and ready to go but doing nothing. The whole point of offshore contracts - frequently let during the Cold War - was insurance against a sudden need for additional sources one day in the future.
When Boeing builds an airplane it outsources many components to countries around the world. Why? Because they hope those countries will continue to purchase their planes. Boeing, along with Hollywood, is one of the largest contributors to balance of trade dollars for the U.S.
Certain defence companies also outsource within the U.S. Why? Because congress people want a piece of the action for their district. Doesn't matter whether it's an efficient way to build a product or not.
We also outsource defense projects overseas for another reason: when we provide jobs to other countries, it makes them more dependent on us, more likely not to kick our troops out of their country.
As always, follow the money.
My brother has close friends at Boeing production
They tell him that it is unlikely that the new Dreamliner will ever fly. The concept was stupid and far too complex to pull off. Group hugs for the idiot that came up with this idea. We are not building an ME 109 here.
