Monday, April 14, 2014

Shooting Sports Are Mainstream, Says ATK

I was fishing around in this webcast by Mark DeYoung, CEO of ATK Techsystems (That's Alliant to you and me) for any information on gunpowder production constraints. An unrelated but interesting comment he makes is that looking at the long term, shooting sports have an annualized growth rate of 7-10% over the last 25 years. DeYoung made the statement:
"And whether you are a gun-rights advocate or you are not, it's become a mainstream activity and increasingly mainstream"
Otherwise, he makes statements that he doesn't see the market for ammunition products softening anytime soon. Their production facilities are running at full capacity, 24/7, and they're planning to add capacity. He restated a comment he made from his quarterly call that they did see order cancellations for .223 and 5.56 but stated that it was obvious that they were over-ordered, and the cancellations have done nothing to reduce the total demand. Also, he talks about their Lake City contract, and how their plan to sell excess capacity on the sporting market helps the government by absorbing any extra capacity and helps the consumer by getting more supply to market. I assume this means berden primers could become a more common headache for us reloaders.

1 comment:

Please be courteous and of good spirit.