dgeesaman
Gold $$ Contributor
I’m sure the manufacturers consider that there is demand, but they consider much more than that. It takes three years to acquire a rimfire ammo machine, and probably much more to build up a supply chain for brass, bullets, priming compound, and powder. These new rimfire competitions largely didn’t exist five years ago and there is a significant chance they won’t be here in another five years. Market forces brought these shooters to rimfire and market force can sweep them away.
Not to offend anyone, but what is the age of these potential buyers? How many years can they be expected to keep buying the good stuff - will it be long enough for a manufacturer to break even? Or make money? Even with an overwhelmingly good expectation of profit, with interest rates where they are I’d put any free cash into savings rather than make capital investments right now.
My employer makes capital equipment and our customers make good money with that equipment. In 2024 they aren’t buying. Too many reasons not to launch capital intensive expansions in the USA this year.
Not to offend anyone, but what is the age of these potential buyers? How many years can they be expected to keep buying the good stuff - will it be long enough for a manufacturer to break even? Or make money? Even with an overwhelmingly good expectation of profit, with interest rates where they are I’d put any free cash into savings rather than make capital investments right now.
My employer makes capital equipment and our customers make good money with that equipment. In 2024 they aren’t buying. Too many reasons not to launch capital intensive expansions in the USA this year.
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