I think the problem is more about "barriers to entry".
There are huge non-financial barriers in the primers and powder manufacturing fields. Just mention the word 'explosives' in a proposed new plant and there are local action committees, environmentalists picketing and lobbying, support generated from politicians etc all dedicated to stopping it ever being built. The West generally wants military security, but doesn't want any of the things that provide it. I live in the UK and we haven't had either type of plant in the country for over 30 years now, and former suppliers in continental Europe have mostly closed especially with all the old government plants having gone, mostly closed; a handful privatised. Then there are the massive health & safety / environmental / physical separation from residential areas etc barriers and costs. The industrial revolution would never have taken place if our ancestors had to deal with today's regulators and regulations.
Not that there is anything that new here. When B.E. Hodgdon went to his local banks in Kansas in 1948 with a business plan to buy bulk surplus rifle powders from the US government (at 4-cents a pound for IMR-4895!!) and sell it to handloaders at a healthy margin, none would touch it. Anything to do with 'explosives' is way too risky to lend a couple of thousand dollars for they said. He couldn't even get any local farmer to rent him a disused barn for powder storage and packing - your explosives will burn us out or blow us up they all said. (He took a loan out against his life insurance to get the cash for the first purchase and bought two scrap railroad boxcar bodies to be his 'powder magazines' and placed them in a rented field.)
All of them, not just one brand. Are we sending American made primers/ammo to fight Russia? Or somewhere else? Where are they going?
Putting aside the vast increase in private US firearms ownership year on year for many years now which soaks up factory ammunition and in turn ammo components, don't forget how many imports there used to be and which are no longer there, often by government diktat. There were for instance large numbers of Russian (Murom made) primers sold under various brand names that contributed considerable quantities to the handloading market.
I think potential entrants may be wary of what the long term market will be after seeing the excess supply conditions over the past 10-15 years. And of course, on the war in Ukraine.
How can so many people on this forum forget that less than a generation ago, the Australian government Mulwala powder and explosives production facility (now part of Thales-ADI) was confidently expected to close permanently and that its survival is largely down to the Australian government being determined to retain and develop independent military resources and an indigenous weapons and ammunition supply industry. Public money went into the facility to keep it open and modernise it in step with privatisation in the teeth of fierce political and environmental groups' opposition. For those in the dark, Thales-ADI Mulwala is the sole supplier of Hodgdon brand 'Extreme Extruded' powders, ie H4198 to Retumbo inclusive. The AUKUS security pact and Aussie purchase of nuclear powered submarines is simply a welcome recent manifestation of this national security imperative. (I wish to God Almighty that my government in the UK thought the same way!)
Or, that even closer to today, after the Iraq and Afghanistan conflicts largely died down (around 10 years ago?), there was a glut of military smallarms supply and production capacity in the West and Eurenco decided to sell or failing that close Vihtavuori as a production asset they no longer needed. Without a buyer in sight, closure had actually started with products being stood down when Nammo stepped in at the last minute and bought it for a small nominal sum. I imagine that pressure from the Nordic countries' governments to keep defence industry capacity and skills in being must have played a part here.
Either way, we came within a hairs breadth of losing most Hodgdon and all Viht powders over a period of 20 years because of western government disinterest, not to mention widespread public hostility to actually dirtying our hands producing these things. .............and yet people here wonder why a bunch of (mega-rich) good fairies don't materialise out of thin air to wave a magic wand (or six), sprinkle a few billions of dosh around at the same time because we have some handloading supplies problems.