Canadian manufacturer of 22LR

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gfol70

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What I don't understand is why despite the massive demand for 22LR ammo (not to mention others) someone just doesn't start up a manufacturing facility here in Canada and ween us off the US market - at least a bit.

Am I over simplifying this or are there major barriers to this? Doesn't seem like it would be all that difficult to do - so I guess the obvious question is, why hasn't someone already done it?

Guy
 
My sense is that the Canadian government would not make it easy for a manufacturer to start up a munitions factory.

The distribution channels would also need to be established to export to a larger market to keep the facilities running at a profitable level.. i.e many millions of rounds per day..

The U.S. factories are unwilling to add more manufacturing facilities to meet the load so that would not bode well for a Canadian start up to do the same.

Then there is the regulation changes with respect to lead components and an alternative of supplies, copper etc all changing as we speak

Once the demand is met what then..
 
You can only win as a business in 22LR on massive volume scales because of the lack of competition and monopolistic industry on it. Someone hit it right above, in the millions of pieces for production needs to keep the the costs down. Need to buy and sell in massive bulk amounts.

Think about it, you used to be able to grab a 500 brick for $20 not too long ago. Thats 4 cents a piece without packaging and shipping. You literally need to bang them out for less then a fraction of a penny each to make it worth it. No one in todays world invests millions of dollars to make fractional penny returns.
 
I take your point - and it may be becoming more profitable because of the prices. That said, I'm still not convinced that making 22LR would take all that much - machinery is basic, supplies are relatively easy to come by... and take out the need to be a multi-millionaire and just supply Canadians with a quality 22 and well... Alternatively, why not import from China like we do everything else? They could crank out 22s till the cows come home. Something tells me though that market control is a factor.
 
From this article: http://www.americanrifleman.org/blogs/keefe-report-ok-really-whats-going-on-with-22-rimfire

If you have even seen .22 being made (and my friend Mike Bussard wrote an excellent piece on how they actually make it), you know it is a huge capital expense to set up a rimfire plant. It’s not like you can order a high-speed rimfire loading machine out of the Staples catalog and set it up in your garage. It takes time, land and, literally, a lot of dollars to establish a rimfire factory. Then you have to train the workers and ensure the safety of your workers and the area in which the plant resides. Priming rimfire cases is not something best left to amateurs. The question is, though, would it be worth it to go to the expense of, say, building a $250 million rimfire plant to make your company’s money back at a penny a round over the next 10 to 20 years? The answer, so far, has been a resounding no.
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Avalonthas said:
You can only win as a business in 22LR on massive volume scales because of the lack of competition and monopolistic industry on it. Someone hit it right above, in the millions of pieces for production needs to keep the the costs down. Need to buy and sell in massive bulk amounts.

Think about it, you used to be able to grab a 500 brick for $20 not too long ago. Thats 4 cents a piece without packaging and shipping. You literally need to bang them out for less then a fraction of a penny each to make it worth it. No one in todays world invests millions of dollars to make fractional penny returns.
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This is why Canadian Industries Limited (C.I.L) got out of the ammo business to concerntrate on other things such as paint.
 
The cost of doing that would be prohibitive. And the government doesn't want it. Being made here wouldn't cause prices to drop anyway. Witness the Canadian Wine industry. Costs the same or more than good wine.
 
Avalonthas said:
You can only win as a business in 22LR on massive volume scales because of the lack of competition and monopolistic industry on it. Someone hit it right above, in the millions of pieces for production needs to keep the the costs down. Need to buy and sell in massive bulk amounts.

Think about it, you used to be able to grab a 500 brick for $20 not too long ago. Thats 4 cents a piece without packaging and shipping. You literally need to bang them out for less then a fraction of a penny each to make it worth it. No one in todays world invests millions of dollars to make fractional penny returns.
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Sounds like a job for a crown corporation. They've never been interested in making money, so....
 
Costs the same or more than good wine.
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:) pretty funny. The other funny part is that several (many?) Canadian winemakers are using grape juice from Argentina (Mendoza) and Europe (various regions). It isn't all Niagara grown. Some is so so quality some not. That's why the wineries sell product and continue to exist. You can buy bad (and good) wins from anywhere. After the 5th glass they all begin to taste pretty good.
 
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