How much $ to start a small ammo manufacturing business here????

CanAm said:
The current world price for 5.56 is USD$30-35 per 1000. That figure of 17 cents per rd is the price if you are the US government, who owns the LC plant, buying a billion plus rds a year, in 2004 dollars. in 2004 I could buy surplus 5.56 for 5 cents per rd.
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Please explain what you mean by $30-35 per 1000. Do you mean .35 cents? If so, that's exactly my point.
ATK, who was selling 5.56 in 2004 for .17 cents a round, and is a publicly traded company on the NYSE, has a fiduciary responsibility to make a profit. They were making a profit at .17 cents.

Lead sold in 2004 for about .44 cents/lb. Today, it's .53 cents. The prices for other metals experienced the same changes. Corrected for inflation that's under .21 cents a round. If you do mean .30-.35 cents per round, that's a decent profit. I'll invest in a Canada Ammo co-op, or Beaver Ball Ammo, or anyone that will sell me 5.56 for .30 cents a round. The US websites are selling .223 for .50 cents a round.

I'll bet you wish you had bought a million bucks worth of 5.56 surplus 5 years ago.
 
30 cents per round, US dollars plus shipping, plus duty, etc. All told about 40 odd cents per rd. PMC from TSE costs 45-50 cents at retail. Sounds about right.

Also, if you want to invest in ammo, give me a call.
 
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robertf said:
I'll bet you wish you had bought a million bucks worth of 5.56 surplus 5 years ago.
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Is wish I had a million dollars 5 years ago. But even those who did didn't sell 5.56 for a huge profit, because they couldn't, as the world price was much less. 5 years ago 5.56 sold for $200-$300 per 1000 at retail. I turned down ammo at $180 / 1000 because I couldn't sell it to my customers in the US, because they could get US made ammo for the same price.
 
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I wouldn't bother setting up an ammo plant in Canada. Why bother, just for the PRIVILEGE of paying taxes to every level of government, subjecting yourself to miles of red tape, having every agency threatening to shut you down on a whim? (OMG, you manufacture with LEAD? You have EXPLOSIVES? you must be doing SOMETHING wrong)

Set up in a nice, comfortable offshore county, with much less strict regulations, labour, tax, and red tape. Then get your Canadian NRCAN approvals (which you would have to do even if you manufacture in Canada) and import it.

You would also be more competitive to sell your product to other countries. Canada is not really competitive internationally for low tech manufacturing. We have evolved into a service provider and a speciality and high tech manufacturer. (plus of course our huge resource base)
 
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