We have enough taxpayer funded businesses in Canada.
At least this would be a taxpayer supported Canadian business that I could/would support. Not just a charity for some to funnel tax dollars to their friends and family.
We have enough taxpayer funded businesses in Canada.
So a good example is that SNC Lavalin makes the CAF's ammo in 2 factories, one for energetic material and another for metal forming, so I really don't understand why they can't be cool and just do a few hundred thousand or million extra primers for civilian use. The demand is there. They could charge like 200% and make a ton of money. Maybe they're just too far up the LPC's a$$.
Nammo Group (which owns Lapua and Vihtavuori) is building a new primer factory in Vihtavuori, Finland.
https://www.lapua.com/nammo-builds-primer-factory-in-vihtavuori-finland/
But we won't see any civilian supply until about 2027, and I suspect they will be first supplying all the armed forces of the western European countries and Baltic states who have just woken up to the need to have one heck of alot of ammo on hand at all times, plus lots of guns to shoot it, because kinder, gentler peace, love and unicorns just hasn't worked out as planned.
Lapua has already "temporarily" shut down some of its civilian brass and ammo manufacture in order to meet the rapidly increasing orders for the military market.
Fiocchi USA announced its building a lead-free primer plant in Arkansas.
https://fiocchiusa.com/news/fiocchi-usa-selects-little-rock,-arkansas-for-new-primer-manufacturing-facility.html
If things stay on schedule, they say it will be sometime after 2025 that we will see any product available from the new Fiocchi plant.
Both of these examples are big industry projects, with really big investment dollars for getting started. Not anything like the "micro fab" scale that Steelgray has described.
I think Steelgray's micro fab idea is not impossible, and has some feasible factors in its favour:
- many small, economically depressed municpal governments, sometimes in partnership with provincial gov't partners, will work a tax incentive deal with investors to provide land on the town outskirts, because they are dieing to attract industry to their local workforce.
- If the plant is well out of town, that should reduce insurance costs because if it catches fire, no urban or rural infrastructure is at risk.
- Fire and emergency service would be part of the municipal tax incentives deal, factored in.
- The Canadian dollar is chronically weak against the US dollar. That means Canadian products on average can be cheaper to buy for Americans and anyone else paying in USD.
Factors against: I have read that most of the world's Antimony supply is from China, Russia, and Tajikistan. Not good, not good at all!
In fact we are headed into a world-wide antimony shortage, and big trouble in many industries, unless a new source is found.
https://www.forbes.com/sites/davidblackmon/2021/05/06/antimony-the-most-important-mineral-you-never-heard-of/?sh=20b87d0e2b23
Googling keyword phrases like: "ammunition primer substitute for antimony", generates some hits for articles.
Federal has developed a lead-free primer called "Catalyst", for pistol primers, which is now being produced by CCI/Speer
https://bulletin.accurateshooter.com/2022/12/cci-commences-lead-free-primer-production-in-idaho/
I am not sure if it has replaced antimony with something else? And its not clear if it will ever be available for reloaders in rifle primers?
Anyways, if a micro fab plant idea was feasible, I would suggest a marketing plus would be lead-free and antimony-free.
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FWIW.. I worked in a tool and die shop that built a stamping die to make the end-caps for ford transport truck diesel tanks. The stamped part was about 500 mm by 350 mm. The shaping bit took something like 8 wire-cut and polished die-steels that fit in the "die" with .001"tolerances, had a bunch of hydraulics, pneumatics, and shearing bits involved - the cost for one of these stamping dies was $60,000. (yes, 60K$Canadian). To make one part for a Ford truck. And that was in 2015.
Considering how tight the tolerances need to be to create the little cups, in mass production, along with the little anvils and the contact explosive compound, assemble them and test some of the product, in a plant that can take in raw materials and ship out finished parts, I wouldn't bet on spending less than a half million bucks just to have the machinery set up and tested. And I'm actually very naive about how much stuff costs.
I think that Biologist is right that lead-free primers will eventually take-over from existing primers, which use lead styphnate and/ or antimony in their detonation charge. If the micro fab started-off as a producer of heavy metal-free primers, it would actually be selling a product which is inherently better than the existing types of primers that everyone is currently desperate to buy. Obviously, if the trend is toward lead-free primers, setting-up the fab to use that technology would “future-proof” the operation.
Finally, we all have a basement full of used primers.
This is more useful information (below). I'm guessing that when a tool and die shop makes a die for Ford, they do so for a press intended to high volume, high speed production (and they might add and extra zero to the price too - just because it is Ford; as I certainly would also do).
I would think that a die that works in maybe a 12 ton hydraulic press and which can produce say 50-100 cups or anvils per press would be plenty. Otherwise, you'll hate me for saying this, but I wouldn't be surprised if there is already a vendor of LRP-format primer cups and anvils out there - say, on Alibaba.
Finally, we all have a basement full of used primers. While I don't like this idea, I acknowledge that another option would be that the fab sets-up as a remanufacturer of primers and takes in and refurbishes primers to as-new condition - repacking these with the latest, non-corrosive lead free prime compounds. Such a "primer refurb fab" wouldn't need a lot of capital equipment, but would be more labour-intensive.
Taking this into account, especially if the chemistry used was totally non-toxic, you could maybe pitch this as a sort of "recycling operation" and maybe get start-up grants employment grants etc. - as long as you didn't tell anyone what the primers are for ;-) . (JOKE)
Heck, you are keeping old fire primers from going to the landfills and creating eco-friendly, lead free primers - potentially reducing the demand for those nasty, metal-based primers.
You could require that the client provides their own used primers as an exchange item (like you turn in your old starter as a core when you buy a rebuild, or you drop off your old propane take to get a refilled replacement).
As for permitting, the primer refurbishment fab probably would just need the kind of licenses and permits that Bear Reloads had, when they were operating some where around Kingston. Maybe their old business licenses and permits could be reused by such a new operation.
AGAIN, this is NOT how I'd like to see this opportunity developed, but I have to admit it is an option that would overcomes many of the applicable business challenges.
I get it. You're all out to prove that, if you try hard enough, you can always find a reason not to do something.
For example, we have one guy already who is saying there's no point because the primer shortage will be solved – and things will be back to normal – in a couple of weeks. Yeah right. I bet that guy is a huge Trudeau fan because he's obviously been smoking too much of that Justin T’s "Wacky Tabaccy". Then, there’s another gentleman who claims that this would just be WAY too complicated and, as proof, that’s why some company didn’t rebuild a big plant, after it exploded.
Seriously?
We aren't talking rocket science here. We're talking about one of the simplest manufacturing operations going – consisting of putting two little stamped metal parts together with a bit of chemical compound in between.
By comparison, it's an order-of-magnitude more complex to design and manufacture a brand-new firearm and bring it to market, like the WK180-C; and that business initiative would have attracted massive actual capital costs and required lots of permitting licences and approvals. Yet that got done, in spite of capital costs being many times higher with much lower profit margins – and in spite of there being much more risk; especially from potential adverse government actions.
I’m NOT talking about a mega factory, serving world demand. Rather, I’m suggesting what I’ve called a “micro fab”, set-up with a low break-even point with enough capacity to service part of the Canadian market. The investment to set-up such an operation would be WAY less than the cost of buying a Subway, or KFC franchise, or setting-up an auto body repair shop, or a “make-your-own” wine store, or an independent corner gas station, or whatever. But unlike those operations, the profit margins would be fantastic.
Your independent corner gas station is lucky to make 2% on sales, whereas a conservative estimate suggests that the direct cost of making a brick of primers – in a micro fab – might be $5 and the sales revenue would be at least seven times that – even if you sold wholesale, through existing channels. If you went direct to consumer, you’d have higher marketing and distribution costs (maybe adding-up to a total direct cost of goods sold of 8-10 bucks a brick), but your revenue would be at least $80 per brick and you could sell whatever you could make at that price – now and into the foreseeable future.
You will not find a business opportunity like that anywhere else. A high profit margin protects you against downside risk. As for permitting, yeah that’s a part of any business. In fact, you might well find that some businesses might have some of the required explosives permits already (like Marstar, Higginson’s, etc.) .
As far as I can see, making primers isn't really any kind of a capital-intensive business. Sure, making cartridge cases would require a lot of investment in equipment, but that's not what we're talking about. We're talking about stamping-out a couple of little pieces from thin sheet metal; presumably using the same kind of light duty presses that are used, by industry, for making small washers, etc.
Far from this business being “capital-intensive” I understand – from one guy who probably knows what he's talking about – that the reason that there are primer shortages, is because the major ammo manufacturers are facing challenges getting people to work in their primer plants, at US minimum wages, because the priming compound needs to be dabbed into the primer cups by people. And these ammo OEMs are too cheap to pay these relatively-unskilled labours the money that they deserve.
I'd say you probably want to set-up the fab in the outskirts of some small town – like Renfrew – and pay the workers 20 bucks or more an hour. When Higginson set-up its jacketed bullet manufacturing plant, in the 60s, it put that micro fab in Shawville, Quebec – and I think Tom Higginson got a whole bunch of local employment grants, which paid for most of the capital costs. I think Tom H. told me that the whole manufacturing set-up cost him around 8,000 bucks – and he hardly had to pay any of that himself.
Let’s try-out some numbers here. Let’s say you need to invest $15-25K in equipment for both the manufacturing of the primers and packaging them. Let’s say this equipment can produce 100 bricks a day.
In the case where you sell straight to the public, your profit margin might be $70 per brick. That is a contribution to direct costs of $7,000 per day. Say, your rent, heat power and other fixed costs are $3,000 per month and you produce 22 days a month. That means your monthly contribution to overhead is $154,000 per month, less $3,000 per month for overhead costs. You are looking at a net income, before tax of $151,000 per month. If your capital investment was $25K you will recoup that investment and achieve “payback" on your investment in about 4 and a half days of operations!
You buy a KFC franchise and you’re going to have to invest nearly a million bucks – and you’ll be lucky to see payback in 4 years. And worse yet, you might have to actually eat some of that stuff.
This analysis conservatively assumes that the person who sets-up the operation is starting from a “clean sheet of paper” – with no existing assets, or marketing channels to leverage. The deal would be just that much better, if there was somebody out there who already had surplus space that they needed to apply, to achieve an economic return.
Ditto this would be an even better deal for people who already had the right kind of equipment that could be repurposed to the job, or people who already had the necessary marketing channels or business permits (again perhaps like Marstar or Higginson, Western Metals, etc.)
You will never see a business opportunity like this again.
I get it. You're all out to prove that, if you try hard enough, you can always find a reason not to do something.
Man, the more this guy talks, the more ridiculous his ideas become.
Start by making priming compound and sell it in separate components like tannerite. Lots of guys in the US using prime all. I'd buy a brick of unprimed primers and a component kit.
Antimony sulphide and potassium chlorate are the hardest parts to source.
this is a good idea !
sell the components… just like we buy powder n bullets for reloading.
sell the primer cups, anvils, and chemical we can mix ourselves
.. this would avoid the manufacturing problems and absurd govt regs.
....Considering how tight the tolerances need to be to create the little cups, .......
Most gun owners aren't going to pay a premium for lead-free primers though. I can only imagine heavy-metal-free primers would be more expensive to produce (otherwise the big companies would have all switched over already) which means now you're talking about producing a product that is more expensive yet having to figure out how to sell it for very close to the price of conventional primers to sell anywhere near the quantity you would need to sell to make this a viable business.
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