A lead time for lead

May 1, 2008
The interplay of supply and demand has created a pricey situation for popular law enforcement ammunition across the country

     Though a popular pizza delivery company revitalized its 30-minute delivery time guarantee, law enforcement equipment manufacturers, specifically in the ammunition industry, aren't able to make that claim. A trend of a long lead time has forced law enforcement agencies nationwide to experience difficulty in receiving their ammunition orders.

     Be it for any number or combination of reasons, there is no shortage of curiosity or theories on why law enforcement must patiently jump over hurdles for ammunition. Pairing the word "shortage" to the current status of the law enforcement ammunition market, however, can bring up a sensitive subject and many conspiracy-sounding theories.

     A popular causative factor, even with fuel prices, is to pin "it" on the war. While the war in Iraq does have its effect on almost everything from gas prices to law enforcement employment, it cannot be held solely responsible for all the nation's woes. Other issues affecting the industry include a rise in domestic-based demand for ammunition, an increased foreign demand of base metals and the daunting task set to the manufacturers to catch-up to the combined demand of the war and law enforcement.

     In reaction, it has been reported that law enforcement has gone to lengths to relieve the ammunition pressure. Amidst the chaos of bidding and Google searching, Chief Jeff Chudwin, of the Olympia Fields (Illinois) Police Department and president of the Illinois Tactical Officers Association, reminds everyone to keep their wits about them. "It is clear that the metals markets exploded as to demand, and price increases followed. We can't be conspiracy theorists, markets do move. You have to go in with some skepticism and ask, 'How did this all come about'?"

A pricey situation

     It has been common practice for agencies to put an order of ammunition out to bid for contract. However, unspoken factors have created law enforcement ammunition consequently "less" available. Many media articles leave the reader with the impression that bullets have diminished into the scarcity level of the Nintendo Wii video game console.

     Regrettably, skepticism poses a faded silver-lining. According to Dan Powers, president of Precision Ammunition, training requirements have increased since 9/11. "The situation is not going to fix itself anytime soon," he says. "It's going to remain the way it is right now for quite a long time."

     Sgt. James MacGillis, program manager and Range Master of the Milwaukee (Wisconsin) Police Department, describes the situation his department has experienced: "We previously had a contract for a number of years but we had to re-bid the contract due to industry factors and cost increases."

     Domestic demand may have increased by law enforcement's attempt to replenish its numbers and additional training. It should be kept in mind that the additional orders in ammunition and base metals insert a strain on the market, causing a ripple effect felt throughout.

     "Bullet products that are being used to create bullets are being sent overseas for military action, and I understand that," says MacGillis. "The way we can circumvent that is to plan, keep people informed and order ahead of time."

     While an increase of live-fire training does have its effect, the rare increase in officer numbers has the potential to affect a department's supply far more. The Milwaukee PD had two large classes of recruits enter its training program. This rise in demand in the department's supply increased the need for ammunition replenishment.

     Sgt. Lauri Schwartz of Training-In-service of the Madison (Wisconsin) Police Department and purchaser of ammunition for the department, has had similar experiences. She explains a logical point, "if you're going to increase your officer strength, you're going to increase ammunition use."

     A seemingly logical solution would be to decrease training. This, however, has its own negative repercussions. As quoted in an article written by the Associated Press, MacGillis says that, "the better-trained officer is the one that is less likely to use force." He adds that well-trained officers are less-likely to use force arbitrarily or incorrectly. Thereby reducing liability, reducing officer injuries and injuries to citizens and suspects.

     Apart from large classes of recruits forcing an increase in training, the war, the ultimate end-user, does have its rightful place in the ammunition demand. "The soldiers and military are end-users just like we [law enforcement] are," says MacGillis. "They are looking to get bullets like we are, and they should get priority."

     He continues, "They [the soldiers] are in harm's way, they need bullets, and I understand that." He brings to question the difference of a factor and a causative factor. The war should be held as a major factor, while the manufacturer and cost are causative factors, explains MacGillis.

     However, this ammunition cramp isn't solely an end-user experience. Manufacturers such as Precision Ammunition of Florida, Custom Cartridge of Mississippi, Brenneke USA located in Iowa, and even alternative ammunition manufacturer Extreme Shock of Virginia have felt the "shortage." Instead the pains are for the base metals used such as lead, copper and zinc.

     In comparison, imagine a tire manufacturer lacking the rubber to create its tires.

     To put the status of the industry in a singular phrase, Charlie Hays, national sales manager of Brenneke USA, says, "All ammunition companies are affected by the cost of lead and other commodities."

     The third concept in the quest to discover possible answers in the ammunition shortage has been mined from the resources themselves — the demand in the base metal market. Foreign countries have bought large amounts of copper and other base metals. This demand allots less toward the creation of brass, and thus creates stress for ammunition manufacturers to create their product.

     This demand creates a wave of pricing for the base metal market. While the price per pound waxes and wanes, when an ammunition manufacturer buys its resources at a reasonable price, these price benefits can be transferred to the end-user. Conversely, when the price of commodities rises, so can the price of product.

     Like playing the stock market, buying low is only a "best scenario." Paul Gorman, general manager and technical advisor of Extreme Shock, explains that when a single major demand exists, that demand allocates a majority of the supply. "So, that can drive the price up everywhere else," he adds.

     According to Powers, ammo manufacturers are running at 100-percent capacity to fulfill orders and keep to contracts. "Our biggest problem has been getting brass for 5.56 ammo," he says. Due to high worldwide demand for the metals, Powers comments that "people could be sold out of that product for years."

Effects in scheduling

     It is not common practice to plan law enforcement training on a week-by-week basis. In-service training schedules are set months in advance, many times set for the year. Problems in this scheduled training can occur when a department's ammunition supplies decrease.

     Madison has its minimum training schedule almost planned to the amount of rounds per recruit and working officer — about 400 rounds per officer for handgun and 100 rounds per rifle for a training year. These estimations do not include additional practice and the added training for specialty assignments.

     "It is different for somebody who's learning . . . because they are going to shoot a lot more in training, but, for veteran officers, we plan roughly 100 to 150 rounds for handgun [training] twice a year and about 100 rounds per officer for rifle [training]," says Schwartz.

     Considering the lead time, agencies may look to alternative solutions to reduce the usage of their ammunition stock. One drastic solution is to change the department's issued caliber. However, doing this can incur additional cost as agencies replace each affected firearm. An agency also may not go to such an extreme due to the research behind the original choice of caliber. Law enforcement needs the bullets and types of ammunition to do very specific things, says MacGillis. "We could get different calibers and different types of ammunition, but it still would be the same underlying issue."

     "It mainly goes back to the metal itself, not actually the caliber," adds Gorman.

     Other options for law enforcement training in an ammunition shortage are computer simulators or simunition rounds, such as paint marking rounds. However, there are some drawbacks to the simunition round. While the simulations could be more available, there is a difference from the computer and sim-round to a "real" bullet.

     In a press release in September 2007 by FNH USA, Rick DeMilt, senior vice president of sales and marketing, says, "Using live rounds in police officer training is essential to feeling comfortable and competent with the use of firearms. It impacts safety in the field and the overall effectiveness of the officer in the community."

'Bite the bullet'

     There could be an understandable panic in an agency in need of ammunition. Being organized, having a specific strategy and appropriate scheduling can help reduce future stressful situations.

     According to MacGillis, he factors in price increases such as a 5 to 10 percent annual commodity increase, delivery costs and allots for rising fuel prices.

     He mentions that department heads should order ahead of time, know what their training calendar is, plan appropriately, keep (if possible) a stockpile of ammunition as a reserve and maintain good communications with the vendor and manufacturer so they understand the agency's needs and time frames.

     "Bite the bullet and keep an open line of communication with people in the budget office," he adds.

     While planning plays the major role in avoiding the ammunition crunch, Schwartz also suggests keeping an alternative plan for training until the ordered ammunition arrives.

     "It [the ammunition] is still available, I'm still getting what I ordered, I just have to order it a lot farther ahead. You'll get it, it is just a matter of when," she says.

The ripple in the ammunition market

     Even during the worst of the decreased supply, the industry never seemed to ignore its law enforcement customers. While the wait seemed to increase, it was only a matter of time until deliveries were fulfilled. "The people who needed ammo, got the ammo," says Chief Jeff Chudwin of the Olympia Fields (Illinois) Police Department.

     Explaining the market, Becky Davis, vice president and chief information officer of Custom Cartridge Inc., admits there is a problem within the ammunition industry. She understands the shortage as "supply and demand, pricing, increasing metals prices and reassigning production resources to meet increasing or changing demands for ammunition."

     According to a press release by FNH USA, in September 2007, the company mentions that its supply of 5.7x28mm is readily available.

     The ammunition demand has increased with the rise in law enforcement strength and military action. "Obviously the war plays its part, but with the terrorist situation in front of law enforcement, they are doing a lot more training, and probably shooting more ammunition as a result," comments Charlie Hays, national sales manager of Brenneke USA.

     Playing its part in the shortage, a major responsibility of law enforcement is to plan ahead for its training. "We have to project ahead much farther," says Sgt. Lauri Schwartz of the Madison (Wisconsin) Police Department.

     Assisting law enforcement in its long-term planning, Dan Powers, president of Precision Ammunition, mentions that they are trying to fill as many orders as possible in 30 days. While they do have long-term contracts that go out for a year, they fill in smaller contracts in between other orders received.

     However, while orders are continually being filled, manufacturers are constrained by its receipt of base metals. "Our biggest hold-up on our product is lead-free primers," says Powers.

     Due to manufacturers not producing their own brass casings, and the increasing price for brass, the manufacturer's wait only lengthens the end-user's. "Everyone is having to wait," says Paul Gorman, general manager and technical advisor of Extreme Shock. He adds that a six to eight month wait is becoming normal for about 200,000 rounds.

     Seeing this as problematic, according to Powers, Precision Ammunition has been working on ways to increase its capacity affording the company to produce more. However, he adds that "it's not an overnight problem to fix; it can take years to order machinery to fix this problem."

Sponsored Recommendations

Build Your Real-Time Crime Center

March 19, 2024
A checklist for success

Whitepaper: A New Paradigm in Digital Investigations

July 28, 2023
Modernize your agency’s approach to get ahead of the digital evidence challenge

A New Paradigm in Digital Investigations

June 6, 2023
Modernize your agency’s approach to get ahead of the digital evidence challenge.

Listen to Real-Time Emergency 911 Calls in the Field

Feb. 8, 2023
Discover advanced technology that allows officers in the field to listen to emergency calls from their vehicles in real time and immediately identify the precise location of the...

Voice your opinion!

To join the conversation, and become an exclusive member of Officer, create an account today!