The WSJ reports on the rise of gun sales …
As demand has risen, supply hasn’t kept up. Manufacturers are experiencing backlogs, even as they raise prices and report record profits.
Citing the political impact of the election, Olin said its June backlog doubled compared with the year before. The company has said it plans to raise ammunition prices by 2% to 6%.
Many suppliers of guns and ammo have been concerned that increased demand may not last and so have been hesitant to invest in additional manufacturing capacity, leaving retailers worried about adequate supplies.
Cabela’s, which generates about a fifth of its $2.8 billion in revenue from firearms and ammunition, is offering to pay suppliers more quickly, 15 days in some cases, in hopes of becoming a favored destination for the limited inventory. It can take some retailers up to 120 days to pay gun and ammo manufacturers.
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