I honestly didn’t think too much of it when I posted Governor Pat McCrory’s press release about the announcement of a new ammunition manufacturing company coming to North Carolina, but several of you focused like a laser on one part of the statement:
Governor Pat McCrory and North Carolina Commerce Secretary Sharon Decker announced today that Cape Fear Arsenal Inc. will locate a new manufacturing facility in Robeson County. The company plans to create 150 jobs and invest more than $15.2 million over the next three years in Lumberton.
Cape Fear Arsenal is a privately-held corporation focusing on providing high quality ammunition products in the Southeast U.S. Its products will be primarily sold to law enforcement. The company also anticipates bidding on contracts for the military and state agencies.
Several of you expressed concerns with this statement, and considering the (often well-founded) suspicions may of us have towards the Department of Homeland Security (DHS) under the current administration, I grasp precisely where you are coming from.
I tried to answer that concern based upon my own understanding in the comments, and feel they bear repeating:
I’d be willing to bet that this claimed focus on institutional sales is design to placate those funding a private business, to ensure that their investment is a sound one. That allowed, the number of government agencies and their ammo requirements are finite. Once the company reaches a certain level of production and market saturation, they will then obviously transition to the much larger customer base that is the general shooting public.
Learn to look beyond the required rhetoric, folks. This is a big win for all of us.
Any investor sinking $15.2 million into a new business wants as much of a “sure thing” as he can get. If at all possible, vendors love to set up a steady baseline stream of revenue from which they can generate cashflow to continue both current business (meet payroll, pay suppliers), and for new business development (selling you and I tons of shooty goodness). At this moment in history, with ammo being in such short supply that local law enforcement agencies are having to beg for ammo from the citizens they protect, it just makes sense to get long-term institutional commitments set up to make sure the business thrives. It’s setting deep roots for future growth.
What I can almost guarantee is happening is that Cafe Fear Arsenal is going to get as many law enforcement commitments (I’m guessing state and local agencies in the southeast; they won’t start out producing the volume to garner federal interest even if they wanted to) as they can, and once they have as much of this “easy money” set aside, they’ll quickly transition to the much larger commercial market of shooters like you and I, where the profit margins are higher and there is much less red tape involved in what should be simply sales.
Citizens shoot and stockpile a lot more ammunition than the government, and outside of the military, I would not be surprised if the the American public was 70%-80% of the ammo market. I think we’ll be seeing a lot of ammo flowing from CFA to distributors and retailers sooner, rather than later. It only makes business sense.
And then there is this hint about where they stand, shown on their web site.
I do not think it is an accident at all that Cape Fear Arsenal chose the iconic image of Acton Minuteman Issac Davis for their logo. That is a clear and purposeful statement from a company who is of us. They know what French’s iconic The Minuteman represents symbolically, and of the sacrifice of Isaac Davis himself.
Time will of course tell if my estimation is an accurate one, but I think they deserve to benefit of the doubt as newly-minted small business that will be catering to us.