Interestingly, this is were ammunition and facemasks and contracts with the federal government overlap.
As was presented before Congress, one of the American manufacturers of facemasks was not going to invest in additional tooling or manufacturing capability, specifically because when the federal government decides they no longer need the product, they dump everything they have on the market. Consequently he had spent millions building a factory, only to shut it down, and have the federal government become his competition on eBay.
I believe the ammunition manufacturers are not tooling up to produce greater quantities, because they know that in short order they will have created their own competition.
Capital budgeting is capital budgeting.
You are not going to put millions of dollars into additional production, knowing that you won’t need it five years from now.
