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View Full Version : ATK / CCI Speer laying off.



5pins
01-10-09, 05:40
http://www.individual.com/story.php?story=94537200

ATK is trimming its staff in Lewiston, leaving 70 to 80 hourly and salaried employees at the ammunition maker permanently out of work.

The company began telling employees on Thursday, and expected to finish the notifications by Monday, said Amanda Covington, a spokeswoman for ATK in Salt Lake City.

Another 70 to 80 employees who work at an ATK ammunition plant in Anoka, Minn., are losing their jobs, Covington said. "Based on what I know today, we have the right-sized work force to meet anticipated demand, which remains healthy and strong. If market conditions change, demand could go up or down."

The change will leave about 850 employees at ATK, the third-largest manufacturer in the region.

ATK began ramping up production to reduce a "lengthy" backlog of orders in 2006 for sport and law enforcement ammunition, and has made significant progress in trimming the volume of outstanding orders, Covington said. "We still see healthy products in law enforcement, government and some products in commercial and hunting sports."

What ATK is doing is not uncommon in the manufacturing sector, where employers often hire workers to fill a temporary need and then cut them, said Kathryn Tacke, an economist with the Idaho Department of Labor in Coeur d'Alene. "Those are normal things. It's just unfortunate the economy is so bad right now that the people who are losing jobs are going to find that it's that much harder to find work."


Tacke didn't rule out that factors other than a backlog may have affected ATK's decision. "In general, consumer spending is down, particularly on discretionary items such as entertainment or recreation," Tacke said.

Parents who may have purchased a new hunting rifle for their son this year might have opted to buy a less-expensive present and not needed ammunition, or people who shoot targets for fun may be using half as much ammunition, Tacke said.

ATK's action Thursday didn't come as a complete surprise. All employees of the manufacturer took one week of down time at the end of December. It was one of only two temporary shutdowns at ATK's Lewiston site since ATK took ownership of it in 2001. The other was in late 2004.

Iraqgunz
01-10-09, 05:48
Could have fooled me since there are places that still have low stocks of ammo. Maybe it's just me but I am calling bullshit on this one.

5pins
01-10-09, 16:58
Not BS. This a local TV report on the lay off.

http://www.klewtv.com/news/37309514.html

I seems odd that they would be cutting back when there is a ammo shortage. Maybe they see a drop in demand soon.

bigshooter
01-10-09, 17:03
credit crunch.

sorry to link TOS but it is local news.

http://www.ar15.com/forums/topic.html?b=8&f=28&t=340255

guy that works at ATK:

Folks... if you don't have ammo, it has to be because the distrubitors aren't buying it.

We have a BUNCH sitting in the warehouse ready to ship. (I've never seen this much on hand before).

At the height of the shortage I could see every wall of thw warehouse if I were standing in the middle. Now I can't see the next aisle.

Iraqgunz
01-10-09, 17:28
I was calling bullshit on their reasons, not that it wasn't true. I can't get enough good ammo right now at a decent price and I am not alone in ths matter.

CarlosDJackal
01-10-09, 18:28
I suspect that there is more to this than meetsthe eye. I can't believe their profits are down wwhen not only is the demand very high (from all sectors); but also the prices. :confused:

Ridge_Runner_5
01-11-09, 03:40
I was calling bullshit on their reasons, not that it wasn't true. I can't get enough good ammo right now at a decent price and I am not alone in ths matter.

Walmart here is sold out of .22, .223, 7.62, 9mm, .40, .45 and a few other oddball calibers...noticed a suprisingly large amount of 30-06...maybe time to get an M1a :)

chadbag
01-11-09, 04:16
It is very possible that the ammo produced at those plants is seeing a reduction in demand or that they have forecast a reduction in demand coming up. Remember, not every plant makes 223/556, 9mm, 45acp, and 308 bulk. Speer also makes slugs and components.

I do not know what those plants are making but it could be just the slugs etc or complete sporting ammo (premium hunting ammo etc) and it is easier to just lay people off and idle some machines that are making more sporting type ammo than invest in moving that production over to bulk 223 or 9mm or something.

It is very possible that demand is down on components and that their stocks will cover their forecasted need.

Remember that bean counters make these decisions and their spreadsheets have different data than you or I might tell them.

There is an ATK facility just up the street from me about 5 miles but it is not an ammo facility. I think it has to do with their Space products (I think they bought out the company that makes the shuttle boosters for example).

Chad

nacho
01-11-09, 05:27
eguns-com is right on the nuts. i dont know yet but i think im one of those people getting the axe monday. as for the prices see my post, under the same name, here:


http://www.sigarms556.com/viewtopic.php?t=3905&start=20

5pins
01-11-09, 06:26
IIRC the Lewiston plant makes. Primers, bullets (both pistol and rifle), pistol cases, and loaded pistol ammo.

About two years or so ago there was a story about how much expansion the plant was undergoing. Running three shifts a day seven days a week. According to the article CCI was filling a big contract with the Dept. of homeland security. I think. The plant has about doubled in size since 911.

Sidewinder6
01-11-09, 09:16
I have a question regarding the economincs of this industry that the answer to might provide more information as to motives here:

If the company here is not engaged in a USG contract manufacturing ammo, could it be the foreign manufacturers such as Wolf are under cutting US made ammo?? The foreign stuff is close to half the cost.

Perhaps they threw in the towel because of this or are planning on moving their operations off shore (?)

chuckles
01-11-09, 09:54
Walmart here is sold out of .22, .223, 7.62, 9mm, .40, .45 and a few other oddball calibers...noticed a suprisingly large amount of 30-06...maybe time to get an M1a :)

An M1A won't help with the glut of 30-06. Now if you really meant.308, then you're on the right track. ;)

FromMyColdDeadHand
01-11-09, 10:23
eguns-com is right on the nuts. i dont know yet but i think im one of those people getting the axe monday. as for the prices see my post, under the same name, here:


http://www.sigarms556.com/viewtopic.php?t=3905&start=20

Per your post on the other forum, while our monetary policy, let alone our fiscal policy, is largely to blame for the current economic problems. What you can't blame for ammo companies problems is higher raw material prices, since metals have fallen to a third of their peaks for lead, copper and zinc. That is unless ammo companies were playing in commodities market. I don't doubt that distributors are making a killing. I would assume that you have contracts to honor while they do the gun-show two-step.

I'm just waiting for the demand to drop off, the raw material prices to have an impact, and we get back to sane levels. That is unless the powers that be decide that they easiest (for them) way out of this mess is a big round of inflation.

mmike87
01-11-09, 10:29
I was calling bullshit on their reasons, not that it wasn't true. I can't get enough good ammo right now at a decent price and I am not alone in ths matter.

Yeah - if they can't make money on ammo in this market, then they have other problems. The shelves at my local Wally World are empty - the guy behind the counter says he can't keep anything on the shelf, and it's talking longer for them to re-stock the shelves.

The ecomony may be bad, but guns and ammo are selling well right now for obvious reasons.

I understand that these issues are much more complicated than they seem - but demand is high for most things gun-related and it just seems odd to be laying off whem everyone shelves are empty of guns and ammo.

Iraqgunz
01-11-09, 11:12
mmike87,

That is my point exactly. Try getting good 5.56, 9mm or 7.62x51 w/o getting sodomized by a group of bikers. And that is assuming that you can find it on the shelves. That's almost like an AR manufacturer claiming that they are going under because they are selling too many guns.

Heavy Metal
01-11-09, 11:38
There is an ATK facility just up the street from me about 5 miles but it is not an ammo facility. I think it has to do with their Space products (I think they bought out the company that makes the shuttle boosters for example).

Chad

They bought Morton-Thiokol which makes the Shuttle SRB's and ICBM and SRBM solid fuel motors. They also make motors for the Army MLRS and many other things.

ATK has their hand in everything that goes bang or boom.


http://en.wikipedia.org/wiki/Thiokol