Ammo makers prepare for drop in demandBy RICHARD LARDNER Mon Jul 23, 8:45 PM ET
WASHINGTON - The Lake City Army Ammunition Plant in Independence, Mo., produces nearly 1.4 billion bullets a year, a dizzying figure driven by the demands of war. "It's actually mind-boggling," said Karen Davies, Lake City's general manager.
The question is, for how long? Although no one knows when the conflicts in Iraq and Afghanistan will end, Davies and other ammunition industry executives understand the heavy orders won't last forever.
So as they churn out the military's most essential pieces of hardware — and millions hope for an end to the war — ammunition makers are preparing for a downturn in business.
They worry about a return to the post-Cold War period when the Pentagon slashed spending for small-caliber rifle rounds and other munitions, forcing suppliers to cut payrolls, mothball manufacturing equipment and lose hard-to-get environmental permits. Some closed their doors.
"The demand is fast when it comes, and then it can drop off very quickly," Davies said.
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