Sturm Ruger Inc. - flooded with orders, will not take any new orders until May

[Anti Federalist]

Sturm, Ruger & Company, Inc. (NYSE: RGR), announced today that for the first quarter 2012, the Company has received orders for more than one million units.

http://www.ruger.com/corporate/news/2012-03-21.html

Therefore, the Company has temporarily suspended the acceptance of new orders.

Chief Executive Officer Michael O. Fifer made the following comments:

The Company's Retailer Programs that were offered from January 1, 2012 through February 29, 2012 were very successful and generated significant orders from retailers to independent wholesale distributors for Ruger firearms.

Year-to-date, the independent wholesale distributors placed orders with the Company for more than one million Ruger firearms.

Despite the Company's continuing successful efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders. Consequently, the Company has temporarily suspended the acceptance of new orders.

The Company expects to resume the normal acceptance of orders by the end of May 2012.

The Company will announce its results and file its Quarterly Report on Form 10-Q for the first quarter of 2012 on Tuesday, May 1, 2012, after the close of the stock market.

[WilliamC]

Wish I could help them speed things up.

[phill4paul]

SOME Americans appear to be waking up.

[Anti Federalist]

SOME Americans appear to be waking up.

I suspect this another round of O-bomb-ya fear, like 2008.

But, I don't care, we'll take it, right?

[brushfire]

They need more workers... That's a definite negative when sales have to be halted because a company cant keep up with demand. More effort should be put into increasing production capacity. Granted, I understand you dont build the church for Christmas mass, but the trends are fairly predictable - its the same pattern as last time. Heck - I'd raise prices before I stopped taking orders.

http://ponyvillegazette.com/files/2012/01/i_love_lucy_chocolate_factory_scene_parodied_in_my _little_pony.jpg

[phill4paul]

I suspect this another round of O-bomb-ya fear, like 2008.

But, I don't care, we'll take it, right?

Darn tootin' we will!

[mortepa]

Yep, it's starting all over again, only earlier this time. It isn't just Ruger, it is everything ar-15 or ar-10 related. Next areas of shortage will be other "black guns", bolt snipers, and ammo.

Minimally, I recommend stocking up now on your Pmags and whatever ammo you want to use for the next couple years. If you haven't already done so.

http://www.ronpaulforums.com/showthread.php?368114-Stock-up-NOW-on-Guns-amp-Ammo

[Anti Federalist]

They need more workers... That's a definite negative when sales have to be halted because a company cant keep up with demand. More effort should be put into increasing production capacity. Granted, I understand you dont build the church for Christmas mass, but the trends are fairly predictable - its the same pattern as last time. Heck - I'd raise prices before I stopped taking orders.

http://ponyvillegazette.com/files/2012/01/i_love_lucy_chocolate_factory_scene_parodied_in_my _little_pony.jpg

Not a question of workers as most of Ruger's manufacturing is automated.

If a CNC machine can mill out say, 5000 receivers a month, then, that's what it can do, no more no less.

To buy or build another machine to double capacity will takes months and costs millions.

Yet another reason why I'm not in favor of "outsourcing" or particularly fond of full automation. If it were just a matter of hiring 500 machinists, I'm sure they would do so to full these orders and make a profit.

[fisharmor]

Not a question of workers as most of Ruger's manufacturing is automated.

If a CNC machine can mill out say, 5000 receivers a month, then, that's what it can do, no more no less.

To buy or build another machine to double capacity will takes months and costs millions.

Yet another reason why I'm not in favor of "outsourcing" or particularly fond of full automation. If it were just a matter of hiring 500 machinists, I'm sure they would do so to full these orders and make a profit.

True, but if they hire 500 machinists, the resulting spike in QA problems would be unacceptable.
Outsourcing is actually the answer here. Whatever machines Ruger has making receivers - there are others like it in the immediate vicinity, and I'd bet the rent that those machine owners are BEGGING for work.
Only they can't do it, because of bullshit FFL laws.
It always boils down to regulation.

[TheTexan]

I love my LCP. It's the lazy person's carry weapon, just throw it in a pocket.

[brushfire]

Not a question of workers as most of Ruger's manufacturing is automated.

If a CNC machine can mill out say, 5000 receivers a month, then, that's what it can do, no more no less.

To buy or build another machine to double capacity will takes months and costs millions.

Yet another reason why I'm not in favor of "outsourcing" or particularly fond of full automation. If it were just a matter of hiring 500 machinists, I'm sure they would do so to full these orders and make a profit.

Not disagreeing, but just to point out. I know that the parts are machined (I see the marks) but I can also tell that most of the assembly and finishing is done by hand. I'd have to assume they dont have enough people to do these tasks, which are very difficult to automate. Fitting critical components together is still an art.

IMO - if it were just a cnc-operator issue, that'd be something that can (and often is) contracted out to other shops. You may pay a premium on a short term contract, but its better than turning sales away - again, just my armchair opinion.

[XNavyNuke]

Just so long as they keep cranking out the 10/22's! :)

The Ruger 10/22® has been officially adopted by the RWVA as the Liberty Training Rifle (http://rwva.info/rwva%20pages/libertytrainingrifle.html)

XNN

[fisharmor]

IMO - if it were just a cnc-operator issue, that'd be something that can (and often is) contracted out to other shops. You may pay a premium on a short term contract, but its better than turning sales away - again, just my armchair opinion.
But as I insinuated (but didn't state directly), the receiver is what federal law considers the "gun".
Ruger can job out every other part.
Not the receiver.
If someone makes a receiver for sale without the special federal paperwork, it's off to the rape cage.

[Cowlesy]

And to think I was recommending the stock at $10 and I sold it at $17 (sigh) Stock is at $47 today.

(although i dunno, it seems like it's run way too high).

[Anti Federalist]

Not disagreeing, but just to point out. I know that the parts are machined (I see the marks) but I can also tell that most of the assembly and finishing is done by hand. I'd have to assume they dont have enough people to do these tasks, which are very difficult to automate. Fitting critical components together is still an art.

IMO - if it were just a cnc-operator issue, that'd be something that can (and often is) contracted out to other shops. You may pay a premium on a short term contract, but its better than turning sales away - again, just my armchair opinion.

See below:


But as I insinuated (but didn't state directly), the receiver is what federal law considers the "gun".
Ruger can job out every other part.
Not the receiver.
If someone makes a receiver for sale without the special federal paperwork, it's off to the rape cage.

I think FA is right on here, I would guess that is where the backlog is.

No matter what, while I hate to see them lose sales, overall, I consider the news a net positive.

[RonRules]

They're working "fast and furious!"