Quote:
Originally Posted by emcon5
I have heard from a couple different sources that the big difference this time is the big players are being smarter about it than last time. They know this is great for their business, but it will not last.
Everyone is running at 100% capacity, but nobody is adding capacity because they know demand will return to normal, and when it does they won't need it.
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Makes sense. The industry has the Clinton precedent to look back to. I think they are adding shifts because workers can be easily cut when the boom ends, unlike facilities/equipment.
Last I checked, S&W was still cutting costs and consolidating facilities. The big PE guy who was buying gun companies (Cerebrus) has had its wings clipped. Everyone sees the potential for the war(s) to wind down. Credit for expansion and working capital is not free anymore.