As the Israel–Hamas war continues, a number of Americans are purchasing more ammunition, data show.
But the prices for either type of ammunition were not as high as in late 2020 and early 2021, when 5.56 stood at around 79 cents per round. Around the same time, .223 Remington rounds neared $1 per round.
About a month ago, a top official with the North American Treaty Organization (NATO) warned of a drastic rise in ammunition prices, which would mean that higher defense spending doesn’t automatically mean greater security. That warning came weeks before Hamas targeted Israel in a series of attacks earlier this month, killing hundreds of civilians and has prompted fears of a wider Middle East conflict.
“Prices for equipment and ammunition are shooting up. Right now, we are paying more and more for exactly the same,” Dutch Admiral Rob Bauer, the chair of NATO’s military committee, said last month during a meeting. “That means that we cannot make sure that the increased defense spending actually leads to more security.”
NATO has recently been pushing for a boost in production to satisfy a demand for weapons and equipment that has spiked since the Russia–Ukraine conflict erupted in February 2022, as allies not only rush supplies to Kyiv but also build up their own inventories. In the meeting, Mr. Bauer also pressed business leaders to speed up the expansion of production capacity.
However, U.S. officials have said that they believe the United States could support both Ukraine and Israel in their respective conflicts.
“We are confident we can support both Ukraine and Israel in terms of their defensive needs,” Brig. Gen. Patrick Ryder, a Department of Defense spokesperson, told reporters last week.
On Wednesday, Ukraine’s Minister for Strategic Industries Oleksandr Kamyshin told Politico that Western countries should accelerate the production of ammunition, shells, military drones, and missiles. He argued that the current production levels and capacity are not sufficient.
“The free world should be producing enough to protect itself,“ Mr. Kamyshin said. ”That’s why we have to produce more and better weapons to stay safe.”
He added that “if you get together all the worldwide capacities for weapons production, for ammunition production, that will be not enough for this war.”
At the same time, the Czechoslovak Group—a major arms company based in Prague—recently moved to acquire Vista Outdoor Inc.’s Sporting Products business for $1.9 billion, a news release last week said. Vista, notably, is the parent company to multiple major U.S. ammunition makers including Federal, Remington, Speer, and CCI.
“Headquartered in Anoka, Minnesota, Vista Outdoor’s Sporting Products business is a leading ammunition manufacturer in the U.S. commercial and law enforcement markets. It employs approximately 4,000 employees across its four U.S. factories and owns leading ammunition brands including CCI, Federal, HEVI-Shot, Remington and Speer,” the news release said.
The release further stated that the company’s acquisition of Vista—and the subsidiary ammunition companies—comes after “a long series of smaller acquisitions focused on the European market, including the acquisition of Fiocchi Munizioni in 2022.”
If and when the acquisition of Vista goes through, it’s not clear how it will impact the U.S. ammunition market. The Czechoslovak Group said the deal is expected to close sometime in 2024.
