Suck My Glock
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On another gun forum I frequent, one of the dudes there subscribes to the Aussie edition of the NY TIMES, and shared this article from there.
The article never mentions it, but the current exchange rate between the Aussie dollar and the U.S. greenback is 0.65 to 1.0;...which is to say that something which costs 10,000AUD only costs $6,500USD. And this is reflected in the labor cost as well, meaning it is cheaper to employ Aussies than Americans.
Australia and the U.S. have long been allies, but that relationship has grown even tighter and more intertwined in recent years as the China threat has increased. Both Britain and the U.S. have had licensed weapon production deals with the Aussies for decades, so that's not new. But the crush in the replenishment of munitions inventories since the Ukraine war became the long-term slog it is has made Aussie munitions production capacity a key resource the Pentagon and Britania are tapping into.
While the article focuses primarily on big Army systems most affected by the Ukraine theater, like 155mm shells and other artillery, video in the article shows small arms ammo production going on as well. All NATO small arms calibers are made in quantity in Mulwala, about 200 miles north of Melbourne, which is also the center for propellant and explosives fabrication. As the larger munitions output is increasing, small arms ammo will likely also need to ramp up for the same reason.
All of which is to say that while we might worry here in the U.S. that the consolidation of ammo production that is going on is a threat, there are also other developments ongoing such as in Australia that have potential to ease the ammo availability here. Assuming that due to the favorable exchange rate, Aussie ammo is cheap enough to import despite the added shipping costs, there exists potential for an American importer to grow that source as a profitable supply line to the American civilian consumer.
https://www.nytimes.com/2024/03/01/world/australia/us-weapons-production.html?unlocked_article_code=1.bE0.RMCY.fqKoBAGg3PC4&smid=url-share
The article never mentions it, but the current exchange rate between the Aussie dollar and the U.S. greenback is 0.65 to 1.0;...which is to say that something which costs 10,000AUD only costs $6,500USD. And this is reflected in the labor cost as well, meaning it is cheaper to employ Aussies than Americans.
Australia and the U.S. have long been allies, but that relationship has grown even tighter and more intertwined in recent years as the China threat has increased. Both Britain and the U.S. have had licensed weapon production deals with the Aussies for decades, so that's not new. But the crush in the replenishment of munitions inventories since the Ukraine war became the long-term slog it is has made Aussie munitions production capacity a key resource the Pentagon and Britania are tapping into.
While the article focuses primarily on big Army systems most affected by the Ukraine theater, like 155mm shells and other artillery, video in the article shows small arms ammo production going on as well. All NATO small arms calibers are made in quantity in Mulwala, about 200 miles north of Melbourne, which is also the center for propellant and explosives fabrication. As the larger munitions output is increasing, small arms ammo will likely also need to ramp up for the same reason.
All of which is to say that while we might worry here in the U.S. that the consolidation of ammo production that is going on is a threat, there are also other developments ongoing such as in Australia that have potential to ease the ammo availability here. Assuming that due to the favorable exchange rate, Aussie ammo is cheap enough to import despite the added shipping costs, there exists potential for an American importer to grow that source as a profitable supply line to the American civilian consumer.
https://www.nytimes.com/2024/03/01/world/australia/us-weapons-production.html?unlocked_article_code=1.bE0.RMCY.fqKoBAGg3PC4&smid=url-share
