I’m of two minds on this.
1) As mentioned above, another draw on resources that could go to commercial sales.
2) More competition increases the resource pool as suppliers ramp up to meet higher demand. This drives down prices in the long run (a la contract overruns at Lake City).
These folks seem more like a supplier to other ammo companies than a manufacturer, but expanding more into small arms business. Yeah, the DEI smoke signals bother me, but anyone with a .gov contract these days has to have that crap posted…not too concerned.
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What’s more interesting to me is to ask the questions “why here?” and “why now?”
$125M is a relatively paltry sum in the MIC world, but not insignificant; especially in light of the specifics of the offerings being produced at this site. Someone‘s gearing up for a ground war.
Lizard brain is wondering if I can buy stock in that company…