Potentially big news is swirling around the U.S. Army’s Lake City ammunition plant in Independence, Missouri.  According to a report by Staple Defense, the ammo manufacturer canceled all commercial contracts.

This is big for some segments of the shooting public and another warning sign that ammunition may once again become scarce. Lake City produces a full 30% of the civilian supply of 5.56 ammo, meaning retailers will be forced to scramble to make up for the broken supply chain.

Panic buying being what it is, a new rush could also ramp up potential shortages. 

The U.S. government owns Lake City. However, it is operated by Olin Winchester, which produces the products and sells them to the military. As the facility normally produces more than is needed by Uncle Sam, their sizable surplus is then sold to distributors or consumers.

This makes Lake City not only the largest supplier of ammunition for the U.S. government and the Pentagon, but it’s also the largest small arms ammunition producer on the globe.

This does not bode well for the nation’s supply of Winchester 5.56.

One possible reason for the decision to cancel civilian contracts is military needs as tensions increase around the world. Multiple hot spots are flaring, and this could signal the need to stock up or resupply. 

This may also mean another phase in the current administration’s war on private gun ownership. In 2022, there was a move by the federal government to end civilian sales from the Missouri factory. 

Fifty members of Congress signed on to a call for the White House to backtrack on the plan to cut off ammunition supplies, and it worked. This situation now is not crystal clear, but if current reports are accurate, there are issues on the horizon.

The ammunition surge reported in the wake of terrorist attacks on Israel followed by the shutdown of a large chunk of the civilian supply could spell trouble.