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How an Idaho ammo supplier has grown fourfold in 5 years | Idaho Economy | Idahostatesman.com
Howell Machine’s workforce has grown fourfold in five years and is still expanding.
By ELAINE WILLIAMS — LEWISTON TRIBUNE
What used to be Lewiston’s skate park fills up every weekday morning with more than 100 rigs belonging to employees of multiple enterprises that operate under the Howell Machine umbrella.
The scene is a visible sign of the internal growth the supplier for ammunition makers is experiencing.
Five years ago, Howell Machine had fewer than 30 employees. Today the company employs 132 in Lewiston, including 72 new positions since December. It is poised to add 96 more by March, says owner and founder David Howell.
The nonexecutive jobs at the company pay from $12 to $24 per hour, not counting benefits.
Howell’s businesses occupy 35,000 square feet in downtown Lewiston. They will soon grow by 47,000 square feet at an industrial site near the Lewiston-Nez Perce County Regional Airport.
“I love to build things, to take risks,” Howell said. “I like to see what I can accomplish. That’s what drives me. That’s what fills that void that everyone has inside.”
His enterprises have thrived by meeting some of the needs of the ammunition industry, helping makers of center-fire ammunition for pistols and rifles.
The biggest shares of new jobs are at Howell-owned Lewis-Clark Ammunition and Clearwater Bullet. Lewis-Clark Ammunition makes shell casings for ammunition. Clearwater Bullet manufactures projectiles for ammunition rounds.
The two ventures help solve a problem for ammunition makers: having all four pieces for a round ready at once, Howell says. Those bottlenecks are expensive and can erase a manufacturer’s profit margin. If a factory has the primer, the shell casing and propellant, but not the bullet, its machines could sit idle.
Few businesses can afford to carry costly ammunition parts on their books for extended periods, Howell says.
Within Lewis-Clark Ammunition is an operation that reconditions spent shell casings. The unit sorts them by size, cleans them and removes any damage. “We do some very exotic recycling,” Howell said.
The shell casing is the most expensive component of ammunition, and rounds made from reclaimed casings cost about 15 percent less, Howell says. “Everybody is looking to save a few bucks.”
Howell’s other enterprises are the Howell Machine Shop, AmmoLoad Worldwide, Twin River Contract Loading and a line of retail stores just starting to open nationwide.
Howell Machine Shop designs, engineers and makes parts for the ammunition-making machines of AmmoLoad Worldwide. Twin River Contract Loading produces batches of ammo that are sold under labels of other companies. The venture helps smaller companies — many of which buy AmmoLoad Worldwide machines — offer a broader array of products.
Howell already has a retail store in Lewiston, Lolo Sporting Goods, and is opening in Houston in September. A third store is on the drawing board in Atlanta. The stores provide a place for Howell’s customers to sell ammunition if they don’t want to do a lot of marketing on their own.
A sense of insecurity has resulted in revenue for all of his entities, Howell says. Americans have seen a variety of instances, including the 9/11 attacks and Hurricane Katrina, when government was unable to protect them, he says.
Those events have created public support for beefing up law enforcement, which means more guns and ammo are needed. And more people are buying guns, and more are taking classes so they know how to use their weapons.
“People have figured out it doesn’t do any good to have a gun if they don’t know how to use it,” Howell said.
At the same time, Barack Obama’s presidency has fanned fears about tougher gun laws, prompting firearms owners to stock up. Despite such concerns, no new restrictions have been imposed, Howell says.
On the recreation side, hunting continues to create a steady but static market for ammunition. It has been joined by emerging sports driven by returning soldiers from Afghanistan and Iraq. In one competition, they carry a pistol, a rifle and a shotgun and run through a course shooting steel targets. Their scores are a combination of their speed and accuracy.
Cashing in on the high demand for ammo takes skill and the right equipment, Howell says. Included in the $35,000 to $55,000 price of AmmoLoad machines are two free days of training that can be taken in Lewiston or where the machine is being delivered.
“Just because you bought a tractor doesn’t mean you’re a farmer,” he said.
Howell doesn’t have a desk. Instead he spends much of his time roaming the plant, sometimes even when it’s closed, checking on quality.
He looks for employees with a strong work ethic who share his vision of embracing innovation and delivering a quality product at a fair price. “The people who think that way are absorbed into the company,” Howell said. “The people who don’t bounce off.”
The trends propelling Howell’s success will probably continue, he says.
One of the few potential threats he sees is increased government regulations, such as rules that would ban Internet sales of ammunition. Such a move would do little to make people safer, Howell says. “You can’t fix stupid. You can’t stop terrorist activity by taking the tools out of their hands.”
ELAINE WILLIAMS:
[email protected], (20 848-2261.