A weapon without ammunition is useless, which is why ammunition is almost always a strategic national capability whose production must remain in-country. On the other hand, government demand has a tendency to swing up and down within narrow limits, and the demands of efficiency usually lead to a single supplier situation – often using equipment that dates back to World War 2. The USA has run into problems because of its reliance on a single small arms ammunition plant, for instance, and has moved to modernize and diversify its base. Its ally Australia is modernizing key ammunition facilities, and trying to modernize its industrial approach as well.
Then there’s Britain, whose long-term defense contracting practices are establishing world-class benchmarks. The UK MoD had been working on an arrangement that secures national supply needs from British sources, and ensures that modernization investments continues to improve industrial efficiency. Hence the new 15-year, GBP 2+ billion “Munitions Acquisition Supply Solution” (MASS) program, inaugurated in August 2008.