Like the bullet manufacturers, the powder manufacturers say that the problem is demand. There seems to be more to it than that, as .22 ammunition, powder, and bullets just don't seem to show up on the store shelves.
There are all sorts of regulations for how different weights of smokeless powders must be packaged and stored. For example, once you have more than 800 lbs on site, you have to have an entirely different building. So distributors and retailers have to carefully manage their orders and timing.
This is from a press release written by Chris Hodgdon May 17, 2009:
Why is there a powder shortage and when will it end?
The answer is really quite simple. In November 2008 a liberal government was elected by the majority of voting Americans. Beginning the next day some of our fellow shooters began to purchase and stock-pile powder, primers, bullets, brass, ammo and guns. Soon word spread person to person and with the ease of communication through the internet enough shooters ran to join in that an unprecedented demand has occurred.
Literally within weeks – before the end of November, the distribution pipeline was empty and demand far outstripped supply. The manufacturers of our industry, including
Hodgdon® Powder Company, ordered new supplies trying to meet customer needs. We have been working at maximum capacity since that time.
There is no more capacity to make powder. We are currently making all burn speeds of
Hodgdon®,
IMR® and
Winchester® powders. We are shipping these powders as soon as they are made and packaged. We are shipping every day.
Some will ask why we do not build more plants. The answer is simple, time. There is no time to build the plant before the unprecedented demand for powder slows down.
I have received calls from shooters who have heard all kinds of rumors why powder is so hard to find. These rumors are not true; there is no vast government conspiracy, the military is not buying up all of the powder and other components, we are not withholding powder from the market, no ships carrying powder are being held hostage by pirates, there is no magic chemical we are being forced to include in the powder which would shorten the shelf life.
---- from Alliant, November 20, 2009 -----
Where the greatest amount of powder is going is for the manufacturing of ammunition for the civilian market. Companies such as Winchester, Remington, Speer/CCI, Federal Hornady are using most. Throw on top of that all the small remanufactured ammunition companies across the country and the demand for powder is extremely high. There are signs of an easing in this extreme demand. More ammunition is found on the shelves today than there was 8 months ago. Primer orders are dropping off. Finally, gun sales are way down today compared to recent times. Having worked in retail in the past, we saw similar situations with ammunition and primers. Those periods lasted a maximum of 18 months. We are currently into this about 18 months. If historical trends follow through, then we should be seeing an easing in this extreme demand soon.
Thanks,
Shoot Straight
DuaneVB
CCI/SPEER/ALLIANT POWDER
2299 Snake River Ave.
Lewiston, ID
then to find out it all go's tits again 
The main problem with ADI manufactured / Hodgdon brand powders has been transportation. For some reason or other, restrictions on on-board shipping quantities of explosives have been applied to vessels that call in at New Zealand. We're told there is only one shipping line that will carry explosives from Oz to the US and its vessels are all routed via NZ.
