Steve, you're a lucky man!
Guys, I'm a newbie in the forum, but not a newbie to business. Let me see if I can help put this into a different perspective, for our friends to the North, by exploring the business issues surrounding "just ramping up" as though it's no big deal.
This is more than just a simple exercise in supply and demand. We must also expand the definition to factor for optimization (maximize profit, minimize loss) and risk (the time value of money) as it relates to capital expenditures and new markets.
It's easy to forget that these items are all executed in a high-tech way and leave out the equation for capital equipment, fixed, and variable costs and all the other factors that are involved.
CNC machining equipment isn't cheap. A good lathe can be upwards of $100,000 to buy, more to rig into a building and install. Floorspace - which costs money per square foot - must be created in the factory, new electrical lines brought in... and so on. Equipment must be maintained to preserve its functioning and longevity, so there is a budget that must be allocated for that. Perishable tooling needs to be added, since bits and bores only last so long. Now, add operators (who are also employees) who aren't cheap either, the costly mandates of programs like Social Security, and other government regulation, and WHAM!!!
And all that's before a single damned unit ever gets off the line.
Now, let's look at what happens after the product is made. More products shipped equals more adiminstrative overhead. More employees to pick, pack, ship, and handle customer service and sales. More government regulations. And more negative friction inside the company that weighs on their success. Ergo, more reason to NOT ramp up for a tirtiary consumer market that, as noted, is already being served by many alternate manufacturers.
And all that's before a single damned unit ever gets sent across the border.
Selling in Canada would mean that if you're going to sell in one Province, you need to sell to all. But SOME areas of Candada are just a bit more "demanding" than others, therefore more difficult to accommodate. Bilingual packaging is necessary for those areas. WHAM! More costs for translation (to Canadian French, since Continental French just doesn't cut it for those guys), design, layout, typesetting, and additional areas of the warehouse to store the new packaging. Oh... and more employees to manage that sales effort. Then, add on the costs of monetary exchange, shipping costs, VAT, Customs duties, liability insurance to factor for the new market, customer support that goes across the border, and Canadian government requirements (as though our own weren't onerous enough) and you have a sufficiently good reason to not be so quick to just say "WTF... let's sell in Canada".
Here's the deal. Surefire is probably very comfortable, and very smart. They've followed the cardinal business rule - they built a better mousetrap and likely have zero slack capacity in the making of it. They've optimzied their business market and if/when the government business backs off, then all the better for us Civvies.
Then, of course, there's the booing of our National Anthem at hockey games that probably didn't help matters. /ubbthreads/images/graemlins/wink.gif