INTERNATIONAL
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F O O D PROCESSING METALWORKING CONSTRUCTION
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Remember, whatever your needs, y o u will fill t h e m best—fill t h e m fast—through M e t a s a p ' s c o m p l e t e line of m e t a l l i c soaps. W r i t e for full information. O u r T e c h n i c a l S e r v i c e D e p a r t m e n t will gladly m a k e recomm e n d a t i o n s based u p o n y o u r specific requests. M e t a s a p Chemical C o m pany, Harrison, N . J .
tiETASAB .LHKMIUU COMPANY
METALLIC SOAPS FOR RESEARCH A N D INDUSTRY A subsidiary o f
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APRIL
2 8,
by S. J . COOK
Chemical Investment Grows I N V E S T M E N T plans call for spending $8.5 billion i n Canada during 1958. "A program of this magnitude, while slightly below t h e record $8.7 billion spent for capital purposes in 1957, would be well ahead of any other p r e vious year," says Mitchell W . Sharp, deputy minister of trade and commerce. This estimate provides for slightly more construction than last year a n d a 10% reduction in machinery purchases. If the 1958 p r o g r a m proceeds as planned, capital spending would then continue to make up more than 2 5 % of gross national production. Trends i n capital spending anticipated for 1958, Sharp notes, are largely t h e results of the capital expansion pattern of the past few years. Expansion was first sparked by t h e sharp increase in world d e m a n d for products of a n u m b e r of Canada's resource-based industries, which in turn stimulated expansion in industrial materials, power, anc transportation. Projects started in these years reached their high point in many cases in 1957, resulting in a record level of capital outlays that year. Throughout this period, the rapid expansion drew heavily on available supplies of labor, materials, and funds, causing expansion to fall short of demands in some areas. Meanwhile, t h e economic climate began t o change. increased production at home, greater availability of imports, and a n expanded labor force eased the pressure o n supplies. Also, markets for industrial materials softened and additional capacity which had been created for many of these products was* more than enough t o meet current demands. This resulted i n cutting back some investment programs, as in the mining industry. I n other cases, the easing supply situation enabled projects t o proceed faster t h a n expected. Housing activity, for example, rose sharply during t h e latter p a r t of 1957. • Chemical Spending Highest. Chemical products firms continue t o d o
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Harrison, N . J . · R i c h m o n d , Calif.· Cedartown, Ga. Boston, Mas». · Chicago, 111. · London, Canada
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CANADIAN
1958
rather better than industry as a whole. Capital expenditures foreseen for 1958 will be $149.4 million compared to last year's $149.2 million. This year, machinery and equipment will take $97.3 million in 1958 as against $82.7 million for 1957. Construction will be lower at $52.1 million compared to last year's $66.5 million. Repair spending on construction, machinery, and equipment will b e $48.7 million as against $45.3 million in 1957. • Chemical Output Increasing. Canada's chemical o u t p u t rose above the billion-dollar mark for the first time in 1955. Production has risen, and the total for 1958 will b e . a t least 1.2 billion. Rate of growth has averaged 6.3% a year since W o r l d W a r I, compared with a rate of 4 . 5 % for all manufacturing. T h e rate h a s slipped to 5.7% for chemicals since World W a r II as against 4.7% for all manufacturing. A young country m u s t at first import many of its manufactured products. Secondary manufacturing, or the stage between primary processing of raw materials and assembly of finished products, is not highly developed in Canada, but t h e gap is narrowing as basic chemical production increases. At present, about 6 0 % of Canada's chemical output is in basic chemicals, fertilizers, explosives, primary plastics, synthetic rubber, pharmaceuticals, a n d coal tar products. Canadian chemical'industry still makes less than 1 0 % of all known chemical products, b u t does produce nearly all the major chemical products consumed here in values exceeding $1 million a year. • Chemical Future Bright. Here is the p a t h for future growth. Canada today offers a limited chemical market, and consequently imports about 2 5 % of domestic requirements. Nevertheless, t h e Gordon Commission, which recently finished a study of Canada's economic prospects, forecasts that Canada's chemical market will b e five times greater in 1980 than at present. Annual sales are estimated at $5 to $6 billion by then. This means a continuing growth of about 6 % p e r year. Imports are predicted to drop to about 2 0 % of total consumption. Exports, now 2 0 % of output, may d r o p to as low as 1 0 % .
