BUSINESS
PROCESS INDUSTRIES* OUTLOOK Activity broadens out in industrial lines, l e d b y a u t o m o b i l e s a n d n e w c o n struction . . . Processing plants still feel t h e pinch o f i n a d e q u a t e supplies . . . Southern states use more, m i d w e s t e r n less, o f fertilizer t o n n a g e LSHUUGH such basic industries as steel fallen considerably b e h i n d on orders as the result of the impact of t h e coal strike upon production, there w a s broadening activity this m o n t h in construction, automobiles, a n d other lines. As a result economic activity on t h e whole was maintained at a relatively high level comparable with that of the closing month* of 1949. The coal stoppage had cut into industrial operations during February, and with manufacturers again obtaining supplies ot fuel, production is climbing in a number ot chemical processing lines. T h e Bureau ol Agricultural Economics in a general summary finds that construction aetivitv declined less than seasonally from December on, a n d remained we 1 ' above the le\el of January 1949. Consumer income also i> hig;h a n d i* being augmented by veterans* insurance refunds, which are expected t o increase the* flow of income to individuals by a p proximately 3*% during t h e first four or Hve months of t h e year. T h e general wholesale price level has been q u i t e stable . i n c e N o vein her.
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Chemical sales receded Irom $1,182 million in November to $1,069 in December, a result in which strikes a n d curtailed supplies may have played a part. T h e loss was compensated for by some reduction in inventories. T h e latter dropped slightly from $2,223 million to $2,212 million. T h e chemical processing industries were still being restricted o n some of their basic r a w materials d u r i n g the first two months of 1930. Outside of t h e chemical industries, how ever, an increase took place in manufacturers' sales d u r i n g January according t o the Commerce Department's Office of Business Economics. N e w orders showed their first upturn since September, a n d the book value of inventories remained practically unchanged. Sales volume gained a s m u c h a s 5 % in durable goods, a major factor being renewed activity in the automobile industry after the yearend reduction in output. Consumption of natural r u b b e r increased slightly from 52,093 tons in N o vember t o 52,681 tons in D e c e m b e r , while the use of synthetic at the same time showed a small recession. Synthetic consumption totals were 31,664 t o n s a n d 3 1 , 443 tons, respectively, for the s a m e m o n t h . World production of natural r u b b e r d r o p p e d from 1,520,000 long t o n s in 1948 to 1,482,500 tons in 1949, according t o the r u b b e r study group, a n international body which h a s been set u p to survey a n d 1072
study t h e production, m a n u f a c t u r e , a n d uses of rubber. T h e same g r o u p also r e ported a drop in w o r l d synthetic p r o d u c tion from 532,186 long tons to 4 4 0 , 3 3 2 tons in 1949. T h e s e figures exclude t h e USSR. T h a t synthetic r u b b e r h a s p e r m a n e n t l y established itself a s a competitor w a s a d -
mitted by spokesmen for t h e powerful British R u b b e r D e v e l o p m e n t Board r e cently, although i t w a s pointed out a t t h e s a m e t i m e t h a t t h e over-all outlook for natural is n o w better than a t any t i m e since t h e end of t h e w a r . T h e board set u p t h e Natural Rubber Bureau in this c o u n t r y last November to p r o m o t e t h e m a r k e t for t h e " N o . 1 dollar earner" i n t h e sterling area. R u b b e r brings in some $200 million a n n u a l l y t o t h e owners of t h e estates i n Malaya, Ceylon, a n d elsewhere in t h e F a r East; hence, i t is easy t o understand t h e concern shown by n a t u r a l rubber interests over t h e inroads m a d e b y synthetic. Chemically-made rubber, notwithstanding, will continue to improve i n
CHEMICAL INVENTORIES AND SALES INCLUDING ALLIED PRODUCTS, BILLIONS O F DOLLARS 2.4 2.2
CHEMICAL INVENTORIES
2.0 1.8 1.6 1.4
CHEMICAL SALES
1.2 1.0 1948
1949 FERTILIZERS
NATURAL RUBBER
TAX TAG SALES M M SOUTHERN A N D MIDWEST STATES H O U S A N O S O F SHORT TONS
CONSUMPTION. TH DLJSA.*OS OF LONG TONS
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CHEMICAL AND ENGINEERING NEWS C H E M I C A L
A N D ENGINEERING
NEWS
q u a l i t y a n d s o m e day may reduce t h e use of natural to a m i n i m u m . Leather p r o d u c t i o n continued to shrink a t t h e e n d of t h e year, D e c e m b e r o u t p u t s in t h e a g g r e g a t e a m o u n t i n g to 7,857,000 hides and skins. In this total a r e calf a n d kid, cattle h i d e , goat a n d kid, a n d sheep a n d l a m b skins. Monthly imports, not s h o w n on t h e g r a p h , are normally double t h e domestic production. Leather c o n s u m p t i o n prospects for 1950 in general are good, according t o trade authorities. T a n n e r s ' council recently forecast a good level of production a n d sales for shoes this y e a r , pointing out t h a t 1949 sales w e r e a h e a d of b o t h 1947 a n d 1948 a n d also p r o b a b l y ran a h e a d of shoe production. Retail inventories early in March w e r e believed t o be relatively low for any p e r i o d since t h e end of t h e war.
USE
EMPIRE METER*
New Construction Seasonal influences w o u l d explain t h e s t e a d y loss in construction volume from O c t o b e r to F e b r u a r y , a n d t h e total for all n e w c o n s t r u c t i o n during the last ment i o n e d m o n t h a m o u n t e d t o a b o u t $1.4 billion. T h e v o l u m e , however, is better t h a n seasonal. Contract a w a r d s h e a d e d d o w n w a r d seasonally in J a n u a r y , t h e F e d e r a l Reserve Board pointed o u t , still t h e a m o u n t was more than one half larger t h a n a year earlier. T h e n u m b e r of n e w residential units s t a r t e d in J a n u a r y was estimated b y t h e B u r e a u of L a b o r Statistics to be 80,000 as c o m p a r e d w i t h 79,000 units in D e c e m b e r , a n d 50,000 units in J a n u a r y 1949. T h e direct v a l u e of construction to t h e process industries hardly needs explaining. T h e C o m m e r c e D e p a r t m e n t says t h a t resid e n t i a l construction a n d t h e rise in publicworks supplied a major element of strength in the nation's economy during 1949. T h e construction t o t a l that year was $19,329 million against $18,775 million in 1948, of which p u b l i c construction was $5,270 million against $4,212 million, t h e rem a i n d e r p r i v a t e l y a r r a n g e d building. In t h e latter category n e w industrial construction a m o u n t e d to only $974 million, a loss of more than $400 million from 1948. Fertilizer volume as represented by tag sales and shipment figures in southern a n d m i d w e s t e r n states increased seasonally in D e c e m b e r but the total w a s considerably below December 1948. Sales in 13 states for the m o n t h was 554,046 tons against 778,732 tons d u r i n g t h e same m o n t h one year previous, a n d the smaller total was p r o b a b l y d u e in a great m e a s u r e t o t h e potash strike. Despite the smaller D e c e m b e r total, fertilizer sales for t h e 13 states c a m e to 9,626,000 short tons, as against 9,213,796 tons for 1948. T h e gain was accounted for principally b y larger fertilizer sales in t h e s o u t h e r n states. Volume in t h e midw e s t e r n a r e a fell below t h a t for 1948. C H A R T C R E D I T S : Chemical Inventories, Sales— Bureau of t h e Census; Natural Rubber — Department of Commerce; Leather— Bureau of the Census; Construction—Survey of Current Business; Fertilizer—National Fertilizer Association. V O L U M E
2 8,
NO.
13
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ViJ C A N BLEND, BATCH, PROCESS M O S T ANY
L I Q U I D W I T H GREATER SPEED,
E m p i r e liquid mecers a r e c o n t r i b u t i n g i m p o r t a n t s a v i n g s to p r o d u c t i o n m e n in t h e c h e m i c a l , d r u g , food a n d p r o c e s s industries. It's quicker t o read an E m p i r e r e g i s t e r t h a n t o wait for b a t c h t a n k s t o fill. It's easier and m o r e e c o n o m i c a l to m e t e r than t o f o o l a r o u n d with c u m b e r s o m e w e i g h i n g scales o r h a r d - t o - s e e stick g a u g e s .
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AN^OTHE R ;PR/EC'LSI ON J? R0 D U C t 0 F R0dKWTEtL M A R C H
2 7,
1950
1073
