CHEMlGAL AND ENBiHEERlMG
NEWS
"FACTS AND FIGURES" ISSUED ANNUALLY
SEPTEMBER % * f i ^ f i * 4 y p U 3 5 , N O . 35 ^ , A C-APPL1ED JOURNALS; ACS - - . > 0/reefor of Publications: ^ C . B.^Larrabee jr EditoriaUDireciori" ^W. J , M u r p h y v ^ V executive Editor:^ James M . Crowe ? ^Production Manager:^" Joseph Ή . Kuney H, C H E M I C A I S A N D : ENGINEERING NEWS Editors*^Richard L . Kenyon * κ* γ Managing Editoris? R o b e r t F . - G o u ! d \ { - / EDITpil^LiHEADauXRTERs!?^^ 's W l l l l â i n ^ p H « l l v H ^ ,?-5 ard "J Κ Sa nders» Di "Gray-Weaver^ Watèei\ "jN-fv^-;' {-SAN ^FRANCISCO { 4 , C A L I F . - ' ^ J K< 703 Mechanics* I n s t i t u t e BIdg. / ' _ ;^ / ^P^one* Exbrook 2-2895.^:^ ^Teletype SF 549, K S' 'Associate fcjâor« Î^RIjehard iG.NeVhall'' ,
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In a Fast-Changing Economy, a Pattern of Progress Is an Invaluable Tool in Planning for the Future AN THE PRESIDENT'S LETTER to stockholders accompanying the annual report, Dow Cherniears Leland I. Doan states: "It will be noted that our 1957 earnings were reduced even though there was a considerable increase in sales . . . . "I do want to point out, however, that the profit squeeze is not unique to Dow, nor is it unique to the chemical industry. It is a situation which con fronts many segments of industry today." Doan's observations are fully substantiated by a poll of top executives of 44 leading chemical companies, taken by Maurice F. Crass, Jr., secretarytreasurer, Manufacturing Chemists' Association, and summarized in "Facts and Figures," published in this issue. Forty of the 44 executives polled responded to Crass' comprehensive questionnaire. The eight largest companies are represented. We believe this to be the most detailed and authoritative study made in many years of both the short-term and long-range prospects for the chemical industry. In general, immediate and long-term pictures are favorable. In the lead article written by Crass and Marjorie V. Campbell, his assistant, the authors state that chemical sales for the second half of 1957 are expected to exceed those of the first half by about 10%, except for operations of seasonal nature. This favorable trend will be accompanied by an improvement in earnings, which should become more marked over the next two-year period. They also foresee augmented budgets for research. Management expects to equal or exceed the 1957 record-breaking construction expansion rate during the next two years. Certainly the top decision-making executives of the chemical industry are optimistic. They firmly believe, as indicated in this poll, that cliemicals will continue as a "growth industry" and that future developments and prosperity will dwarf those of the past. Such optirriism, however, does not blind those who are responsible for spending intelligently huge sums of stockholders' money to t h e fact that serious problems must be met and resolved satisfactorily. Cost-price factors, taxes, inadequate depreciation, and, most of all, the frightening specter of further inflation are ones that cannot be taken lightly. The chemical indus try, like most industries, appears to be on a plateau currently, consolidating its position before again moving ahead at a rapid pace to meet the needs of a fast-expanding population. The "Facts and Figures" presented in this issue is the fifth in the series. It appeared biennially in Industrial and Engineering Chemistry in 1950, 1952, and 1954. In 1956, "Facts and Figures" was transferred to C&EN. At that time plans were made to make the feature an annual event, On a yearly basis, it is much more timely and, therefore, of much greater practical value in a period of kaleidoscopic changes in the national and international economies. On an annual basis, it is more than a recording of past history. It makes possible considerable forecasting on a reasonably accurate basis. The necessity of doing proper long-range planning frequently has been stressed on this page. The size, complexity, competitive nature, and high cost of operating the modem chemical industry as we know it today preclude making decisions on hunches. Five "Facts and Figures" now constitute a pattern of inestimable value in planning future expansion. The editors of C&EN are deeply grateful to those who have contributed articles to the 1957 edition. Several, like Crass, have authored articles in all previous editions. The editors also wish to thank many authors who, in one way or another, have made possible another "inventory," as well as a gaze into the crystal ball. "Facts and Figures" now, and for some years past, has been widely accepted as a pertinent planning tool by those who direct the future destiny of the most dynamic segment of American industry in the 20th l J century. f U,
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