A Chemical Review C o n t i n u i n g our c u s t o m of previous years we have gathered together a s e r i e s o f a r t i c l e s f r o m a n u m b e r of w e l l - q u a l i f i e d a u t h o r s i n t h e c h e m i c a l a n d allied industries a n d present t h e m o n t h e following pages to review t h e p r o g r e s s m a d © ' t I u r h i g H 9 4 6 a n d t o i n d i c a t o t h e trend»t >
Cluirt
1946
1947
1939 scum u
I94Q
1941
Outlook
We are today facing an era of scientific marvels. Chemical progress and ingenuity are making possible a new standard of
1942
1943
1944
1945
194$
1947
s e t s
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considered, and action should b e taken t o increase stability of employment. The problem of increased worker productivity to justify present high wage levels should be tackled, and consideration should be given to the desirability of i n centive plans for both production and nonproduction workers. 1947
WHOLESALE
1939*100 .._.....
living. N"ew products soon t o be available range from rimless blockings to shineiess serge suits. Their are synthetics which resist moisture, rust, acid, heat, vermin, and mildew. There* are medicinal chemicals which combat disease and improve sanitation, and insecticides invaluable t o agriculture. T h e frozen food industry furnishes everything from strawberries and steaks to preco»oked dinners. There are literally hundreds of important n e w products which are being developed t o make life more pleasant a n d more interesting. I n the production o f all o f them
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the chemical industry plays an essential part. Our country has the physical resources and technical know-how t o produce a higher standard of living for everyone. Only our failure to understand the reasons why the nation has made such progress in the pa«*t can prevent a continuation of this progress in the future. If our government will allow the old incentives of hope for profit and for individual advancement to operate again, we can b e assured that t h e American economic s y s t e m will outstrip its past achievements.
Chemical Plant E x p a n s i o n D. P.
MORGAN, W.
the large expansion of chemical D"KSPITE t
plant capacity during the war, postwar programs now under way provide for a further expansion of impressive size. On completion of the present program, the total expansion since 1939, including the wartime expansion, minus strictly military plants, will make available over $2,400,000,000 of new plant facilities for the postwar economy. T h i s is an increase of approximately 8 0 ^ over 1939 plant capacity, which is estimated from Treasury Department figures to have been approximately $3,000,000,000. Based on a tabulation of const m e t ion contracts and programs announced, it appears that nearly $900,000,000 worth of new construction is now under way. This is somewhat more than half the billion and a half dollars spent on chemical construction during the war, after eliminating plants for the production of smoke78
R. Grace & Co., 7 Hanover Square, New York 5, N. Y.
less powder, TXT, toxic gases, a n d other materials required only for war purposes. So, the chemical industry continues to forge ahead. In fa,ct, this program might be even larger and would be completed sooner were it not f o r labor problems and shortages of construction materials. Moreover, some projects have been held up because rising construction costs threaten to make the investment too high. Still, the scope of the individual projects and the large number of companies involved, which includes virtually all the leading companies in t h e field, leads t o the conclusion that top-flight chemical managepu»rtt generally h a s ample confidence in the long-term outlook for the chemical industry. T h c e s t i m a t e of t h e total value of plants in 1939 in the chemicals a n d allied products industries was based upon corporate income t a x data obtained from T a b l e 4 of CHE Ml
CAL
a booklet entitled "Statistics of Income, Part 2, for Corporations", published annually by the Internal Revenue Bureau of the Treasury Department- Gross capital assets of corporations in the chemicals and allied products field were not reported for 1939 and earlier years, b u t in 1940 they were given as $3,386,000,000, and as $3,565,000,000 in 1941, a n increase of $179,000,000, or 5 . 3 ^ . Assuming a proportionate increase from 1939 to 1940, the figure for 1939 m a y b e estimated as roughly $3,200,000,000. Adjusting to eliminate f ats and oils, which are included in the Treasury total but which are not included in our analysis, leaves estimated aggregate gross capital assets for chemicals and allied products in 1939 as approximately $3,000,000,000. Geographical Trends Figures on war plant construction recently made available by the Statistical AND
ENGINEERING
NEWS
