While most dealers report inventories at satisfactory levels, some are still struggling with inventories that are too large. Most dealers believe they will have steady sales this summer, with some anticipating strong sales. Most contacts report continued vigorous economic activity. Because of a scarcity of skilled workers, some additional upward pressure on wages has been noted. Contacts reports that this pressure has not passed through to consumer prices, with many citing productivity gains as the primary reason.
Construction projects continue to be delayed because of labor shortages.
Jefferson Smurfit bought Stone Container Corp. and will move its headquarters to Chicago. Monsanto plans to merge with American Home Products and move its headquarters to New Jersey. The new company plans to keep its agriculture division in St. Louis, however, which could leave employment unchanged or even increase it. United HealthCare of Minneapolis bought Humana Inc. of Louisville. United HealthCare believes it may move a division to Louisville, which could increase employment in the region.