The Washington herald., 1921-07-23
Lack of Coordination
Brings Unemployment
And Waste.
CAPITAL AND LABOR
ARE SHORTSIGHTED
Employers Mismanage
ment Linked with the
Unions Restrictions.

$500, 900, 900 year IN Waseo
through unemployment
An ANIMAL loss of s1ee,ooo,ooo due
TO accidents
\ loss of $1,000. 100000 through
duplication of estimates and de-
signs and duplication in bidding
Such are the conclusions reached
by a comprehensive survey Of the
bnilding industry of the United
States. which rank second among
the industries Of the nation 1t Is
announced in a report just issued
by the committee on elimination of
waste in industry of the American
Engineering Council, appointed by
Herbert Hoover
The investigation just completed
By this committee is believed to be
the most comprehensive that ever
has been made into the building in
dustry. It covered the entire coun-
try, but said special attention to
such cities as New York. Boston
philadelphia. Baltimore, Chicago
Cleveland. Atlanta and San Fran
cisco.
Part of six-Fold Inquiry.
The industry into the building
industry was part of national in
quiry conducted by the committee
which. as its name implies, has for
its purpose the elimination of
waste in industry. ]. Park Shan
ming, of New York, is chairman of
the committee, and Lew wallace,
of Washington, is vice chairman.
The idea originated in the mind of
Herbert Hoover, who recently re-
tired from the presidency of the
American Engineering Council. II
embraced six leading Industries.
The building investigation was un-
der the direction of Sanford e.
Thomson. of, Boston, who had at
his disposal a large force of field
workers
Ths building industry. including
all trades and common labor inciden-
tai to it,. ranks second among the
industries and contributes more
than 500, 0,0oo.0 a year to the
wealth of the nation. Averages for
the last six years, show that 50 per
cent Of the activities of the indus
try are devoted TO the construction
of residential building, IS per cent
TO Industrial building and the re-
naming percentages to "miscella-
neaus construction" The industry
employs during a single year some
5000, 900 mechanics and laborers.
The building trade workman"
says the report sis busy on the av-
erage about 100 days in the year.
or two-thirds of his time. A few
contractors. individually or asso-
eiated, are attacking this problem
with effective results. The public
also must be educated to the need
OF a sensible distribution through
the year of its construction demands
and requirements. Idleness, how
ever. is not due entirely to seasonal
demands: strikes and lockouts are
appreciable causes.
Poor Management q Factor.
'Haphazard management In plan
ming and controlling work and lack
Of standards, which often double the
labor cost. characterize most con-
struction undertakings. Here again,
few builders. recognizing the
waste in money and man power, are
adopting methods that approach
modern factory management.
Union regulations in the past
have produced enormous losses
through direct or indirect restric-
tion of output. workmen and con-
tractors. however. are beginning to
appreciate that reduced output re-
acts in tremendous fashion upon
themselves
In some construction trades ac-
eidents involve losses up to 10 per
cent of the labor costs In addition
TO the human loss of lives and en-
ergy. The average loss. computed
from insurance statistics, is about
2Z per cent of labor cost. Here
also certain contractors have found
It possible to cut their accidents in
half through special efforts.
Greater cooperation between the
workmen and the employers is an
absolute essential. This co-opera-
ton must be attained before we can
approach the elimination of labor
difficulties. Such cooperation. how
ever. Is impossible without the re-
moval Of causes of friction and the
working out of plans to this end.
Housing Construction Half Of Is15,s.
"A striking fact about the build-
ing industry is that inasmuch as
small buildings require so little
capital or credit, and apparently so
little technical ability, the field is
full Of small contractors, many of
whom operate for a few years and
then fail"
The total shortage of housing in
1921, 1t is found. amounts to So per
cent OF the total square footage
(called the real measure of value)
constructed in 1915.
The need for -- =" saws the
report. sis most evident. The costs
are 50 high. however, that the
householder cannot AFFORD to buy.,
nor can the banker lend money bo-
cause of the danger of loss through
the Inevitable fall IN prices.
The high cost of labor and ma
erials in 1920 and 1921 prohibited
bankers from lending money on or
dinary building and dwelling bouxe
construction. They reasoned. and
correctly. that the price of mate
rails and labor would drop SO tha,
Buildings erected at a later data
would cost less. thus causing a tatl
In the selling prices. Added to this
have been the income tax condJ-
tions. so that the funds which wsr,
at one time available for pnor.-
-