Evening star., 1933-06-11
Demand Expected to Widen
if General Business
Gains Continue.
NEGLECT OF EQUIPMENT
RAISING PLANT COSTS
Research Providing Greater Eff.
cheney Also Will Be Powerful
Factor in Forcing Changes.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 10.-The rise in
general business is causing a slight up
turn in machine tools This movement
will quicken and broaden il the general
trade improvement continues, for after
four years of low purchases repairs no
longer will suffice.
The placement of some orders and
increased inquiries from Boston, New
York and Philadelphia have encouraged
the machine tool makers of this area
The Pittsburgh market remains very
quiet, but plants in Cleveland are be-
ginning to feel the effects of increased
activity in the automotive industry.
Chrysler Corporation, for example, is
placing orders for some machine tools.
Cincinnati reports increasing inquiries.
Following spurt in early May, the
Chicago and Milwaukee areas are quiet.
It is only a question Of time until
the biggest buyer Of machine tools, the
American railroads, will have to come
into the market.
Meanwhile, research activities are
being carried on aggressively, with re;
achievements. Many of these will be
impressive to manufacturers when they
again enter the market to purchase
machine tools.
Exports Still Small.
Exports of machine tools continue
small, but foreign orders during the de-
preston held up better than domestic
purchases. This fact causes the trade
at the moment to emphasize prospects
In this country, which would be bright
ened by the passage Of the national
industrial recovery act.
The 32-hour week in industry, for
example, Is expected to cause manu-
facturers to operate only one shift. If
that be true, the one-shift program
PRODUCTION of machinery designed to
increase the speed of production and
save labor.
Many ndustries-textiles well illus
trate this general trend-have neglect
ed their factory equipment to such an
extent in recent years that their pro-
duction costs are Increasing, despite
the higher rate of operation, which
should cut costs. How much this trend
and the 32-hour week will be Offset by
the lessened competition that the re-
covery act envisions Is another factor.
Some scrapping of machinery was
caused by cut-throat competition,
which made lower costs imperative and
hence required more efdcient machines.
March machine tool exports OF $751;
914, latest available oficial figures, con-
trast with $750,210 In February and
$685., sos In March, 1882.
These figures do not accurately re-
fleet the situation, for the banking holi-
day brought a virtual cessation Of ac-
tivities. Despite total export shrtnkage,
some items gained, including automatic
screw machines, milling machines. gear
cutters, surface grinders, internal grind
ers, and sheet and plate metal working
machines.
Accessory machine tools closely par
alleled those in the machine tool field
proper.
Domestic Drop Greatest.
Domestic orders declined far more
than export bookings Foreign pur-
chases for 1880 and 1891 showed gains
of and 10 per cent, respectively, over
1929, but drop of IS per cent occurred
in 1892. Domestic orders for. 1880 and
1881 were down IS and 80 per cent, re-
spectively, from 1929, while total do
mestic business last year was just 13
per cent of that of 1929. This explains
the large decline in employment in
machine tool establishments and the
sharp cut in pay rolls. It explains, too,
why the National Machine Tool Build
ers' Association index hit record low
of 13 last March, drop of 2 points
from February and decline Of II
points from January, 1882.
Present machine tool output in this
country Is about 80 per cent of nor
NAL" based on the three-year average
of 1922-1924. Gross orders for April
were up 28 points to 1873, but that
was regarded as merely a normal re-
covery from the March record low.
Preliminary figures for May indicate
betterment over April.
Machine tool plants in the United
States in 1929 numbered $50, with
1881 wage earners. In addition there
were 722 plants devoted to machine
tool accessories and small metal-work-
ing tools, with 1852 wage earners.
Wages in 1929 for the machine tool in
dustry amounted to more than $76,-
600, 900 and for the accessory field more
than $51 100000. Value Of machine
tools manufactured was $420, 900 900
and accessories 250,000, 900. No accu-
rate, complete cures since that year
have been compiled.
Copyright, 1933)