Evening star., 1938-06-03
MACHINERY TRADE
CONTINUES TO LAG
Operations Promise to Drop
Further in Summer,
Magazine Reports.
Special Dispatch to The star.

Special Dispatch TO The Star.
NEW YORK, June 3.-Operations
in the Woodworking industries have
sagged bit and promise to drop
of to lower levels for the summer
months. according to American Ma
chinist today.
Reports from all sections OF the
country indicate that most COM
panies will play waiting game for
the next 80 days and will ascertain
what the political and economic trends
are before embarking on programs
requiring sizable capital outlays.
Bolstered mostly by foreign orders
machine tool companies have seen
their backlogs dwindle further as do
mestic volume receded. Shipments
abroad of power-driven Woodworking
machinery in April aggregated $780,
SIS, compared with $5,119,67l in the
same month of last year.
Steel production. currently at 26.1
per cent, is retreating in the face OF
decreased tonnage from major con-
sumers. Automobile factories and
parts plants are preparing for pro-
ionged shutdowns.
The Governments spending pro-
gram will be so slow getting started
that it probably won't help much
during the summer months. Railroad
purchases of equipment don't appear
bright. Conditions in the South and
Southwest are much better than in
other parts of the country. Business
Weeks index of business activity is
at 59l, as against 5S2 on May a.
Expect United States Orders.
In New England machinery dealers
are expecting Government orders when
funds are allocated for naval con-
struction. One shipyard is preparing
preliminary estimates for 100000 of
equipment. Textile labor troubles have
quieted. A Maine utility is spending
s250.000 for hydro plant extension.
At Cincinnati machinery orders are
poor With foreign buying continuing
on smaller scale Mays volume is
reported less than April's. At Dayton
National Cash Register is buster than
General Motors plants, which are
running two or three days a week
on limited scale.
At Chicago, after staying on low
level for six weeks. electric consump-
ton Is climbing Steel people feel a
little better, though orders are thin
Road machinery makers, despite good
prospects, find it hard to close con-
tracts. Glass blowing machinery COM
panies say that shipments are about
half the volume of year ago, repair
orders and foreign business account
ing for half their volume A prominent
machinery builder received orders the
first half of May exceeding those in
all of April Machine tool inquiries
have perked UP.
Auto Sales Reported.
At Detroit car makers are releasing
tool and die orders to local shops, but
no large programs are UP. Machinery
sales consist mostly of special equip
ment. Small tool buying has gained
slightly. Toledo auto parts factories
expect to close soon for from one tc
three months.
At Cleveland lean demand in auto
parts and steel industries has pulled
industrial operations way down. Fresh
machinery bookings continue tc
shrink in volume, especially those
from domestic sources.
At Pittsburgh, with major steel
users in seasonal decline, steel op.
erations probably will dip somewhat
during early summer Flat-rolled steel
price structure has been readjusted to
bring it in line with continuous rolling
mill practices. Industrial production
was at 554 on May 81, compared with
538 on May Z, according to Bureau
of Business Research, University OF
Pittsburgh.
At New York domestic machine tool
orders are scarce. Inquiries are good
but prospective buyers see no chance
of getting much business themselves
before late summer. if then. Hence
they are holding off orders. Doubt is
expressed whether the, Governments
spending program can get under way
in time to do much good the next few
months, French manufacturers are
in the market for machinery, but
British companies are likely to get
most of the orders on price basis
A small, but steady, flow of machine
tool orders is noted from Sweden ano
Poland. Japan is being closely
watched for possible machinery pur-
chases in this country.