Evening star., 1940-08-19
Industry Will Push
Expansion Plans
In Coming Weeks
Contractors Disclose
Broodest Inquiries in
More Than Decade
By PAUL d. GESNER.

Associated Press Business Writer.
NEW YORK, Aug. 19-Sharp ex-
pansion in industrial plant construc-
tion during the next few weeks was
forecast today as building contrac-
tors reported inquiries received the
past fortnight had been the broad
est for any like period in over
decade.
Companies by the score were said
to be asking for cost estimates on
proposed new buildings under out
lays ranging from $25,000 upwards
into the millions
The factory building spur. the ex-
pertS say, stems largely from in
Gustries expanding capacity to
handle share of the armament
business anticipated in connection
with the Nations projected S10,000,-
600, 900 defense spending.
However, consumer industries, too
makers of peace-time goods-are
also widening facilities. It's thought
that pouring of $4,000 100000 of
Federal funds into the channels of
trade as defense weapons are de-
veloped during the next two or
three years will be a robust stimu-
liant to general retail trade. Bigger
industrial pay rolls spawn faster re-
tail store sales
Sees Steady Gains.
New factory construction con-
tracts have been expanding steadily
all year. To date, such building
awards are said to be running about
so per cent ahead of the like 1889
period. 1t should be remembered,
however, that 1899 was poor year
in industrial construction, so a 60
per cent gain is not so impressive.
Much more significant are the
pending new construction inquiries
If these materialize into actual
awards, as now seems likely. the
volume of industrial contracts for
1910 may zoom upward to the biggest
total since 1929-30
Holding back new factory con-
struction for nearly 10 years now
has been the unused production
capacity of many companies. In
the late 1920s many big concerns
embarked on broad new building
programs on the theory that the
fast industrial operation seen before
the market crash in 1929 had come
to stay.
The depression of the early 1930s,
! therefore. found many concerns the
unhappy owners of idle new factory
buildings. Many, in fact, we're never
used until 1861 when the first
brisk ost-depression run of busi-
ness crept onto industrial trend
charts.
Other Methods Tried.
The break-neck pace of industrial
operations last fall. as America
started rolling war orders for Eu-
rope, found many companies facing
the necessity Of building new plants
or curtailing output. They had re-
sorted to every possible alterna-
tive before planning new construc-
ton. They occupied long, empty
buildings.
They rearranged machinery to
increase floor space. They adopted
double and triple eight-hour shifts.
so workers could utilize existing
plant 16 and "a hours day. But
in many lines. including the ma
chine tools, aircrafts and others.
it was found these measures were
not enough to keep backlogs of un-
filled orders from mounting too
high.
eminent suggested that as a de-
fense measure. it might be a good
idea for companies producing stra-
tegic products TO shift some plants
from coastal cities to scattered in
terror industrial centers.
Then. finally, came Federal plans
for $4,000, 100000 defense spending
Industrial leaders, stoutly resist
ing new construction plans. then
concluded that more production ca
pacity would be needed if their in
dividual concerns were going to
handle expanded business.
AS result, the industrial build
ing outlook at the moment is the
brightest in years. and contractors,
desks cluttered with inquiries, are
taking of coats, rolling up sleeves,
and getting ready to supply the Ma
tons broadened new factory needs.