Evening star., 1941-07-27
Curb b|sExpected
On Non.Defense
Construction
Military Needs Likely
To Force CurtoiIment
In Coming Months
Special Dispatch TO The Star.

Special Dispatch TO The Star.
NEW YORK, July 26-Because of
the large volume of construction al
ready booked, building supply COM
panies are assured heavy demand
for the remainder of l94l. it is
pointed out in survey by the
Standard & Poor's Corp.
The major problems involve ade-
quacy of transportation and threat
ended shortage of certain materials,
particularly metals and imported
products.
As the United States concentrates
more and more on the production Of
munitions. curtailment in construc-
tion will be necessary, particularly
non-defense work in the residential
and public works division. ReStric-
tions are expected to appear in the
trend of building contracts during
coming months.
Defense Boosts Activity.
The construction industry is op-
Grating at the highest level since the
late 1920s, and in some divisions new
records are being established. Dur
ing the first half of 194l, the value
of contract awards in the 81 Eastern
States IF. w. Dodge figures stood
81 per cent above the comparable
1910 period.
Even greater gains have been re-
corded in certain Western States
where there is concentration OF
defense plant expansion.
The defense program is of course
largely responsible for these wide
gains, rejecting the concerted et-
fort of both public and private capi-
tai to provide the manufacturing
facilities for the production OF ar
maments. Construction for United
States Government ownership with
funds provided by Congress constl-
tuted about half of the aggregate
flrst-half gain.
AS might be expected, increases in
contracts for manufacturing and
commercial buildings provided all OF
the lO4.5 per cent gain in non-resi-
dental building. The second out
standing increase was that SHOWN
by utility construction.
Public Works Restricted.
Although contracts let for public
works construction during the first
half OF l94l exceeded the compar-
able 1910 level by 26 per cent this
gain was the smallest recorded by
any major division. An actual de-
cline Is expected for the second half,
so that the full year may record lit
tie or no gain.
Defense outlays for airports, har-
Dor improvements and Notifications
provide considerable stimulus, but
Federal appropriations for peace
time projects are being cut. More
over, substantial part of the money
appropriated for naval and air bases
will be spent outside the United
States and will not be included in
domestic contracts.
In an effort to expedite defense
housing. a critical list of housing
materials is being formulated. 1t
will not include metals but will in
clude most of those materials which
are scarce but not already subject
to priorities or some form of con-
troll
Ratings will then give preference
to publicly financed housing prof.
ects and to low-cost private hous-
ing in defense areas-administered
by the o. P. A. on recommendation
of the Division of Defense Housing
Coordination. More important,
however will be shortages in the
metals, since their use Is being di-
verted from the building industry.
Huge Needs Seen.
While priorities will necessarily
penalize some non-defense housing,
there is more than one Offset as far
as producers of building materials
are concerned. In the first place.
shelter continues an essential need
and near-capacity output will be
taken as long as serious shortages
exist AS soon as Federal funds are
allotted for defense housing new ap-
preparations are sought. The last
appropriation was for $500 000,0 900
on July L.. 1941.
While the bulk of the originally
planned cantonment work has been
completed, this provides for an
Army of only about 100000 men.
Wide expansion in this figure is
probable Other housing needs can
scarcely be expected to disappear,
so that once the emergency pres
sure for defense housing is salts
fled, normal demand for private
(See CONSTRUCTION, Page E-3D