Evening star., 1941-05-11
New Factories
To Spur Plane
Production
Most Firms Expected
To Double SuIes
During Year
Special Dispatch to The Star.

NEW YORK, May l0.-ProductiOn
of war planes will rise steadily
throughout the year as new capacity
is brought into operation, according
to a survey of the Standard e. Poor S
Corp. Sales of most companies will
be more than double their 1910
volume. Income growth will be
substantial in spite of shrinkage in
operating margins and greatly in
creased tax rates.
Aircraft manufacturers have a
backlog of more than S3,5OO,OOO, 900
as a result of United States and
British government orders. The
magnitude of the work involved in
filling these orders is indicated by
comparing the total figures with
the value of actual deliveries in
1940-$544. 10000 Currently, pro-
ductive capacity is about SO per cent
greater than the average for 1910
and deliveries are running at an
annual rate of approximately $780,
100000.
Even at this rate it would take
close to five years to fill existing
contracts. And, there is no question
that substantial additional business
will be obtained. Obviously. ship
ments at this rate are wholly in
adequate under existing world con-
ditions.
Full carNcity operations are in
dicated for an indefinite period
ahead. The main problem facing
the aircraft industry today is that
of building up producing facilities
to expedite the domestic program
and to supply Britain's needs.
Expansion Progressing.
Between January l., 1888. and
March l, 1941, productive floor space
for the manufacture of engines
airframes, and propellerS was more
than tripled to 24,l22, 900 square feet
Deliveries of war planes rose from
an annual rate of less than 1000
to approximately $4,000. The major
portion of this expansion took place
after the middle of 1910, when our
own defense program was develop
ing.
Facilities now under construction
are expected to add another 10000
600 square feet to the industry's pro-
ductive capacity before the close OF
194l With this capacity in full
operation, an annual rate of more
than 10000 war planes will be at
tanned. This should be reached by
mid-1942. perhaps somewhat earlier
Additional business which will
result from the Lend-Lease Act, will
keep busy a capacity close to $4,000
war planes year. This could prob
ably not be reached before late 1943
Labor Supply Increasing.
The labor bottleneck encountered
during the early stages of the ex-
pansion program appears to be
opening. This is being accomplished
by intensive training courses at the
plants, aided by local schools at air.
craft manufacturing centers which
offer specialized instruction. The
usual process is to train a man tc
do limited task rather than as an
all-round mechanic. Quite natural
ly this speeds up the whole training
program. The only weak spot in
this plan is that it places a greater
burden upon the supervisory staff.
Because of the vital position which
the industry occupies in the national
defense program. every effort will
be made to keep raw materials flow
ing to it in adequate quantities tc
maintain capacity operations
though there are bound to be al
least occasional difficulties in CO.
ordinating shipments of parts from
other industries. Strikes in supply
plants have slowed progress, but
public opinion or Government pres
sure may soon provide the solution
for this problem.
Auto Industry to Aid.
Production of aircraft engines by
the automobile industry promises tc
reach important proportions during
the next II months. Today. this
industry is producing only one type
of engine, General Motors Allison
However. Ford, Studebaker. Buick
and Packard have plants under con-
struction, all of which will begin
producing by the end of the year
Products will be Pratt & Whitney
Curtis Wright, and Rolls Royce
motors in the higher horsepower
models. BY late 1912, these plants
should be in a position to operate
at capacity. 1t is estimated that
the automobile industry will then
be supplying close to half the engines
required to maintain an annual
plane output of 10000 to 81, 900.
The s4,000,000,00O supplemental,
defense appropriation bill signed by
the President early In April provided
funds for the purchase of $500
heavy bombers. Production will be
limited to three models-Consoli-
dated's B-24 four-engine heavy
bomber and the BIS and B-26 two
engine medium bombers developed
by North American and Martin
Fuselage, wing parts and other sub.
assemblies will be produced by Ford
General Motors and Chrysler. The
planes will be assembled in new Gov
ernment-financed plants operated
on fixed fee basis by the aircraft
companies.
Excess Profits Taxes Cut.
Because aircraft manufacturers
earnings have been expanding
rapidly and represent a high return
on invested capital, they would
have been subjected to extremely
burdensome taxes under the excess
prifits tax law of 1910. The amend
ments enacted this year afford con-
siderable relief to most organiza-
tionS.
AS a result of this change, many
organizations are now able to earn
twice as much as under the original
law, before being subjected to ex-
cess profits taxes.