Evening star., 1942-03-29
Active bui|dinq
Year Assured by
War Needs
Only Firms Supplying
Essential Projects
Expected to Benefit
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 28.-Building
activity will be sustained at excellent
levels this year, but 1t will be con-
centrated in military construction,
factory building and low-cost hous-
ing In defense areas, 1t Is pointed out
in q survey by the Standard g. Poor's
Corp.
In general, only those building
equipment and supply companies
furnishing products useful In such
construction or able to convert their
production facilities to armament
manufacture can be expected to
operate at satisfactory rates.
Thus far this year total construc-
tion awards have been running about
8 per cent ahead Of last year, which
would mean an annual volume Of
$500 ,000, 900 Of awards in 1912 If the
rate Of gain were maintained. In
view Of the increasing emphasis on
diversion of materials to armament
production, even at the expense Of
plants for producing these lines. the
rate Of gain is unlikely to be main
tanned, but awards for the year will
compare satisfactorily with the S.
0oo. 900 900 Of 1941 Actual construc-
ton, as distinguished from contract
awards, will probably be higher this
year than last.
Radical Change Seen.
The nature OF construction, how
ever, has been undergoing a radical
change. Government estimates in
dicate that 40 per cent Of 1941 con-
struction was for projects essential
to the war effort and that IS to 80
per cent Of 1912 construction will be
for war purposes.
Included in this will be three prin-
cipal types Of building:
/. Plants fc1 producing war ma
terials.
2. Housing for workers in such
plants.
). Cantonments. airports, mill
tary roads. harbor facilities and sim
ilAr strictly military construction.
Principal reductions will be In
residential construction other than
In designated defense areas, In con-
struction Of public buildings
schools. hospitals post ofnces-and
military public works, and In
commercial construction.
Utility construction also will be
held down, with power rationing
substituted as much as possible for
increased power production capacity
In order to conserve materials.
Home Building Maintained.
Residential building thus far has
held up remarkably well. with in
creases In low-cost housing for de-
Tense almost ofIsetting declines In
other types. At the end Of Febru-
ary. 492 defense housing projects
had been assigned. covering 159 258
dwelling units, to cost an estimated
1921 900 900, or about $4,000 unit
In addition, to these Federal
Works Agency projects. the Govern
ment Is encouraging low-cost private
residential building. alteration of
present buildings into small apart
ments, the diversion Of slum-c clear
ance efforts to defense housing in
areas adjacent to military projects
or arms plants.
The uneeen geographical distribu-
ton Of building activity and the
rush to complete urgently needed
construction have caused thousands
Of skilled building workers to mi
crate to those areas where con-
tractors are willing to pay higher
than normal wages. In consequence
. scarcity Of such workers has been
developing In many non-defense
areas, discouraging even those types
Of construction which do not re-
quire quantities Of scarce materials
Migration Raises Costs.
Another consequence of this labor
migration has been to push building
costs higher. The Federal Home
Loan Bank Administration reports
that construction costs for a stand
ard six-room house in January were
1913 per cent higher than a year
before and 0.6 per cent higher than
in December. Both materials and
labor contributed to the advance,
with labor costs up 81 per cent in
the year and materials up 1l.3 per
cent.
The war emphasis on speedy, low
cost residential construction has
come as q boon to the advocates of
pre.fabricated housing. Such houses
have been available for years, but
except for an increasing tendency
toward factory assembly Of such
units as windows and frames or
doors and doorways, progress in pre-
fabrication has been small. A public
which has been willing to accept
mass produced standardized auto
mobiles has insisted on greater in
dividuality in home construction.
Building labor likewise has opposed
q type of housing which moves a
large part of its normal work to the
building material factories.
If the defense housing projects
lead to the development of comfort
able, well-built houses which can
be produced in quantity at much
lower prices than present types Of
construction, there is a possibility
that radical change In housing
ideas will grow out Of 1t.
Few Fitted for Arms Work.
Few companies In the building
material and supply industries are
equipped to do much direct arma-
ment work There is little demand
for the products of makers of radia-
tors, bathtubs, household furnaces
and heating units, tile, glass, ETC.,
either for armaments or for mill
tary construction, and makers of
plumbing and heating materials are
particularly hard hit by priorities.
On the other hand, some Of the
companies have found it possible
to install new machinery and util-
lie existing floor space, management
and labor in production entirely
foreign to their normal work. One
large furnace maker, for example,
has taken q substantial contract to
manufacture flare bombs.