The Wilmington morning star., 1944-04-07
In Washington
BY PETER EDISON
Star-News Washington Correspondent

First industry to be modified for war was
the machine tool industry and, conversely, it
is the first to be denobilized. The tendency
has been to sing the blues over the industry S
future on the broad assumption that during
the war it has produced enough machine tools
to last for the next 10 or IS years and has
SO manufactured itself out of a job. /;
This line of reasoning has been followed
frequently in dickering with Army and Navy
price adjustment boards on renegotiation of
excess profits. Individual machine toolmakers
argue that since they have already supplied
their postwar market for decade or more
they should be allowed greater profit margins
to build up postwar reserves. BY and large
this argument has fallen on deaf ears in
Washington.
Also, new note Of optimism is beginning
to be heard, like the first robin of spring on
the grass plots around the offices of the
machine tool builders. Pencils have been
sharpened to record those notes and the result
is something of song that maybe there aren't
10 years of continuous winter ahead. And since
the prosperity of the machine tool industry
is basic to general American well-being, it's
worth listening to-.
At the end of 1899, U. S. industry had about
a million machine tools in operation. Sixty
per cent of these tools are over 10 years old
and could stand replacement. AS of today,
approximately 100000 new tools will have been
built for war industries. About 2O0,O 900 of these
have been built for private industry, leaving
500. 600 government owned.
The 100000 privately owned tools are no
particular worry. They're going to be put to
use, replacing older and less efficient TOOLS,
tor IN the competition for postwar, markets,
with higher labor production costs, manu-
facturers with the most efficient tools will
nave the advantage.
The "Specials' will Go
Concerning the 100000 government-owned
tools, estimates vary. From 5 per cent to per-
heps 20 per cent, or approximately from 25-
600 to 00000, are special purpose tools for
war industries and manufacture of munitions
These tools offer no postwar competition to
civilian industry.
How many government war plants the Army
and Navy will want to keep in "stand-by'
condition, ready for any possible emergency
resumption of hostilities, is an unknown factor
One thing that is counted on is the desire of
Army and Navy to retool all their Navy yards
and arsenals, replacing older machinery with
newer and more efficient models which they
already own. Estimates of the number of new
toos that will go 'in grease for standby
plants and to retool government shops range
from 10000 to 10000 units.
Postwar domestic demand is another in
determinate market, but it is pointed out that
many old machine tools have been worked
during the war far beyond normal life Also
these tools have been worked on a two or
three-shift basis. Getting all American indus
try back to a one-shift basis and replacing
obsolete tools might dispose of 100000 A
minor market to be developed is retooling of
the $4,000 machine shops in technical and
vocational schools, which might take 5000 to
10000 of the newer model simpler machine
tools
Export, the Unknown Quantity
There remains the export market as the
greatest imponderabe of all. Soviet Russia
has shown a great liking for American ma
chinery and has her entire western industrial
plant to rebuild. How many machines it will
take to retool bombed factories in Germany
Frame and Italy is anybody's guess. How
much of an industrial nation China Australia
India or any of the Latin American republics
will become is pure speculation
For all these markets, the U. S. will Of
course be competing with Great Britain. But
from the above point of view the machine
tool glut does not look hopeless, and it further
outlines an opportunity for the postwar en-
ployment of many go-getting American gum
shoe statesmen, to whom there is no superior.