Milford chronicle., 1953-05-15

to scan the business records, you
will notice that most of them look
good. Profits of industrial concerns
are higher than last spring. Wages.
are also higher and so are pay
rolls, employment, production,
spending, saving and borrowing.
There are those who think the
boom is getting tired. They point
to the fact that prices, are no
longer rising, that the defense pro-
gram is no longer expanding, that
the rate of family formation is over
the peak, and that plan expansion
programs have about run their
course. Nevertheless, many of our
basic industries are continuing to
operate at very high rates, and
some of them are expanding output
still further One of these is the
automobile industry.
Motor vehicles throw a lot of
weight in our economy. The pro-
ductiOn of automobiles is one of
our largest Industries by almost
any yardstick. Current employment.
is in excess OF 100000 workers. or
almost 6 per cent of all manufac-
turing employment. The industry
is taking almost a quarter of the
cOuntry's current output of steel
rubber, plate glass, nickel, lead,
and mOhair 1t is one of the best
customers for aluminium, copper,
zinc. cotton, machine tdOls, and
chemicals. So widespread are the
ramifications of the industry-in-
clUding production, distribution, fl
nancing, and maintenance of cars
that about one out of every seven
gainfully employed workers in the
country is estimated to be assOci-
ated directly or Indirectly with the
automobile industry. The dollar
value Of retail sales of the autOmO-
tive group Of industries is about 20
per cent of all retail sales, and
autOmOtive paper accounts for one
third of total consumer credit and
almost One-half installment credit.
In view Of the Importance of auto
mobiles, it is particularly signifi-
cant to note what the industry is
doing and what it may do in the
months to come.
AS if equipped with automatic
transmission, the industry quickly
shifted into high gear in the early
months of this year. During the
first four months, the industry pro-
duced % million passenger cars,
which was so per cent above the
output for the corresponding
months of last last year. Total out
put in 1852 was 4.3 million cars
compared with SO million in 1851
and 6.7 million in 1850. which was
the all-time peak. At rates prevail
ing in the latter weeks of April
total output for 1853 would be in
excess of z million units. A more
realistic view for the year as a
whole, however, according to mar
ket fOrecasters, is 5.5 million to G
million cars. There is no doubt that
the industry has the capacity to GO
over the top, assuming adequacy
of labor and raw materials, but
how long demand will support
present levels of output is a matter
that lies largely in the lap of the
consumer.
Since automobile dealers are in
the best position to appraise the
temper of consumers, we have in.
terview a number Of representative
dealers throughout the PhiIadel.
phia Federal Reserve District
Their observations and opinions
presented herewith, are particular
Iy helpful in sharpening the focus
on the outlook for this vital in
dustry.
What Auto Dealers Tell Us
New cars generally are moving
along rapidly from assembly lines
to. dealers, to customers. Spring il
the top selling season of the yeal
and most dealers report sales il
line with seasonal expectations. T,
be sure, experience differs from ont
to another. One reports sales TO
the first four months so per cen
above the like period of last year
AT the other extreme is the dealer
Of popular-priced car who re
ports that sales are "only fair
with little Improvement in prospec
for the next ninety days. Between
these extremenes is the vast ma
jority experiencing brisk demand
and active buying.
There is increasing evidence
however, that the character of th'
market is beginning to change
While still essentially a sellers
market, many dealers admit tina