The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1961-06-01
Behind the Scenes
In american
Business
BY Reynolds Knight

By Reynolds, Knight
New York Especially =
American industry will spenc
almost as much on new plan
and equipment this year as i
did last, and the emphasis viii
be on modernization, research
and new product development
to meet competition at HON,
and abroad.
The 1861 estimate of total
capital OUTLAWS has been revised
slightly upward since last fall
and now reads $35 billion, $50
million, only one per cent less
than the $35 billion, 600 million
spent last year, a survey by Nc
GraW-Hill Publishing Company
shows.
The survey reveals that 70 per
cent of planned expenditures in
1861 will go for modernization
OF existing plant and equipment,
the highest such percentage on
record. 1t also was noted that
industry plans to increase i S
capacity at a rate Of slightly
more than three per cent a year
during the next four years.
Expenditures for research and
new product development will
amount to sos billion this year
and by 1864 it is expected to
reach Sill billion a year., the
survey predicts.
The petroleum industry is ex-
pected to spend the most for
expansion in 1861 = $2.85 bill
lion. compared with 1894 bill
lion in 1860.
Iranian Venture
American business continues
to invest heavily in installations
in friendly countries abroad.
Latest example is the new ST.
million B. F. Goodrich tire plant
that recently went into pro-
ouction in Iran.
B. F. Goodrich Iran, S. A. was
built in association with a
group of prominent Iranian in
vestors, and an Iranian business
man is chairman of the board.
b. F. Goodrich President ]. w
Keener calls it ga concrete
of the right kind of
cooperation between American
private enterprise and local in
vestors in promoting the econo-
mic progress of one of the
worlds developing economies"
Mr.. Keener underlined the
unique character of this install
in his address at the for
NAL opening which was attend
ed by His Imperial Majesty the
Shah.
AS the only tire plant in the
area, this is a vital installation
for this oilendowed crossroads
OF Civilizations" he said. An
other commentator termed the
plant "a strategic link in the
chain Of defense planned by the
United States and its allies for
this crucial region" The maya
zine Business Week echoed this
sentiment. calling the new Iran
ian plant part Of a broad U.
5. effort to develop Trans eco
.omy."
The Iranian installation was
the third tire plant to be built
BY 3. F. Goodrich foreign sub
salaries in the past Is months.
The others are B. F. Goodrich
Pity, Ltd, near Mel
bourne, and b. F. Goodrich to
near Campinas.
Tile Research
Fierce competition in the
building industry has stimulated
great new research efforts aim
I'd at improved product design
and new economies. Contrary to
'ome popular beliefs, many Gus
.omers costs within the building
industry have decreased rather
han increased in the last few
years.
One good example Of this has
occurred as, the result Of tech
Biological research conducted by
he Tile Council Of America on
behalf of the major ceramic
wall and floor tile, producers
n the United States.
Through the program Of the.
Tile Councils research center
it Princeton, New Jersey, for
instance, q revolutionary new
tile-sattine. cement mortar has
,een developed. In the last five