Evening star., 1963-05-31
BUSINESS TRENDS
Steel Peace Outlook
Spark for Economy
By CHARLES COVELL
Star Business Writer

Predictions Of an early steel labor settlement from At
least two quarters promised this week to remove stumbling
block TO the Nations economy, bouncing along at
record pace.
The magazine Steel said it had learned neSotiators were
ION the verge Of settlement that would give the United
Seelworkers extended vacation plan in exchange for
one-year contract extension
Iron Age was similarly optimistic. basing 1t on the fact
that both sides showing sincere efforts the prob
lem without formal reopenng Of the contract and new
labor crisis
If there is an early settlement the steel industry would
lose the strike hedge orders filling top Of
providing steel for current consumption At the time
steemakers might welcome SOME order defermenS for two
reasons: ~
They would be able pull up other orders that might
otherwise have fallen behind schedule and strengthen their
bookings for July and August thus reducing the extent
cost of seasonal cutbacks
Although Steel magazine reports indications that demand
has passed its peak for this also predicting that
consumption equal the 1855 record of n million
Tnat can happen II says II sutomakers build more than
provement so far more than 80 million automobiles have
been produced versus 26 million year ago. The constrc
tion machinery farm implement and appliance industries
also are expected to use more steel In 1853 than they did
in 1855.
Contrasting with the general optimism was the Dun q
Bradsreet report that business failure reboundd to 1888
the week ended May % from their slump 26S in the pre-
ceding Casualties the highest in 10 weeks
and pushed considerably ahead Of the 2s in the same week
last year.
fields life insurance and air travel
The industry reported that sales Of ordinary
life totaled $685. 100000 compared with A7670o000o in
compared with sslaOOoOOO and group life. OOo
against 81 o4s 100000.
Air Transport Association said April domestic air
travel 81 cent Revenue miles totaled
81 billion. compared with 2S billion q year ago. -,
Standard Poor that United States companies with
plants or sales outlets abroad face drop In their foreign
profits which been rising faster earnings
domestic operations
First. competition is increasing not only from foreign
producers but from American firms that have expanded
abroad Second especially in Western Europe have
risen faster than prices.
on the other side Of the ledger the wage initiation has
narrowed the disadvantage In terms of labor costs which
American industry operates Basic here still three
or four times those abroad.
Chain Store Age says the shopping center shows
signs Of abang On Of the $500 that operating
In the United States and Canada At the end OF last
1000 new developments are scheduled TO open this year
Many also getting larger spot check Of 22e centers
with 80 million square feet OF floor space showed that
million square feet would be added this year.
Assuming that the net additional shopping center space
for new Developments and those already operating turn
something the order OF $40 billion sales volume justify
the space. II says
Commerce Clearing House reports groundwork for
pulsory pension plans giving employees financial interests
they take from Job Job has become law Ontario
Employers with Is more employees must establish and
put into effect pension plan that meets the benefit levels
Of the law before January " 1855 BY providing
for immediate yesng OF employer contributions and pre-
venting the withdrawal Of employe contributions the
termination OF employment the law makes the benefits truly
portable. the Clearing House adds.
The pensions viii supplement old benefits 10 which
employees become entitled at aee 70 under Canadian law.
Briefs: The Japan Trade Center says production Of
home sewing machines Japan last year reached 30se7e0
10 set an al-tme record for any one nation