■4,000 >4,100 9.8 10.9 12.5 12.0 11.6 12.5 14.4 14.0 11.5 » 11.1 •9.1 5.3 6.8 6.4 5.3 6.2 6.5 5.9 6.6 7.0 '7.3 •6.6 1 New supply consists of shipments plus Imports. 1 Includes lawnmowers. 3 Estimated. Table 3. — Principal Trading Partners Farm Machinery and Equipment — SIC 3522 United States buys from— United States sells to— Canada United Kingdom Belgium Italy West Germany France Canada Mexico United Kingdom France Australia West Germany Republic of South Africa Venezuela Chile Source: Bureau of the Census. Source: Bureau of the Census and BDSA. 44 Table 4. — Number of Employees by Size of Establishment Farm Machinery and Equipment — SIC 3522 [Dollars In millions] Year Total 1-19 20-99 100 and over Establish : Employees ments Ship- ments Establish- Employees ments Ship- ments Establish- Employees ments Ship- ments Establish- Employees ments Ship- ments 1958 1963 1,469 1,568 108, 586 112,614 $2, 422 2,842 960 1,010 6,602 5,854 $104 115 351 407 15, 456 18, 057 $300 398 168 151 87,528 88,703 $2, 018 2,329 Source: Bureau of the Census. Table 5. — Key Ratios Farm Machinery and Equipment — SIC 3522 Table 6. Geographic Distribution, 1963 Farm Machinery and Equipment — SIC 3522 Item 1958 1963 Investment per production worker N.A. Specialization ratio (%) N.A. Concentration ratios (%): 4 Arms N.A. 8 firms _ N.A. 20 firms .-.- N.A. 50 firms N.A. $10, 843 43 55 67 77 Source: Bureau of the Census. Geographic area All em- Geogr .phic rei All e n- ployees ployees Total 112,614 Virginia 527 North Carolina 1,299 New England 190 Georgia 1,653 Middle Atlantic 5,090 Florida 426 New Jersey 198 East South Central 9, 222 East North Central... 52, 899 Tennessee 2, 738 Indiana . 5, 222 Alabama 898 Illinois 23, 567 West South Central 2, 596 Michigan 5, 230 Arkansas 284 Wisconsin 12, 480 Louisiana 515 Ohio 6,400 Oklahoma 369 West North Central... 33, 252 Texas 1,428 Minnesota.. 5, 476 Mountain 1,116 Iowa 21,605 Idaho 303 Missouri 2,080 Colorado.. 425 North Dakota 350 Arizona 203 South Dakota 192 Utah 139 Nebraska 1,582 Pacific 3, 793 Kansas 1,967 Washington 341 South Atlantic 4,456 California 3, 122 Source: Bureau of the Census. Table 7. — Principal Products Farm Machinery and Equipment — SIC 3522 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio Wheel tractors and parts and attachments, excludes garden and contractors off-highway Planting, seeding, and fertilizing machinery Plows, listers, harrows, rollers, pulverizers, and stalk cutters. _ Harvesting machinery and parts Haying machinery and parts Lawn mowers and parts Farm machinery and equipment N.S.K. Farm dairy machinery, elevators, blowers, sprayers and dusters and all other farm machinery and equipment 687 "738 '511 1601 "684 808 931 1,082 1,351 1.97 101 111 98 96 105 116 131 137 156 1.54 166 183 146 146 163 193 221 232 276 1.66 312 344 324 309 319 395 440 513 607 1.95 176 164 140 124 126 134 139 156 176 1.00 240 249 238 222 245 269 286 295 375 1.56 35 •2 *2 *3 71 86 *56 •71 N.C. 485 541 619 555 624 556 639 671 855 1.76 1 Excludes value of parts sold to other plants producing tractor wheels. N.C. = Not computed. N.S.K. = Not specified by kind •Standard error of estimate of 15 percent or more. Source: Bureau of the Census. 45 Fiber Cans, Tubes and Drums SIC 2655 The pattern of rapid growth, which has char- acterized this widely diversified industry since the development of the composite can for refrigerated dough in the early 1950's, shows no sign of abating. Industry shipments more than doubled in the 1958-68 period. Employment in this industry has risen over 50 percent during the past decade to an estimated 16,500 workers in more than 250 plants. Output is concentrated largely in the Middle Atlantic, East North Central, and South Atlantic areas. GROWTH FACTORS The dramatic technical breakthrough which made a "marriage" of competing materials — paper and aluminum — transformed this industry into a viable, dynamic growth industry. Extremely thin- gage aluminum foil laminated to kraft paper and, in some constructions, plastic films and thin steel, are combined to produce fiber cans which have made serious inroads into traditional metal can markets. Over the past 7 years, the bulk of the frozen fruit concentrate and motor oil markets have been taken over by the composite fiber can. In addition to having most of the advantages of the metal can, the fiber can in most cases is more economical and considerably lighter than its competitor. The enormous success of the composite can has stimulated the industry to secure even greater market opportunities. In 1966, the industry spent $50 million on capital investment, compared with the $7 million average spent annually for this pur- pose in the 1958-65 period. The range of available graphics choices and the more efficient handling, filling and closing of fibf>r cans on the packaging line have maintained the competitive edge enjoyed by the industry. The composite fiber can now challenges the all- metal can as a container for roasted and ground coffee. Through the development of a fiber can that withstands vacuum and gas flushing and runs on only slightly modified equipment, the industry is poised for greater market penetration. The technical know-how, equipment and ma- terials utilized in development of composite con- tainers for products not requiring a perfect her- metic seal are providing a firm base for the evolution of new elite composite containers. A relatively new development in Sweden appears promising for the industry's expansion efforts. A Swedish company has recently developed a composite beer bottle of plastic, encased in fiber, that has a shelf life of 8 weeks. Aside from the possibly tremendous market opportunities for such a product in the United States, the container can be burned. The industry has been resourceful in solving problems of the fiber can. One of these was leakage of motor-oil containers. A lid-sealing system was introduced which has greatly reduced oil leakage. Another is the difficulty in opening frozen fruit concentrate cans with conventional can openers. Many in the industry have solved this problem by adopting the easy-open features of aluminum-top cans and tear tabs. Recent sharp growth in fiber drums has been attributed to their first-time use for shipping liquids. The use of plastics, particularly polyethy- lene, has made practical the use of drums for this purpose after nearly 50 years of use in shipping such dry products as powders, crystals, and granu- lar materials. Moreover, the straight-sided kraft paper cylindrical fiber drum of the past half-cen- 46 tury now is available in a wide range of sizes, shapes, and styles, which is enhancing demand for a greater variety of end uses. | FUTURE PROSPECTS The increasing affluence of American consumers and their willingness to pay a premium for con- venience packaging offers a containing challenge and opportunity to the fiber cans and drum in- dustry. New techniques and more diverse combina- tions of materials will be needed to encourage new uses for these versatile containers. Competition from other containers to provide greater product protection at lower cost will likely grow keener. To meet the competitive threats of the future, the industry must expand its human efforts and financial outlays on research and development. Acceptance of its products has established a sound base for future growth. Table 1. — General Statistics Fiber Cans, Tubes, Drums — SIC 2655 Year Total em plovment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 10, 971 47, 855 9,250 18,399 36, 527 79,548 165, 627 8,268 2.178 1.985 11, 266 51,235 9, 433 19, 456 39, 034 85, 606 177,431 4,880 2.193 2.006 11,294 51,897 9,488 19,064 39, 140 84, 912 173, 644 4,371 2.169 2.053 11, 695 55, 461 9,695 19, 730 41,523 94,500 189, 601 7,038 2.276 2.105 12,205 59, 880 10, 192 22, 108 44,441 104,480 212, 956 6, 939 2.351 2.010 13, 188 67,488 11, 221 22, 816 50, 275 126, 196 260, 257 7,689 2.510 2.203 13, 280 71, 300 11,061 22, 919 55, 137 134, 398 278, 539 7,913 2.438 2.406 14,591 81,499 12,573 25,254 62, 982 153, 244 315, 322 12, 850 2.433 2.494 15, 642 91,390 13,473 27, 909 71,806 168, 156 352, 987 50, 277 2.342 2.573 1 15, 900 N.A. N.A. N.A. N.A. N.A. ' 380, 000 N.A. N.A. N.A. ' 16, 500 N.A. N.A. N.A. N.A. N.A. 1415,000 N.A. N.A. N.A. 1958- 1959.. I960.. 1961.. 1962.. 1963.. 1964.. 1965.. 1966.. 1967.. 1968.. ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 2655. Table 4. — Number of Employees by Size of Establishment Fiber Cans, Tubes, Drums — SIC 2655 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 198 246 10, 971 13, 188 $166 260 86 109 639 849 $9 17 82 3, 850 106 5, 423 $60 108 30 6, 482 31 6, 916 $97 135 Source: Bureau of the Census. Table 5. — Key Ratios Fiber Cans, Tubes, and Drums — SIC 2655 Table 6. — Geographic Distribution, 1963 Fiber Cans, Tubes, and Drums — SIC 2655 Item 1963 Investment per production worker $8,481 Specialization ratio (%) 95 Concentration ratios (%): 4 firms 57 8 firms _ _ " 72 20 firms ~~!~~~1~~!~~ 82 50 firms ___"_"'"!_" 92 Source: Bureau of the Census. Geographic area All em- ployees Geographic area All em- ployees Total ... 13,188 East North Central- Ohio -Continued 1,435 1,034 ... 3,264 New England West North Central. 870 Middle Atlantic - . 3,001 New York 753 North Carolina 230 New Jersey 1, 354 Georgia ..... Florida East South Central.. Tennessee West South Central.. Texas West 351 Pennsylvania East North Central 1,157 __. 3,226 142 601 Indiana Illinois 375 855 242 319 210 388 Michigan ._ Wisconsin 202 804 Source: Bureau of the Census. 47 Table 7. — Principal Products Fiber Cans, Tubes, Drums — SIC 2655 [In millions of dollars] Glass of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Paperboard and other fiber drums 55 Fiber cans, tubes and other fiber products 134 Fiber cans, tubes, drums, etc., N.S.K N.A 63 61 62 69 62 69 73 87 1.57 141 136 148 170 237 259 313 333 2.49 .A. N.A. N.A. N.A. 3 *4 *3 *4 N.C. •Standard error of estimate of 15 percent or more. N.A. = Not available. N.C. = Not computed. N.S.K. = Not specified by kind. Source: Bureau of the Census. 48 Frozen Fruits, Juices and Vegetables SIC 2037 The industry has experienced an extraordinary rate of growth during the past decade. Value of shipments more than doubled from 1958 to 1968. Employment grew to 60,000 in 1968, 52 percent over 1958. The number of establishments in- creased 53 percent from 1958 to 1963, and capital expenditures, which were $21 million in 1958, climbed to $82 million in 1966 and totaled $380 million for the 9 years. Much of the industry's growth has taken place in the Southern and Western States as a result of the expansion in the frozen fruit and vegetable sector of the industry, while frozen citrus juices have accounted for the increased employment in the Eastern and Southern regions. Decreases in employment, however, were evident in 1967 and may gather momentum in 1968 as automation and mergers continue. There has also been some exodus of large packers from the West Coast to Mexico. GROWTH FACTORS Although quality is considered the cornerstone of the frozen foods industry, its success can be attributed to a process which preserves the taste of a food more like that of the fresh (and freshly prepared) product than does any other preserva- tion method. The freezing process which allows ripened fruits and vegetables to be shipped thousands of miles and still retain a good deal of the fresh taste and flavor has opened up markets countrywide. Technological and marketing innovations, large advertising budgets by the leaders in the field, stress on quality, rising personal incomes, and the convenience aspect of quick and easy meal prep- aration have been the important growth factors. Starting with the method of freezing packaged food in batches by means of the pressure-plate system, the industry went on to a conveyor belt moving through a large blast freezing chamber. Later, the IQF — individually quick frozen — con- cept was applied to fluidized-bed freezing, whereby a cold blast suspends the product in the air and individually freezes small fruits and vegetables, such as green peas, corn, beans, diced and french-fried potatoes and strawberries. This method cut freezing time and reduced investment costs and floor space requirements. The introduction of liquid nitrogen for lowering temperatures to minus 320° F. has provided the industry with really "quick" freezing and is elimi- nating icing and mechanical refrigeration in the transportation of frozen foods. Through marketing innovations, the industry has been able to sell an ever increasing volume of products. The packaging of frozen vegetables in 1- and 2-pound plastic bags has moved greater amounts of food and benefited the consumer pricewise. Partially or completed prepared frozen items which incorporate preparation, convenience, and "chef service" have improved the competitive position of the freezing industry. The period since 1958 has been an era of great competition and consolidations. Those who entered the field early, after World War II, have grown in size and in financial strength. Competition became intense as large firms from other food fields and even from other industries took on frozen foods. In addition, mergers have been made within and from outside the industry. Although labor and other costs have continued to rise, the frozen food industry has been able to keep prices relatively stable through use of new and improved auto- 49 mated machinery, not only in the freezing process and in the preparation of the food, but also in the harvest. FUTURE PROSPECTS Expansion of the industry will continue as more foods will be preserved by the quick-freezing method. The population increase, the rising num- ber and proportion of women employed outside the home, and the steady flow of new convenience products, such as heat-and-serve specialties and prepared vegetables in the boilable bag, will boost future sales. Of great importance to future growth is the developing volume of institutional business. As resistance to frozen foods by the chef is rapidly being overcome, increasing costs of institutional food preparation will spur the adoption of mass production of frozen entrees and gourmet foods by restaurants, hotels, hospitals and other mass feeding places. The perfecting of the quick- heating microwave oven is another incentive for institutional use of frozen foods. Table 1. — General Statistics Frozen Fruits and Vegetables — SIC 2037 Total em aloyment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour($) 1958— 39,528 126, 804 34, 138 66, 278 96, 858 323, 789 1, 025, 877 20, 952 3.343 1.461 1959 ... 41,924 140, 836 36, 027 71,272 107, 307 345, 983 1,111,831 23, 094 3.224 1.506 1960... 43,810 154, 533 37, 787 75, 767 119,869 401,988 1, 206, 571 28, 676 3.354 1.582 1961... 45,144 164, 721 38, 844 77, 057 126, 287 403, 044 1, 274, 645 28, 357 3.191 1.639 1962... 45.399 175, 122 38, 563 77, 396 132, 996 428, 801 1, 323, 731 40, 099 3.224 1.718 1963... 51,750 202, 398 44, 689 86, 664 154, 406 550, 231 1, 548, 663 44, 569 3.564 1.782 1964... 53,553 218, 462 46, 277 91, 435 168, 829 560, 550 1,651,639 49, 951 3. 320 1.846 1965... 58,807 245, 143 50, 774 100, 164 189,915 627, 010 1, 816, 049 62,916 3.302 1.896 1966— 62,281 265, 618 54, 644 105, 860 208, 257 679, 024 1,884,567 81, 856 3.261 1.967 1967.... 161,200 N.A. N.A. N.A. N.A. N.A. I 1, 806, 448 N.A. N.A. N.A. 1968... i 60, 000 N.A. N.A. N.A. N.A. N.A. ' 2, 140, 000 N.A. N.A. N.A. 1 Estimated. Source: Bureau of the Census and BDSA. N.A. = Not available. Tables 2 and 3 are not relevant to SIC 2037. Table 4. — Number of Employees by Size of Establishment Frozen Fruits and Vegetables — SIC 2037 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- ments ployees Ship- ments ' Establish- Em- ments ployees Ship- ments i Establish- Em- ments ployees Ship- ments ' Establish- Em- meats ployees Ship- ments l 1958 1963 426 39, 528 650 51, 750 $1,026 1,549 163 1,354 304 2, 041 $35 55 138 6, 755 194 9, 500 $175 298 125 31,419 152 40, 209 $817 1,195 1 Value of production. Source: Bureau of the Census. Table 5. — Key Ratios Frozen Fruits and Vegetables — SIC 2037 Item 1963 Investment per production worker $9,169 Specialization ratio (%) __ 89 Concentration ratios (%): 4 firms 24 8 firms _ 37 20 firms 54 50 firms _ 70 Source: Bureau of the Census. 50 Table 6. — Geographic Distribution, 1963 Frozen Fruits and Vegetables SIC 2037 Geographic area All em- ployees Total _... 51,750 New England . . __._ 2,428 2,096 Middle Atlantic 6,204 2,994 East North Cen tral 4,867 2,440 Wisconsin Ohio 157 1,074 West North Cen Minnesota tral 5,263 1,672 Geographic area All em- ployees South Atlantic _ 10, 269 Delaware 558 Maryland 1,312 Florida 5,267 East South Central... 1,477 Kentucky 205 West South Central. Louisiana Texas.. 3,370 342 1,497 Mountain- 2,866 Idaho. 2,579 Pacific 15,006 Oregon 3,932 California 8,144 Source: Bureau of the Census. Table 7. — Principal Products Frozen Fruits and Vegetables— SIC 2037 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Frozen fruits, juices and ades __ _ 358 Frozen vegetables. 231 Frozen prepared foods and soups 319 Frozen fruits and vegetables, N.S.K ._ _ 8 * Standard error of estimate of 15 percent or more. N.C. = Not computed. N.A. = Not available. Source : Bureau of the Census. 416 415 433 421 436 449 414 421 1.18 234 •271 •289 •291 396 439 512 565 2.44 340 434 474 539 608 646 765 838 2.63 *9 •4 *1 N.A. 20 25 •19 •19 N.C 51 Industrial Gas Cleaning Equipment SIC 3564 Growth in the production of air pollution control equipment over the next 10 years is virtually guaranteed by passage of the Air Quality Act of 1967. This act authorizes the Secretary of the Depart- ment of Health, Education, and Welfare to estab- lish air quality control regions, to develop and issue air quality criteria, to issue recommended air pollution control techniques, and generally to work with State and local governments to advance pollution control. The problem of public administration will be to attain the objectives of clean air with a reasonable balance of costs and benefits. This will require a close cooperation of industry and government. The industrial gas cleaning equipment industry increased its output by 120 percent between 1963 and 1967 for an annual growth rate of 17 percent, according to a Commerce Department report of August 7, 1968. This rate of growth is expected to increase under the impetus of the Air Quality Act. GROWTH FACTORS Air pollution control has long been a recognized objective of public policy based primarily on the local police power to control nuisances. The rather minimal regulations under pre-Air Quality Act local pollution control standards created some demand for pollution control technology and a demand for a small output of special equipment. While air pollution has many aspects, the types of control equipment under consideration here a Pply to air pollution from industrial processes; e.g., from steel mills, refineries, pulpmills, food processing, powerplants, cement mills, etc. This excludes pollution from transportation equip- ment — motor vehicles, airplanes, and railroad trains. It does include incineration and commercial space heat pollution. Industrial air pollution control equipment manu- facturing includes devices such as electrostatic precipitators; fabric filters or baghouses; mechani- cal collectors; scrubbers; catalytic, thermal, and flame incinerators; gas adsorbers; and gaseous emission scrubbers. The equipment, which is pro- duced by some 68 companies, is classified within the broad category of SIC 3564, blowers and ex- haust and ventilating fans, which includes devices for controlling and moving air as well as for clean- ing air. Air pollution, a byproduct of industrial civiliza- tion, increases with the growth and complexity of the gross national product. Pollution can be meas- ured in terms of tons of waste dumped into the air. The increasing use of insecticides, the poisons released by complex chemical processes, and the reactions among pollutants which take place in the atmosphere all contribute to the pollution problem. Pollutants include particulates, sulphur dioxide, carbon monoxide, and petrochemicals; excess heat is also a pollutant under certain conditions. Although no one has been able to attach a dollar estimate to the magnitude of the current air pollu- tion problem in this country, it is generally recognized that the effects of pollution are severe. Mainly, there is a discomfort from grime, dust, and odors. There is a cost burden from the requirements of repainting, cleaning, and prevention of deteri- oration. There are the psychological effects of living in unpleasant surroundings. Finally, and perhaps most important, there are the dangereous effects on health. Pollution imposes a burden of cost or discomfort upon persons outside the economic responsibility 52 of the individual pollutor. Because of this external nature, pollution is often controlled only when sanctions against pollution are enforced by law, custom, or informal public pressure. The sac- tions are then a contributing factor in the growth of control equipment sales. FUTURE PROSPECTS An increasing standard of living is a goal of the national economy. As the potential air pollution problem increases with each increase in material output, greater efforts will be required to contain pollution. Under the Air Quality Act of 1967, State and local governments have the prime responsibility for air pollution control. As the States move into this area of responsibility, there will be greater demand for the control equipment. Because the States differ widely in the urgency of the problem, it can be expected that the demand for air pollu- tion control equipment will be spread over a fairly long period, at least the next 10 years. The timelag between initiation and completion of pollution control will be generally advantageous because too big a burden will not be imposed on the control equipment industry or the economy at the same time. Design of air pollution control equipment is based on generally well known scientific principles such as combustion, filtration, electrical attrac- tion, and centrifical forces. Advances in technology that could lead to high growth in the equipment industry are largely in the area of better materials and better processes control, rather than in basic changes in pollution control techniques. Modest improvements will no doubt be made, but major breakthroughs to new methods are not currently on the horizon. Pollution control can be acheived by means other than installation of equipment. Obvious alternatives are relocation of plants to less popu- lated areas, change of raw materials, change of processes, and removal of pollutants before com- bustion. Some very effective controls can be achieved merely by changing the operation to a different time of day or a different season of the year. Each of these alternatives may be seen as a limiting factor on the growth of the equipment supplying industry. Often the combination of pollution control equipment with one or several of the alternatives mentioned above is the most economical solution. Pollution control is a system in which several techniques work together to acheive a desired result at an economical cost. Perhaps it is in this area of systems services that the air pollution control equipment industry can find an even larger area for growth. Data are not available to prepare statistical tables for industrial gas cleaning equipment. 53 Industrial Process Controls SIC 3622 In the process of becoming a billion-dollar business, the industrial controls industry chalked up gains of 173 percent in shipments and 70 percent in employment between 1958 and 1968. The industrial controls industry is heavily concentrated in the east north central section of the United States, with Wisconsin alone account- ing for over one-third of the industry's employ- ment in 1963. The industry is also concentrated in that 56 percent of its shipments are produced by only four firms and 90 percent is accounted for by 50 firms. GROWTH FACTORS The healthy growth in demand for industrial controls stems from two major factors — general economic expansion and increasing automation of U.S. industry. All motors require controls, if only for starting and stopping. Since virtually all manufacturing processes employ machinery run by motors, the demand for industrial controls spreads throughout the industrial sector. The U.S. economy has experienced a period of unprecedented growth and prosperity over the last decade. The expanding demand for goods and the favorable prospects for continuing growth have led businessmen to lay out tremendous amounts of capital for plant and equipment. In 1958, $12 billion was expended by manufacturers on plant and equipment. By 1966, the total was $27 billion. Shipments of motors and generators rose by almost $1 billion during the same period. As a result, the demand for industrial controls has also risen sharply. Increasing automation of manufacturing activi- ties in the United States has been the other key factor in the growing demand for industrial con- trols. As labor costs have risen and technological breakthroughs have occurred, mechanization and automation has accelerated. This trend is reflected in the rapidly rising shipments of pilot circuit devices, controls for packaged adjustable speed drives, and specially engineered control assemblies, all of which are basic elements of automated systems. Substantial investments have been made to develop and improve industrial controls. During the past decade, the principal improvements have been in refining existing products. Today's con- trols are basically magnetic, as they were 10 years ago. However, there has also been rapid growth in the fields of electronic and solid state controls, although these are relatively small in volume. Exports of industrial controls doubled between 1958 and 1966, but accounted for less than 4 per- cent of total product shipments in 1966. FUTURE PROSPECTS The future of the industrial controls industry is tied closely to the volatile business investment sector of the economy and to the demand for goods. Every indication points to a 4 percent average real annual growth in the U.S. economy over the next 10 to 15 years. With the demand for goods rising steadily, the business community may be expected to continue substantial outlays for plant and equipment. All this portends further rapid growth in demand for industrial controls. Now that automation is becoming widely ac- cepted as a boon rather than a disaster for the U.S. economy, it will spread even more rapidly. Industrial controls are the key link in integrating 54 automated systems, and should benefit substan- tially from the increased use of such systems. Development of solid state controls may have a substantial impact on the industry over the next decade. The compactness, durability, and flex- ibility of solid state controls may significantly expand their share of the market, even to the point of replacing existing magnetic controls. The industry is now conducting intensive research to overcome problems of protection during shutdown periods and low-power capacity that now restrict the utility of solid state controls. Foreign demand for controls is expected to ac- celerate. U.S. firms have the advantages of advanced technology and a mass market which enhance their ability to compete in foreign markets. As a result, exports of industrial con- trols should continue to grow moderately. Table 1. — General Statistics Industrial Controls — SIC 3622 Year Total employment Number Payroll ($1,000) Production workers Value added ($1,000) Value shipments ($1,000) Capital ex- penditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) Number Man-hours (1,000) Wages ($1,000) 1958 1959 1960 1961 1962.. . 27,150 _ _ 28,227 __ 30,540 31,635 32,870 145, 270 165, 574 178, 963 192, 320 205, 336 214, 597 235, 210 268,811 325, 076 N.A. N.A. 17, 311 19, 190 19, 991 20, 301 21,814 22, 772 24, 155 26, 834 31,519 N.A. N.A. 33,660 38, 744 39, 547 40, 301 43, 923 44, 898 47, 982 55, 510 66,006 N.A. N.A. 81, 769 97, 893 101, 445 105, 951 117,850 125,418 139, 185 162, 565 195, 668 N.A. N.A. 281, 890 349, 843 373, 243 388, 190 414,800 450, 507 502, 753 582, 634 718,518 N.A. N.A. 413, 163 496, 681 532, 400 548,283 593, 261 648,683 732, 465 846, 326 1,049,017 ' 1, 135, 000 ' 1, 128, 000 7,611 9,796 18, 424 17, 698 16, 293 15,419 19,417 22, 553, 31, 890 N.A. N.A. 3.447 3.574 3.679 3.664 3.520 3.592 3.612 3.584 3.672 N.A. N.A. 2.429 2.527 2.565 2.629 2.683 1963 1964 32,990 . 34,901 2.793 2,901 1965. 1966 1967 1968 39,370 45,888 '47,600 '46,200 2.929 2.964 N.A. N.A. ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Industrial Controls — SIC 3622 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- percent of percent ments shipments of new supply ' 1958 .._ $19 N.A. $447 4 ( 2 ) 1959 20 N.A. 516 4 ( 2 ) 1960 20 N.A. 567 4 ( 2 ) 1961 28 N.A. 543 5 ( 2 ) 1962 28 N.A. 578 5 ( 2 ) 1963 38 N.A. 633 6 ( 2 ) 1964 31 N.A. 766 4 ( 2 ) 1965 39 N.A. 871 5 ( 2 ) 1966 40 N.A. 1,002 4 ( 2 ) 1967 _.. 41 N.A. 3 1, 100 34 ( 2 ) 1968 43 N.A. 3 1,075 34 ( 2 ) 1 New supply consists of shipments plus imports. 2 Import data are not available; however, it is estimated that imports amount to less than 2 percent of new supply. 3 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Industrial Controls — SIC 3622 United States buys from — United States sells to- Canada Japan EEC Canada United Kingdom Netherlands Mexico Italy Philippines Japan France West Germany Source: Bureau of the Census. 55 Table 4. — Number of Employees by Size of Establishment Industrial Controls — SIC 3622 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 216 427 27, 150 32, 990 $413 649 141 309 867 1,743 $15 33 41 2, 016 81 3,713 $33 70 34 24, 267 37 27, 534 $365 546 1858. 1963. Source: Bureau of the Census. Table 5. — Key Ratios Industrial Controls SIC 3622 Item 1963 Investment per production worker $8, 302 Specialization ratio (%) 79 Concentration ratios (%): 4 firms 56 8 firms.... 69 20 firms 81 50 firms.. 90 Table 6. — Geographic Distribution, 1963 Industrial Controls — SIC 3622 Source: Bureau of the Census. Geographic area All em- ployees Total 32,990 New England 1,997 Massachusetts 993 Connecticut 994 Middle Atlantic 2,943 New York 1,775 New Jersey 523 Pennsylvania 645 Geographic area All em- ployees East North Central 20, 599 Illinois 3,386 Wisconsin 12,635 Ohio 2,432 West North Central 983 South 5.251 West 1,217 California 1, 005 Table 7 is not relevant to SIC 3622. Source: Bureau of the Census. 56 Industrial Trucks and Tractors SIC 3537 Industrial Trucks and Tractors is the fastest growing member of the materials handling equip- ment family of four industries: (1) Elevators and Moving Stairways; (2) Conveyors; (3) Cranes and Hoists; and (4) Industrial Trucks and Tractors. Between 1958 and 1968, the value of shipments of the truck and tractor industry grew from $269 million to an estimated $896 million — a threefold increase. In 1958, the industry was responsible for one-quarter of the total dollar value of shipments of materials handling equipment. In 1966, the industry's share had risen to 34 percent. Industrial trucks and tractors, including lift trucks, truck cranes, and power stackers, play a vital role in the manufacturing process, since they involve movement of materials to a point where finished goods are produced, and subsequently, to a point from which distribution is made to the ultimate consumer. All stages of production move- ment require some form of materials handling equipment. The industry is largely concentrated in New York and Pennsylvania, in Illinois, Michigan, and Ohio, in Oregon and California. It is a dynamic industry whose growth since 1958 can be traced to a number of factors. GROWTH FACTORS As manufacturing has grown significantly since 1958, producers have sought ways of reducing costs of handling, storing and distributing material and products. The industry has been particularly alert to the widely varying needs of its customers, and has not only designed equipment to meet user needs, but has also made significant progress in the area of systems analysis. This activity comple- ments the production process, since it is designed to produce, for any one customer, the most effec- tive mix of materials handling equipment for the customer's operation. Producers of industrial trucks and tractors are constantly striving to improve and upgrade their products. New, improved designs are introduced yearly, offering the benefits of greater load capabil- ity in a smaller package, increased mobility and speed of equipment, as well as improved operator controls and reliability with lower maintenance costs. The growth of the industry has not been sig- nificantly influenced by markets abroad. Exports have been 8 to 12 percent of the value of domestic shipments. Some companies producing this equip- ment have, however, opened plants abroad and have successfully competed in foreign markets using foreign labor. Growth has come about principally because of the constant battle to offset rising costs. In- dustrial trucks and tractors raise productivity, in that mechanical power is substituted for man- power. Simpler, more responsive equipment controls encourage, in addition, the use of less skilled and less expensive manpower in the movement of materials and goods. A further factor which has assisted the in- dustry's success is fast equipment maintenance. Marketing of the equipment is primarily through specialized distributors whose organizations are highly trained in industrial-commercial operations and in high standards of equipment maintenance. This feature is important to industrial operations, which cannot afford frequent and costly work stoppage due to inferior or poorly maintained materials handling equipment. Finally, the high degree of competitiveness of the industry is reflected in prices, as well as quality of product and service. 57 FUTURE PROSPECTS Production of industrial trucks and tractors will continue to grow as industry grows and as pressures increase for cost-reduction devices. There will be many changes in new equipment. Some operations which have been handled by lift trucks will, in the interest of efficiency, use auto- mated conveyor or overhead stacker crane equip- ment. New and large-capacity lift trucks may, in some applications, replace cranes. Internal com- bustion engine powered equipment used in ware- house work is likely to be replaced by smaller electric power units with improved operator controls. Competition within the industry will become more intense. Product lines will be broadened. New equipment producers will enter the field. There is and will be no dearth of new ideas. Exports will probably not increase greatly since U.S. companies will continue to sell U.S. designs in foreign markets through plants built abroad. Competition from imports, which is negligible today, will become a factor. Aggressive foreign firms will seek to attract U.S. customers with lower prices for well-designed equipment. Japan is now in the forefront of this movement. U.S. manufacturers of industrial trucks and tractors will endeavor to strengthen existing serv- ices to U.S. industry through industry expansion and addition of auxiliary equipment to product fines. A major expansion in systems engineering services is foreseen, as emphasis is placed on the need for providing the customer-user with an integrated materials handling system, with in- dustrial trucks and tractors playing an increasingly important role. Table 1. — General Statistics Industrial Trucks and Tractors — SIC 3537 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958 14,786 76, 200 9,545 18, 121 42, 982 117, 500 269, 328 3,344 2.734 2.372 1959 15,274 88, 369 10,012 21,095 52, 056 170, 410 333, 196 4,299 3.274 2.468 1960 17,473 100, 683 11,569 24, 147 59, 514 169, 279 366, 043 5, 981 2. 844 2.465 1961 15,670 90, 827 9,873 20, 320 49, 874 144, 832 319, 449 N.A. 2.904 2.454 1962 16,473 100, 374 10, 837 22, 223 58, 113 175,410 360, 562 4,134 3.018 2.615 1963 17,570 110,444 11,454 23,815 64, 476 233, 116 446, 957 6,696 3.616 2.707 1964 __. 19,915 130, 781 14,990 28, 071 76, 197 274, 550 532, 960 9,415 3.603 2.714 1965 21,482 152, 608 14, 194 31, 022 92, 254 321, 249 627, 727 11,640 3. 482 2.974 1966 26,297 189, 947 17, 822 37, 894 116,837 404, 900 792, 088 18, 436 3.466 3.083 1967 '26,600 N.A. N.A. NA. NA. NA. ' 844, 000 N.A. N.A. N.A. 1968 '27,000 N.A. N.A. N.A. N.A. N.A. ' 896, 000 N.A. N.A. N.A. ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Industrial Trucks and Tractors — SIC 3537 [Dollars in millions] Year Ex- ports Im- ports Product ship- ments Exports as a percent of shipments 1958 $32.9 N.A. $277 11.9 1959 34.8 N.A. 375 9.3 1960 40.7 N.A. 389 10.5 1961 39.4 N.A. 346 11.4 1962 40.1 N.A. 394 10.2 1963 45.0 N.A. 459 9.8 1964 55.1 $1.6 563 9.8 1965 65.9 .7 637 10.3 1966 68.1 2.1 768 8.8 1967 73.1 3.3 N.A. N.A. 1968 275.7 25.0 N.A. N.A. Imports as a percent of new supply ' N.A. N.A. N.A. N.A. N.A. N.A. .3 .1 .3 N.A. N.A. ' New supply consists of shipments plus imports. 2 Estimated. N.A.=Not available. Table 3. — Principal Trading Partners Industrial Trucks and Tractors — SIC 3537 United States buys from- Japan Canada United Kingdom Belgium West Germany ' In order of importance. Source; Bureau of the Census. United States sells to—' Canada Australia England Mexico Netherlands Belgium Source: Bureau of the Census and BDSA. 58 Table 4. — Number of Employees by Size of Establishments Industrial Trucks and Tractors — SIC 3537 [Dollars in millions] Year Total 20-93 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments 1958 - 1963 262 314 14, 786 17, 570 $269 447 166 206 957 1,325 $16 27 70 82 2,899 3,690 $49 78 26 26 10, 930 12, 555 $204 342 Source: Bureau of the Census. Table 5. — Key Ratios Industrial Trucks and Tractors — SIC 3537 Item 1958 1963 Investment per employee '$5,556 $10,415 Specialization ratio (%) 92 90 Concentration ratios (%); 4firms 52 54 8 firms 64 64 20firms 77 77 50firms 88 88 i 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Industrial Trucks and Tractors — SIC 3537 Geographic area All em- ployees Geographic area All em- ployees Total. .- 17,570 New England 890 Middle Atlantic 3,857 South Atlantic. Georgia 497 214 East South Central. Tennessee 740 336 New York 767 West South Central.... 461 New Jersey 121: Texas 412 Pennsylvania 2,969 West 2,396 East North Central 8,113 Indiana. 112 Illinois 2,406 Michigan 2,183 Wisconsin 267 Ohio 3,145 West North Central- Minnesota Iowa 616 255 166 Pacific Oregon California. 1,300 1,044 Source: Bureau of the Census. Table 7 is not relevant to SIC 3537. 817-387 O — 68- 59 Jewelry, Precious Metal, SIC 3911 The precious metal jewelry industry is marked by steady growth. In an industry consisting of numerous small firms — (over 80 percent of the plants have fewer than 20 employees), employ- ment rose in excess of 45 percent between 1958 and 1968. The value of shipments surged upward 148 percent, while capital expenditures climbed by more than 50 percent. GROWTH FACTORS Sales of the precious metal jewelry, products generally considered luxury items, are largely dependent on availability of disposable income. The rise in persona] income in the past decade has been the greatest single factor contributing to the industry's growth. Removal of the Federal excise tax on jewelry in 1965 also supplied a real impetus to sales. Affluence has not only enhanced turnover of merchandise, but it has triggered upgrading in the quality of purchases. Growth in the size of the middle income group has produced an expanding market with an awareness of, and a desire to purchase quality merchandise. Since 1958 year-to-year increases in the number of marriages and school graduations, combined with increasing use of jewelry by companies, lodges and fraternal organizations, have fueled the industry's market expansion. The number of marriages in 1967 exceeded that in 1958 by 28 percent as a result of a gradual lowering over the years of the median age of marriage and a growing number of young people marrying before they are 20. Moreover, between 1961 and 1966 the number of high school graduations and bachelor degrees conferred each rose by over one-third. The increase in expenditures by the teenaged population has also had an impact on the precious metal jewelry industry's growth. Their spendable funds have soared, due to increases in allowances and increases in the number of teenageers who hold summer jobs and part-time jobs during the school year. The most important items in the teen- age market are earrings for pierced ears, which have become popular in the past five years. FUTURE PROSPECTS Although precious metal jewelry is not a neces- sity and its purchase by consumers depends largely on income levels, still tradition provides a basic level of demand. The traditional events such as, weddings, graduations, special achievements will continue to be expansive and stable forces in the jewelry market. This, coupled with expected gains in disposable personal income, should bolster annual sales for the industry in the near future. Increases in personal income and in the size of the age group between 14 and 34 will have sig- nificant impacts on all consumer spending, includ- ing that for precious metal jewelry. It is estimated that by 1985, nearly two-thirds of all families will have incomes of $10,000 or more, and that the age group between 14 and 34 will have increased by 25 percent. 60 Table 1. — General Statistics Jewelry, Precious Metal — SIC 3911 Total em ployment Production workers Value added Wages per Value added Value Capital ex- per dollar production Year Payroll Man-hours Wages ($1,000) shipments penditures of wages worker Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1,000) (dollars) man-hour (dollars) 1958 21,196 95, 134 15, 924 30, 749 60,726 166, 579 327, 251 3,461 2.743 1.975 1959 20,596 99, 136 15,510 32, 137 64, 107 174, 567 348, 324 N.A. 2.723 1.995 1960 20,775 102, 578 106, 495 15, 459 15, 753 32,476 33, 392 65, 456 67, 824 188, 953 189, 561 362, 719 386, 492 2,424 2,384 2.887 2.795 2.016 1961 21,384 2.031 1962 21,740 112,888 16,092 34,617 72, 533 203, 942 411,367 1,764 2.812 2.095 1963 23, 551 125, 610 17, 455 35,601 79, 251 234, 925 481,943 3,676 2.964 2.226 1964 24,072 134, 334 17,511 36, 012 83,600 240,045 508, 590 3,482 2.871 2.321 1965 28,433 160, 296 21, 595 45, 049 103, 266 314,146 620, 502 3,924 3.042 2.292 1966.. 29, 329 161,263 22, 207 44, 296 94, 900 327, 853 693,810 5, 152 3.455 2.142 1967... '30,000 N.A. N.A. N.A. N.A. N.A. ' 750, 000 N.A. N.A. N.A. 1968 ' 30, 750 N.A. N.A. N.A. N.A. N.A. ' 810, 000 N.A. N.A. N.A. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 3911. Table 4. — Number of Employees by Size of Establishment Jewelry, Precious Metal — SIC 3911 [Dollars in millions] Total 1-19 20-99 100 and Over Year Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments ments ments ments ments 1958... 1963 1,302 1,438 21,010 23, 551 326 482 1,119 1,220 5,422 5,840 102 123 152 183 6,366 7,645 90 149 31 35 9,222 10, 066 134 209 Source: Bureau of the Census. Table 5. — Key Ratios Jewelry, Precious Metal — SIC 3911 Table 6. — Geographic Distribution, 1963 Jewelry, Precious Metal — SIC 3911 Item 195S 1963 Geographic area Investment per production worker. N.A. 2,743 Specialization ratio (%) 95 92 Concentration ratios: 4firms 18 26 8firms 25 33 20ftrms 36 42 50firms 48 53 All em- ployees N.A. = Not available. Source: Bureau of the Census. Total 23,551 New England 7,596 Massachusetts 3,949 Rhode Island 3,610 Middle Atlantic 11,184 New York 8, 288 New Jersey 2,511 Pennsylvania- 385 Geographic area All em- ployees East North Central 1,941 Illinois 475 Michigan 356 Ohio 293 West North Central 857 South Atlantic. 134 East South Central 139 West South Central 368 Mountain. 463 Pacific 869 California 712 Source: Bureau of the Census. Table 7. — Principal Products Jewelry, Precious Metal — SIC 3911 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Jewelry, made of platinum metals and carat gold 195 202 78 *16 204 82 •17 215 86 •17 229 92 •20 286 94 20 314 87 24 394 132 •12 419 149 •11 2.15 Jewelry, made of precious metals, except platinum and carat gold . . 74 2.01 Jewelry, precious metal, N.S.K 18 N.C. N.C. = Not computed. N.S.K.=Not speciiied by kind. Source: Bureau of the Census. •Standard error of estimate of 15 percent or more. 61 KNIT FABRICS SIC 2256 The knit fabric industry has shown an out- standing rate of growth among fabric manufactur- ing industries. The value of shipments increased 135 percent to $1,144 million between 1958 and 1966, while wholesale prices for these fabrics declined slightly. Total employment showed a 75-percent gain from 18,400 in 1958 to 32,000 in 1966. GROWTH FACTORS Once limited largely to an undergarment and sweater material, knits are now launching a full- scale invasion of the outergarment world. The appearance of wool double-knits and man-made fibers knits has been largely responsible for this upsurge in demand. Wool double-knits are being used extensively to manufacture women's dresses, suits, coats, and sportswear. They offer the advantages of draping well, holding their shape and being relatively easy to care for. Recently developed machine-washable wool double-knit fabrics will provide further con- venience to consumers. Consumer demand for textile products with easy care characteristics has stimulated the use of knit fabrics because these fabrics are resistant to wrinkling and require little or no ironing. Easy care properties of man-made fiber knit fabrics may be further improved through the use of durable press finishes. The ability of knitters to texture fabrics into an almost limitless variety of surface effects is particularly important in helping designers create the new and unusual fabrics so much in demand for today's high fashion apparel. The new man- made fiber knits add further versatility to knit fabrics since they can be made to look and feel like other types of fabrics such as wool, silk, or crepe. The recent development of bonding processes has boosted the demand for cotton and man-made fiber knits. Nylon tricot is the most popular fabric used for bonding. The bond of tricot to a loose- weave wool, for example, strengthens the wool to prevent stretching and bagging and completely arrests raveling. From the manufacturer's point of view, knits offer a basic advantage over woven fabrics — flexibility. Knitting machines require less time to set up than weaving machines and less output is necessary to make each machine-run economical. The knit fabric manufacturer can change the color, fiber content, and texture of his fabrics quickly enough to keep up with fast-paced changes in fashion. U.S. imports of knit fabrics expanded sub- stantially from $1.3 million in 1958 to $13.4 million in 1967, an increase of 930 percent. Recent growth has occurred primarily in knit fabrics of wool and man-made fibers. In 1967, wool knit fabric imports accounted for $5.1 million of the total; man-made fiber, $7.4 million; cotton, $0.7 million and other miscellaneous fibers, $0.2 million. The United Kingdom, Italy, West Germany, Canada, and Japan are the most important suppliers of imported knit fabrics. In assessing the impact of imports on the knit fabric industry, it is necessary to consider the indirect impact of knit apparel imports as well as the direct impact of knit fabric imports since imported knit apparel displaces both domestically produced apparel and the fabric which would be needed to make this apparel. Imports of knit apparel have expanded sharply. Imported goods currently account for a significant share of 62 domestic consumption of numerous knit apparel items. For example, 25 percent of domestic con- sumption of wool knit outerwear and nearly 40 percent of domestic consumption of men's and boys' man-made fiber knit shirts are accounted for by imported items. U.S. exports of knit fabric increased from $10.5 million in 1958 to $21.7 million in 1967 or 107 percent. Throughout this period, Canada and the Republic of South Africa have been our largest oversea markets. The eight countries listed in table 3 accounted for nearly 80 percent of our knit fabric exports in 1967 and have consistently taken the bulk of these fabrics. U.S. exports of knit fabrics are handicapped by the foreign trade restrictions imposed by many countries. FUTURE PROSPECTS The knit fabric industry's maintenance of its position as one of the growth leaders among textile producers will depend on its abilities to develop new products and to penetrate further markets that have been traditionally the domain of weavers. Men's wear is an area in which knitters expect to make significant inroads in the near future. Until recently, knit fabrics were used mostly to manufacture underwear, sport shirts, sweaters, and sleepwear. Knitters are improving fabrics and undertaking energetic promotional efforts to build a market for their fabrics in the jacket, trouser, suit, and sport coat areas of men's gar- ment manufacturing. New styles of furniture will also have an im- pact on the knitting industry. Knitters have recently developed upholstery fabrics that are particularly adaptable to the new molded furni- ture appearing in this country and abroad. The stretchability of knits is essential to shaping the fabric to the lines of molded furniture pieces. The current popularity of knitted fabrics indi- cates that the industry is in a good position to foresee more expansion as a result of growth in the economy as a whole. It is estimated that by 1985, more than 60 percent of the families in the United States will have incomes of $10,000 or more per year. In contrast, about 30 percent of all families were in that income bracket in 1966. Increased family incomes will bring about in- creases in discretionary spending power — spending power that can be used to keep pace with changes in fashion. The size of the primary clothes-buying age group (15 to 29 years) will increase by about 45 percent between 1966 and 1985. The adaptability of knits to quick changes in fashions should bolster their sales growth to garment manufac- turers who cater to this style conscious young adult sector of the population. All of the foregoing factors indicate that the domestic market for knit fabrics should continue to expand. However, imports of both knit fabrics and knit apparel are increasing very rapidly, and their adverse impact on domestic producers must be considered in assessing the knit fabric industry's future prospects. Table 1. — General Statistics Knit Fabric Mills— SIC 2256 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Wages ($1,000) Value added ($1,000) Value shipments ($1,000) Capital ex- penditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) 1958. 1959. 1960. 1961. 1962. 1963- 1964. 1965. 1966. 1967. 18, 356 19, 426 19, 278 20, 380 20, 469 25, 046 26, 859 28, 282 31, 987 N.A. N.A. 73, 871 82, 332 83, 757 92, 159 97, 750 117, 532 130, 130 140, 190 164, 260 N.A. N.A. 15, 689 16, 846 16, 464 17, 463 17, 546 21, 364 22, 859 23, 938 27, 064 N.A. N.A. 32, 301 35, 827 34, 622 37, 167 37, 932 46, 465 49, 771 51,641 58, 272 N.A. N.A. 55, 693 62, 426 62, 502 68, 165 71, 656 88, 296 97, 194 102, 779 119,247 N.A. N.A. 147, 394 180, 299 168, 659 191, 670 204, 488 252, 908 280, 649 333, 335 396, 109 N.A. N.A. 487, 185 536, 468 553, 519 626, 062 655, 508 817, 383 902, 335 1, 017, 325 1,143,618 N.A. N.A. 7,132 9, 772 8,653 12, 545 16, 338 18,409 25,287 28,187 59, 519 N.A. N.A. 2.647 2.888 2.698 2.812 2.854 2.864 2.888 3.243 3. 322 N.A. N.A. 1.72 4 1. 742 1.805 1.834 1.889 1.900 1.953 1.990 2. 046 N.A. N.A. N.A. = Not available. Source: Bureau of the Census. 63 Table 2. — Foreign Trade Knit Fabrics— SIC 2256 [Dollars in millions] Product Exports as Imports as Year Exports Imports shipments a percent of a percent of shipments new supply ' .3 .2 .6 1.0 1.3 .8 .6 .9 1.0 N.A N.A. 1958 $10.5 $1.3 $487. 2 2.2 1959 10.5 1.3 536.5 2.0 1960 12.5 3.1 553.5 2.3 1961 13.0 6.4 626.1 2.1 1962 11.8 8.7 655.5 1.8 1963 12.8 6.4 817.4 1.6 1964 18.0 5.6 902.3 2.0 1965- 20.5 9.2 1,017.3 2.0 1966 19. 7 11.2 1, 143. 6 1.7 1967 21.7 2 13 4 N.A. N.A. 1968 N.A. N.A. N.A. N.A. Table 3. — Principal Trading Partners Knit Fabrics— SIC 2256 United States buys from— United Kingdom Italy West Germany Canada Japan Source: Bureau of the Census. United States sells to- Canada South Africa United Kingdom Philippines West Germany Belgium Australia Sweden 1 New supply consists of shipments plus imports. 2 Preliminary. N.A. = Not available. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishment Knit Fabric Mills— SIC 2256 [Dollars in millions] Total 1-19 20-99 100 and over Year Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments ments ments ments ments 1958 -. 1963 357 518 18, 356 25, 046 $487 817 176 275 1,431 1,999 $50 95 129 178 5,500 8,225 $150 304 52 65 11, 425 14, 822 $287 419 Source: Bureau of the Census. Table 5. — Key Ratios Knit Fabrics SIC 2256 Table 6. — Geographic Distribution, 1963 Knit Fabrics— SIC 2256 Item 1958 1963 Investment per production worker i $6, 157 $7, 365 Specialization ratio (%) 94 95 Concentration ratios (%): 4firms 18 18 8firms 30 25 20firms.- 51 42 50firms 72 65 > 1957. Source: Bureau of the Census. Geographic area All em- ployees Geographic area All em- ployees Total 25, 046 East North Central West North Central Minnesota South Atlantic 539 119 New England 4,323 2,678 259 10, 902 5, 357 1,731 3,814 119 7,513 Connecticut Middle Atlantic New York New Jersey Pennsylvania North Carolina South Carolina East South Central Pacific California 5,496 711 1,520 130 130 Source: Bureau of the Census. Table 7. — Principal Products Knit Fabric Mills— SIC 2256 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Warp-knit fabrics C ircular knit fabrics Knit fabrics mills, N.S.K 'Standard error of estimate of 15 percent or more. N.C. = Not computed. N.S.K.-Not Specified by kind. 217 238 237 262 277 319 382 426 245 273 295 354 365 418 443 510 6 *18 6 482 2.22 2.44 N.C. Source: Bureau of the Census. 64 Manifold Business Forms SIC 2761 A steady, robust annual increase in value of shipments, value added by manufacture, and productivity have characterized the manifold business forms industry for the past 10 years. Shipments grew 145 percent from 1958 through 1968 to an estimated $966 million. The industry is concentrated in highly indus- trialized areas such as the Middle Atlantic, East North Central States and in California. Four States, Ohio, California, New York, and Delaware, each accounted for over 10 percent of the total employment in this industry in 1963. GROWTH FACTORS The big story behind the growth of the business forms industry is the tremendous upsurge in the use of computers and other automated data processing equipment by both business and govern- ment. With a large portion of the forms manu- factured being consumed as computer input and output, the tenfold increase in the number of computers installed between 1958 and 1967 has provided the industry its biggest boost. The use of automated data processing equipment is ex- pected to grow at a rate equal to or even greater than it has in recent years. The ever-increasing size and scope of local, State, and Federal government activities, with new programs, regulations, procurement, controls, and taxation, have resulted in greatly increased requirements for record keeping, not only by the business firm and the government organization, but also by the private citizen. This invariably has meant forms; records need to be uniform. Reporting requirements have also meant forms; data must be organized and transmitted in consistent form. The growing complexity and size of most of business and all of government also generate in- creasing needs for improved internal control. Such improved controls also result in forms — forms which are usually designed by the business forms producers to become an integral part of such overall business systems as modern account- ing, computing, bookkeeping, and other data processing machinery and equipment systems. As management becomes more sophisticated, it gets hungrier for more data — data which usually must be organized in some systematic manner that requires forms. The increase in mergers, especially conglomerates, has accentuated this process. The growth in the use of credit cards has also been a major stimulator of the use of bu.siness forms. Every time a purchase is made with a credit card, forms are used. Continued economic growth and population in- crease are also general factors which have con- tributed to the uninterrupted growth of this industry. The rise in the industry's output has generally kept pace, and in some years has moved ahead of the annual rate of increase in the gross national product. Rising retail sales have also resulted in a cor- related increase in the use of such forms as sales books and unit sets. Increased retail transactions have meant more customers receipts and more records for the retailer. FUTURE PROSPECTS Certain recent technological developments may have significant effects on the future growth of the forms industry. Optical Character Recognition (OCR), one such technological breakthrough, holds great 65 potential for increasing the sales of forms manu- factures. The optical scanner is an electronic reader capable of recognizing and translating printed words, letters, symbols, or hand written marks into machine-readable language with no intermediate processing of any kind. This would, of course, eliminate costly key punch operations. OCR is expected to create a demand for precision input forms, such as punch card sets manufactured for self-punch optical scanners. In contrast, increased data transmission by electronic means (probably through the telephone or telegraph systems) will at some point in the future certainly divert business from the present forms markets, although it is, at present, im- possible to predict the extent. New techniques which allow computer output to be transferred directly to microfilm in the form of electronic impulses, may very well replace much of the present paper output of the computer. Another source of market diversion may come in the form of a recently developed electrostatic copier which can print a form background at the same time it prints the variable entries on the form. Automatic switching of form outlines, kept on sheets of film within the machine, is an important feature of this copier, which could lessen the use of applicable business forms. However, even if some changes in technology result in a decrease in the amount of paper per transaction, the number of transactions will increase at such a rate that the total volume of forms used will continue to increase. Data proc- essing in the Federal Government will continue to grow at a very high rate. The need for increased record keeping by State and municipal govern- ments and by small- and medium-sized businesses will boost the use of data processing equipment, especially with the growth of the phenomenon of computer time sharing. With the currently expected rates of growth in the economy and in the use of computers, industry sources look to at least a doubling in forms volume in the next 10 years. Table 1. — General Statistics Manifold Business Forms — SIC 2761 Total employment Production workers Value Value Capital ex- Value added Wages per Year added shipments penditures per dollar of produc Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) wages ($) worker man- ($1,000) (1,000) ($1,000) hour ($) 1958 23 618 120, 945 16, 883 32, 823 79 623 245 229 405 731 14, 755 3.080 2.426 1959 24 747 128, 096 17, 952 35 536 84 939 273, 271 450, 820 N.A. 3.217 2.390 I960.. 24 998 131, 568 17, 947 35, 463 86 543 288 626 473, 850 N.A. 3.335 2.440 1961 26,254 136, 468 18, 470 36 318 91 382 298, 970 497, 848 N.A. 3.272 2.516 1962 27,268 146, 510 19, 124 38. 587 98, 702 329 740 552 523 N.A. 3.341 2.558 1963.... 28,796 173, 238 21, 259 43, 296 116, 680 377, 710 637, 673 23 084 3.237 2.695 1964 28,822 177,824 21, 494 44, 794 120, 745 401, 251 679, 563 22, 152 3.323 2.696 1965 30,288 192, 346 22, 309 46, 570 128, 591 436, 490 739, 675 29,481 3.394 2.761 1966 31,635 208, 283 23,125 48, 516 140, 343 486, 350 823, 873 44,436 3.465 2.893 1967 '32,700 N.A. N.A. N.A. N.A. N.A. ' 906, 300 N.A. N.A. N.A. 1968 '33,800 N.A. N.A. N.A. N.A. N.A. 1 996, 900 N.A. N.A. N.A. 1 Estimated. Source: Bureau of the Census and BDSA. N.A. = Not available. Tables 2 and 3 are not relevant to SIC 2761. Table 4. — Number of Employees by Size of Establishment Manifold Business Forms — SIC 2761 [Dollars in millions] Year Total 1-19 20-99 100 and Over Establish- Em- ments ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 704 23, 618 502 28, 796 $406 $638 539 252 2,841 1,931 $42 $33 110 4, 847 176 8, 209 $82 $160 55 15, 930 74 18, 656 $281 $444 Source: Bureau of the Census. 66 Table 5.— Key Ratios Manifold Business Forms— SIC 2761 Item 1958 Investment per production worker N.A. Specialization ratio (%) - - - - N.A. Concentration ratios (%): 4 firms N.A. 8 firms - N.A. 20 firms N.A. 50 firms N.A. Source: Bureau of the Census. 1963 $9, 850 90 46 55 68 80 Table 6. — Geographic Distribution, 1963 Manifold Business Forms — SIC 2761 Geographic area All em- ployees Geographic area All em- ployees Total- .- ... 28,796 West North Central— Con. Missouri Kansas South Atlantic 846 429 1, 655 Massachusetts 777 528 ... 5, 935 . 2, 599 North Carolina 451 Middle Atlantic . Georgia Florida East South Central 302 New York NewJersev.- Pennsylvania 3,372 1,104 1,459 _ . 9, 110 374 761 East North Central Tennessee. Alabama West Soutli Central 238 258 Indiana Illinois ... 618 3,331 784 331 ... 4, 046 . 2, 507 Michigan Wisconsin Ohio... Texas Mountain _ Pacific Washington .. Oregon . California 1,994 182 West North Central ... 1,838 . 4, 209 Minnesota. .. ... Iowa 257 264 162 271 3,776 Source: Bureau of the Census. Table 7. — Principal Products Manifold Business Forms — SIC 2761 Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Continuous business forms. 169 Unit set forms 160 Sales and other manifold books 45 Manifold business forms, N.S.K... N.A. 189 207 223 247 291 320 357 407 2.40 173 173 196 205 258 262 285 324 2.03 49 51 49 50 40 40 58 61 1.35 .A. N.A. N.A. N.A. 10 '10 ( 2 ) ' 1 N.C. 1 Standard error of estimate of 15 percent or more. 2 Less than $50,000. N.A. = Not available. N.C. = Not computed. Source: Bureau of the Census. 67 Man-Made Fibers, Noncellulosic SIC 2824 The noncellulosic man-made fiber industry is among the 15 fastest growing in the United States. Both value of shipments and employment more than tripled during the past decade. These fibers are manufactured primarily in Virginia, Tennessee, North Carolina, and South Carolina. GROWTH FACTORS Noncellulosic fibers have grown rapidly because they have helped to increase the total use of textile fibers and at the same time gained an increasing share of the total textile fiber market. Many fac- tors ranging from improved fiber qualities to a long-term decline in prices, have combined to produce this growth. In the field of fiber quality, noncellulosic fibers have great strength, resistance to abrasion and the effects of acids and weather, and the ability to impart crease retaining and wrinkle resisting qualities to articles made from them. No single fiber has all of these characteristics, but the in- dustry has developed a wide variety of fiber types each having qualities particularly suited for spe- cific end uses. The industry has also developed blends of two or more fibers, either entirely or partly cellulosic, that have qualities not available in any single fiber. The combination of multiple fiber types, each with qualities adapted for specific end-uses backed by large-scale promotional activities, has made noncellulosic fibers popular with consumers. The growing popularity of polyester, acrylic, and, to a lesser extent, nylon fiber contributed to the rise in the use of noncellulosic man-made fibers in knit outerwear. The recent development of durable press treatments for both woven and knit fabrics, has resulted in a marked increase in the consump- tion of these fibers, especially polyester, in apparel. The tufted carpet and rug industry is the most important user of noncellulosic fibers among home furnishing industries. Whereas cotton and later rayon were once the most important tufted carpet and rug materials, more than two-thirds of all fibers used currently to make tufted carpets and rugs are noncellulosic man-made fibers. The easy- care features of noncellulosic man-made fiber car- pets and rugs have resulted in widespread use of these floor coverings in both the residential and commercial fields. Kitchen, bathroom, and out- door carpets are being added to traditional resi- dential carpeting. In addition, contract carpeting in schools, hospitals, supermarkets, and office buildings is burgeoning. The most important industrial application of noncellulosic man-made fibers is in manufacturing tire cord and cord fabric. The past decade's growth in noncellulosic tire cord and cord fabric, including nylon and polyester, has resulted partially from growth in the tire industry itself, but mostly from the substitution of nylon and polyester for rayon, a cellulosic man-made fiber. The growth of noncellulosic fibers has been aided by the many advantages that these fibers offer to textile processors. These include price stability, continuous availability, standardized specifications, cleanliness, and little waste during manufacturing. In many products, the growing acceptance of noncellulosic fibers has been the result of fiber qualities as these fibers are higher in price than cotton, the most used textile fiber. However, the price of noncellulosic fibers has declined steadily over the years as producers have improved manu- facturing processes and increased their scale of operations. The decline in the price of noncellulosic 68 relative to the price of other textile fibers has enabled noncellulosics to penetrate markets from which they formerly were excluded. Until recently some import and export classifica- tions included both noncellulosic and cellulosic fibers. Therefore, data on noncellulosic fiber im- ports go back only to 1964 and export data to 1965. Although precise figures are missing, exports of noncellulosic fibers probably exceeded imports until some time in the early 1960's. Large-scale production of noncellulosic fibers developed earlier in the United States than it did abroad, and domestic producers capitalized on their lead in manufacturing technology and economies of scale to build export sales. However, foreign production of noncellulosic fibers has increased rapidly. It appears that as the tech- nological lead enjoyed by domestic producers declines, U.S. imports will increase. This expecta- tion is borne out by the 1964-67 figures that show imports more than doubling in 3 years. While imports were only about 2 percent of new supply in 1967, a continuation of the recent rate of growth of noncellulosic fiber imports might create problems for domestic producers and restrict future growth of the industry. Foreign trade in noncellulosic fibers is largely with other industrialized countries. Canada, Netherlands, and Switzerland are our largest export markets and France, Italy, and Japan the largest suppliers of imports. FUTURE PROSPECTS Prospects for the future growth of the noncellu- losic fibers industry are bright. However, the extremely rapid growth of the past decade may slow somewhat. A substantial part of recent growth has come from the displacement of other fibers by noncellulosics. With noncellulosic fibers now accounting for nearly 30 percent of total mill consumption of fibers, future growth will, of necessity, depend less on displacement of other fibers than it has in the past. The expected in- crease in imports may also tend to slow the growth of the domestic industry. New product development has been and will continue to be a basic factor in the growth of this industry. The fact that man-made fibers can be manufactured to meet the specifications of purchasers will stimulate their application in varied end-uses. Growth in the economy as a whole will have a significant impact on the noncellu osic man-made fiber industry's outlook. The continued trend toward informal living that will accompany predicted increases in leisure time will create higher demand for the convenience features of noncellulosic man-made fiber products. Population growth, especially in the 15- to 29-year-age group, and rising per capita incomes should have a positive effect on demand for clothing and home furnishings. Table 1.— General Statistics Organic Fibers, Noncellulosic — SIC 2824 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Wages ($1,000) Value Capital Value added • Value added shipments expenditures per dollar of ($1,000) ($1,000) ($1,000) wages ($) Wages per production worker man- hour ($) 1958.. 1959.. 1960. 1961.. 1962. 1963. 1964. 1965. 1966. 1967. 1968. 18,684 22, 178 23,429 28,956 31,833 41,421 44,318 51,467 59,111 N.A. N.A. 102, 742 129, 596 141,783 186, 443 214,361 275, 809 304,636 358, 457 421,290 N.A. N.A. 12, 899 16,270 17, 012 20, 386 23,257 28,385 30, 722 36,461 40,638 N.A. N.A. 26, 025 32, 203 33, 571 40,230 46, 473 57, 240 62,323 73,641 80, 746 N.A. N.A. 61,864 82, 175 88, 599 111,832 131,369 161,042 180, 579 216,377 245, 991 N.A. N.A. 439, 638 557, 753 549, 631 668, 061 793, 155 922, 001 1, 043, 091 1,215,366 1, 301, 525 N.A. N.A. 688,365 875, 149 868,281 1, 039, 489 1,192,051 1,403,178 1, 580, 621 1, 842, 933 1, 991, 826 N.A. N.A. 63,659 24,733 48, 122 117,550 118,351 170, 323 163,583 363, 021 384, 745 N.A. N.A. 7.11 6.79 5.20 5.97 6.04 5.73 6.78 6.62 5.29 N.A. N.A. 2.38 2.55 2.63 2.78 2.83 2.81 2.90 2.94 3.05 N.A. N.A. N.A. = Not available. Source: Bureau of the Census 69 Table 2. — Foreign Trade Organic Fibers, Noncellulosic SIC 2824 [Dollars in millions] Product Exports as Imports as Year Exports Imports shipments a percent of a percent of shipments new supply ' 1958 _. N.A. N.A. $ 688.4 N.A. N.A. 1959 N.A. N.A. 875.1 N.A. N.A. 1960 N.A. N.A. 868.3 N.A. N.A. 1961 N.A. N.A. 1,039.5 N.A. N.A. 1962 N.A. N.A. 1,192.1 N.A. N.A. 1963 N.A. N.A. 1,403.2 N.A. N.A. 1964 N.A. $21.4 1,580.6 N.A. 1.3 1965 $29.5 44.6 1,842.9 1.6 2.4 1966 -- 38.9 43.5 1,991.8 2.0 2.1 1967 2 40.7 M8.6 N.A. N.A. N.A. 1968 N.A. N.A. N.A. N.A. N.A. 1 New supply consists of shipments plus imports. 3 Preliminary. Source: Bureau of the Census. Table 3. — Principal Trading Partners Organic Fibers, Noncellulosic — SIC 2324 United States buy s from— France Italy Japan West Germany United Kingdom Source: Bureau of the Census. United States sells to- Canada Netherlands Switzerland Mexico Spain U.S.S.R. United Kingdom Table 4. — Number of Employees by Size of Establishment Organic Fibers, Noncellulosic— SIC 2824 [Dollars in millions] Year Total 1-19 20-99 100 and over Estab- Employees Ship- lishments ments Estab- Employees Ship- Estab- Employees Ship- Estab- Employees Ship- lishments ments lishments ments lishments ments 1958. 1963. 14 25 18,684 41,421 $ 1,403 (') (') 4 (') (') 10 18, 684 2 (') (') 22 41,421 1,403 1 Not available included in size group 100 and over. Source: Bureau of the Census. Table 5. — Key Ratios Organic Fibers, Nonceltulosic — SIC 2824 Item 1963 Investment per production worker ..$2, 802 Specialization ratio (%).. _ 95 Concentration ratios (%) : 4 firms 94 8 firms 99 20 firms.... _ 100 50 firms. (') 1 Not applicable. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Organic Fibers, Noncellulosic — SIC 2824 Geographic area All em- ployees Geograph'c arei All em- ployees Total 41, 421 North Carolina South Carolina All other States 7, 702 3, 581 30. 138 South 41, 421 Source: Bureau of the Census. Table 7. — Principal Products Synthetic Organic Fibers Except Cellulosic SIC 2824 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Polyamide fibers, nylon, exchange monofilaments. . . N.A. N.A. N.A. N.A. N.A. N.A. N.A. 782 391 896 472 994 579 1,079 753 1,115 Other noncellulosic synthetic organic fibers __ N.A. 824 N.A. = Not available. Source: Bureau of the Census. 70 Meat Packing Plants SIC 2011 Substantial increases in production and pro- ductivity delineate the growth pattern of the meat packing industry from 1958 to 1968. Through advanced technologies, the industry increased total value of shipments by 34 percent and dropped 20,000 production workers during the period, resulting in an estimated 54 percent rise in the value of shipments per production worker by 1968. The number of new establish- ments, capital expenditures, and manhours per production worker rose perceptibly through 1966. The meat packing industry may be described as dynamic and transitional. The old methods of transportation, slaughter and processing have been giving way to advanced technologies. Since the mid 1950's, many of the giants of the industry which have historically operated only at or near terminal stockyards — Cleveland, Indianapolis, Chicago, Denver — have closed their older and outmoded terminal packing plants and replaced them with new and modern slaughtering plants in livestock producing areas. GROWTH FACTORS New plant growth since the mid 1950's has been strongly influenced by independent packers who have built smaller, highly automated plants in rural areas which are close to the supply of animals and adequate supply of labor. Nearly a billion dollars have been invested in plant and equipment since 1958. Not only has the industry changed in location, the technology of animal slaughter and meat processing has also changed. Most slaughter now is highly automated. The animal is suspended from the rail after felling. Mechanical hide pullers, power knives, conveyors, and automated machin- ery assist in swift processing. These innovations have greatly increased the speed and efficiency of slaughter and processing operations, which have significantly raised the rate of employee output, and as a consequence, reduced labor requirements. A combination of factors has been largely responsible for the growth of the industry. The increased per capita consumption of meats, primarily beef — per capita consumption of pork, lamb, and mutton declined during this decade — multiplied by the expanding population and stead- ily rising personal disposable income since 1958 is the basis for this growth. Several other factors of a technological and in- stitutional nature have contributed to the enlarged demand for beef. These include larger refrigerators and expanded use of freezers in the home, increased supermarket retailing, self-service displays of wider variety and newly introduced cuts of meat, more advertising and promotion, and better quality of meat produced. FUTURE PROSPECTS The industry is confident that the trend in the future is upward. The factors which influence this optimistic outlook are twofold; the growing popu- lation, and hence, a growing consumer market; rising incomes and the increasing preference for meat in the family diet. This preference is chiefly for beef rather than the other meats. Per capita consumption of meat, civilian and military, has risen 15 pounds during the past decade and may be expected to continue to increase along with a rising standard of living. An important factor in the future growth of the meat packing industry is the availability of livestock — cattle, sheep and pigs. Production of 71 quality beef animals has become a highly special- ized industry as a result of consumer demand. Increased emphasis on quality has led packers to demand a more uniform, higher quality animal, while narrow profit margins in the packing in- dustry have pressured packers to utilize their plants more efficiently. Larger supplies of live- stock have been coming from commercial feedlots which can usually produce high-quality meat animals on a year-round basis less expensively than can the small farmer. Commercial feeding has been growing rapidly and, by all indications, will continue to increase as the meat packing industry demands a greater supply. Exports of meat have not been of any great importance to the industry. However, the foreign market is now being cultivated by marketing organizations, which will attempt to acclimate foreign tastes to U.S. meat products. Rising incomes in Europe and a worldwide protein shortage may increase U.S. exports of meat products in the future. Table 1. — General Statistics Meat Packing Plants— SIC 2011 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958.... 201,019 1, 068, 766 150, 936 309, 314 768, 616 1, 749, 291 11, 972, 464 65, 860 2.276 2.485 1959.... 197, 342 1, 102, 039 149, 669 312, 744 797, 792 1, 834, 004 11,810,356 67, 538 2.299 2.551 I960..-. 194, 296 1, 139, 550 147, 797 312, 888 827, 063 1,911,776 11,828,339 77, 233 2.312 2.643 1961.... 189, 351 1, 144, 248 143, 473 303, 047 828,406 1, 890, 265 11,938,722 75, 530 2.282 2.734 1962.... 185,715 1, 161, 962 141, 723 298, 177 845, 453 1, 987, 049 12, 491, 425 90, 920 2.350 2.835 1963.._. 180,873 1, 146, 947 138, 356 289, 294 847, 025 1, 908, 309 12, 435, 454 80, 235 2.253 2.928 1964.... 182, 661 1, 226, 460 138, 613 310, 131 902, 503 2, 127, 862 12, 973, 338 94, 743 2.358 2.910 1965.... 180, 292 1, 214, 043 137, 243 286, 777 885, 786 2, 059, 764 13, 931, 487 101, 090 2.325 3.089 1966.... 173,984 1,211,900 132, 438 279, 221 883, 752 2, 025, 456 15, 068, 932 104, 261 2.292 3.165 1967.... . . . ' 173, 800 N.A. N.A. N.A. N.A. N.A. ' 15, 280, 000 N.A. N.A. N.A. 1968.... i 172, 500 N.A. N.A. N.A. N.A. N.A. l 16, 000, 000 N.A. N.A. N.A. 1 Estimated. Source Bureau of the Census and BDSA. N.A. = Not available. Tables 2 and 3 are not relevant to SIC 2011. Table 4. — Number of Employees by Size of Establishments Meat Packing Plants— SIC 2011 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 2,801 2,992 200 783 180, 873 $11, 962 12, 435 1,824 2,016 9,971 9,934 $528 577 668 677 29,023 29,181 $2, 160 2,556 309 161, 789 299 141, 758 $9, 274 9,303 Source: Bureau of the Census. Table 5. — Key Ratios Meat Packing Plants— SIC 2011 Item 1958 1963 Investment per employee > $7,331 Specialization ratio (%) 98 Concentration ratios (%): 4 firms 34 8 firms 46 20 firms 57 50 firms... _ 65 $8,023 31 42 54 64 i 1957. Source: Bureau of the Census. 72 Table 6. — Geographic Distribution, 1963 Meat Packing Plants— SIC 2011 Geographic area All em- ployees Total 180,873 New England 1,233 Massachusetts 338 Connecticut 593 Middle Atlantic 14, 562 New York 4,078 New Jersey 3,001 Pennsylvania 7,483 East North Central 36,104 Indiana 7,591 Illinois.. 9,907 Michigan 2,678 Wisconsin 6,759 Ohio 9,169 West North Central 67, 929 Minnesota 13,496 Iowa 23,630 Missouri 7, 652 Nebraska 10,265 Kansas 8,070 South Atlantic 15,564 Maryland 2,373 Virginia 3,868 West Virginia 689 North Carolina 2,027 Geographic area All em- South Atlantic— Con. South Carolina l',438 Georgia 3,184 Florida 1,934 East South Central 11,537 Kentucky 2,673 Tennessee 4,629 Alabama 2,095 Mississippi 2, 140 West South Central 14, 433 Arkansas 1,093 Louisiana 973 Oklahoma 2,325 Texas 10,042 Mountain 8,423 Montana 724 Idaho 787 Colorado 3,995 New Mexico 613 Arizona 766 Utah 1,265 Pacific 11,088 Washington 2,348 Oregon 1,346 California 7,135 Hawaii 259 Source: Bureau of the Census. Table 7. — Principal Products Meat Packing Plants— SIC 2011 [Shipment value in 1,000] Class of product 1958 1959 1960 1961 1962 1963 Beef, fresh and frozen 5,019 5,355 5,396 5,337 5,717 5,708 Veal, fresh and frozen 414 374 351 328 344 311 Lamb and mutton, fresh and frozen 305 308 296 287 291 300 Pork, fresh and frozen __ 2,124 2,056 2,074 2,177 2,240 2,203 Lard 332 281 274 288 257 224 Hides, skins, and pelts... 196 ' 366 '340 i 356 '368 223 Other meat packing products, excluding sausage casings, N.E.C. or N.S.K.... 275 251 203 259 262 292 Processed pork 1,822 1,695 1,606 1,634 1,621 1,635 Cannedmeats 599 631 633 695 724 730 Sausage 1,526 1,501 1,510 1,585 1,634 1,756 1964 1965 1966 Ratio 66/58 6,018 6,429 6,899 1.37 305 327 333 .80 298 308 335 1.10 2,346 2,505 2,800 1.32 237 255 227 .68 218 275 380 1.94 331 298 325 N.C. 1,675 1,800 1,937 1.06 814 768 812 1.36 1,852 1,984 2,296 1.50 1 Standard error of estimate of 15 percent or more. N.C. = Not computed. N.E.C. = Not elsewhere classified. N.S.K. = Not specified by kind. Source: U.S. Bureau of the Census. 73 Mechanical Measuring Devices SIC 3821 Technological developments and aggressive sales campaigning have led to a 7.2 percent annual growth rate in mechanical measuring devices since 1958. Reflecting rising productivity, employment has increased only 3.2 percent annually in this period. The mechanical measurement device industry generally employs a number of highly skilled and technically oriented personnel as shown by wage and salary figures. Most produc- tion is located in Massachusetts, Pennsylvania, Illinois and Ohio. GROWTH FACTORS The major growth factor in this industry is the development of new and better products. Indeed, half of the measuring and controlling devices on the market today did not exist 10 years ago, and many of the old line instruments have been im- proved considerably. Changing techniques have been applied to new measuring and controlling principles. These have extended the range, reliability, precision, and ap- plicability of instrumentation. A particularly important advance in instrumentation has been the continuous measurement of solids suspended in liquids. This has made possible the extension of automatic measurement and control techniques to intermittent manufacturing processes. With the advent of computer technology and its emphases on automation, industrial process instru- ment manufacturers have been prompted to pro- vide complete integrated instrument systems. Re- quirements for instrumentation are particularly heavy in the capital intensive petroleum, chemical, pulp and paper, food processing, power generation, and primary metals industries. The systems approach is now estimated to ac- count for over 25 percent of new projects. Future turn key programs are soon expected to take 50 percent of new contracts. Nuclear process control instruments should assume a 10 to 15 percent share of this market in the future. Integration of nuclear and electronic systems is responsible for the de- velopment of more sophisticated product lines in several companies. Pneumatic systems incorporat- ing fluidics are becoming more prevalent in proc- esses in which there is one medium where ex- tremely fast response is not a requirement. Product development in nonelectrical inte- grating meters, motor vehicle instruments, air- craft engine instruments and in other mechanical measuring and controlling instruments, although not static, has been slower paced than in industrial process instruments. Process control instruments are playing a sig- nificant role in air and water pollution abatement programs. It is in these programs that process control instruments applied in manufacturing plants can solve the problem of waste disposal by controlling closed-loop systems that permit the reuse of wastes. Water desalination projects and nuclear powered reactor plants for electricity generation have relied extensively on the ingenuity ol process instrument engineers. The unique problems of each industrial process requiring more precise measurement and control have in fact, fostered new developments to that end. Growth in military expenditures has been a contributing factor to the increased demand for aircraft engine instruments. In addition, more and more instruments and replacement parts are being added to aircraft engines. 74 Some instrument areas are not, however, re- flecting very rapid growth trends. A downward trend in motor vehicle instrument sales has resulted from greater use of electrically actuated instru- ments and greater durability in pneumatic devices. , Gas and water meters account for the largest share of integrating meter shipments and there- fore follow the trend of construction outlays. FUTURE PROSPECTS Extensive plant building and modernization activities and the availability of improved control techniques and equipment should stimulate sales growth of more than 10 percent annually in the next several years. Utilization of new technologies such as lasers in surveying instruments and fluidics in process instrumentation, will result in a flow of new products. User industries will reap many benefits from advanced control equipment. The major benefits to be derived are greater ease and economy in switching production to different specifications, higher product quality, and more consistent out- put. The greatly expanded usage of the control computer will increase markets for sensors, control valves and actuators. Table 1. — General Statistics Mechanical Measuring Devices — SIC 3821 Total em ployment Production workers Value Capital ex- Value added Wages per Year Value added shipments penditures per dollar of production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) wages ($) worker man-hour ($) 1958 50, 049 258, 488 32, 123 62, 982 144,873 457, 126 726, 823 18, 215 3.155 2.300 1959..- 52, 779 288, 414 34, 634 66, 767 158, 438 535, 978 824, 656 N.A. 3.383 2.373 1960 _.-. 59, 701 340, 524 37, 505 76, 709 183, 594 599, 992 948, 679 24, 394 3.268 2.393 1961 „. 60, 067 340, 262 37, 047 73, 904 176,707 591,017 965, 369 25, 069 3.345 2. 391 1962 65, 077 376, 233 41,264 85, 572 205, 410 673, 981 1, 073, 753 29, 626 3.281 2.400 1963 62, 353 388, 874 40, 383 81,610 222, 826 732, 529 1, 143, 416 30, 914 3.287 2.734 1964 60, 905 416, 356 38, 373 78, 519 228, 699 765, 509 1,217,101 38, 529 3.347 2.913 1965 68, 236 472, 275 43, 373 83,206 259, 530 944, 220 1, 450, 791 48, 774 3.638 3.119 1966 70, 645 500, 982 44, 195 82, 515 260, 316 950, 934 1, 428, 510 44, 430 3.653 3.155 1967 1 70, 200 N.A. N.A. N.A. N.A. N.A. ' 1, 535, 000 N.A. N.A. N.A. 1968 _ ' 68, 500 N.A. N.A. N.A. N.A. N.A. '1,460,000 N.A. N.A. N.A. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 3821. Table 4. — Number of Employees by Size of Establishment Mechanical Measuring Devices — SIC 3821 [Dollars in millions] Total 1-19 20-99 100 and Over Year Establish- Employees Shipments ments Establish- ments Employees Shipments Establish- Employees Shipments ments Establish- Employees Shipments ments 1958 1963 627 50, 049 727 670 62, 353 1, 143 398 412 2, 356 36 2, 228 40 136 6, 134 85 155 6,865 119 93 41, 559 606 103 53, 260 984 Source: Bureau of the Census. 75 317-387 O— 68- Table 5. — Key Ratios Mechanical Measuring Devices — SIC 3821 Table 6.— Geographic Distribution, 1963 Mechanical Measuring Devices — SIC 3821 Item M58 1963 Investment per production worker N.A. $8,220 Specialization ratio (%) N.A. 90 Concentration ratios: 4firms_._. N.A. 22 8firms N.A. 36 20flrms N.A. 61 50flrms N.A. 81 N.A. = Not available. Source: Bureau of the Census. Geographic area All em- ployees Geographic area All em- ployees Total... 62,353 New England 14,642 Middle Atlantic... 20,770 Pennsylvania 11,483 East North Central 18, 921 Illinois 6,737 Ohio 4,927 West North Central 956 Missouri 108 South and West 7,064 Maryland. 2,081 Oklahoma 475 Texas 483 Source: Bureau of the Census. Table 7. — Principal Products Mechanical Measuring Devices — SIC 3821 (In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Aircraft engine instruments, excluding flight 55 Integrating meters, nonelectrical type 119 Industrial process instruments _ 403 Motor vehicle instruments, excluding electric 71 Other mechanical measuring and controlling instruments _ . 93 Mechanical measuring devices, N.S.K 19 65 62 49 46 66 61 62 86 1.RS 155 147 140 154 164 165 183 213 1.79 444 500 338 369 522 589 645 714 1.77 87 91 87 101 96 108 131 102 1.44 117 131 134 152 117 115 161 188 2.03 17 23 15 20 18 •12 •13 •7 N.C. N.C. = Not computed. N.S.K. Not specified by kind. •Standard error of estimate of 15 percent or more. Source: Bureau of the Census. 76 Metal-Cutting Machine Tools SIC 3541 The metal-cutting machine tool industry, spurred by the huge demand for its products from domestic and foreign sources, expanded rapidly during the 1958-68 period. The number of establishments producing metal-cutting machine tools grew from 627 in 1958 to 801 in 1963. Employment increased more than 50 percent to about 83,000 by the end of 1968. Overall shipments of the industry rose almost 200 percent, from $680 million in 1958 to nearly $2 billion in 1968. Industrial-type machine tools, the principal product of the industry, accounted for 72 percent of the total shipments of metal cutting machine tools. During the 1958-66 period their value increased over 184 percent, from $422 million in 1958 to $1.2 billion in 1966. Annual net new orders increased over 444 percent from $300 million in 1958 to over $1.6 billion in 1966. The value of exports of metal-cutting machine tools (particularly technically advanced industrial types) increased more than 76 percent, from $101 million in 1958 to $177 million in 1966. Foreign manufacturers of standard and general purpose metal-cutting machine tools, benefiting from lower production costs and faster delivery times, in- creased their exports to the United States by 584 percent, from nearly $18 million in 1958 to $121 million in 1966. Except for a few plants located in the South, Southwest, and in California, the metal-cutting machine tool industry is concentrated in the area east of the Mississippi and north of the Ohio Rivers. Major concentrations are in Ohio, Illinois, Michigan, Wisconsin, Rhode Island, Massa- chusetts, Connecticut, New York, Pennsylvania, and New Jersey. The majority of the establish- ments produce standard and general purpose metal-cutting machine tools other than industrial type; approximately 50 percent of the 801 plants have less than 15 employees. Production of technically advanced and industrial-type machine tools is concentrated in 269 establishments with 20 or more employees. These plants account for most of the output and employment of the industry. GROWTH FACTORS After World War II, the metal-cutting machine tool industry accelerated research and develop- ment aimed at technological improvements in machine tools. Principal improvements in the industrial-type machines were automated opera- tion, application of numerical control systems, electrical discharging machining, chemical ma- chining, and the use of lasers as manufacturing tools. Other important refinements included copy- ing control techniques, automatic operating cycle controls, indexing and transfer production ma- chines or lines, material feeding equipment, and automatic assembly and processing equipment. The advanced technology used by the metal- cutting machine tool industry in the production of quality machine tools gave industrial users in the United States the equipment needed for many improvements in production techniques, and placed the industry in a strong competitive posi- tion in foreign markets, particularly for machine tools required by the automotive industries in Europe and Japan. Capital expenditures for industrial plant expan- sion and modernization by the metalworking industry, the principal user of metal-cutting machine tools, were at a low level in the middle and late fifties, and its equipment was inadequate for improved production techniques and cost- 77 cutting operations. A 1959 survey indicated that over 72 percent of the 2% million machine tools in use in U.S. industries were over 10 years old. A relatively high percentage of these machines were obsolete because of the advanced technology, greater productivity, and tolerance capability of the new machines developed by the metal-cutting machine tool industry. As late as 1963 a similar survey indicated that 64 percent of the machine tool inventory of U.S. industries remained in the overage category, with one in every 10 machines at least 20 years old. The metalworking industry was under increased pressure to modernize its equipment to offset rising production costs and remain in a competitive position. During the 1955-60 period, the U.S. Armed Forces disposed of excess stocks of metal-cutting machine tools, and procurement of new machines for replacement and modernization by the military services was at a low ebb. Beginning in 1961, military demand for new metal-cutting machine tools required for production of almost all types of military hardware was stepped-up as weapons system procurement increased and Armed Forces mobilization accelerated. Military defense demand for metal-cutting machine tools continued through- out the 1961-66 period. The 1962 investment tax credit and revision of depreciation allowances were major stimulants for industrial expansion and plant modernization, generating greatly increased investment for capital equipment in all sectors of the economy. New orders for metal-cutting machine tools increased rapidly, particularly during the 1963-66 period. FUTURE PROSPECTS The suspension of the investment tax credit on October 10, 1966, had an immediate effect on the expansion and modernization programs of the industrial economy, resulting in curtailment of capital investments, especially in the consumer goods industries. Shipments of metal-cutting machine tools exceeded net new orders for the first time since 1963, beginning in the fourth quarter of 1966 and continuing through the first 5 months of 1968. The reinstatement of the investment tax credit on March 10, 1967, has not yet reversed the downward trend in new orders. The order backlog of the metal-cutting machine tool industry has also been declining since 1967. A reversal of this unfavorable position of the industry is dependent on growth in the national economy, competitive pressures on manu- facturing industries to modernize capital equip- ment, and the easing of credit. U.S. machine tool builders have maintained their competitive position in foreign markets with high cost, technically advanced machine tools, which are in strong demand in all indus- trialized countries. But they are faced with advanced production technologies of foreign metal- cutting machine tool manufacturers. Exports of standard and general purpose machine tools are declining because of the higher cost of U.S. machine tools. Foreign manufacturers are making a concerted effort to gain the confidence of U.S. metal manufacturing and fabricating industries by offering technologically improved products through stronger sales organizations. Table 1. — General Statistics Metal-Cutting Machine Tools— SIC 3541 Total employment Production workers Value ship- Capital Value added Wages per Year Value added ments expenditures per dollar of production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) wages ($) worker man- ($1,000) (1,000) ($1,000) hour ($) 1958 52,864 300,344 36,154 69,619 182,171 420,961 679,836 18,840 2.311 2.617 1959 52,797 329,497 35,436 72,165 201,991 505,433 753,784 22,152 2.502 2.799 1960 58,777 370,894 39,487 80,918 223,825 578,210 881,676 24,770 2.583 2.766 1961 _.. 54,901 352,976 36,373 72,714 201,457 550,119 828,413 18,668 2.731 2.771 1962 58,855 401,810 39,253 81,217 235,035 670,989 982,118 26,643 2.855 2.894 1963 61,058 438,222 41,008 86,486 272,243 699,341 1,060,818 28,837 2.569 3.148 1964.. 65,078 497,726 44,471 97,317 306,845 836,224 1,286,022 41,652 2.725 3.153 1965 70,827 564,968 48,745 108,105 353,678 993,561 1,524,402 53,704 2.809 3.272 1966 79,767 673,356 55,279 123,800 427,536 1,234,151 1,826,073 74,899 2.887 3.453 1967 183,000 1723,000 N.A. N.A. N.A. N.A. '1,966,000 N.A. N.A. N.A. 1968. '83,000 1755,000 N.A. N.A. N.A. N.A. 11,935,000 N.A. N.A. N.A. ■ Estimated. N.A.=Not available. Source: Bureau of the Census and BDSA. 78 Table 2. — Foreign Trade Metal-Cutting Machine Tools— SIC 3541 [Dollars in millions] Product Exports as a Imports as a Year Exports Imports shipments percent of percent of shipments new supply ' 1958 $100.6 $17.7 $587 1959 82.3 23.8 649 1960 127.8 26.3 747 1961.. 191.6 22.7 720 1962 205.1 28.5 832 1963 144.9 33.4 925 1964 204.8 38.3 1,135 1965 _ 191.6 58.9 1,386 1966 177.3 121.0 1,639 1967 199.6 174.5 N.A. 1968 .... 2 214.0 2 183. N.A. 17.1 12.7 17.1 26.6 24.7 15.7 18.0 13.8 12.2 N.A. N.A. 2.9 3.5 3.4 3.1 3.3 3.5 3.3 4.1 6.9 N.A. N.A. 1 New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Metal-Cutting Machine Tools— SIC 3541 United States buys from- United States sells to — West Germany United Kingdom Japan Italy Switzerland Canada France Source: Bureau of the Census. Canada United Kingdom Japan Italy India France Mexico West Germany Table 4. — Number of Employees by Size of Establishment Metal-Cutting Machine Tools SIC 3541 [Dollars in millions] Total 1-19 20-99 100 and over Year Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments ments ments ments ments 1958. 1963. 627 801 52,864 61, 058 1,061 396 2,257 $32 135 6,099 $91 96 44, 508 $558 532 3,172 51 174 7,334 136 95 50, 552 873 Source: Bureau of the Census. Table 5. — Key Ratios Metal-Cutting Machine Tools SIC 3541 Item 1958 1963 Investment per production worker ' $8, 760 $12, 943 Specialization ratio (%) 82 81 Concentration ratios (%) : 4ftrms 21 20 8firms 32 32 20flrms 52 52 50firms 74 74 i 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Metal-Cutting Machine Tools — SIC 3541 Geographic area All em- ployees Geographic area All em- ployees Total 61, 058 East North Central- Michigan ... Wisconsin Ohio West North Central Minnesota South Texas Mountain . Pacific California -Cont. New England Vermont Connecticut ... Middle Atlantic N ew York 14, 853 3,692 4,326 7,106 5, 045 532 1,529 36, 845 1,634 6,691 7,978 5,199 15,343 547 158 New Jersey Pennsylvania 463 204 East North Central Indiana Illinois 54 1,190 1,097 Source: Bureau of the Census. Table 7. — Principal Products Metal-Cutting Machine Tools SIC 3541 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Boring machines Drilling machines. Gear-cutting and finishing machines Grinding and polishing machines (excluding gear tooth grinding, honing, lapping, polishing and burling ma- chines') Lathes, metal cutting _ _ Milling machines Other machine tools (including those designed for home, workshops, laboratories, etc.) Parts for metal cutting type machine tools sold separately and rebuilt machine tools Metal-cutting machine tools, N.S.K 52 30 23 46 33 25 47 39 34 52 37 36 61 53 36 66 55 41 77 73 48 94 85 57 115 111 60 2.24 3.68 2.64 89 99 89 94 119 73 117 135 79 121 126 74 128 152 96 144 163 113 184 208 127 223 247 150 245 303 202 2.74 3.07 2.26 98 130 143 134 152 152 196 266 320 3.26 89 19 109 *20 131 *20 118 ♦22 132 *21 166 24 200 *23 239 25 260 ♦23 2.93 N.C. N.C. = Not computed. ♦Standard error of estimate of 15 percent or more. N.S.K = Not specified by kind. Source: Bureau of the Census. 79 Metal Office Furniture SIC 2522 The growth in demand for metal office furniture has paralleled the recent rapid rise in new office construction and in numbers of white collar workers. Business and Government have over- whelmingly chosen metal furniture for original outfitting and replacement not only because of its durability and convenience, but also because of its generally modern and imaginative design. Although the production of metal office furniture is concentrated in establishments with fewer than 100 employees, located primarily in those States near the Great Lakes, larger manufacturers with multiplant operations and nationwide distribution outlets are coming into prominence as the office furniture market expands. A measure of this ex- pansion is the 200 percent growth in value of metal office furniture shipments during 1958-68. GROWTH FACTORS The growth in demand for metal office furniture is a function both of the need for furnishing new and old buildings and of the buyer's preference. The office — not the factory — is now the most common place of work for today's employee. The technological revolution, automation, in- creased education and other factors have caused the number of white collar workers to increase 25 percent in 1958-68 to 34 million. Over the same period the total work force increased only 12 percent. New office construction had to increase to provide the space for additional white collar per- sonnel. Estimates of annual dollar volume of new office construction in 1968 approximate $3 billion, an increase of more than 50 percent over the 1958 rate. More offices and more office workers lead inevitably to the need for more office furniture. 80 But why 80 percent of those furnishings have in recent years been made of metal is not so obvious. Prior to World War II, wood was used almost exclusively in office furniture. Only the metal file cabinet was able to penetrate the market. After the war, small firms began making desks and chairs from metal. Demand for their products grew as furniture buyers found metal to be attractive. At first metal desks were plagued by standardi- zation and sameness. Drab olive green and battle- ship gray were the only available colors in metal desks. Many more colors have now been added by each manufacturer. Designers can choose today from such shades as blue, brown, silvertone, and coral. Metal is favored for a number of functional and maintenance reasons too. The increasing cost of building space in cities and a rise in mainte- nance and cleaning costs have made businesses of all sizes turn to metal furniture. The modular concept of office furnishings illustrates how the versatility of metal furniture has helped hold down rising costs. A modular desk can be changed in appearance and function with different top sizes, number and shape of drawers, presence or absence of typewriter stands, etc. The office manager is able to change the appointments of a given desk to fit his changed needs, instead of buying a new desk. The modular desk is also built for tidiness and efficiency with a specific in-drawer space for working papers, pads, forms, card trays and even the telephone, thus freeing large amounts of working surface. The ability of metal office furniture manu- facturers to capitalize on the computer systems approach to furnishing an office has also provided an impetus for growth. More offices are being designed around the computer and its accessories. The color and design of the computer housing usually dictates the decor for the entire office. The supplier of that metal housing often gets the order for conventional furniture too. FUTURE PROSPECTS Future demand for metal office furniture de- pends on growth in new office construction, replacement demand, and the trend toward modern office design. The tax surcharge coupled with high interest rates may temporarily slow the rising annual rate of new office construction. But the relative shortage of good office space in many parts of the country and the growing demand for rental office space by service industries and all levels of government point to increased office construction over the long term. Higher demand for office furniture will result. The replacement market should continue to give the industry a sound foundation. Most companies need to replace furniture as it wears out or buy improved items as they are developed. This helps make office furniture one of the more stable selling durable goods. Additionally, con- version from wood to metal is likely to continue. Most important to future growth will be the modular and systems designs. On the basis of this past record, future innovation and rapid growth are realistic expectations. Table 1. — General Statistics Metal Office Furniture— SIC 2522 Year Total employment Production workers Value Value Capital Value added Wages per added shipments expenditures per dollar production Number Payroll ($1,000) Number Man-hours ($1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) of wages ($) worker manhour ($) 17, 469 85,996 13,857 26, 911 62, 746 173, 673 286,004 5,253 2.768 2.332 17, 727 92, 038 14, 230 28,029 67, 249 200, 848 322, 742 5,551 2.987 2.399 18,511 97, 295 14, 873 29, 686 71, 832 208,988 343, 424 9,775 2.909 2.420 17, 432 92, 022 13, 759 27, 449 67, 199 199, 289 329, 254 6,208 2.966 2.448 18, 799 101, 588 15, 020 29, 129 74, 546 216, 775 362, 060 10,684 2.908 2.559 19, 928 112, 080 15, 752 31,531 81, 427 228, 329 389, 965 14, 199 2.804 2.582 20, 344 119, 372 15,804 32, 023 84, 827 257, 132 436, 701 8,934 3.031 2.649 21, 746 134, 327 17, 059 35, 867 93, 573 290, 497 493, 842 11,665 3.104 2.609 25, 844 166, 432 20, 451 43, 015 118, 708 353, 514 596,017 19, 550 2.978 2.760 ' 27, 000 N.A. N.A. N.A. N,A. N.A. 1 660, 500 N.A. N.A. N.A. 1 28, 200 N.A. N.A. N.A. N.A. N.A. ' 730, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961.. 1962.. 1963.. 1964. 1965. 1966. 1967. 1968. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 2522. Table 4. — Number of Employees by Size of Establishment Metal Office Furniture— SIC 2522 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- ments ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- E la- ments ployees Ship- ments 1958 1963 151 17, 469 170 19, 928 $286 390 63 63 404 399 $7 6 52 2, 467 62 3, 169 $34 52 36 14, 598 45 16, 360 $245 331 Source: Bureau of the Census. 81 Table 5. — Key Ratios Metal Office Furniture— SIC 2522 Item 1958 i 1957. Source: Bureau of the Census. 1963 Investment per production worker _ ' $4,915 $9,618 Specialization ratio (%) 88 87 Concentration ratios (%) : 4flrms 38 33 8firms _ 56 50 20nrms_. 80 75 50firms _ 94 93 Table 6. — Geographic Distribution, 1963 Metal Office Furniture— SIC 2522 Geographic area All em- ployees Total 19,928 New England... 926 Middle Atlantic 7,117 New York 3,668 Geographic area All em- ployees North Central 9,160 Ohio 3,379 Indiana __ 602 Michigan 2,126 South 1,547 West 1,178 Source: Bureau of the Census. Table 7. — Principal Products Metal Office Furniture— SIC 2522 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio Chairs, stools, couches, etc., including upholstered 59 Desks _ 66 Cabinets and cases 107 Other metal office furniture including tables, stands, etc 34 Metal office furniture, N.S.K 7 67 67 67 70 74 85 99 123 2.10 80 87 80 86 88 99 110 158 2.38 123 127 124 140 143 153 177 201 1.87 45 47 46 45 50 55 67 85 2.48 N.A. N.A. N.A. N.A. 3 2 4 *5 N.C. 'Standard error of estimate of 15 percent or more. N.A. = Not available. N.S.K. = Not specified by kind. N.C.=Not computed. Source: Bureau of Census. 82 Motor Vehicles and Parts SIC 3717 Over the past decade, the motor vehicles and parts industry has continued its dramatic growth as a major contributing industry to our economy. The 1968 value of motor vehicle and parts ship- ments rose to $46.1 billion, a 121 percent increase from 1958. The estimated 8.4 million new car sales in 1968 is almost double 1958 sales. Total employment grew by 44 percent from 1958 to about 785,000 employees in 1968. Personal con- sumption expenditures for automobiles and parts continue as a leading expenditure accounting for approximately 40 percent of total personal con- sumption expenditures for all durable goods. The growth of this industry over the past decade has not materially changed the geographic distri- bution of the industry's production. Michigan is still the center of the industry, producing 34 percent of total U.S. passenger cars while ac- counting for 40 percent of the total employment by motor vehicle and parts manufacturers. Expenditures for new plant and equipment also showed substantial increases during this period. In 1958, establishments producing motor vehicles and parts spent about one-third of a billion dollars for this purpose. By 1965 and 1966, this figure more than trebled, accounting for, in each of these years, substantially more than a billion dollars. GROWTH FACTORS The growth of the motor vehicles and related parts industry far outstripped the increase in population during the past 10 years. To a large extent, this resulted from increase in standards of living, increased income per family and the spreading of our population to suburban areas. The motor vehicle has become a necessity rather than a luxury. It is currently estimated that over 80 percent of commuting workers use automobiles for transportation. In the period from 1955 to 1967, the number of U.S. families has increased by 22 percent, while the percent of families owning automobiles has increased from 71 percent to 78 percent. Due to the increase in housewife and teenage drivers and the increase in use of automobiles on college campuses, the multicar households in the United States have also increased dramatically. In 1967, 25 percent of all U.S. households owned more than one car compared with 18 percent in 1960. The commercial and industrial use of motor vehicles has also grown sharply. In today's com- plex economy, motor vehicles are used sub- stantially in industrial material handling and delivery as well as for transportation and delivery in our service industries. Technological developments have contributed their share to the growth of this industry. The increased use of reclining seats, air conditioning, stereo or hi-fi music, power brakes and power steering, etc. have made driving more comfortable, more enjoyable and more attractive than 10 years ago. With the growth of automobile sales has come substantial growth in credit extended for this purpose. It is estimated that in 1967, over $27 billion of credit was extended for this purpose — an increase of almost 65 percent from 1955. During the past 10 years, there have been expansion and improvements in our national highway system and the development of recrea- tional and other types of vacation centers which have contributed not only to the number of automobiles but also to their use. 83 FUTURE PROSPECTS It is anticipated that the future growth rate of this industry will not be substantially greater than during the past 10 years. The factors in- fluencing this future growth will be basically the same as those which have influenced it in the more recent past. Some of these factors are: increased leisure time, especially for people retiring at earlier ages and who are living longer, as well as for those whose vacation periods are becoming longer. Tied in with this will be improved highway systems which will permit people to drive to more distant places than previously possible for week- end or other short vacations. The number of teenagers, new customers for automobiles, will continue to increase faster than the rest of our population. Incomes for the average American family will increase substantially. It is projected that by 1985 the percentage of families earning over $10 thou- sand (in 1966 dollars) will constitute almost two- thirds of the total U.S. families whereas in 1966, it constituted less than one-third. In 1967, 95 percent of households with incomes of $10,000 or more owned cars. The technological know-how of our automobile industry and the extensive research and develop- ment being carried on will be a determining factor in its future growth. In addition to the now normal comfort devices and the increase in safety devices, more emphasis is being placed on design with trends to "sporty" looking cars, attractive to many, especially young, automobile buyers. In addition, research is being conducted on the de- velopment of turbine and electric-powered auto- mobiles which, if successful, could completely rev- olutionize the industry. One dark cloud over the growth of this industry is the increasing competition from abroad. Im- ports of automobiles, principally from Canada, West Germany, United Kingdom, Japan, and Sweden, have more than doubled in the last decade. In 1967, $1.7 billion worth of automobiles were imported — an increase of 128 percent from 1959. It is now projected that imports will continue to increase at a much faster rate than both U.S. pro- duction and U.S. exports to foreign countries. To lessen the impact of imports on American industry, plans have recently been announced to produce smaller and less expensive compact models which are competitive with many of the imported cars. Table 1. — General Statistics Motor Vehicles and Parts— SIC 3711 Year Total employment Production workers Value Value Capital ex- Value Wages per production added shipments penditures added per Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 546, 037 3, 169, 173 433, 982 858, 440 2, 374, 447 6, 504, 510 20, 830, 059 334,068 2.739 2.766 599, 912 3, 914, 529 489, 423 1, 057, 969 3, 019, 106 8,915,412 26, 712, 803 386, 609 2.953 2.854 658, 148 4, 319, 876 540, 751 1,131,519 3,378,315 9, 717, 429 30,110,144 462, 402 2.876 2.986 569, 619 3, 779, 955 460, 339 945,118 2,881,527 8, 541, 738 25, 847, 658 381,601 2.964 3.049 628, 386 4, 465, 378 517, 189 1, 110, 236 3, 483, 972 11,110,932 32, 673, 777 492, 177 3.189 3.138 649, 926 4, 947, 271 535, 842 1, 192, 606 3, 889, 636 12, 345, 630 36, 181, 007 643, 555 3.174 3.261 681, 743 5, 306, 837 562, 342 1,226,398 4, 165, 195 13, 071, 257 37, 462, 664 878, 865 3.138 3.396 776, 826 6, 352, 575 647, 382 1, 428, 261 5, 054, 409 15, 908, 289 46, 430, 579 1, 232, 851 3.147 3.539 798, 920 6, 547, 050 666, 322 1, 487, 049 5, 161, 788 15, 449, 673 45, 630, 082 1, 113, 206 2.993 3.471 ' 753, 300 N.A. N.A. N.A. N.A. N.A. ' 42, 865, 000 N.A. N.A. N.A. i 785, 000 N.A. N.A. N.A. N.A. N.A. ' 46, 080, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966.. 1967.. 1968.. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. 84 Table 2. — Foreign Trade Motor Vehicles — (Passenger Cars Only)— SIC 3711 [Dollars in millions] Year Ex- ports Im- ports Factory sales Exports as a percent of shipments Imports as a percent of new supply ' 1958 _ ..$268.3 N.A. $8,010.4 3.2 N.A. 1959 220.2 $743.9 10,534.4 2.1 6.6 1960 234.8 513.7 12,164.2 1.9 4.1 1961 215.1 306.5 10,285.8 2.1 2.9 1962 245.4 421.4 13,071.7 1.9 3.1 1963 266.5 445.1 14,427.1 1.8 3.0 1964 314.6 584.4 14,836.8 2.1 3.8 1965 393.3 669.9 18,380.0 2.1 3.5 1966 564.2 1,236.5 17,554.3 3.2 7.1 1967 811.6 1,695.0 215,600.0 25.2 ^9.8 1968 ...2 823.8 2 2,710.0 218,400.0 24.5 2 i2.8 i New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Source: Automobile Manufacturers Assoc. Table 3. — Principal Trading Partners Motor Vehicles — (Passenger Cars Only) — SIC 37111 United States buys from— United States sells to- Canada West Germany United Kingdom Sweden Japan France Canada Mexico Australia Venezuela Peru Republic of South Africa Source: Automobile Manufactures Assoc. Table 4. — Number of Employees by Size of Establishment Motor Vehicles and Parts— SIC 3711 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 1,651 1,958 541,510 649, 926 0) 807 1,049 5,052 6,200 333 468 15, 206 21,475 411 521,252 441 622, 251 0) 1958. 1963. 1 Value of shipment omitted, includes extensive duplication. Source: Bureau of the Census. Table 5. — Key Ratios Motor Vehicles and Parts— SIC 3711 Table 6. — Geographic Distribution, 1963 Motor Vehicles and Parts— SIC 3711 Item 1958 1963 Investment per production worker N.A. $14,885 Specialization ratio (%) N.A. N.A. Concentration ratios (%) : 4firms 75 79 8firms 81 83 20firms 89 90 50firms..._ 94 94 Source: Bureau of the Census. Geographic area All em- ployees Geographic area All em- ployees Total ... 649,926 South Atlantic 25, 550 1 102 New England Connecticut 7,224 3, 694 64, 148 ... 38, 389 Florida ._ East South Central 374 9, 930 Middle Atlantic New York Alabama Mississippi West South Central 846 1,523 East North Central ... 479,355 7,633 Indiana.. Michigan __ Ohio West North Central 56, 962 261, 154 105, 218 ... 29,522 Oklahoma _. Mountain Colorado Pacific California _. ... 1,201 993 677 25,571 Iowa 526 23, 194 Source: Bureau of the Census. 85 Table 7. — Principal Products Motor Vehicles and Parts— SIC 3711 [Dollars in millions] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/68 Passenger cars, knocked down or assembled 9,218 11,999 14,009 11,788 15,053 16,768 17,396 21,852 21,157 2.30 Truck tractors, truck chassis and trucks (chassis of own manufacture) 1,934 2,490 2,573 2,376 3,010 3,376 3,442 4,289 4,656 2.41 Motor coaches (excluding trolley busses) and fire department vehicles (chassis of own manufacture) 99 107 157 155 161 182 176 170 198 2.00 Parts and accessories for passenger cars, trucks and busses shipped to motor vehicle manufactures 7,327 9,482 10,688 9,139 11,650 12,922 13,323 16,457 15,894 2.17 Parts and accessories for passenger cars, trucks, and buses, shipped to other than motor vehicle manufacturers 1,141 1,439 1,486 1,443 1,728 1,754 1,825 2,000 2,169 1.90 Rebuilt automotive parts (excluding carburetors) 80 96 99 102 110 188 182 187 188 2.35 Combat vehicles and motor vehicle and parts, N.S.K.. 65 N.A. N.A. N.A. N.A. 222 *160 231 317 4.86 •Standard error of estimate- of 15 percent or more. Source: Bureau of the Census. N.A. = Not available. Newspapers SIC 2711 Unprecedented growth by every measurement has characterized the newspaper industry during the past ten years. Employment grew by more than 18 percent to a total of over 350,000. Cir- culation of all newspapers — daily, Sunday, and weekly — increased by 13 percent over the decade, while advertising revenue rose 54 percent, and value of shipments and value of receipts gained by more than 60 percent. GROWTH FACTORS A technological revolution in the production of newspapers has been a major factor in the growth of the industry. From 1958 through 1966, capital expenditures exceeded $1% billion, much of this investment going into advanced types of produc- tion equipment. Among the most exotic of these are computer systems, now in use in some 300 newspapers, and a new web offset process with almost 450 daily and well over one-third of the weekly newspapers planned to have capability by the end of 1968. The larger daily newspapers have also made huge investments in new letterpress equipment, and all segments of the industry have invested in new plants and facilities. Basic to the growth of the industry in the past decade has been an explosion in the interest in, and need for, the printed word, reflecting our rapidly growing and better educated population and the increasing complexity of an advanced technological environment. The most important segment of the population for the newspaper industry is the 21-64 age group. This is the reading age group whose rapid expan- sion has contributed so significantly to the de- mand for newspapers. For many years prior to World War II, the newspaper industry met its growth needs by simply adding to its conventional production equipment. During the depression years it was neither possible nor necessary to innovate or ex- pand, while chuing the war years — through the end of the Korean conflict — expansion and inno- vation, though desirable, were not feasible. In the mid- and late fifties, as the industry and its sup- pliers struggled to replace wornout and outmoded equipment and operating methods, the techno- logical revolution began to have its impact. Changes came slowly at first, but the news- paper industry today is in the midst of the most dynamic expansion in its history. Newspaper circulation has more than kept pace with the growth of the adult reading population during the past 10 years, despite the rapid ex- pansion of a major competing communications medium — television. Potential customers for news- papers will continue to increase, as the number of households will rise 17 million by 1980, according to the Bureau of the Census. Newspapers attract the largest portion of the advertising dollar, almost 30 percent — nearly double television's share. Multiple readership is expected to increase because of at least three trends: an increasingly better educated population; a population with more leisure time; and the prospective renaissance of mass transportation, where passengers can read while riding. In addition, other media — es- pecially radio and TV — have served to make the public more news-conscious, stimulating interest and curiosity and causing people to look to news- papers for details as well as background and interpretation. 87 FUTURE PROSPECTS Meeting this challenge of increased service to the public calls for the industry to take full ad- vantage of the new technologies now available and to hasten the advent of those under development and in the research state. While completely new forms of transmission of the printed word to the reader are now technically feasible — facsimile transmission direct from the newsroom into the home, for example — cost factors alone would prevent widespread adoption of such radically new systems in the next decade and beyond. There are, however, more practical innovations that will be adopted and expanded. Among these, are the increased use of web offset printing, com- puterized phototypesetting, automated distribu- tion systems, and greatly increased capability for reproduction of full color in both editorial and advertising columns. Electronic press controls, computer operated, will bring greater efficiency to the press room. Marketing of a durable plastic printing plate will be a reality and significantly reduce production costs in letterpress operations. These and a host of related devices, equipment and supplies are ushering in a new era of more effective newspaper production. The soaring costs of more sophisticated equip- ment requires alert and efficient management. One of the major problems to which much attention must be directed is the relationship between management and labor. The industry's growth, health and wellbeing depend to a large measure on improvement in labor relations. The workers' fear that technological changes and automation would reduce the number of jobs has not been borne out; rather, they have enhanced job oppor- tunities and resulted in record employment in the industry. Under wise guidance this trend should continue in the future. Table 1. — General Statistics Newspapers — SIC 2711 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958—- 295,622 1,499,939 154, 656 278, 024 778, 957 2, 528, 774 3, 628, 021 148, 209 3.246 2.802 1959.... 300,909 1, 601, 283 158, 078 292, 271 841, 066 2, 766, 154 3, 946, 642 147, 604 3.289 2.878 I960.... 307,423 1,673,879 159, 880 299, 627 882, 937 2, 924, 534 4, 136, 622 122, 828 3.312 2.947 1961.... 308,453 1,712,086 160, 688 297, 743 899, 980 2, 939, 501 4, 182, 997 134, 487 3.266 3.023 1962.... 310,742 1,761,008 163, 151 297, 094 929, 513 3,051,602 4, 319, 499 123,858 3.283 3.129 1963... 306,439 1, 784, 570 160, 061 294, 541 935, 160 3, 201, 872 4, 483, 592 135, 198 3.424 3.175 1964.... 317,885 1,901,091 166, 339 319, 904 997, 785 3, 460, 848 4, 820, 378 121, 602 3.469 3.119 1965...- 327,731 2, 006, 385 167, 562 303, 836 1, 043, 632 3, 731, 677 5, 156, 064 169, 973 3.576 3.435 1966... 333,490 2, 121, 216 167, 608 313, 527 1,091,374 4, 012, 212 5, 520, 202 227, 793 3.676 3.481 1967... ... '343,000 N.A. N.A. N.A. N.A. N.A. ' 5, 818, 000 N.A. N.A. N.A. 1968... ' 350, 000 N.A. N.A. N.A. N.A. N.A. ' 6, 132, 000 N.A. N.A. N.A. 1 Estimated. Source Bureau of the Census; and BDSA (1967 and 1968 data). N.A. = Not available. Table 2. — Major Measures of Industry Growth Newspapers — SIC 2711 Number of and circulation o newspapers News- print 2 Adver- Year Daily Sunday Weekly ' con- tising, total volume Circu- Circu- Circu- tion Num- lation Num- lation Num- lation (thou- (millions) ber (mil- lions) ber (mil- lions) ber (mil- lions) sand tons) 1958 . 1, 751 57.4 558 47.0 8,268 18.7 6,515 $3, 192. 8 1959 . 1, 761 58.3 564 47.9 8,287 20.2 7,037 3, 546. 1960 . 1,763 58.9 563 47.7 8,174 21.0 7,332 3, 702. 8 1961 . 1, 761 59.3 558 48.2 8,153 22.8 7,386 3, 623. 1 1962 . 1,760 59.8 558 48.9 8,158 23.4 7,428 3, 681. 4 1963 . 1, 754 58.9 550 46.8 8,151 24.0 7,577 3, 803. 9 1964 . 1,763 60.4 561 48.4 8,061 25.0 8,092 4, 148. 1965 . 1,751 60.4 562 48.6 8,003 26.1 8,433 4, 456. 5 1966 . 1, 754 61.4 578 49.3 8,012 26.9 9,123 4, 895. 1967 . 1, 749 61.6 573 49.2 7,985 N.A. 3 9, 300 « 4, 900. 1968 . N.A. N.A. N.A. N.A. N.A. N.A. 3 9, 700 ' 5, 500. 1 Includes newspapers published semiweekly and triweekly. 2 Represents newsprint consumption by all U.S. industries — consumption by U.S. newspapers is approximately 93 percent of total. 3 Estimated by BDSA. * Preliminary estimate; Marketing/communications. 6 Estimate by Bureau of Advertising, ANPA. N.A. = Not available. Sources: "Number of and Circulation of Newspapers, Daily and Sunday," Editor and Publisher International Yearbook; "Number of and Circula- tion of Newspapers, Weekly," American Newspaper Representatives Na- tional Directory of Weekly Newspapers; "Newsprint Consumption," Bureau of the Census; "Advertising, Total Volume," Marketing/Commu- nications (formerly Printers' Ink). 88 Table 3. — Value of Receipts Newspapers — SIC 2711 [In millions of dollars] Year Daily and Sunday Weekly and other Newspapers, N.S.K., subscrip- Total Subscription Advertising Subscription Advertising tions, sales and and sales and sales advertising 917 2,209 63 235 35 3,458 955 2,441 71 249 (51) 3,767 994 2,542 73 264 (47) 3,920 1,043 2,545 71 258 (37) 3,955 1,062 2,655 80 261 (32) 4,089 1,064 2,728 83 296 84 4,255 1, 157 2,966 87 314 (96) 4,620 1, 177 3,167 94 332 (117) 4,886 1,218 3,470 109 380 (79) 5,256 N.A. N.A. N.A. N.A. N.A. ' 5, 466 N.A. N.A. N.A. N.A. N.A. ' 5, 635 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1 Estimated by BDSA. N.A. = Not available. N.S.K. = Not specified by kind. Note. — The figures shown in parentheses have associated standard errors exceeding 15 percent. These estimates may be of limited reliability. However, when combined with other product class totals into broader aggregates they are of acceptable reliability. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishments Newspapers — SIC 2711 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments 1958 1963 8,250 8,331 294, 258 306, 439 $3, 628 4,484 6,526 6,466 36, 200 35, 197 $311 347 1,258 1,346 52, 338 55, 132 $478 574 466 519 205, 720 216,110 $2,833 3,563 Source: Bureau of the Census. Table 5. — Key Ratios Newspapers — SIC 2711 Item 1958 1963 Investment per employee _.. ■ $8,874 $12,210 Specialization Ratio (%) 96 96 Concentration Ratios (%): 4firms 17 15 8firms 24 22 20firms 35 36 50firms__ 51 52 1 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Newspapers — SIC 2711 Geographic area All em- ployees Total 306,439 New England 23,089 Maine 1,600 New Hampshire 1,153 Vermont _ 636 Massachusetts. 13,013 Rhode Island 1,610 Connecticut 5,077 Middle Atlantic 62, 614 New York 32,851 New Jersey 9,464 Pennsylvania.. 20,299 East North Central 63,066 Indiana 8,564 Illinois 19,507 Michigan... 11,339 Wisconsin 7,423 Ohio 16,233 West North Central 28,248 Minnesota 6,516 Iowa 6,025 Missouri. 7,613 North Dakota 1,046 South Dakota 1,160 Nebraska 2.621 Kansas 3,267 South Atlantic 38,785 Maryland 4,294 District of Columbia 4,789 Virginia 4,799 Geographic area All em- ployees South Atlantic — Continued West Virginia 2,304 North Carolina 5,232 Georgia 4,277 Florida 10,241 East South Central 11,996 Kentucky 3,013 Tennessee.. 4,533 Alabama 2,941 Mississippi 1, 509 West South Central 22, 983 Arkansas 2,096 Louisiana 3,247 Oklahoma 3,580 Texas 14,060 Mountain 12,424 Montana 1,173 Idaho 1,017 Wyoming 542 Colorado 3,947 New Mexico 1,015 Arizona 2,631 Utah 1,172 Nevada 927 Pacific 43,234 Washington 5,301 Oregon 3,281 California.. 33,297 Alaska 299 Hawaii 1,056 Source: Bureau of the Census. 89 Table 7. — Principal Products Newspapers — SIC 2711 Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Daily and Sunday, newspapers, subscriptions and sales 917 Daily and Sunday, newspapers, advertising receipts 2, 209 Weekly and other newspapers, subscriptions and sales 63 Weekly and other, newspapers, advertising receipts... 235 Newspapers, N.S.K.. 35 955 994 1,043 1,062 1,064 1,157 1,177 1,218 1.33 2,441 2,542 2,545 2,655 2,728 2,966 3,167 3,470 1.57 71 73 71 80 83 87 94 109 1.74 249 264 258 261 296 314 332 380 1.62 '51 147 ■37 132 84 196 ■ 117 i 79 N.C. ■ Standard error of estimate of 15 percent or more. N.C. = Not computed. N.S.K. = Not specified by kind. Source: Bureau of the Census. 90 Optical Instruments and Lenses SIC 3831 One of the most rapidly expanding industries in the United States is optical equipment and lenses. The estimated 1968 value of shipments for this industry is about 250 percent higher than in 1958. Employment has also sharply increased to 19,000 persons or more than 175 percent over 1958. Although still comparatively small, the optical equipment and lens industry is providing valu- able tools for such diverse activities as space exploration, defense, science, medicine, agricul- ture and other industries. Known a decade ago for such relatively mundane products as tele- scopes and binoculars, the industry is now com- monly mentioned in the same breath with aero- space and electronics. GROWTH FACTORS Since World War II the optical equipment and lens industry has benefited from three primary, interdependent sources of demand. First, the growing complexity of advanced sci- entific and technological developments has created a need for increasingly precise analytical and control instruments. Second, defense needs have placed a premium on camera systems with high resolution lenses and precise guidance controls for high altitude aerial reconnaissance. Complex tracking tele- scopes were also built in response to military needs. Finally, the space age dramatically affected all segments of the industry. Science education was given number one priority by the Federal Govern- ment, creating heavy demand for telescopes and microscopes for schools and colleges. Science and industry have also required even better optical instruments to design and manufacture rockets and satellites. Progress in computer development has enabled optical manufacturers to satisfy their new found sources of demand. The time-consuming job of determining lens curvatures and designs is now far more simple. Even more important the use of the computer to simulate mathematically the testing of new lens systems has cut costs and helped in designing optical devices too complex to be built by trial and error. One of the first technological breakthroughs was infrared spectrophotometry, a process used for identifying the different organic molecules in a substance by their reaction to infrared light. Spectrophotometry has been used to pinpoint ingredients such as metallic elements in a mixture down to a few parts in a billion, detecting im- purities in organic solutions and in process controls. High-precision measuring instruments have been developed by optical manufacturers to assist analytical devices like the spectrophotometer. Before the arrival of the space age., tolerances ot 1/10, 000th of an inch were considered exceptional. Aerospace production needs however made tol- erances of 1/10, 000th of an inch almost an absolute requirement. Mechanical measuring is inadequate because it involves too many human variables. Optical measuring however does not require human handling of the object to be measured, involves less human judgment, and can probe and take readings in areas inaccessible to mechanical devices. Thousands of twin optic or stereo micro- scopes are now found on assembly lines. The microelectronic chip, the key to the integrated circuit revolution in electronics, can only be worked on under these high precision optical instruments. 317-387 0—6 91 High-speed, high altitude aerial reconnaissance was made possible by lens systems developed by firms in the optical equipment and lens industry. More recently, the U.S. Air Force spy-in-the-sky satellite, Samos, has utilized similar equipment. The world has marveled at pictures of the Earth, Moon, and Mars taken through high resolution lenses. Fiber optics has been another important area for optical industry growth. Glass in fiber optic instruments is drawn so thinly that light rays entering one end of the glass fibers travel through to the other end, no matter how the fibers are bent. Some practical applications of fiber optics include picture taking inside the hol- low cores of nuclear reactor fuel rods to check for dangerous leaks, examining the inside of the human stomach, heart, and other organs, and making voiceprints whose reliability for human identification purposes is thought to equal that of the fingerprint. FUTURE PROSPECTS Future growth in the optical equipment and lens industry is heavily dependent on advances in technology. It is difficult therefore to make an accurate estimate of the long-term picture. But, trends relating to past areas of growth do point toward even more rapid growth in the future. The estimated decline in shipments in 1968 reflects a cutback in R. & D. expenditures for optical equipment by the Federal Govern- ment. Such expenditures are likely to resume their upward climb in the future. High precision measuring instruments and automatic analytical devices will be needed in greater number to help industry cope with com- plex production requirements. While space ex- penditures may continue to decline during the next few years, the longer term outlook is for heavy spending that will create significant de- mand for lenses and other optical goods. Optical requirements for the military should remain near their present levels. Finally, breakthroughs may occur in fiber optics to permit such things as long-distance transmission of images and data or data-display systems linked to a computer. The success of either would provide a dramatic incentive for industry growth. 92 Table 1. — General Statistics Optical Instruments and Lenses — SIC 3831 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958.... 7,184 37, 586 5,141 10, 485 23, 459 60, 387 102, 966 3,438 2.574 2.238 1959.... 8,720 50, 742 51, 136 6,551 5, 727 13, 775 11,629 31, 654 30, 610 81,515 79, 406 134, 764 124, 247 N.A. 3,614 2.575 2.594 2.29 2 2.63k 2 - 72 n I960.... 8,041 1961.... 7,881 51,214 5,428 10, 684 29, 129 65, 731 103, 363 8,556 2. 257 1962.... 8,318 59, 019 5,878 12, 030 33, 800 83, 771 134, 153 8,190 2.478 2.81° 1963.... 11,924 79, 131 8,306 16, 728 47, 149 131,917 196, 022 6,163 2.798 2.81» 1964.... 15,140 104, Oil 9,829 19, 704 58, 047 176, 921 253, 359 6,320 3.048 2.94» 1965.... 15,656 116, 496 10, 177 21, 561 65, 264 205, 364 291, 418 7,816 3.147 3.02? 1966.... 17,433 131,710 10, 798 22, 699 70, 233 225, 460 332, 402 12,915 3.210 3.09 4 1967.... 119,316 N.A. N.A. N.A. N.A. N.A. 1 347, 000 N.A. N.A. N.A- 1968.... 1 19, 065 N.A. N.A. N.A. N.A. N.A. ' 344, 000 N.A. N.A. N.A- 1 Estimated. Source: Bureau of the Census and BDSA. N.A. = Not available. Tables 2 and 3 are not relevant to SIC 3831. Table 4. — Number of Employees by Size of Establishment Optical Instruments and Lenses — SIC 3831 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 224 280 7,184 11,924 $103 196 166 201 901 1,188 $12 18 42 1, 470 51 2, 150 $19 32 16 4, 813 28 8, 586 $73 146 1958. 1963. Source: Bureau of the Census. Table 5. — Key Ratios Optical Instruments and Lenses — SIC 3831 Table 6. — Geographic Distribution, 1963 Optical Instruments and Lenses — SIC 3831 Item 1958 1963 Investment per production worker ' $6, 606 $7, 378 Specialization ratio (%) 90 90 Concentration ratios (%) : 4firms 46 41 8firms 60 53 20flrms 74 73 50firms 88 87 ' 1957. Source: Bureau of the Census. Geographic area All em- ployees Geographic area All em- ployees Total ... 11,924 West North Central.. 350 Missouri South Mountain Pacific California 9 82 New England ... 3,603 Middle Atlantic 4,020 775 New York 3,070 14 New Jersey 206 Pennsylvania... .. . .. East North Central 744 1,071 2,091 2,020 Illinois 682 Source: Bureau of the Census. Table 7.- Principal Products Optical Instruments and Lenses — SIC 3831 [In millions of dollars] Class of product 1958 Optical instruments and lenses, excluding sighting and fire control equipment . . N.A. Sighting and fire control equipment made from lenses, prisms, etc., produced in the same plant N.A. Optical instruments and lenses, N.S.K N.A. 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 N.A. N.A. N.A. N.A. 213 236 266 317 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 51 6 34 5 35 7 36 8 N.A N.C- N.A. = Not available. N.C. = Not computed. N.S.K. = Not specified by kind. Source: Bureau of the Census. 93 Organic Chemicals SIC 2818 Shipments of the organic chemicals industry increased about 150 percent during the last 10 years, while employment in the industry ad- vanced about 30 percent. Organic chemicals are usually capital-intensive operations with high productivity, relatively high wages, skilled labor, and low labor turnover. Output can be increased with relatively small additions to the labor force. Organic chemicals are produced primarily in the West South Central States, with the South Atlantic and Middle Atlantic States vying for second place. Plants have tended to be established near sources of primary raw materials, e.g. petro- leum refineries and natural gas processing plants. Organic chemicals are substances derived from hydrocarbons through one or more transforma- tions. They are the basis themselves for literally thousands of other products. Organic chemicals are made commercially by the separation, com- bination, or reaction of other chemicals and ma- terials. Hydrocarbons for these organic chemicals are obtained from petroleum (petrochemicals), coal and derivatives, and other sources. Basic or first generation hydrocarbons are classified according to where they are made, e.g. petroleum refineries (industry 2911), and coke ovens (industry 3312). These basic chemicals can be used directly, or they can be processed into cyclic intermediates (industry 2815), or be made into other organic chemicals. Establishments making organic chemicals often make products classified in several industries; consequently, the specialization and coverage ratios of the organic chemicals industry are comparatively low. Prices of organic chemicals, in general, are at about 1957 levels, and the availability of these chemicals at low and/or stable prices has con- tributed to their acceptance and growth. Organic chemicals have also found their way into many uses by the military, primarily in the form of products. The effect of a change in mili- tary spending is difficult to assess, except for those individual chemicals with uniquely military uses. Exports of the types of chemicals produced by the organic chemicals industry have just about tripled during the past 10 years to an estimated $800 million. There has been dynamic foreign growth in the production of organic chemicals, including considerable investment by U.S. com- panies; this will no doubt affect the growth rate of exports but with rapidly rising world demand for organic chemicals and the continuing appear- ance of new chemicals as a result of research, exports should remain a significant and growing market for organic chemicals. GROWTH FACTORS Since organic chemicals are used by or in many manufacturing and service industries, the level of economic activity of many segments of the economy — from increased use of insulated wire in electronic apparatus to more cleaning compounds used by laundries and dry cleaners — affects the growth rate of the organic chemicals industry. Of special importance, however, is the fact that organic chemicals are basic materials used in other chemical industries, including such rapidly growing industries as: (1) plastics materials, (2) synthetic rubber, (3) synthetic organic fibers, (4) toilet preparations, and (5) detergents. Technology creates significant markets for this industry. The development and availability of new commercial products has fostered the growth and development of consumers of organic chemicals, resulting in large increases in demand, for organic 94 chemicals. The cycle tends to stimulate itself. Research and development create new, low cost, commercial chemicals which in turn permit the development of new plastics, synthetic organic fibers, etc., which stimulates the organic chemicals industry and leads to new expenditures for research and development. Research and development expenditures for all industrial chemicals have increased from $553 million in 1958 to an estimated $1.1 billion in 1968. Although there are no official statistics indicating the amount spent on the various types of chem- icals, it is estimated that about three quarters of total research and development expenditures for industrial chemicals are in the area of organic chemicals. New capital expenditures for the organic chemicals industry rose rapidly from $268 million in 1962 to $886 million in 1966; according to trade sources, these expenditures leveled off at about $900 million annually during 1967 and 1968. FUTURE PROSPECTS The major consumers of organic chemicals, such as manufacturers of plastics, synthetic rubber, synthetic fibers, etc., are rapidly growing indus- tries whose future growth is very promising. If the organic chemicals producers are able to main- tain an adequate source of low priced raw mate- rials, e.g. petroleum derivatives, future annual growth may be 10 percent or more annually, as demand for present products rises and the devel- opment of new products results in new markets. Table 1. — General Statistics Organic Chemicals — SIC 2818 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 77,442 508, 433 51, 966 103, 917 312,380 1, 725, 790 3, 097, 963 330, 317 5.525 3.006 76, 156 528, 260 52, 906 105,016 330, 116 2, 040, 429 3, 609, 240 224, 259 6.181 3,143 78, 039 560, 440 54,310 107, 535 344, 797 2, 080, 697 3, 712, 940 297, 703 6.035 3.206 82, 418 619, 030 56, 482 115,111 387, 153 2, 198, 918 3, 947, 178 380, 552 5.680 3.363 82, 422 633,864 56,154 113, 665 390, 795 2,511,416 4, 430, 051 267, 949 6.426 3.438 85, 492 677, 252 56, 370 114,438 405, 019 2, 727, 450 4, 840, 176 400, 981 6.734 3.539 87, 102 714, 044 56, 973 117,550 428, 645 2, 990, 939 5, 265, 286 496, 449 6.978 3.646 91,635 768, 001 61,255 125, 157 462, 491 3,471,661 6, 012, 494 641,245 7.506 3.695 95, 727 833, 367 63,616 129, 018 491, 577 3,641,454 6,541,085 886, 223 7.408 3.810 i 101, 000 N.A. N.A. N.A. N.A. N.A. ' 7, 060, 000 N.A. N.A. N.A. • 104, 000 N.A. N.A. N.A. N.A. N.A. i 7, 700, 000 N.A. N.A. N.A. 1958. 1959- 1960. 1961. 1962. 1963.. 1964.. 1966.. 1966.. 1967.. 1968.. 'Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Organic Chemicals — SIC 2818 [Dollars in millions] Year Ex- ports Im- Product ports ship- ments Exports as a percent of shipments 1958 _ N.A. $40 $2,787 N.A. 1959. _ N.A. 47 3,150 N.A. 1960 $189 59 3,236 5.8 1961 183 60 3,284 5.6 1962 305 68 3,680 8.3 1963 341 74 4,184 8.2 1964 449 90 4,457 10.1 1965 468 101 5,023 9.3 1966 877 123 5,366 16.3 1967 677 132 25,700 2 11.9 1968 2 740 2 145 2 6r 200 2 11.9 Imports as a percent of new supply i 1.4 1.5 1.8 1.8 1.8 1.7 2.0 2.0 2.2 2 2.3 2 2.3 i New supply consists of shipments plus imports. 6 Estimated. N.A.=Not available. Table 3. — Principal Trading Partners Organic Chemicals — SIC 2818 United States buys from— United States sells to— Canada United Kingdom West Germany Japan Canada Netherlands United Kingdom Japan West Germany Source: Bureau of the Census. Source: Bureau of the Census and BDSA. 95 Table 4. — Number of Employees by Size of Establishment Organic Chemicals — SIC 2818 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments 1958 1963 334 464 77,442 85, 492 $3,098 4,840 149 223 965 1,164 $36 62 99 119 4,794 5,660 $231 388 86 122 71,683 78, 668 $2, 831 4,390 Source: Bureau of the Census. Table 5. — Key Ratios Organic Chemicals — SIC 2818 Item 1958 1963 Investment per production worker ' $51,288 $83,788 Specialization Ratio (%)- - 73 72 Concentration Ratios (%): 4firms 55 51 8flrms 70 63 20firms - 85 79 50firms 96 93 1 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Organic Chemicals — SIC 2818 Geographic area All em- ployees Total 85,492 New England 3,262 Massachusetts 1,009 Rhode Island 146 Middle Atlantic _ 21,591 New York 5,777 New Jersey 13,786 Pennsylvania 2,028 East North Central 12,260 Indiana 1,364 Illinois 2,627 Michigan 6,166 Wisconsin 213 Ohio 1,890 West North Central 2,457 Geographic area All em- ployees South Atlantic 12,274 West Virginia 10,222 North Carolina 236 East South Central 6,002 Kentucky 1,970 Tennessee 3,660 Alabama 372 West South Central 25, 058 Texas 19,324 Mountain 216 Pacific 2,372 California 2,281 Source: Bureau of the Census. Table 7. — Principal Products Organic Chemicals — SIC 2818 Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Miscellaneous cyclic chemical products 143 Miscellaneous acyclic chemical and chemical products 2, 127 Synthetic organic chemicals, N.E.C. (excluding bulk surface active agents) 291 Pesticides and other organic agricultural chemicals (not formulations) 96 Ethyl alcohol and other industrial organic chemicals, N.E.C 121 Organic chemicals, N.S.K -. 8 142 146 156 159 201 213 233 264 1.84 2,356 2,414 2,416 2,730 3,129 3,308 3,773 3,995 1.88 372 372 382 408 427 461 514 575 1.97 123 147 165 220 223 246 261 293 3.04 N.A. NA. N.A. 158 192 220 232 229 1.88 N.A. N.A. N.A. N.A. 12 9 i 11 ' 11 N.C. 1 Standard error of estimate of 15 percent or more. N.A. = Not available. N.C. = Not computed. N.E.C. = Not elsewhere classified. N.S.K. =Not specified by kind. Source: Bureau of the Census. 96 Paper Mills, Except Building SIC 2621 In the past decade the value of annual ship- ments by the U.S. paper industry has increased by about two-thirds, to a total of over $5 billion, while the wholesale price of paper has gone up about 10 percent. Employment in the paper in- dustry has risen only marginally in that period. Productivity, measured in terms of value of ship- ments per production worker, has grown fairly substantially. Paper mills throughout the country have participated in the industry's growth. How- ever, approximately three-fourths of the produc- tive capacity is located in the Southern and Western States. GROWTH FACTORS The recent growth in the paper industry reflects the rise in the population, the introduction of a number of new paper products, advances in tech- nology which have made paper more competitive with other materials, and the increased use of paper that goes with a general rise in the standard of living in this country. Americans are using more and more disposable products made of paper in place of goods that require frequent repair and servicing. Paper cloth- ing, towels, napkins and dishes are examples of this trend. It is likely that the trend toward more disposable paper products will continue as living standards rise. In recent years the paper industry has made large investments in continuous pulping, in faster and wider paper machines, in automatic process controls, and in other aspects of production. To a large extent these investments have changed the nature of the paper industry. They account for a sizable share of the rise in labor productivity mentioned above. Moreover, new developments in the past few years have made it possible to give paper the texture and strength to compete with woven fabrics in many uses. Further, paper is being used in combination with plastics and textile fibers to make a number of disposable products. While the paper industry allocates propor- tionately less of the sales dollar to research and development than the average for all industry, it benefits substantially from the research ac- tivities of the U.S. Forest Products Laboratory and other public programs. Research and develop- ment activities in connection with the paper industry range from land utilization through papermaking techniques to market analyses. U.S. exports of paper have been growing at the rate of about 3-4 percent annually in recent years. It is noteworthy in this connection that the consumption of paper in the Common Market countries has increased 32 percent over the past 5 years. The per capita consumption of paper in Europe and Japan, however, is still only a third of that in the United States while all countries outside the United States consume on the average only about 8 percent as much paper per capita as does the average American. As a consequence, the potential for U.S. exports of paper is great. The rise in living standards and levels of educa- tion experienced by Americans over the years has been reflected in a growing demand for books, magazines, and newspapers. Also of great im- portance to the paper industry's growth have been the advances in packaging that have charac- terized the consumer-oriented economy of this country. FUTURE PROSPECTS The U.S. market for paper will continue to grow as new uses are found for paper. Disposable articles made of paper will become more widely 97 accepted and will contribute to the growth of the industry. The paper industry should benefit to a substan- tial extent from the tariff reductions negotiated in the Kennedy Round. The reductions by U.S. trading partners are especially important in view of the much more rapid rate of growth in the demand for paper abroad than in this country. Some in- dustry sources foresee an increase of 30 percent or more in U.S. exports of paper in the next 5 years. Finally, the substantial increases in productive capacity and advances in techniques in recent years provide the base for continuing growth in the paper industry, This production base, along with improved marketing policies and methods that aid in judging consumer demand and adapting prod- uct lines to that demand, should insure continued growth in the industry. Table 1. — General Statistics Paper Mills, Except Building— SIC 2621 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958.... 131,334 740, 988 109,266 238, 433 570, 040 1, 542, 746 3, 259, 415 258, 769 2.076 2.391 1959.... 134,799 790, 174 111,805 247, 826 614, 642 1,829,909 3, 668, 595 214, 497 2.977 2.480 1960 136,665 820, 311 112,702 246, 257 629,916 1, 876, 971 3, 754, 677 246, 474 2.980 2,558 1961.... 132,423 817,960 108, 447 237, 487 638, 057 1, 865, 237 3, 712, 941 285, 235 2.923 2.687 1962.... 132,348 859, 852 108,714 238, 277 663, 545 1,904,949 3, 857, 202 277, 098 2.871 2.785 1963... 129,848 877,942 105, 636 234, 596 682,034 1, 857, 203 3,824,915 232, 779 2.723 2.907 1964.... 129,638 917, 573 105, 807 235, 972 709, 874 1, 973, 953 4, 000, 030 295, 580 2.781 3.008 1965.... 132,633 963,314 107, 241 238, 067 743, 329 2, 066, 160 4, 318, 190 496, 239 2.780 3.122 1966.... 135,018 1,043,333 109,067 246, 175 804, 396 2, 330, 345 4, 804, 788 574, 992 2.897 3.268 1967 ' . . 137,853 N.A. N.A. N.A. N.A. N.A. 4, 857, 855 N.A. N.A. N.A. 1968 i- . 139, 900 N.A. N.A. N.A. N.A. N.A. 5, 076, 480 N.A. N.A. N.A. 1 Estimated. Source Bureau of the Census and BDSA. N.A. = Not available. Tables 2 and 3 not relevant to SIC 2621. Table 4. — Number of Employees by Size of Establishment Paper Mills Except Building— SIC 2621 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- ments ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 354 131, 334 325 129, 848 $3,259 3,825 36 12 226 121 $4 3 84 4, 610 83 4, 715 $123 145 234 126, 498 230 125, 012 $3,133 3,677 Source: Bureau of the Census. Table 5. — Key Ratios Paper Mills Except Building— SIC 2621 Item 1963 Investment per production worker $39,200 Specialization ratio (%) 90 Concentration ratios (%): 4 firms... 26 8 firms 42 20 firms 63 50 firms 85 Source: Bureau of the Census. 98 Table 6. — Geographic Distribution, 1963 Paper Mills Except Building— SIC 2621 Geographic area All em- ployees Total 129,848 New England 27,200 Maine 13,526 New Hampshire- 2,290 Vermont 529 Massachusetts 10,224 Connecticut .. 631 Middle Atlantic. 24, 576 New York 11,974 New Jersey 3,057 Pennsylvania 9,545 East North Central 31,619 Michigan 5,467 Wisconsin. __ 18,120 Ohio _--- 7,508 Geographic area All em- ployees West North Central. 4,747 Minnesota 4,747 South Atlantic. 12, 202 Delaware 195 Virginia 2,052 North Carolina. 5,369 East South C entral 9, 554 Alabama 5,399 West South Central 8,669 Arkansas 2,229 West 11,281 Washington- 7,332 Oregon 2,781 Source: Bureau of the Census. Table 7. — Principal Products Paper Mills Except Building— SIC 2621 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Newsprint 215 240 249 256 266 271 277 276 316 1.47 Groundwood paper, uncoated - 144 157 167 158 154 166 173 187 206 1.43 Paper-machine coated paper 363 405 405 404 430 499 538 612 702 1.94 Book paper, uncoated 426 481 504 483 500 500 518 550 653 1.53 Fine paper, including thin paper... 568 658 665 681 722 763 791 865 969 1.70 Coarsepaper 712 769 757 747 747 721 736 789 839 1.18 Special industrial paper 176 213 220 231 247 255 280 296 335 1.90 Sanitary tissue stock and other tissue paper, N.E.C 440 496 529 538 557 547 559 608 638 1.45 Paper mills, except building, N.S.K N.A. *19 N.A. N.A. N.A. 3 3 10 5 N.C. "Standard error of estimate of 15 percent or more. N.A.=Not available. N,C.=Not computed. = Not elsewhere classified. = Not specified by kind. Source: Bureau of the Census. N.E.C. = N.S.K.= 99 Petroleum Refining SIC 2911 Value of shipments of the expanding petroleum refining industry increased from $14.5 billion in 1958 to an estimated $20.2 billion in 1968. With increasing technological innovation in this highly sophisticated industry, employment has continued to decline. Refinery capacity of 3.15 billion barrels a year in 1956, or 8.6 million barrels a day, climbed to 3.83 billion barrels a year, or 10.5 million barrels a day in 1966. Location of refineries is dictated principally by ease of access to crude oil. There is a heavy con- centration of plants in the Texas-Louisiana Gulf area, which consume domestic crude oil. An East Coast concentration between Maryland and Rhode Island, utilizes imported crude oil. Some refineries, notably those in the Chicago area, are market oriented. Lesser concentrations are found in northern and southern California. These have access to both domestic and foreign crude oil and are conveniently located near substantial refinery product markets. GROWTH FACTORS The past decade has seen gradual elimination of the petroleum refining industry's most vexing problem — overcapacity. Growth in dollar ship- ments and in refining capacity can be attributed to increased transportation demand for the industry's products. Motor gasoline accounts for a significant portion of total refined product demand. Jet fuel demand has increased spectacu- larly in the last few years — an estimated 18- percent increase in 1967 over 1966, for example. After 10 years of surplus capacity, demand has grown to a point where construction of new facil- ities is required. As of January 1967, construction of close to 500,000 barrels per day of cracking, re- forming, and alkylation capacity, was underway. Nearly 40 percent of this construction was for new hydrocracking facilities and but 5 percent for replacement. A major advantage of the hydrocracking process is its yield flexibility. When the demand for motor fuel is at a peak, the hydrocracker may be used to maximize the yield of gasoline. During winter months, it may be used to maximize the yield of heating oils. Imports, during the last 10 years, have consist- ently been greater than exports. However, nei- ther imports or exports is important in terms of total refinery shipments in dollars or in terms of new supply, defined as refinery shipments plus imports in dollars. Exports, as a percent of ship- ments, have run between 2 and 3 percent. Im- ports, as a percent of new supply, have been be- tween 4 and 6 percent. Imports are predominantly residual oils. FUTURE PROSPECTS In writing of prospects for petroleum refining, a basic assumption must be made. Continuance of the Mandatory Oil Import Program, with no significant change in structure and no substantial change in import magnitudes, is postulated. Whereas refinery capacity in 1966 was 3.83 billion barrels a year, a level of 5.1 billion barrels should be attained by 1976. Refinery consumption of raw material — crude oil and natural gas liquids — should increase from 3.7 billion barrels per year in 1966 to between 4.6 and 4.8 billion barrels in 1976. This estimate reflects a higher rate of capacity utilization in the 1970's than during the 1960's. 100 No dramatic shifts in refinery location are an- ticipated. The share of total capacity now held by the Gulf Coast may be expected to increase a little. New capacity will be added as crude oil pipelines are pushed into areas which have not enjoyed abundant crude oil supplies. Evolutionary but not revolutionary changes in yields of major petroleum products during the next decade may be expected. Significant change will occur in both absolute and relative quantities of refinery products produced. In 1966, yield of gasoline per barrel of crude refined was 44.6 percent. In the next 10 years yield may reach 47 percent. If electric-powered or turbine-driven automobiles were to take the place of gasoline-driven vehicles, the petroleum refining industry would be affected. These two develop- ments are still in the offing, and are not expected to reach fruition during the next decade. The 1956-66 spectacular growth in jet fuel production — annual rate of 12.5 percent — will probably not be maintained, though further growth is projected. Distillate oils, including home-heating oil and diesel fuel grew at a rate of 1.7 percent per year in the decade ending 1966. A modest growth rate is anticipated. Competition is encountered from natural gas and from electricity. A steady growth in sales of diesel fuel oil should continue. Asphalt production should maintain a steady growth rate of between 3 and 4 percent. Much will depend upon what happens to the Federal highway program. Since residual fuel oil commands a price which is only about two-thirds of the price of crude oil, refiners have had a strong incentive to minimize yield of this product. Refiners have reduced out- put, and imports have risen substantially. Air pollution abatement will limit the quantity of residual fuel oil of high sulphur content that can be sold. In all probability, low sulphur residual oil will be imported and residual oil production in U.S. refineries will continue to decline. Table 1. — General Statistics Petroleum Refining — SIC 2911 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 146, 025 944, 332 106, 898 207, 609 648, 278 2,119,402 14, 539, 055 656, 788 3.269 3.123 137, 133 944,313 100, 064 195, 984 645, 068 2, 458, 208 15, 090, 067 407,716 3.811 3.291 134, 868 935,836 97, 267 192, 379 635,211 2, 773, 430 15,505,100 455, 453 4.366 3.302 128, 707 937, 130 92, 389 182,211 629, 634 2, 929, 207 15, 618, 609 459, 298 4.652 3.456 122, 946 906, 561 87,804 173, 348 603, 032 2, 965, 537 15,914,146 433,315 4.918 3.479 119,297 922, 319 85,929 166, 409 614,318 3,137,603 16, 496, 896 385, 126 5.107 3.692 113,775 905, 876 81,634 162,118 605, 034 3, 192, 212 16, 802, 440 384, 253 5.276 3.732 109, 653 887, 393 78, 739 153,811 592, 762 3, 530, 272 17, 500, 330 565, 330 5.956 3.854 106, 548 897, 277 76, 279 149, 925 597, 525 4, 082, 344 18, 741, 859 630, 655 6.832 3.985 1 106, 000 N.A. N.A. N.A. N.A. N.A. • 19, 400, 000 N.A. N.A. N.A. ' 105, 500 N.A. N.A. N.A. N.A. N.A. 1 20, 200, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Petroleum Refining — SIC 2911 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- ments percent of shipments percent of new supply i 1958 $527 $675 $14, 539 3.6 4.4 1959 467 657 15,090 3.1 4.2 1960 467 644 15, 505 3.0 4.0 1961 432 703 15,619 2.8 4.3 1962 434 745 15, 914 2.7 4.5 1963 483 734 16, 497 2.9 4.3 1964 467 799 16, 802 2.8 4.5 1965 ._ 429 940 17,500 2.4 5.1 1966 448 1,002 18,742 2.4 5.1 1967 „ 492 1,078 2 19, 435 2 2.5 5.3 1968 ._._ .- 2 466 2 1, 270 2 20, 175 2 2.3 5.9 1 New supply consists of shipments plus imports. 2 Estimated. N.A.=Not Available Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Petroleum Refining— SIC 2911 United States buys from— Source: Bureau of the Census. United States sells to- Canada Japan Venezuela Canada Netherlands Antilles United Kingdom Saudi Arabia India Iran Mexico Trinidad Brazil 101 Table 4. — Number of Employees by Size of Establishment Petroleum Refining — SIC 2911 [Dollars in millions] Total 1-19 20-99 100 and over Year Establish- Em- Ship- Establish- Em- Ship- Establish- Em- Ship- Establish- Em- Ship- ments ployees ments ments ployees ments ments ployees ments ments ployees ments 1958. 1963. 446 146, 025 $14, 539 133 863 $50 111 5,200 $437 202 139, 962 $14,052 42V 119, 297 16, 497 130 828 53 103 4,985 578 194 113, 484 15, 866 Source: Bureau of the Census. Table 5. — Key Ratios Petroleum Refining — SIC 2911 Table 6.— Geographic Distribution, 1963 Petroleum Refining— SIC 2911 Item 1958 1963 Investment per production worker « $67,526 $117,498 Specialization ratio (%)_ 98 98 Concentration ratios (%) : 4firms _ _. 32 34 8firms _ _ 55 56 20flrms _ .._ 82 82 50firms 94 95 i 1957. Source: Bureau of the Census. Geographic area All em- Geographic area All em- ployees ployees Total ... 119,297 South Atlantic 1,900 East South Central Northeast _ 18, 524 5,843 ... 1,513 New Jersey Mississippi 344 Pennsylvania ... 11,429 19, 366 West South Central ... 49,907 East North Central 1 005 Indiana ... 6,666 Louisiana ... 10,004 Illinois _ ... 7,024 Oklahoma ... 6,198 Michigan ... 1,960 Texas ... 33,700 Wisconsin 257 Mountain ... 4,934 Ohio ... 3,559 Colorado 708 Utah 880 West North Central ... 5,481 Kansas ... 3,698 Pacific ... 17,672 California.. ... 16,262 Source: Bureau of the Census. Table 7. — Principal Products Petroleum Refining — SIC 2911 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 Gasoline and jet fuel 7,825 8,152 8,413 8,375 8,469 8,328 Kerosene 412 »433 *472 *452 *486 656 Distillate fuel oil 2,491 2,596 2,478 2,638 2,636 2,896 Residual fuel oil 817 *800 *778 »738 *727 622 Liquified petroleum gases made in refineries 560 684 713 728 751 957 Unfinished oils and lubricating oil base stock _._ 441 423 469 495 546 526 Asphalt 285 295 314 335 365 361 Other finished petroleum products, inc. waxes _ 421 430 419 398 440 427 Lubricating and similar oils 772 842 897 890 964 1,077 Lubricating greases 100 110 111 108 110 129 1964 1965 1966 Ratio 66/58 8,632 9,169 9,927 1.27 632 727 758 1.84 2,767 2,886 3,054 1.23 603 584 573 .70 1,012 1,161 1,253 2.24 577 559 573 1.30 385 410 435 1.53 472 465 535 NC 1,077 1,118 1,216 1.57 ♦134 137 145 1.45 •Standard error of estimate of 15 percent or more. NC =Not computed. Source: Bureau of the Census. 102 Pharmaceutical Preparations SIC 2834 The pharmaceutical preparations industry is now and was in 1958 a very large industry. In 1958, the industry's shipments were $2.6 billion and its employment was 82,000. High percentage growth from such a large base is virtually im- possible. Therefore, the significant measures of growth are the absolute increases in shipments and employment. Between 1958 and 1968, the value of shipments grew by more than $2.4 billion. In terms of employment, the industry added over 26,000 employees during the 1958-68 period. The second major factor, which tends to under- state the relative growth of shipments by the pharmaceutical preparations industry, is the fact that drug prices have declined 5 percent over the past 10 years, while the average level of wholesale prices has risen by 6 percent. GROWTH FACTORS It is clear that the pharmaceutical preparations industry has experienced tremendous real growth since 1958. Introduction of new drugs is the foundation for much of the industry's growth. During the past 10 years, more than $2.8 billion has been spent on drug research. As a result, many new preparations have been developed that are useful in treating ailments that formerly failed to respond to drug therapy. According to the Pharmaceutical Manu- facturer's Association, over 75 percent of the drugs used today were not available 10 years ago. Among the important new drugs to reach the market in the last decade are : Oral vaccine for prevention of polio Anti-inflammatory agents such as dexamethasone and indomethacin Vaccine for prevention of rubella (german measles) Oral contraceptives Analgesics, as potent as morphine, but without addiction liability Psycotropic agents such as thiothixene and fluphena- zine enanthate Oral agents for the control of diabetes. Aggressive promotion of ethical products and extensive advertising efforts for nonprescription drugs have been carried out by the industry in recent years. A total of $356 million was spent in 1962 by drug companies on advertising. Based on the expansion of the industry since 1962, it is estimated that such expenditures exceeded $500 million in 1967. Another major growth factor for the drug in- dustry is the passage of legislation providing for Government participation in making medical care available to disadvantaged citizens. The Medicare- Medicaid package was passed in 1965. Of the $2.1 billion increase in the drug industry's shipments between 1958 and 1967, over $1.1 billion occurred after 1964. Rising health standards, as a result of educa- tional efforts by Government, the drug industry, and other organizations, have also been a major stimulus. This trend is reflected by the rapidly spreading coverage of the population by health insurance and rising per capita expenditures on medical care and drugs. The 50 percent increase in per capita personal income over the past decade also has provided an impetus to the domestic drug market. More families are getting more money to take care of their health needs. To some extent, the growth can be explained by the growth of the population. Between 1960 and 1966, the population grew by 9 percent. More important was the 1 1 percent gain in the segment 103 of population over 65, whose drug needs tend to be greater and more frequent than those of lower age groups. The rapidly expanding demand for drugs abroad has been a boon to the U.S. pharmaceutical preparations industry. While exports have been fairly stable, the U.S. investment in overseas facilities for producing drugs has risen sharply. FUTURE PROSPECTS Prospects for continuing large-scale growth of the pharmaceutical preparations industry are excellent. A 25-percent increase by 1980, in persons 65 and over portends further growth in demand. If major breakthroughs in life-extending therapy occur, this gain could be even greater. Personal income will continue to rise steadily and more families will become able to afford proper medical care. The Medicare and Medicaid programs will probably gain much wider acceptance, thus giving the disadvantaged greater access to medical care. Expansion of national health programs overseas should push exports to grow moderately. Intensive efforts by the drug industry to develop and introduce new products are expected to con- tinue. There are vast opportunities, in such areas as treatment of cancer, mental illness, cardiovascu- lar and virus diseases, to significantly expand drug sales of new products. The planned expenditure of more than half a billion dollars on drug research in 1968 reflects the drug industry's efforts to cure and prevent disease. More widespread use of generic terminology in distribution of drugs should have dampening effect on prices, thus understating the relative growth of the industry. But the favorable pros- pects for real growth are undeniable. Table 1. — General Statistics Pharmaceutical Preparations — SIC 2834 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 82,002 466, 596 45, 708 91, 374 205, 459 1,881,524 2, 591, 831 72,353 9.158 2.249 83,722 495, 887 45,563 89, 378 209, 081 2, 015, 470 2, 692, 187 82, 770 9.640 2.332 86,658 517, 627 45, 626 88,853 212, 900 2, 085, 206 2, 772, 131 85,120 9.794 2.393 87,984 549,104 46,458 91, 127 225,223 2, 223, 734 2, 926, 625 86, 448 9.873 2.476 91,225 588,711 48, 792 94,163 240, 738 2, 413, 544 3, 142, 174 71,485 10.026 2.556 85,084 580,638 45, 937 91,671 245, 993 2, 595, 657 3, 314, 323 89,286 10. 552 2.688 90,229 639,822 49,443 99, 250 273, 752 2, 766, 153 3,571,088 102, 740 10. 105 2.752 94,555 701, 635 51,386 102, 134 299, 412 3, 172, 824 4, 049, 735 122,594 10. 597 2.938 98, 318 761, 123 53,631 107, 936 327, 896 3, 446, 852 4,432,441 133, 792 10. 512 3.03. ' 105, 900 N.A. N.A. N.A. N.A. N.A. 1 4, 729, 000 N.A. N.A. N.A. ' 109, 000 N.A. N.A. N.A. N.A. N.A. ' 5, 046, 000 N.A. N.A. N.A7 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. 1 Estimated. N. A. =Not Available. Source: Bureau of the Census and BDSA. 104 Table 2. — Foreign Trade Pharmaceutical Preparations — SIC 2834 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- percent of percent ments shipments of new supply ' 1958 N.A. N.A. $2. 344 N.A. N.A, 1959... N.A. N.A. 2,501 N.A. N.A. 1960 N.A. N.A. 2,563 N.A. N.A. 1961.--. N.A. N.A. 2,662 N.A. N.A. 1962 N.A. N.A. 2,856 N.A. N.A. 1963.-. N.A. N.A. 3,000 N.A. N.A. 1964 N.A. $2 3,167 N.A. ( 2 ) 1965 $119 3 3,621 3 ( 2 ) 1966 120 3 3,955 3 m 1967 112 3 3 4, 220 33 ( 2 ) 1968 N.A. N.A. N.A. N.A. N.A. ' New supply consists of shipments plus imports. 2 Less than 0.5 percent. 3 Estimated. N . A . = N ot available Source: Bureau of the Census and BDSA. Table 3.— Principal Trading Partners Pharmaceutical Preparations— SIC 2834 United States buys from- United States sells to- United Kingdom Japan Canada Source: Bureau of the Census. Canada Mexico Panama Belgium Japan Hong Kong South Vietnam Germany Venezuela Table 4. — Number of Employees by Size of Establishment Pharmaceutical Preparations — SIC 2834 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- ments ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 1, 114 82, 002 $2, 592 3,314 796 692 3,902 3,112 $69 61 199 198 8,328 8,752 $170 232 119 69, 772 121 73, 220 $2, 353 1,011 85,084 3,021 1958. 1963. Source: Bureau of the Census. Table 5. — Key Ratios Pharmaceutical Preparations — SIC 2834 Table 6. — Geographic Distribution, 1963 Pharmaceutical Preparations — SIC 2834 Item 1958 1963 Geographic area Investment per production worker ' $15,133 $25,381 Specialization ratio (%) _ 88 87 Concentration ratios (%) : 4firms 27 22 8flrms - 45 38 20rlrms 73 72 50firms 87 89 All em- ployees ' 1957. Source: Bureau of the Census. Total — _.. 85,084 Northeast- 42,516 New York 17,079 New Jersey 14,362 East North Central 27,965 Indiana 10,507 Illinois 8,040 Ohio.__ 2,702 West North Central 4,076 Missouri 2, 704 Geographic area All em- ployees West North Central-Continued Nebraska 529 South Atlantic. 3,708 Maryland 725 Georgia 268 East South Central _ 2,910 West South Central 1,027 Texas 943 West. 2,882 Oregon 194 California 2,536 Source: Bureau of the Census. 105 Table 7. — Principal Products Pharmaceutical Preparations — SIC 2834 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Pharmaceutical preparations affecting neoplasms, endocrine system and metabolic diseases, for human use _ N.A. Pharmaceutical preparations acting on the central nervous system and the sense organs, for human use N.A. Pharmaceutical preparations acting on the cardiovasuclar system, for human use _ N.A. Pharmaceutical preparations acting on the respiratory system, for human use.. - N.A. Pharmaceutical preparations acting on the digestive or the genito-urinary systems, for human use N.A. Pharmaceutical preparations acting on the skin, for human use. ._ N.A. Vitamin nutriment and hematinic preparations for human use N.A. Pharmaceutical preparations affecting parasitic and infective diseases, for human use N.A. Pharmaceutical preparations for veterinary use 88 Pharmaceutical preparations, excluding biological, N.E.C _._ 50 ♦Standard error of estimate of 15 percent or more. N.E.C. =Not elsewhere classified N.A. =Not available. <, _ ... _ N.C.=Not computed. Source: Bureau of the Census. N.A. N.A. N.A. N.A. 259 295 331 371 N.A. N.A. N.A. N.A. N.A. 756 826 960 1,050 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 144 283 155 285 173 326 185 352 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 403 160 341 432 178 337 488 198 347 508 219 378 N.A. N.A. N.A. N.A. 96 N.A. N.A. 93 N.A. N.A. 98 N.A. N.A. 105 N.A. 620 110 24 528 107 24 643 140 16 719 159 *14 N.A. 1.82 N.C. 106 Photographic Equipment SIC 3861 The value of shipments of the photographic products industry, stimulated by Federal Govern- ment demand and amateur spending, jumped to a record high of $3.6 billion in 1967 and is expected to reach almost $4 billion in 1968. This represents an annual growth of 12.7 percent since the $1.2 billion sales level of 1958. Employment has grown at a 4.9 percent annual rate in the past decade. Approximately 70 percent of the industry's output is produced in New York, the home of leading companies in the industry. GROWTH FACTORS Technological progress in the photographic equipment industry has been enormous. The development of high-quality automatic features and other techniques of simplification have con- tributed significantly to the increasing use of cameras of all varieties. The overwhelming trend is to simplification of the manual operations of loading, winding, and focusing. Developing high- quality, low-price cameras is the goal of the manu- facturer. Included in today's inexpensive models are features such as automatic eye exposure con- trol, rotating flashcube, and film cartridge. Introduction of popular, simplified, mass market cameras has stimulated film sales. The develop- ment of color film and more highly sensitive black and white films gives the photographer higher quality results and greater satisfaction in his work or hobby. Improved film processing techniques and in- creased capacity to cope with peak workloads on Monday and Tuesday, as well as post-holiday periods, have led to increased consumer satis- faction. Progress in aerospace, medicine and education, where information gathering and dissemination are essential, has created a need for increased use of photographic techniques. Although accounting for a small proportion of demand for photographic products, these scientific and education fields are undoubtedly those of greatest potential growth. Information duplication and storage require- ments of business and education lead to greater demands for photocopy, microfilming, blueprint- ing, Vandyke, and white printing equipment. Phenomenal growth has marked this segment of the industry. Since its infancy in 1958, sales of photocopy equipment have been growing at an average annual rate of 30 percent. The trend in copying equipment is toward more of the smaller desktop copiers and automated peripheral equip- ment such as collating and sorting devices to reduce handling time. Farther into the future are selective or pro- gramed copying and color copying. Through programing, the operator will be able to reproduce selected information from a document in a pre- determined place on the copy. Color copying will have major applications in consumer photo reproductions and in the printing industry. Microcopy, the reproduction of textual matter and drawings in reduced form; graphic arts, the use of photographic methods in printing and publishing; and X-ray are rapidly expanding applications of the photographic principle. X-ray film now accounts for over 12 percent of all sensitized goods sales primarily because of the medical profession's increasing use of this diag- nostic tool. The development of new and improved equip- ment, film and processing techniques has made products and services available to the amateur and professional photographers that could not be 317-387 O— 68- 107 obtained in the past. Increasing disposable per- sonal income and leisure time, the changing age composition of the population, and marketing techniques have also contributed significantly to the growth of this industry. The amateur market, which accounts for one- third of photographic product sales, benefits primarily from the rise in personal consumption expenditures. The steady expansion in personal income and leisure time also adds to increased attendance at the theater and to part-time education courses. These indirectly support de- mand for motion picture equipment and film and audiovisual or nontheatrical motion picture sup- plies. Graphic arts, the use of photographic methods in printing and publishing, might also be said to benefit from man's desire to absorb more and more information for education and entertainment. A larger portion of the population is reaching the 20-34 age group. Family formation is most prevalent in this group and demand for amateur equipment profits from this change in the age composition of the population. Effective promotion is expected to continue bringing mass-market products to the attention of a receptive public. Major advertising campaigns have been launched to promote nationwide picturetaking. Federal Government expenditure supports the growth of photographic product use in a number of interesting ways. Ae,rial reconnaissance is the chief military and space use of photographic equipment. The entire world is being photographed every day in black and white and eventually it will all be photographed in color. Aside from this, there are many civilian uses of aerial photography such as crop studies, flood control, meteorology, map making and urban planning. Large amounts of film may also be used in the future for marine reconnaissance. Only small areas can be photo- graphed at a time underwater because of low visibility. In the audiovisual market, the demand for nontheatrical motion picture film and equipment from business, industry, education and Govern- ment, has been sustained by the availability of Federal Government funds. This is particularly true in education where sales of motion and still picture projectors to schools and colleges more than tripled in the past 5 years. Exports are an important factor to the industry with approximately 10 percent of its output sold abroad. Major foreign markets are Canada, Japan, United Kingdom, and West Germany. Where protective barriers have stiffened in foreign coun- tries, U.S. firms have often established foreign subsidiaries and have intensified their overseas sales promotions. Imports have accounted for just above 5 percent of apparent domestic consumption for the past 5 years and this trend is expected to continue through 1968. The competitiveness of the domestic industry is expected to minimize any adverse effects of the Kennedy Round in the domestic market. Major competing countries are Japan, Germany and Belgium, with the most significant competition in fine cameras valued at more than $100. FUTURE PROSPECTS The next few years should be bright ones for the photographic equipment industry. Continued technological development and growing demand factors are expected to sustain on 8-10 percent annual expansion in the market for these products. The most rapidly expanding segment, photocopy- ing equipment, has been growing at an average annual rate of 30 percent. Aerial reconnaissance will grow at a 15 percent annual rate, the audio- visual market should expand at 10 percent an- nually, and the amateur market should grow 7.5 percent a year in the next 5 years. 108 Table 1. — General Statistics Photographic Equipment — SIC 3861 Year Total employment Number Payroll ($1,000) Production workers Value added ($1,000) Value shipments ($1,000) Capital ex- penditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) Number Man-hours (1,000) Wages ($1,000) 1958.-.. 60,262 368, 970 376, 926 418,832 427, 821 439, 998 498, 828 532, 715 599, 823 710, 944 N.A. N.A. 38, 542 35, 242 38,872 37, 020 35,582 39, 248 41,006 45,364 55, 344 N.A. N.A. 74, 256 70, 648 76, 500 72, 929 70, 612 77, 753 81,751 91,886 109, 190 N.A. N.A. 201,597 199, 889 218, 966 217, 795 223, 000 251,566 272, 220 313,491 377,346 N.A. N.A. 788, 750 876, 785 978,911 987, 015 1,098,113 1,270,132 1, 485, 453 1, 773, 198 2,281,987 N.A. N.A. 1, 204, 905 1, 318, 009 1, 466, 983 1, 517, 764 1, 635, 950 1,851,213 2, 091, 180 2, 552, 774 3, 285, 736 i 3, 640, 000 ' 3, 960, 000 46, 770 47, 089 60, 000 49, 250 57, 187 78, 626 98, 427 98, 872 148,379 N.A. N.A. 3.913 4.386 4.471 4.532 4.924 5.049 5.457 5.656 6.047 N.A. N.A. 2.715 1959... 1960... 1961... 1962 56, 099 62, 420 61,226 59, 429 2,829 2.862 2.986 3 158 1963... 1964... 1965... 1966... 1967.... 1968... 64, 937 66, 606 70, 538 84, 275 '89,330 '93,000 3.235 3.330 3. 412 3.456 N.A. N.A ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Photographic Equipment — SIC 3861 [Dollars in millions] Table 3. — Principal Trading Partners Photographic Equipment — SIC 3861 United States buys from- TJnited States sells tc Year Exports Imports Ex- Im- Product as a as a ports ports ship- percent of percent ments shipments of new supply i $86 $47 $1,061 8.1 4.3 93 61 1,153 8.1 5.0 109 67 1,206 9.0 5.3 122 73 1,250 9 7 5.5 129 95 1,346 9.6 6.6 155 89 1,631 9.5 5.2 184 105 1,906 9.6 5.2 229 113 2,296 10.0 4.7 277 131 2,831 9.8 4.4 313 145 2 3. 200 2 9. 8 2 4.3 = 350 2 170 = 3, 600 2 9. 7 2 4.5 Japan West Germany Belgium Canada Japan United Kingdom West Germany 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. i New supply consists of shipments plus imports. 2 Estimated. Source: Bureau of the Census and BDSA. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishment Photographic Equipment — SIC 3861 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- Ship- ments ployees ments 480 538 60, 262 64,937 $1, 205 1,851 321 351 1,844 1,811 $35 39 99 119 4,276 5,268 $91 117 60 54,142 $1,080 68 57,858 1,695 1958. 1963. Source: Bureau of the Census. 109 Table 5.— Key Ratios Photographic Equipment — SIC 3861 Item 1958 1963 Investment per productiou worker ' $10, 941 Specialization ratio (%) -- 94 Concentration ratios (%): 4 firms 65 8 firms 74 20 firms. - 85 50 firms 93 $20, 489 95 63 76 93 ' 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Photographic Equipment — SIC 3861 Geographic area All em- ployees Total 64,937 New England 5,335 Massachusetts 5,017 Middle Atlantic 43,465 New York 39,401 New Jersey _ 3,652 Pennsylvania 412 East North Central... 9,688 Illinois 7,787 Geographic area All em- ployees East North Central— Con. Wisconsin.. _. 280 Ohio _ 319 West North Central 1, 030 Missouri 1. 200 South 1,518 Virginia _. 193 Mountain 170 Pacific 3,731 Source: Bureau of the Census. Table 7. — Principal Products Photographic Equipment — SIC 3861 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Still picture equipment _. 179 Photocopying, microfilming, blueprinting, Vandyke, and White Printing Equipment 58 Motion picture equipment. 148 Photographic sensitized film and plates 396 Sensitized photographic paper and cloth, silver halide type 124 Sensitized photographic paper and cloth, other than silver halide type. 82 Prepared photographic chemicals 36 Photographic equipment, N.S.K 38 N.A. 160 159 149 224 282 340 454 2.53 76 86 90 145 203 290 387 549 9.53 145 151 136 128 128 144 179 206 1.39 441 479 511 546 605 677 786 960 2.43 146 156 167 184 191 199 212 236 1.90 98 113 119 121 128 135 165 196 2.38 43 46 51 70 74 101 132 153 4.26 N.A. N.A. N.A. N.A. 78 77 94 ♦77 N.C. •Standard error of estimate of 15 percent or more. N.A. = Not available. N.S.K. = Not specified by kind. N.C. = Not computed. Source: Bureau of the Census. 110 Plastics Materials and Resins SIC 2821 Shipments of the plastics materials industry- have about doubled during the last 10 years to almost $3.9 billion, while employment has in- creased nearly 50 percent to more than 70,000. Establishments are located throughout most ol the major industrialized areas of the United States; those large volume plastics heavily dependent upon petroleum derivatives tend to be located near refineries, while the lower volume materials tend to be located near markets. GROWTH FACTORS Plastics materials have found markets in a large number of diverse industries. Among the more important consumers of plastic materials are: industrial products, packaging and shipping containers, construction products, housewares, furniture, automotive products, electronic com- ponents, toys, adhesives, paints and protective coatings, and plywood. Plastics materials are man-made products de- veloped largely during the past few decades. They have gained markets primarily by displacing other materials. The rapid growth of this industry is due to several factors which occurred during the same time period. Plastics materials are generally or- ganic polymers. The availability of new, large sources of petroleum, coupled with improved technology in obtaining chemicals from petroleum, led to many new, inexpensive chemical materials which could be made into plastics. While the new materials were becoming available, a large amount of research and development work led to the discovery of many new polymers with interesting and useful properties. The properties of the plastics materials, and hence of the end products can be modified sig- nificantly to suit the needs of consumers — a factor lacking in many other commodities. Finally, the rapid growth of the economy, with increasing demand for all types of goods and services, created an economic climate favorable to the displacement of other materials by plastics and to the develop- ment of new products made possible by the unique characteristics of particular plastics. Development of new plastics materials has been accelerating. The first commercial plastic was created in 1868; by 1938, about 16 commercial plastics had been developed. World War II led to renewed interest because of material shortages, and in the 20-year period from 1939 to 1958, another 15 commercial plastics were introduced. During the past 10 years, an additional 15 com- mercial plastics have been made available, each with distinctive properties and suitable for con- version into useful end products. New plastics materials are usually introduced into the market at relatively high prices. As volume increases and the economies of scale are realized, prices are normally reduced. This factor, along with overcapacity in certain types of large- volume plastics, has resulted in generally declin- ing prices; the wholesale price index for plastics materials declined from 101 in 1958 to 83 in 1968. This decrease in prices has contributed to the increased acceptance and use. While the amount of plastics materials finding their way into military uses is not known, it is believed to be significant and growing. Plastics are consumed by the military largely in the form of products, and as in the civilian economy, packaging has been one of the most successful uses. In addition to direct savings in packaging costs, plastics materials provide many indirect savings in the form of much lower in-transit damage and through moisture, fungus and insect 111 resistance. The improved strength and light weight of many plastics materials make them especially promising for Air Force and Navy use. The Navy is already using boats made largely from reinforced plastics and is working on ship hulls and weather shields for gun mounts made of plastics. The Ah' Force is working on an all plastics-composite plane that would be up to 50 percent lighter than a craft made of other ma- terials. Even if only some of the experimental projects become standard equipment, military usage of plastics materials should grow rapidly in the future. Exports of plastics materials, which currently amount to over $500 million annually, are grow- ing. The value of exports has more than doubled during the past 10 years despite some com- paratively high tariff rates in many major con- suming countries. World capacity to produce plastics materials is also growing rapidly, but the scheduled reduction of foreign tariff, coupled with rapidly rising world demand, should insure a favorable future export market. FUTURE PROSPECTS Because of the many potential large- volume uses for plastics, the future annual growth is expected to be among the highest of any industry, with some sources expecting 15 percent annual growth. Even on the most conservative assumption, the plastics materials industry should expand rapidly over the next decade. The future for most of the plastics- using industries is very favorable. In addition, the ability to replace other more expensive materials and the development of new plastics materials should combine to insure a continued increase. Table 1. — General Statistics Plastics Materials and Resins — SIC 2821 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 51,003 308, 212 35, 305 72, 035 189, 321 871, 956 1,846,667 178, 882 4.606 2.628 54, 148 344, 432 37, 187 77, 654 211,105 1,110,661 2, 236, 262 132, 039 5.261 2.719 55, 269 358, 981 37, 841 77,910 216,916 1,041,376 2, 183, 038 155, 026 4.801 2.784 54, 457 369, 264 36, 985 77, 712 222, 061 968, 510 2, 124, 489 157, 349 4.361 2.857 57, 674 401, 498 39, 486 82, 170 244, 989 1,102,045 2,372,111 149,516 4.498 2.981 61,366 437, 566 41,446 86, 134 264, 499 1, 202, 349 2, 571, 492 137, 781 4.546 3.071 62, 569 461, 543 41,979 SS, SKI 278, 208 1,347,027 2, 773, 869 209, 550 4.842 3.130 66, 035 498, 893 44, 681 93, 647 301,779 1,479,679 3,117,739 219, 807 4.903 3.223 70, 763 556, 894 47, 519 99, 976 328, 700 1,702,822 3, 532, 863 300, 008 5.180 3.288 i 72, 000 ' 590, 000 N.A. N.A. N.A. N.A. ' 3, 650, 000 N.A. N.A. N.A. ■73,000 ' 634, 000 N.A. N.A. N.A. N.A. i 3, 880, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Plastics Materials— SIC 2821 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- percent of percent ments shipments of new supply l 1958 $220 $7 $1,972 11.2 1959 271 9 2,426 11.2 1960 297 10 2,416 12.3 1961 293 7 2,461 11.9 1962 305 12 2,698 11.3 1963. 309 14 2,780 11.1 1964 390 31 3,000 13.0 1965 425 40 3,478 12.2 1966 473 59 3,750 12.6 1967 473 61 33,800 3 12.4 1968 3525 3g0 3 4,100 3 12.8 Source: Bureau of the Census and BDSA. ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) 1.0 1.1 1.5 3 1.6 3 1.9 1 New supply consists of shipments plus imports. 2 Less than 0.5 percent. 3 Estimated. Table 3. — Principal Trading Partners Plastic Materials and Resins — SIC 2821 United States buys from— United States sells to- United Kingdom West Germany Japan Canada United Kingdom Netherlands Belgium West Germany Japan Australia Source: Bureau of the Census. 112 Table 4. — Number of Employees by Size of Establishment Plastics Materials and Resins— SIC 2821 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- Ship- Establish- Em- Ship- Establish- Em- Ship- Establish- Em- Ship- ments ployees ments ments ployees ments ments ployees ments ments ployees ments 1958. 1963. 349 51, 003 $1,847 153 1,094 $50 115 5,189 $224 81 44, 720 $1,572 509 61,366 $2, 571 253 1,869 106 162 7,305 397 94 52, 192 2,069 Source: Bureau of the Census. Table 5. — Key Ratios Plastics Materials and Resins — SIC 2821 Item 1958 1963 Investment per production worker • $29,398 Specialization ratio(%) _ _ 86 Concentration ratios (%): 4 firms. _ 40 8 firms. 56 20 firms 79 50 firms 92 $46, 010 84 35 49 69 87 ' 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Plastics Materials and Resins — SIC 2821 Geographic area All em- ployees Total 61,366 New England 8,477 Massachusetts 5,438 Middle Atlantic 20,694 New York 5,013 New Jersey 6,304 Pennsylvania 9,377 Geographic area All ems ployee- East North Central 10,571 Illinois 1,214 Wisconsin 600 Ohio 3,742 West North Central 2,491 South and West 19,133 North Carolina 955 Alabama 343 Texas 1,948 Washington 271 Source: Bureau of the Census. Table 7. — Principal Products Plastics Materials and Resins — SIC 2821 [Dollars in Millions] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio Regenerated cellulosic products, excluding rayon 302 334 345 334 325 328 336 330 330 1.09 Thermoplastic resins (excluding resins for protective coatings) N.A. N.A. N.A. N.A. N.A. 1,312 1,422 1,747 2,058 N.A. Thermosetting resins (excluding resins for protective coatings) N.A. N.A. N.A. N.A. N.A. 420 458 466 525 N.A. Synthetic resin adhesives, from resins manufactured in same establishment N.A. N.A. N.A. N.A. N.A. 28 28 33 45 N.A. Unsupported plastic film, sheets, rods, tubes N.A. N.A. N.A. N.A. N.A. 688 771 909 1,108 N.A. Synthetic resins for protective coatings.. N.A. N.A. N.A. N.A. N.A. 272 299 317 351 N.A. Custom compounded purchased resins N.A. N.A. N.A. N.A. N.A. 185 197 290 321 N.A. Plastics and resin materials, N.E.C.. N.A. N.A. N.A. N.A. N.A. 60 67 60 61 N.A. Plastics materials and resins, N.S.K 1 N.A. N.A. N.A. N.A. 9 10 '13 '11 N.C. 1 Standard error of estimate of 15 percent or more. N.C. = Not computed. N.A. = Not available. N.S.K. = N.E.C.= Not specified by kind. : Not elsewhere classified. Source: Bureau of the Census. 113 Plastics Products SIC 3079 The plastics products industry emerged from virtual obscurity prior to World War II into a large and one of the fastest growing industries in the United States. At the current rate of growth, shipments of this industry will soon be 100 times as large as they were in 1939. During the past 10 years, shipments have increased over 200 percent to more than $5.8 billion, while employment has grown 120 percent to over 250,000. Plants are located throughout the United States, with about half in the Middle Atlantic and East North Central States. Plants tend to locate near markets, pri- marily other manufacturing establishments. Establishments in the plastics industry are pri- marily engaged in the production of consumer and industrial items made from a large number of plastics materials. Plastics materials are man-made products developed largely during the past few decades. Plastics materials have gained markets usually by displacing other materials, such as rub- ber, leather, metals, wood, concrete, glass, paper, and textiles, because of their lower cost, superior properties, and the fact that they can be custom made to suit specific uses. In addition to the large number of plastics products, they are widely used in the manufacture of paints, adhesives, textile and paper coating, and plywood. The plastics products industry includes mostly items where the plastics retain their identity in the product rather than being used as a constituent materials, as in paints or coatings. GROWTH FACTORS There are literally thousands of plastics prod- ucts manufactured. Most are made by one or more of a few basic processes, namely: (1) mold- ing, (2) calendering, (3) casting, (4) extruding, and (5) laminating. The capital required to set up a processing operation is relatively small, and this accounts for the large number of plastics products manufacturers (over 5,000). In addition, many companies engaged in the manufacture of other products have added plastics processing units, often to provide component parts for their products. The relative ease of entry into this industry — technology and skills are necessary but are not formidable obstacles — has contributed to the growth of plastics products. The greatest diffi- culty facing a small plastics products manufac- turer is in marketing. Research and development may suggest that a product can be made success- fully from plastics materials, but it is extremely difficult to break into an established distribution system. Consequently, there is a tendency for companies which have the knowledge of, or access to, the distribution system to merge with a plas- tics products manufacturer or to begin production of plastics products themselves. The combination of relatively low cost mate- rials and the ability to tailor the material to a specific need, is probably the most important reason for the growth of plastics products. In packaging, for example, certain plastics have excellent protective qualities coupled with good clarity; other plastics have low absorption quali- ties and help retain liquids, like the juices in meat; other plastics are poor heat conductors and help preserve products, particularly those re- quiring refrigeration; other plastics are shock resistant and provide excellent protection for shipping delicate instruments. Products classified specifically as plastics prod- ucts exports have been growing and are approach- ing $100 million annually. The total amount of 114 plastics products exports is not precisely known, however, because some products are classified under their functional use, e.g. footwear, rather than under their constituent materials. Plastics products are usually one of the earlier industries established in developing countries; consequently, the growth of plastics products exports will probably trail the growth of plastics materials exports. FUTURE PROSPECTS One area of growth for plastics products where the future potential is great is building materials. Overall, the growth of plastics in construction has averaged 15 percent annually in recent years. Building panels, floor and wall coverings, and plumbing fixtures and parts are already made of plastics to a significant extent. Prefabricated rooms made largely of plastics offer possibilities for less expensive renovation of deteriorated buildings in urban areas. Other areas where rapid future growth of plastics products are probable include : furniture and com- ponents; automotive and transportation products, (where plastics now have a market of 50 pounds per new car and where 100 pounds per new car is anticipated in a few years) ; electronic compo- nents; and household appliances and housewares. Table 1. — General Statistics Plastics Products— SIC 3079 Year Total em ployment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 116,308 511,207 91,988 183, 253 348, 892 928, 950 1,867,877 77, 193 2.663 1.904 129, 523 583, 799 103, 149 209, 492 401, 550 1, 093, 738 2, 217, 655 86, 730 2.724 1.917 134, 024 627, 526 106, 241 216, 218 423, 998 1,147,939 2, 303, 178 105, 716 2.707 1.961 136,811 665, 080 107, 965 221, 135 446, 751 1, 254, 266 2, 473, 155 112,901 2.808 2,020 153, 796 765, 068 123, 380 252, 194 517,667 1, 466, 695 2,819,573 143, 555 2.833 2.053 166, 315 837, 572 134, 327 271,976 579, 990 1,660,882 3, 165, 440 161,094 2.864 2.133 178, 817 935, 282 144, 429 299, 195 643, 029 1,853,484 3, 505, 425 182, 179 2.882 2.149 205, 274 1,086,156 166, 559 337, 439 748, 598 2,213,632 4, 120, 405 250, 765 2.957 2.218 224, 017 1,221,601 182, 072 377, 415 844, 014 2, 515, 595 4, 658, 290 328, 718 2.981 2.236 i 234, 000 N.A. N.A. N.A. N.A. N.A. ' 4, 990, 000 N.A. N.A. N.A. •253,000 N.A. N.A. N.A. N.A. N.A. i 5, 750, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. i Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 3079. Table 4. — Number of Employees by Size of Establishment Plastics Products— SIC 3079 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 3, 222 116, 308 4, 334 166, 315 $1, 868 3,165 2, 079 13, 086 2, 660 16, 320 $209 293 894 39, 665 1, 277 56, 681 $622 1,045 249 63, 557 397 93,314 $1, 036 1,827 Source: Bureau of the Census. 115 Table 5. — Key Rations Plastics Products — SIC 3079 Item 1958 1963 Investment per production worker > $5, 664 Specialization ratio (%) N.A. Concentration ratios (%): 4 firms N.A. 8 firms N.A. 20 firms _. N.A. 50 firms N.A. $9, 510 92 21 20 31 1 1957. N.A. = Not available. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Plastics Products— SIC 3079 Geographic area All em- ployees Total .._. 166,315 New England.. 21,869 Maine 1,056 New Hampshire 1,564 Vermont 11,972 Connecticut... 4,555 Middle Atlantic 45, 015 New York 19,160 New Jersey 16,793 Pennsylvania 9,062 East North Central 55,468 Indiana 7,621 Illinois 19,665 Michigan 8,108 Wisconsin 3,594 Ohio 16,480 West North Central 8,419 Minnesota 2, 425 Iowa 1,711 Missouri 3,473 Geographic area All em- ployees West North Central— Continued Kansas 415 South Atlantic 11,508 Delaware 1,549 Maryland 2,640 Virginia 2,134 South Carolina 1,838 Georgia 615 Florida 1, 149 East South Central 4,690 Mississippi 628 West South C entral 4, 260 Louisiana 189 Texas. 3,053 West 15,086 Colorado 195 Arizona 255 Washington 359 Oregon 166 California 13,894 Source: Bureau of the Census. Table 7. — Principal Products Plastics Products — SIC 3079 (Dollars in Millions) Class of product 1958 1969 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Foamed plastic products 54 Laminated sheets, rods and tubes 163 Packaging and shipping containers, plastics N.A. Industrial plastics products N.A. Construction plastics products _ N.A. Plastics dinnerware, tableware, and kitchenware N.A. Consumer and commercial plastics products, N.E.C N.A. Plastics products, N.E.C. N.S.K 79 Unsupported plastic film, sheets, rods, tubes, from resins manufactured from purchased materials _ N.A. 91 112 170 188 261 305 354 398 7.36 200 211 219 253 244 265 301 349 2.14 N.A. N.A. N.A. N.A. 442 488 539 615 N.A. N.A. N.A. N.A. N.A. 833 891 1,126 1,347 N.A. N.A. N.A. N.A. N.A. 284 295 330 361 N.A. N.A. N.A. N.A. N.A. 148 165 164 163 N.A. N.A. N.A. N.A. N.A. 457 512 637 713 N.A. N.A. N.A. N.A. N.A. 138 123 137 127 N.C. N.A. N.A. N.A. N.A. 771 1, 108 N.A N.A. = Not available. N . C . = Not computed . N.E.C. = Not elsewhere classified. N.S.K. = Not specified by kind. Source: Bureau of the Census. 116 Primary Aluminum Sic 3334 Economic growth in the primary aluminum industry has been highlighted by an increase in the value of shipments estimated at 110 percent between 1958-68. During the same period, total employment increased by an estimated 36 per- cent. About 60 percent of the industry is located in the Western and West South Central States. GROWTH FACTORS Major factors accounting for this significant growth rate include: technological progress based on intensive research and development programs, resulting in a high rate of new product develop- ment, together with substitution of aluminum for other basic materials; aggressive marketing tech- niques; and price stability. Primary aluminum is produced by the electro- lysis of a solution of alumina in molten cryolite. The basic production unit is the potline, consisting of a number of electrolytic cells or pots connected in series. The first commercial pots installed in the United States operated at about 1,700 amperes, with a production of about 25 pounds of aluminum per pot per day, with power consumption of 13 to 14 kw.-hr. (kilowatt-hours) per pound. Today, the largest pots are about 100 times as large, operate at approximately 150,000 amperes, and use less than 7 kw.-hr. per pound. Capacity per pot per day has increased from 25 pounds to over a ton. Plant capacities have also increased. The larger cell and plant capacities permit a higher degree of mechanization and more efficient use of labor, with resulting economies in labor costs. Significant technological developments in alu- minum reduction plants since World War II include the increasing size of the individual pots, increasing size of plants, improvements in pot linings and anodes, increasing mechanization, production of alloy ingot, and transfer of molten metal directly to consuming plants. Extensive research and development programs for improvements in tech- nology are continuing. The number of producers has increased from just one prior to World War II to six in 1958 and eight in 1968, and additional producers are be- ginning plant construction or planning to enter the industry. Much of the primary aluminum produced is used by the producing company or by associated companies to make semifabricated or mill products. Major mill products are sheet, plate, foil, rod, bar, wire, cable, extruded shapes, tube, powder, and forgings. Independent companies making semifabricated products or castings have also greatly increased in number. All this growing competition has been a factor in the growth of the industry. New product development has characterized the aluminum industry. The market for primary aluminum is dependent upon the demand for finished products which use aluminum as a major materia] or in components. Those industries which represent major markets for aluminum include building and construction, transportation, con- sumer durables, electrical, machinery and equip- ment, and containers and packaging. All are growth industries, and all are charac- terized by potentials for new product development. Some specific end-uses are in roofing and siding, doors, windows, screens, awnings and canopies, store fronts, gutters and downspouts, curtain building wall, heating and ventilating equipment, builders hardware, passenger car components, 117 mobile homes, trucks, buses, trailers, aircraft, boats and outboard motors, refrigerators and air con- ditioning, appliances, furniture, cooking utensils, power transmission and distribution, irrigation pipe, foil packaging and containers, cans, and shipping containers. Defense uses have increased, with significant amounts in aircraft, missiles, aerospace, ammuni- tion, tanks, and vehicles. Aluminum is important in the development of an increased air-trans- portable capability. R. & D. programs to increase the consumption of aluminum have been successful in the develop- ment of new alloys, new processes, and new prod- ucts. The industry has also taken the initiative in developing and promoting many new end-uses for aluminum. Aggressive education and promotional pro- grams have been undertaken by the producers of primary aluminum to expand present markets and develop new ones. These programs are sponsored and run by individual companies and by trade associations. Major companies advertise extensively in the principal mass media, promoting consumer end products made with aluminum. Con- sumption has also been influenced by the develop- ment of an active and close customer service relationship. Price stability has contributed to the expansion in markets for aluminum. In 1968 the average price of primary aluminum and mill products was about the same as in 1958. Contributing to this price stability and influenc- ing the growth of the industry has been an ample world supply of the basic raw material, bauxite. Most bauxite used in the United States is im- ported, and major new reserves are being devel- oped. The production of primary aluminum requires large amounts of electric power at reason- able rates. Hydropower has supplied much of this in the past, with gas and coal powerplants supply- ing the remainder. The increasing efficiency of powerplants using coal and the ready availability of coal has led to an increase in recent years of aluminum plants using such power. FUTURE PROSPECTS The outlook for continuing growth in the markets for and consumption of primary aluminum in the immediate future is highly favorable. R. & D. programs sponsored by both the producers of primary aluminum and its users are continuing. New alloys, processes, and products should con- tinue to be developed. It is expected that this industry will continue to grow at a rate sub- stantially higher than that for the economy as a whole. A significant factor in the future growth of this industry is the prospect of a continued relatively stable level of prices, which should stimulate the increasing use of this metal. The availability of bauxite and power at a reasonable cost seems assured, at least for the near future. For the long term, there is also the possibility of nuclear power. The primary aluminum industry requires very substantial amounts of capital for the necessary equipment. Future growth will depend to a significant degree on the availability of needed capital at a reasonable cost. Table 1. — General Statistics Primary Aluminum — SIC 3334 Total employment Production workers Value Value Capital Value Wages per added ($1,000) shipments ($1,000) expenditures ($1,000) added per dollar of production worker Year Number Payroll Number Man-Hours Wages ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 1958.. 17,381 $111, 588 13, 428 27, 738 $82, 750 $383, 836 $808, 822 $142, 293 $4. 639 $2. 983 1959... 17,997 122, 606 14, 362 30, 022 92, 622 453, 285 953, 775 38, 534 4.959 3.085 I960... 17, 848 123, 956 14, 120 29, 133 92, 498 472, 711 921,215 26, 647 5.110 3.175 1961- . 16, 201 117,151 12, 651 26, 087 86, 170 454, 206 953, 894 19, 258 5.271 3.303 1962... 17, 221 125, 584 13, 677 27, 924 94, 629 471, 980 1,014,921 10, 798 4.988 3.389 1963... 18, 133 134,116 14, 459 29, 487 101,399 499, 576 1, 089, 977 62, 172 4.927 3.439 1964... 20, 332 146, 576 16, 701 32, 048 111,864 549, 205 1, 191, 409 51,804 4.910 3.491 1965... 20, 665 156, 550 16, 774 33, 544 119,868 634, 865 1, 364, 717 60, 470 5.296 3.573 1966... 21, 141 168, 119 17,051 34, 715 127,411 725, 057 1, 496, 221 65, 753 5.691 3.670 1967... N.A. N.A. N.A. N.A. N.A. N.A. ' 1,600,000 N.A. N.A. N.A 1968... N.A. N.A. N.A. N.A. N.A. N.A. 1 1, 700, 000 N.A. N.A. N.A 1 Estimated. Source Bureau of the Census and BDSA. N.A = Not available. 118 Table 2. — Foreign Trade Primary Aluminum — SIC 3334 [Dollars in millions] Product Exports as a Imports as a Year Exports Imports shipments percent of percent of shipments new supply ' 1958. 1959. 1960. 1961. 1962 1963. 1964. 1965. 1966. 1967. 1968. $24 $117 $809 3.0 12.6 54 111 954 5.7 10.4 128 76 921 13.9 7.6 58 91 954 6.1 8.7 67 130 1,014 6.6 11.3 72 163 1,090 6.6 13.0 92 163 1.191 7.7 12.0 93 218 1,365 6.8 13.8 90 218 1,496 6.0 12.7 100 195 2 1,600 2 6.2 2 10.9 «80 = 300 2 1, 700 2 4. 7 2 15.0 Table 3. — Principal Trading Partners Primary Aluminum — SIC 3334 United States buys from- United States sells to— Canada Norway Ghana Belgium Japan France Source: Bureau of the Census. i New supply consists of shipments plus imports. Data are not adjusted for shipments to, and deliveries from stockpiles. 2 Estimated. Source: Bureau of the Census and BDSA. Table 4-a. — Number of Employees by Size of Establishment Primary Aluminum — SIC 3334 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments Establish- Employees Shipments incuts ments ments ments 1958 20 23 17,381 18, 133 $809 1 1 0) 19 21 17, 381 18, 133 $809 1963 1,090 1 (') ( l ) 1,090 1 Included in total. Source: Bureau of the Census. Table 4b— NUMBER OF ESTABLISHMENTS BY CAPACITY SIZE Primary Aluminum — 3334 Year Total Under 100,000 tons 100,000-199,999 tons 200,000 tons and over Number Total capacity Number Total capacity Number Total capacity Number Source: BDSA. Total capacity 1958 1963 1967 20 23 24 2, 194, 250 2,511,250 3,321,000 10 11 4 674, 150 690, 150 262, 000 9 11 16 1, 272, 600 1, 573, 600 2, 132, 000 1 1 4 247, 500 247, 500 927, 000 Table 5. — Key Ratios Primary Aluminum — SIC 3334 Item 1958 Investment per employee l $48,530 Specialization ratio (%) 100 Concentration ratios (%) : 4 firms D. 8 firms.. 100 20 firms N.A. 50 firms _ N.A. ' 1957. D. = Disclosure. Source: Bureau of the Census. 1963 $88, 957 ' 100 N.A. N.A. 100 Table 6. — Geographic Distribution, 1963 Primary Aluminum — SIC 3334 Geographic area All employees Geographic area All employees Total 18, 133 West... All other divisions 4,765 6,932 West South Central 6, 436 Source: Bureau of the Census. Table 7 is not relevant to SIC 3334. 119 Radio; Communications Equipment SIC 3662 The radio and television transmitting signaling and detection equipment and apparatus industry is truly a growth industry. Shipments and em- ployment increased by 212 percent and 178 percent respectively between 1958 and 1968. The growth of output was widely distributed among the industrial states with technological developments emanating from research com- munities surrounding the larger cities and universities. GROWTH FACTORS Technological development is fundamental to the growth of this industry. Most of its products were unknown 50 years ago and only 20 years ago, with the advent of television, was the poten- tial scope of the industry becoming apparent. Development of industrial, military, and consumer applications broadened the scope of potential demand for communications equipment and serves as a major factor in the industry's growth. Widespread consumer use of radios and tele- vision sets has stimulated the growth of broad- casting equipment. In the 1920's and 1930's, the radio became a household commonplace. In the 1950's and 1960's, monochrome and color tele- vision sets followed the radio pattern. Through the FM and FM stereo, radio has continued its development to higher levels of consumer satis- faction. The number of monochrome television sets in use increased 100 percent between 1958 and 1967. Radios in use increased 64 percent during that period. Nearly 13 million color television sets were in operation in 1967. Whereas 67 percent of all households owned television sets in June 1955, 94 percent owned them in June 1967. The number of commercial broadcast stations increased 57 percent between 1958 and 1967. The necessity to meet new station needs and the needs for increased power and more sophisticated equipment of existing stations, has placed growing demands on the supply of transmitting equipment. The growth in output of commercial broadcast equipment is currently a small part in the growth in this industry. Of more importance quanti- tatively is the growth in output of sophisticated military, space, guidance, search and detection, and navigational devices. The industry's output includes navigation systems for the airways; railway signals and con- trol equipment; space vehicle navigation equip- ment; satellite communications equipment; radar and sonar devices; and advanced electronic scientific equipment. Not all of the applications are in the Government or public service fields. Commercial applications, medical and scientific applications, and basic research contribute to the growing demand. Another significant factor in growth of this and other scientifically oriented industries is the personal drive operating in a largely free and open society. A high level of education and educational opportunity coupled with a system of rewards reflected in salary, professional recognition, patent opportunities, etc., act as spurs to technical development. A pluralistic combination of private, university, and Federal Government research with a cross- fertilization of ideas between laboratories and production lines is a nearly ideal system for innovation and, consequently, growth. 120 FUTURE PROSPECTS U.S. Government appropriations for basic re- search and military and space hardware are fundamental to growth in the communications equipment industry. Whether the demands for military equipment will continue is an imponder- able question of international relations. The challenge of space exploration will continue even after the lunar landings. Applications of space flight to commercial uses, such as contemplated in the Earth Resources Observational Satellites, will require transmitting, signaling and detection equipment. Deep sea exploration will be carried on with electronic detection equipment. Traffic control devices will probably utilize the same techniques and equipment they currently employ. Weather forecasting applications have only scratched the surface of potential applications of electronic signaling and detection devices. Scientific research in the nature of matter, in elementary particles, and in wave theory may be the fundamental driving forces in expansion of this industry. Substantial investments of public and private funds are proposed to further the development of linear accelerators, betatrons, laser and maser equipment, and cyclotrons for research in these scientific areas. It can confidently be expected that the tech- nology embodied in the sophisticated products developed by this industry will spread to civilian applications. Process control devices in the oil, chemical, and steel industries point the way to applications in other industries. The utility of electronic devices has been demonstrated in many different fields, and this trend is expected to continue in the forseeable future. Table 1. — General Statistics Radio; TV Communications Equipment — SIC 3662 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Wages ($1,000) Value ship- Capital Value added Wages per -Value added ments expenditures per dollar production ($1,000) ($1,000) ($1,000) of wages ($) worker man- hour ($) 1958 154,350 924,071 88,523 178,315 433,648 1,558,261 2,852,617 56,147 3.593 2.432 1959 187,129 1,186,871 107,901 220,684 568,945 1,831,100 3,540,848 79,484 3.218 2.578 1960... _. 239,742 1,602,632 127,124 277,842 738,599 2,399,539 4,458,261 97,907 3.249 2.658 1961 307,660 2,162,513 149,958 326,332 915,941 3,160,576 5,682,482 112,932 3.451 2.807 1962 348,401 2,575,807 178,138 380,720 1,207,580 3,914,678 6,663,654 114,325 3.242 3.172 1963... 387,384 2,840,218 205,698 419,121 1,230,671 4,327,671 7,145,600 138,734 3.517 2.936 1964 353,301 2,638,655 181,728 367,526 1,170,102 4,258,060 6,510 178 124,540 3.639 3.184 1965 352,941 2,813,931 185,654 378,723 1,179,317 4,349,141 6,861,592 147,587 3.688 3.114 1966 376,680 3,086,819 208,232 415,460 1,325,593 4,855,258 7,562,632 187,948 3.663 3.191 1967 _ 1418,000 N.A. N.A. N.A. N.A. N.A. 18,700,000 N.A. N.A. N.A. 1968 1428,000 N.A. N.A. N.A. N.A. N.A. 18,900,000 N.A. N.A. N.A. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Radio; TV Communications Equipment — SIC 3662 [Dollars in millions] Product Exports as a Imports as a Year Exports Imports shipments percent of percent of shipments new supply ' 1958 $185 N.A. $2, 382 7.8 N.A. 1959 178 N.A. $22 3,070 3,250 5.8 5.9 N.A. 1960 191 0.7 1961 236 32 4,158 5.7 .7 1962 327 54 4,564 7.2 1.2 1963 433 71 6,052 7.2 1.2 1964 445 87 5,994 7.4 1.4 1965 317 107 6,010 5.3 1.7 1966 356 115 6,623 5.4 1.7 1967 449 131 2 7, 200 2 6. 2 2 1.8 1968 2 500 2 135 2 7, 800 2 6. 4 2 1.7 i New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Radio; TV Communications Equipment SIC 3662 United States buys from— United States sells to- United Kingdom European Economic Community Japan Japan Canada United Kingdom Source: Bureau of the Census. 121 Table 4. — Number of Employees by Size of Establishment Radio, TV Communications Equipment — SIC 3662 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Employees ments Ship- Establish- Employees ments ments Ship- Establish- Employees ments ments Ship- Establish- Employees ments ments Ship- ments 1958 1963 512 129, 515 1, 132 387, 384 $2, 415 252 1, 618 7, 146 497 3, 340 $25 120 5, 561 64 330 15, 508 $77 140 122, 336 256 305 368, 636 $2,313 6,836 Source: Bureau of the Census. Table 5. — Key Ratios Radio; TV Communications Equipment — SIC 3662 Table 6. — Geographic Distribution, 1963 Radio; TV Communications Equipment — SIC 3662 Item 1958 1963 Geographic area All Em- ployees Investment per production worker. N.A. Specialization ratio (%) N.A. Concentration ratios: 4 firms N.A. 8 firms N.A. 20 firms N.A. 50 firms N.A. $6, 032 29 45 69 84 Total 387,384 New England 41, 029 New Hampshire _. 3,191 Middle Atlantic 127,027 North Central 58,055 Michigan... 1,973 Nebraska 184 Source: Bureau of the Census. Geographic area All em- ployees South.... 61,598 Virginia 5,100 Florida 10,074 Texas 8,843 Mountain 4,603 Colorado 170 New Mexico 254 Pacific 95,072 Washington 954 Source: Bureau of the Census. Table 7. — Principal Products Radio; TV Communications Equipment — SIC 3662 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Commercial, industrial, and military electronic com- munication equipment 416 Radio and television broadcast equipment and closed circuit systems 76 Intercommunication equipment 130 Electronic navigational aids (excluding missile borne and space vehicle borne equipment) 426 Electronic aircraft and missile control, guidance and check-out systems N.A. Other commercial, industrial and military electronic equipment, N.E.C N.A. Space satellite borne communication stations (complete package) N.A. Missile borne and space vehicle borne equipment N.A. Radio, TV communications equipment, N.S.K N.C. = Not Computed. N.A. = Not Available. N.E.C. = Not e sewhere classified. N.S.K. = Not specified by kind. 519 597 812 859 1,081 997 1, 145 1, 446 3.48 87 168 73 184 94 164 143 181 151 166 168 176 254 197 353 228 4.62. 1.76 465 887 1,380 1,694 1,246 1,042 1,080 1,135 2.67 N.A. N.A. N.A. N.A. 1,645 1,488 1,257 1,612 N.A. N.A. N.A. N.A. N.A. 724 829 886 936 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 29 979 32 43 890 22 65 824 •16 104 865 •17 N.A. N.A. N.C. •Standard error of estimate of 15 percent or more. Source: Bureau of the Census. 122 Radio and TV Receiving Sets SIC 3651 The growth of the consumer electronics industry has been characterized by innovative technological improvements. The past decade has seen radio, television, and hi-fi audio products become more reliable, portable, and compact. The near tripling of industry shipments between 1958 and 1968 is evidence of the consumer's enthusiastic acceptance of these products which were marketed in response to the affluence, mobility, and leisure time interests of postwar society. During this timespan, employment in the industry doubled. Approximately 90 percent of total industry employment is located in the East- North-Central and Middle Atlantic areas. GROWTH FACTORS Since 1958, a flow of technological innovations such as the transistor and other solid-state devices from computer, military, and space re- search have been applied to consumer electronic products. The next decade will see the replace- ment of transistors and other discrete solid-state devices by Integrated Circuits (IC's). This substitution by IC's (thumbnail-sized wafers performing complex electronic functions now handled by many transistors and other circuit elements) will result in even greater com- pactness and functional capability. The superior performance and efficiency of these circuits will have a significant effect on future innovative applications and product designs as well as on costs. The continued growth of radio sales is attribut- able to the miniaturization and decreased costs made possible by the use of transistors. This application of transistors has opened new markets 317-3S7, — 68- for an industry which, in TV's wake, was presumed to be dead. The low prices and portability of these radios have attracted the emerging teen-age market, and at the same time, appealed to adults who were seeking replacement of their pre-Korean War tube radios. The penetration of these markets was spearheaded by Japanese imports, and in more recent years, imports bearing the brands of domestic manufacturers. While transistors were at first utilized in small portables only, the last few years have witnessed a wide variety of applications in small and large models alike. Most product lines now include AM, FM, AM/FM, and clock radios. With the estab- lishment of an FM multiplex operating standard for stereo broadcasting by the Federal Communi- cations Commission in the mid-50's, new industry sales were generated for a new FM stereo radio market, especially in hi-fi applications. In the past four years, the increasing number of FM stations broadcasting in stereo mode has also spurred consumer purchases of AM/FM stereo car radios. While actual production of smaller radios is limited by speaker design, further advances in the state of the art are expected to reduce the size of radios in the future. Radio sales will continue to grow steadily as consumers become aware of the greater sensitivity and performance in rela- tion to size of radios manufactured with IC's, Sales of TV receivers have been increasing an- nually since 1958. Since 1965, the value of color TV factory sales has continually been higher than black and white, with color increasing its share of the market to more than 80 percent of total TV sales. In the past two years, small-screen, less ex- pensive portable monochrome and color models 123 have been introduced and have gained enthusias- tic consumer acceptance. Sales of these have in- creased in proportion to higher priced, larger screen units, consoles, and combination TV and stereo units. Steadier, if less dramatic growth can be antici- pated for color TV as demand levels off. Black- and-white set sales have declined under pressure from the color portables, and a moderate decline is expected to continue as color TV improves and costs are reduced. Continuing consumer interest in color television and increasing television color programming will spur the industry's continued growth. Improvements in service and reliability of the color TVs, as transistors and IC's replace tubes and other components, will eliminate a significant deterrent to greater color sales. While break- throughs equivalent to the step-up from mono- chrome to color are not imminent, the refinements which will be integral to even the small-screen sets will make color TV more desirable to those consumers who have been holding back and wait- ing for a more perfected product. The next decade does indeed promise new break-throughs — possibly three-dimensional TV, picture tubes that can be mounted on the wall independent of equipment consoles, personalized, small-screen sets, etc., but the reality of the near future is in greater sophistication in the tuning and color fidelity systems and a general reliability that will diminish the need for servicing. Legislation has been proposed in Congress to require "detent" tuning (a "click" stop for every channel), now not provided for UHF channels. This proposal, if enacted, while providing greater ease of tuning, could increase the cost of TV to the consumer. [Prices could also increase if the present and increasing flow of TV receivers and component imports were reduced by quotas or new tariff restrictions.] The growth of consumer audio products sales has continued unabated since the mid-50's and promises to continue at an even higher pace through the 70's. Audio equipment sales received their prime impetus from the development and successful market acceptance of stereo records and tapes, and FM stereo multiplex broadcasting. Within the past 18 months, the success of stereo cartridges and cassettes for automobile and home installations has created a brand-new market for audio equipment. New products are introduced in the market annually as domestic and foreign manufacturers aggressively compete for the consumer's dollar. The domestic market is attractive to Japanese, German, U.K. and Scandinavian manufacturers who provide a wide and changing array of models designed to meet the needs of U.S. consumers. FUTURE PROSPECTS The future holds high promise for the consumer electronics industry. Continuing product im- provements and portending break-throughs in consumer electronic products could provide the dramatic leaps which FM stereo multiplex, color TV and stereo records provided in earlier years. The future market will not be limited ex- clusively to leisure time applications, as the strong possibility exists that the products of the future can be used for business, educational, and other purposes. Versatile, multicomponent electronic consoles, for example, may well be included in the homes of the next decade as refrigerators and other appliances are today. Such consoles, in addition to providing enter- tainment, may be used by the homeowner to perform purchasing, banking, and other functions. Mergers between electronic manufacturers and home builders and the current interest of large- scale manufacturers in new town developments may be indicative of this possibility. The continuing growth of the consumer elec- tronic industry into the 70's then is not only related to the productivity and affluence of our society, but the growing variety of consumer applications of electronic products. 124 Table 1. — General Statistics Radio and TV Receiving Sets — SIC 3651 Year Total employment Production workers Value added ($1,000) Value shipment ($1,000) Capital expenditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) 1958... 66, 505 74, 874 71, 743 76, 837 82, 951 81,264 86, 495 100, 136 130, 183 ' 135, 000 i 130, 000 292, 664 339, 395 340,600 369, 982 408, 332 411,924 440, 584 535, 148 679, 412 N.A. N.A. 52, 047 60,168 56, 269 59, 553 66, 052 66,538 70, 869 83, 099 109, 791 N.A. N.A. 100, 487 176, 187 108, 463 112,093 127, 222 128, 463 139, 751 166, 226 213, 955 N.A. N.A. 196, 565 231, 738 222, 348 239, 326 273, 350 289,287 312, 716 393, 233 509, 753 N.A. N.A. 593. 953 727, 108 694, 336 728, 832 868, 958 911. 954 983, 355 1, 249, 412 1,674,819 N.A. N.A. 1,548,006 1,781,133 1,719,337 1, 849, 180 2, 128, 875 2, 254, 878 2, 509, 666 3, 207, 506 4,091,865 1 4, 100, 000 1 4, 350, 000 13, 323 16, 610 19, 594 N.A. 27, 096 30, 511 33, 334 58,764 121, 120 N.A. N.A. 3.022 3.138 3.123 3.045 3.179 3.152 3.145 3.177 3.286 N.A. N.A. 1.956 1959... 1.315 1960... 2.050 1961... 2.135 1962... 2.149 1963... 2.252 1964... 2.238 1965... 2.366 1966... 2.383 1967... N.A. 1968. .. N.A. 1 Estimated. N.A. = Not Available. Source Bureau of the Census and BDSA. Table 2. — Foreign Trade Radio and TV Receiving Sets 2 — SIC 3651 [Dollars in millions] Table 3. — Principal Trading Partners Radio and TV Receiving Sets— SIC 3651 United States buys from— United States sells to— Year Product Exports Imports shipments Exports as a Imports as a percent of percent of shipments new supply ' 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. $74 $21 $1,548 4.78 1.35 72 78 1,781 4.04 4.37 71 87 1,719 4.13 5.06 80 121 1,849 4.32 6.54 54 165 2,129 2.53 7.75 54 158 2,254 2.39 7.00 70 184 2,809 2.78 7.33 80 264 3,200 2.50 8.25 92 429 4,040 2.27 10.11 93 521 3 4, 100 3 2.26 3 12. 70 103 3 554 3 4, 350 3 2.36 3 12. 73 Japan Hong Kong Canada United Kingdom EEC! Canada Mexico Venezuela EEC Source: Bureau of the Census. 1 New supply consists of shipments plus imports. 2 Does not include tape and wire, nor components and parts belonging to SIC 3679. 3 Estimated. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishment Radio and TV Receiving Sets — SIC 3651 [Dollars in millions] Total 1-19 20-99 100 and Over Year Establish- Employ- ments ees Ship- ments Establish- Employ- ments ees Ship- ments Establish- Employ- ments ees Ship- ments Establish- Employ- ments ees Ship- ments 1958. 1963 234 348 66, 505 81,264 $1,548 2,255 90 170 635 1,044 $11 20 52 82 2,702 3,914 $46 78 92 96 63,168 76, 306 $1, 491 2,157 Source: Bureau of the Census. Table 5. — Key Ratios Radio and TV Receiving Sets — SIC 3651 Item 1963 Investment per production worker 4, 161 Specialization ratio (%) 91 Concentration ratios (%) : 4 firms _ 41 8 firms 62 20 firms 82 50 firms.. , 94 N.A. = Not available. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Radio and TV Receiving Sets— SIC 3651 Geographic area All employees Geographic area All employees Total New England 81,264 2,173 274 21,241 13, 196 East North Central Illinois Michigan West California. All other divisions Iowa 45,824 29,004 977 Connecticut Middle Atlantic ... 4,276 4,239 New York.. 7,750 1, 198 Source: Bureau of the Census. 125 Table 7. — Principal Products Radio and TV Receiving Sets— SIC 3651 [In millions of dollars] Class of product 1958 )59 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 422 815 415 775 432 812 496 925 531 1,092 578 1,292 698 1,687 830 2,357 2,41 3.24 503 *4 445 *6 462 ♦5 524 *3 431 16 460 *16 590 *9 682 *6 1.67 N.C. Household and automobile radios, and radio-phonograph combinations 345 Household television receivers, including television combinations 727 Recorders, audio amplifiers, phonographs, tuners, speaker systems, and other audio equipment and accessories 409 Radio and TV receiving sets, N.S.K 1 •Standard error of estimate of 15 percent or more. N.C. = Not computed. N.S.K. Not specfied by kind. Source: Bureau of the Census. 126 Railroad Cars SIC 3742 Substantial growth has characterized the rail- road car building industry during the period 1958-67. Capital expenditures increased nearly 250 percent from $8.6 million in 1958 to $35 million in 1966. Value of shipments increased over 200 percent during the last 10 years, from $562 million to $1.7 billion, while employment nearly doubled to a total of 44,000. The main producing areas are located in the Northeast and North Central States. Production of new railroad cars declined in 1968 to the level of 1966, reflecting some fall-off in orders during the supsension of the 7 percent investment tax credit, the increased cost of car maintenance, and the tapering off of railroad profits. Even with the restoration of the invest- ment tax credit in June 1967, anticipated orders for new cars lagged as railroad profits decreased sharply. However, production is expected to rise as replacement orders increase. GROWTH FACTORS There are two growth factors in this industry: first, the depleted inventory of freight cars, which created excess demand for larger specialized freight cars, and second, the introduction of new technology to develop new railcars designed for rapid transit, commuter, and high-speed service, financed by the Urban Mass Transportation Act of 1964, as amended. Railroads have made impressive advances in modernizing the freight car fleet in the past 5 years. The number of freight cars decreased by approximately 4 percent during this period, yet the aggregate carrying capacity increased about 4 percent with the building of larger specialized railcars. Despite this advance, shortages of all types of cars still exist. The principal reasons for this shortage appear to be (1) sharply increased demands for the ship- ment of lumber and grain; (2) abnormal "peaking" of shipping cycles; and (3) smaller numbers of general-purpose cars, the type used by the lumber and grain industries. The infusion of specialized high-capacity cars and the corresponding loss of general-purpose cars have been partially respon- sible for the improvement in car utilization, with resultant greater profits for railroads, lower rates for shippers, and better service. The severe car shortages that occurred in 1966 emphasized anew the need for construction of additional all-purpose freight cars and improved utilization of the existing fleet. The industry has stepped up its efforts to improve car distribution and utilization. The Association of American Railroads recently decided to establish a computerized system for effective freight car control. Other projects include develop- ment of car identification systems for use in a national information classification system. The problem of adequacy of railroad transpor- tation service has been studies by various govern- mental and private commissions. These commis- sions surveyed the number of railroad cars of various types, the ability of some types of cars to more adequately provide one kind of service and to serve as a satisfactory substitute for other cars, car location in relation to the points of demand, the efficiency of their use, changes in economic conditions, traffic volume and flow, and fluctuations in demand for service. One commission found, for example, that on occasion demand for cars of certain types, in certain areas, exceeds the capacity of the carriers. As the com- 127 mission pointed out, there is a limit on the total number of freight cars which can be placed in economical use. The cost of acquiring and main- taining these cars must be covered by the freight income which the cars can earn, and a reasonable prospect for efficient use on a year-round basis is a financial prerequisite. Optimally, the supply of cars should be such as to keep any interruption of freight flow within manageable proportions, while minimizing uneconomic investments in excess capacity. FUTURE PROSPECTS The depleted inventory of freight cars has caused an increase in demand for larger specialized freight cars. Since 1959, retirements of railcars has consistently exceeded new railcar installation by a substantial margin. During the 5-year period 1959-64, the number of railcar retirements was 384,922, as opposed to 201,660 installations. This represents a net loss of 183,262 cars of all classes. In recent years, total freight car installations have improved in relation to retirements. Replace- ment demand for the more efficient types of cars is expected to brighten the prospects for the car building industry. Further impetus may come from the introduction of more innovative commuter and high-speed passenger cars, if experimental efforts now underway prove successful. Table 1. — General Statistics Railroad Cars— SIC 3742 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958 24,309 133, 302 17, 872 32, 565 91,089 167, 576 562, 190 8,635 1.840 2.797 1959 23,418 139, 246 17, 926 33,623 96,909 246, 037 513, 397 9,339 2.539 2.882 1960 28,728 170, 659 23, 077 42, 375 124, 787 275, 241 723, 014 8,513 2.206 2.945 1961 22,625 144, 812 16, 698 31, 157 96,680 184, 217 538, 920 8,542 1.905 3.103 1962 27,418 179, 590 20, 892 40,479 128, 137 276, 976 665, 708 11, 902 2.162 3.166 1963 30,742 201, 999 24,254 47,246 150, 135 355, 230 927, 184 10, 877 2.366 3.178 1964 37,367 255, 208 30, 034 60, 661 197, 535 509,939 1, 289, 737 25, 224 2.582 3.256 1965 40,858 286, 422 33, 245 65, 647 221, 541 528, 890 1, 519, 751 25, 725 2.387 3.375 1966... 43,782 324,460 35, 966 72, 271 252, 244 642, 229 1, 695, 704 35,094 2.546 3.490 1967 1 45, 000 N.A. N.A. N.A. N.A. N.A. i 1, 747, 000 N.A. N.A. N.A. 1968 144,000 N.A. N.A. N.A. N.A. N.A. • 1, 721, 000 N.A. N.A. N.A. 1 Estimated. Source: Bureau of the Census and BDSA. N.A. = Not available. Table 4. — Number of Employees by Size of Establishment Railroad Cars— SIC 3742 [Dollars in millions] Total 1-19 20-99 100 and ovei Year Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 67 24,309 30,742 $562 927 23 20 148 172 $3 5 13 22 811 1,090 $20 37 31 23, 350 36 29, 480 $539 1963 78 885 Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Railroad Cars — SIC 3742 Geographic area All employees Total 30,742 North East and North Central _ 25,464 Pennsylvania _ 8,507 Ohio 2,953 South and West 5,278 Tables 2 and 3 are not relevant to SIC 3742. Sufficient data were not available to prepare table 5. Source: Bureau of the Census. 128 Table 7. — Principal Products Railroad Cars — SIC 3742 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Passenger train cars, new Railroad and street cars, N.S.K - _. .. Freight train cars, new street cars, and parts 11 1 516 12 *3 499 39 •3 710 18 *3 498 17 •4 627 36 1 833 63 1 1,172 78 4 1,394 6 3 1,649 0.55 N.C. 3.20 •Standard error of estimate of 15 percent or more. Source: Bureau of the Census. N.C. = Not computed. N.S.K. = Not specified by kind. 129 Refrigeration Machinery SIC 3585 Rapid growth of the refrigeration machinery industry is shown by the dramatic rise in industry shipments from $1.44 billion in 1958 to $3.25 billion in 1968. To support this 8.5 percent average annual growth rate, employment climbed 45 per- cent from 67,700 to 98,000. Air-conditioning equipment paced the industry's expansion by gaining in shipments from $716 million to over $2 billion during the past decade. GROWTH FACTORS Changing living patterns and rising affluence underlie the industry's success. Moving toward the 24-hour air-conditioned day, people have followed the trend of offices and stores and have added air-conditioning to their homes and auto- mobiles. The 1960 Census oj Housing revealed that approximately 1 in 8 occupied housing units was air conditioned. Of 53 million units, 5.6 million, or 10.5 percent of the total, had one or more room air conditioners and 1 million units — only about 2 percent —had central units. Since 1960, home air conditioning has become a more prominent living feature. From 1963 to 1966, the percentage of new one-family homes sold with central units rose from 19 percent to 27 percent. This overall growth was particularly important in Southern States, where the gain was from 27 percent to 42 percent. Statistics of FHA-insured one-family homes bear out this trend. In 1963, only 4.7 percent of all new and 6.1 percent of existing homes pur- chased with FHA-insured mortgages had central air conditioning. By 1967, these proportions had risen to over 24 percent and 9.5 percent. Shipments of room air conditioners also have been important to the industry's growth. Of all wired homes, over 35 percent had such units in 1968. The U.S. consumer has shown an increasing preference for greater comfort while driving. Less than 5 percent of all new cars were equipped with factory air conditioning in 1958. By 1968, this had jumped to over 45 percent. Price reductions have helped support the rise in sales of home and automobile units. For ex- ample, the BLS wholesale price index for room air conditioners fell from the 1957-59 base of 100 to a mid-1968 level of 80.8. The increased econo- mies of mass production and technological de- velopments, such as the introduction of the two-pole motor, have enabled the industry to lower prices. Not all air conditioning is used purely for personal comfort. A significant amount of the industry's growth has depended on the increasing requirements of industrial and scientific processes for atmospheric control. Many electronic and other precision assemblies now require "clean rooms" for their manufacture. Growth in the industry's shipments of com- mercial and industrial refrigeration equipment also reflects changes in the American way of life. Increasing varieties of frozen foods and refrigerated convenience foods and self-service marketing have created a growing demand for refrigerated enclosures, display cases, and cabi- nets. Similarly, increased use of frozen and prepared food by restaurants, institutions, and other food-serving establishments have stimulated shipments of commercial refrigeration equipment. Two other rapidly selling industry products are commercial-type automatic icemakers and mechanical drinking-water coolers. The develop- ment of automatic icemakers for commercial 130 users has almost replaced the iceman and the iceplant, while shipments of mechanical drinking- water coolers have doubled since 1958 to an annual level of over $40 million. Exports of refrigeration machinery have paral- leled domestic growth, rising from $109 million in 1958 to $330 million in 1968. Advanced tech- nology, styling, and lower prices have made the U.S. industry the world leader. Consequently, foreign producers have found it difficult to compete in this market, and imports have amounted only to about 3 percent of exports. FUTURE PROSPECTS Air-conditioning equipment will continue to be the major vehicle of future industry growth. Relatively low saturation levels which exist in the principal markets — housing and automotive — and the industry's successful past performance in raising these levels indicate a promising future. New housing and new automobiles create the major submarket for the industry, but a produc- tion slowdown in these areas can be offset some- what by increased sales for existing homes and cars. Projections to 1975 of the number of U.S. households point to a 19- to 22-percent growth from the 1965 level. Particularly significant for this industry, growth in the Southern and Western states is expected to exceed the national rate. For example, according to the 1960 Census of Housing, 30 percent of all housing units in Texas were air-conditioned. From 1965-75, the number of Texas households is expected to increase about 25 percent. This growth in households, translated into new housing units for an area where home air conditioning is a prime factor, suggests a bright market potential. As air conditioning of housing for middle- and upper-income families increases, the industry can look for the possible extension of this trend into lower income and public housing. The record of industry sales to the automotive market also is encouraging. For new automobiles, the saturation level is near 50 percent, which leaves sufficient room for expansion in this market and in the secondary older car market. Prospects also are good for increased sales of commercial refrigeration equipment. Anticipated growth in the number of shopping centers and food-serving establishments and the U.S. con- sumers' growing preferences for frozen and pre- pared convenience foods add to an expanding market. Table 1. — General Statistics Refrigeration Machinery — SIC 3585 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958.... 67,715 342, 169 46, 210 90, 352 204, 934 598, 032 1,441,082 23, 166 2.918 2.268 1959.... 69,350 377, 760 47, 898 95, 522 224, 181 733,391 1, 641, 520 26, 110 3.271 2.347 I960.... 65,846 361, 180 45, 973 90, 981 217, 590 674, 304 1, 549, 413 31,801 3.099 2.392 1961.... 62,795 S49, 836 44,182 86,583 212, 601 608, 116 1,501,918 37,880 2.860 2.455 1962... 62,533 366, 967 44, 730 90, 249 225,401 676, 544 1,610,516 32, 433 3.002 2. 498 1963.... 72,330 432, 583 50, 676 101,231 268, 304 892, 686 1, 928, 001 33, 471 3.327 2.650 1964.... 73.256 453,215 53, 401 109, 353 296, 006 952, 613 2, 111, 280 35,813 3.218 2.707 1965.... 79,802 499, 078 59, 525 119,542 330, 481 1, 055, 100 2,314,304 53, 999 3.193 2.765 1966... 87,715 569, 264 64,718 130, 616 377, 464 1, 235, 655 2, 712, 588 91, 580 3.274 2.890 1967... 1 92, 000 N.A. N.A. N.A. N.A. N.A. ' 3, 000, 000 N.A. N.A. N.A. 1968 1 98, 000 N.A. N.A. N.A. N.A. N.A. 1 3, 250, 000 N.A. N.A. N.A. 'Est mated. Source: Bureau of the Census and BDSA. N.A. = Not available. 131 Table 2. — Foreign Trade Refrigeration Machinery — SIC 3585 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- ments percent of shipments percent of new- supply i 1968.. .... $108.8 N.A. $1, 430 7.6 N.A. 1959. . .... 111.0 N.A. 1,587 7.0 N.A. I960.. .... 133.5 N.A. 1,606 8.3 N.A. 1961. . .... 135.9 N.A. 1,673 8.6 N.A. 1962. . .... 142.2 N.A. 1,776 8.0 N.A. 1963. . .... 157.6 N.A. 2,105 7.5 N.A. 1964. . .... 189.7 $3.6 2,369 8.0 0.2 1965. . .... 209.4 6.4 2,731 7.7 .2 1966. . .... 251.3 7.6 3,130 8.0 .2 1967. . .... 286.8 N.A. 2 3,400 2 8.4 N.A. 1968 2 330. N.A. 2 3, 675 2 9.0 N.A. ' New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Refrigeration Machinery — SIC 3585 United States buys from- United States sells to— Canada Japan Kuwait West Germany France Mexico Venezuela Hong Kong 1 Imports are relatively insignificant. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishment Refrigeration Machinery — SIC 3585 [Dollars in millions] Year 1 'otal 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 625 698 67,715 72, 330 347 351 2,403 2,208 164 211 7,569 9,396 114 57,743 136 60, 726 1958. 1963. 1 Value shipments omitted, includes extensive duplication. Source: Bureau of the Census. Table 5. — Key Ratios Refrigeration Machinery — SIC 3585 Item 1963 Investment per production worker $8,550 Specialization ratio (%) Concentration ratios (% ) : 4 firms 25 8 firms 39 20 firms 68 50 firms 77 Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Refrigeration Machinery — SIC 3585 Geographic area All em- ployees Total 72,330 New England 1,652 Connecticut.. 755 Middle Atlantic 20, 495 NewYork 8,921 NewJersey 3,050 Pennsylvania 8,524 East North Central 24, 797 Indiana 3,954 Illinois 2,108 Michigan 6,873 Wisconsin 4,401 Ohio 7,461 West North Central 7, 312 Minnesota. 2,717 Missouri 3,478 Geographic area All em- ployees South Atlantic 3,484 North Carolina 922 Georgia 772 Florida. 325 East South Central 3,123 Tennessee 537 West South Central 6, 076 Arkansas. 369 Oklahoma 806 Texas 4,879 Mountain 1, 579 Arizona 1,290 Pacific 3,812 Washington 292 California 3,349 Source: Bureau of the Census. 132 Table 7. — Principal products Refrigeration Machinery — SIC 3585 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Heat transfer equipment 716 Commercial refrigeration equipment 240 Compressors and compressor units, all refrigerants. _ ___ 182 Condensing units, all refrigerants 70 Other refrigeration and air conditioning equipment 195 Refrigeration machinery, N.S.K 31 768 883 870 950 1,159 1,362 1,558 1,808 2.53 269 261 250 287 254 276 325 357 1.48 237 247 235 266 269 304 336 380 2.09 105 109 98 103 74 75 73 88 1.25 .A. N.A. N.A. N.A. 303 312 409 469 2.40 '28 '19 131 132 47 40 30 28 N.C. ■ Standard error of estimate of 15 percent or more. N.A. = Not available. N.C. = Not computed. N.S.K. = Not specified by kind. Source: Bureau of the Census. 133 Semiconductors SIC 3674 Dynamic growth has characterized the semi- conductor manufacturing industry over the past decade. A tripling of the 1958 value of shipments occurred in 1958, reaching $1.0 billion in that year. A plateau in value of shipments of semi- conductors has been established between 1966-68, and this is expected to continue in the near future. Employment between 1958 and 1968 increased 250 percent. During 1966 and 1967 major U.S. producers made large capital investments in Hong Kong, Taiwan, Okinawa and Korea, as well as in Euro- pean Economic Community, United Kingdom and Ireland. While some of the semiconductor ex- ports from these overseas plants will enter world markets, the basic purpose of the Far East opera- tions is supply for the U.S. market for consumer electronic products. GROWTH FACTORS The phenomenal post-war emergence and pro- liferation of electronic products for consumers, industry, science and the military would not have been possible without the explosive development of the U.S. semiconductor industry. While some of the recent decline in growth can be attributed to a slowdown in television sales, part of the deceleration is believed due to the replacement of some discrete components by integrated circuits. Also partially responsible is a worsening foreign trade balance in semiconductors and related end products. The export market for U.S. components has become limited to higher performance devices, where the United States holds a technological advantage. Internationa] price competition in less sophisticated U.S. com- ponents has limited export expansion to very select markets. This has led to the establishment of over- seas facilities by some American companies for the production of semiconductors supported by U.S. supplied parts and materials. FUTURE PROSPECTS Although a continuation of current value-of- shipment levels is anticipated for the semi- conductor industry, the industry should continue in an evolutionary state for many years to come. Technological refinement of semiconductor de- vices and new applications will result in an ever- changing product mix. Rising production costs will have to be countered by increased production efficiency and innovation to keep prices down. Competition from Japan and the rest of the world is expected to increase over a widening range of semiconductors, despite U.S. overseas produc- tion and other efforts to penetrate foreign markets. The increasing use of integrated circuits will limit the growth of discrete semiconductors in computers and other new applications, especially where miniaturization is desirable. The interaction of all of these forces points to a growth which may not be as dynamic as that of the past, but which should follow a more con- servative pattern of expansion. 134 Table 1. — General Statistics Semiconductors (excluding integrated circuits) — SIC 3674 Total employment Production workers Wages per Value Value Capital Value, added production Year Payroll Man-hours Wages added shipments expenditures per dollar worker Number ($1,000) Number (1,000) ($1,000) ($1,000) ($1, 000) ($1,000) of wages ($) man-hour ($) 1958... 23, 370 112,989 17,630 34, 691 65, 902 186, 800 250, 306 16, 172 2.835 1.900 1959... N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1960... N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1961... N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1962... N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1963... 56, 349 320, 875 37, 548 77,113 168, 504 467, 035 687,817 52, 439 2.772 2.185 1964... 55, 279 327, 244 37, 950 77, 436 175, 977 514, 764 716, 439 43, 377 2.925 2.273 1965... 67, 395 401,403 48, 667 98, 912 227, 964 680, 054 911,669 61,322 2.983 2.305 1966... 82, 221 494,211 59, 074 118, 092 274, 255 835, 305 1,123,669 123, 555 3.046 2.322 1967 i. 1 82, 131 N.A. N.A. N.A. N.A. N.A. 11,012,700 N.A. N.A. N.A. 1968 1 '81,901 N.A. N.A. N.A. N.A. N.A. • 962, 120 N.A. N.A. N.A. i Est imated. Source Bureau of the Census and BDSA. N.A = Not available. Table 2. — Foreign Trade Semiconductors — SIC 3674 [Dollars in millions] Year Exports 2 Imports Product Exports as Imports as a ship- a percent of percent of ments 2 shipments 2 new supply ' - 1958 $15. 3 N.A. $237 1959 18.2 N.A. 390 1960 28.9 N.A. 526 1961 40.3 N.A. 553 1962. 49.7 N.A. 568 1963 61.8 N.A. 623 1964 78.3 $8.4 638 1965 82.3 24.4 839 1966 130. 4 42.3 1,068 1967 125.4 43.4 3 960 1968. 3 120. 3 45.1 3 890 6.5 4.7 5.5 7.2 8.8 9 9 12.3 9.8 12.2 3 13.0 3 13.5 N.A. N.A. N.A. N.A. N.A. N.A. 1.9 2.8 3.8 3 4.3 3 4.8 Table 3. — Principal Trading Partners Semiconductors — SIC 3674 United States buys from— United States sells to— Japan Taiwan Hong Kong Netherlands Japan France. Switzerland Canada United Kingdom Source: Bureau of the Census. 1 New supply consists of shipments plus imports. 2 Excludes integrated circuits. 3 Estimate. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 4. — Number of Employees by Size of Establishment Semiconductors — SIC 3674 [Dollars in millions] Total 1-19 20-99 100 and Over Year Establish- Employ- ments ees Ship- ments Establish- ments Employ- ees Ship- ments Establish- Employ- ments ees Ship- ments Establish- Employ- ments ees Ship- ments 1958 1963 iN.A. 107 N.A. 56, 349 N.A. 688 N.A. 20 N.A. 154 N.A. 2 N.A. 31 N.A. 1,787 N.A. 21 N.A. 56 N.A. 54, 408 N.A. 665 i Part of Industry 3679. N.A. = Not available. Source: Bureau of the Census. 135 Table 5. — Key Ratios Semiconductors — SIC 3674 Item 1958 1963 Investment per production worker N.A. 9,815 Specialization ratio (%) N.A. 88 Concentration ratios: 4firms --. N.A. 46 8flrms. N.A. 65 20firms N.A. 90 50firms N.A. 99 N.A. = Not available. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Semiconductors — SIC 3674 Geographic area All em- ployees Total 56,349 New England 10,126 Massachusetts. 6,337 Middle Atlantic 19,333 New York.. __ 4,614 New Jersey _ 3,665 Pennsylvania 11,054 North Central, South and West. ' 26,890 California 11,198 Source: Bureau of the Census. Table 7 is not relevant to SIC 3674. 136 Special Tools and Dies SIC 3S44 The growth of the special tools and dies industry followed closely the rapid expansion of the metal- working industry in the United States during the 1958-66 period, particularly the automotive sector. The number of independent or contract shops grew from 5,745 establishments in 1958 to 5,896 establishments in 1963, while overall employment rose from 83,300 workers in 1958 to 120,300 in 1966. These shops account for 70 percent of special tools and dies production in the United States. The value of shipments of the industry, although indicating cyclical demands during the 1958-68 period, increased by almost 109 percent; from $1.06 billion in 1958 to over $2.2 billion in 1968. The five major product groups turned out by the industry were tools, die sets, jigs and fix- tures, and industrial molds. Captive shops account for the balance of national production. The special tools and dies industry is located in all geographical areas of the United States, with major plant concentrations in Michigan, the heart of the automotive industry (principal user of special tools and dies) , Indiana, Illinois, Ohio, and Wisconsin. GROWTH FACTORS Technological advances and improvements in the production equipment acquired by the metal- working industry during the 1958-68 period, such as the application of numerical controls and electri- cal discharging machining to machine tools, required radical changes in toolmaking processes by the special tools and dies industry. Greatly increased investment in capital equipment in all sectors of the U.S. economy, stimulated by the 1962 investment tax credit and revision of de- preciation allowances, generated volume demand for special tools and dies. FUTURE PROSPECTS The introduction of technical improvements in industrial production machinery has caused a shift in the production mix of the special tools and dies industry, increasing demand for quality tools and dies and adversely affecting the demand for jigs and fixtures. This trend has been in evidence since 1963, and is likely to continue. Die requirements for 1970 models of the auto- motive industry are below those of previous model years, reflecting changing technology and intensi- fied expansion of the captive shops that produce special tools and dies. Since 1966, shipments of the independent pro- ducers of special tools and dies have leveled off, and decreased somewhat in 1968. The decrease is attributed to the inability of many smaller inde- pendent shops (81 percent of the independent establishments employ less than 20 workers each) to adopt new technologies because of prohibitive costs, and increased production by the expanded captive shops. 137 Table 1. — General Statistics Special Dies and Tools — SIC 3544 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Wages ($1,000) Value Value Capital added shipments expenditures ($1,000) ($1,000) ($1,000) Value added per dollar of wages ($) Wages per production worker man- hour ($) 1958. . 1959.. I960.. 1961 _. 1962.. 1963.. 1964.. 1965.. 1966. . 1967. . 83,308 89, 445 93, 246 90, 386 101, 176 90, 860 93, 782 108, 459 120, 325 N.A. N.A. 536, 588 597, 853 638,151 605, 328 706, 560 682, 739 741, 663 881, 000 1,028,345 N.A. N.A. 68,916 74, 241 76, 819 74,253 84,163 76,002 78,700 90,260 100, 799 N.A. N.A. 139, 877 158, 205 163,268 156, 312 184, 908 169,313 179, 090 209, 282 231, 750 N.A. N.A. 415,241 465, 009 491, 783 460, 027 552, 953 543, 033 581, 588 684, 319 792, 576 N.A. N.A. 780, 090 932, 025 966, 547 901, 537 1, 106, 596 1, 029, 338 1, 180, 087 1,341,718 1, 664, 546 N.A. N.A. 1,060,566 1,235,014 1,314,972 1,201,883 1,488,331 1, 388, 794 1,571,337 1, 839, 190 2, 217, 907 i 2, 350, 000 1 2, 220, 000 43,242 N.A. N.A. N.A. N.A. 53, 343 49, 458 80, 518 133, 880 N.A. N.A. 1.879 2.004 1.965 1.960 2.001 1.896 2.029 1.961 2.100 N.A. N.A. 2.969 2.939 3.012 2.943 2.990 3.207 3.247 3.270 3.420 N.A. N.A. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2 and 3 are not relevant to SIC 3544. Table 4. — Number of Employees by Size of Establishment Special Tools and Dies — SIC 3544 [Dollars in millions] Year Total 1-19 20-99 100 and over Estab- lishments Employees Ship- ments Estab- Employees lishments Ship- Estab- ments lishments Employees Ship- Estab- Employees ments lishments Ship- ments 1958 1963... 5,745 5,896 83,308 90,860 $1,061 1,389 4, 751 28, 549 4, 763 29, 472 $347 893 428 1, 030 32, 186 38,303 $409 101 22, 573 589 103 23, 085 $304 372 Source: Bureau of the Census. Table 5. — Key Ratios Special Dies and Tools — SIC 3544 Item Table 6. — Geographic Distribution, 1963 Special Dies and Tools — SIC 3544 1963 Investment per production worker $8,764 Specialization ratio (%) _ 93 Concentration ratios (%) : 4 firms 6 8 Arms 9 20 firms 14 50 firms 21 Source: Bureau of the Census. Geographic area All Geographic area All employees employees 90,860 Total West North Central — Continued New England .. .. 7, 789 1,594 Massachusetts 3,482 Kansas.. 159 368 1,704 Connecticut 3,703 Maryland . 149 Middle Atlantic. . 15,353 North Carolina Georgia 242 5,865 416 4,763 663 Pennsylvania 4,725 East South Central 1,000 East North Central. 54,863 Kentucky 301 Indiana 5,298 Tennessee. 494 Illinois 7,735 West South Central 813 Michigan 25,685 Arkansas 149 Wisconsin. 3,574 Texas 561 Ohio.. 12,571 Mountain 446 West North Central- 3,139 Arizona 189 Minnesota 759 Pacific 5, 753 Iowa . 551 California... . . 5, 667 Source: Bureau of the Census. Table 7. — Principal Products Special Dies and Tools — SIC 3544 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Industrial molds. 163 1,157 180 1,362 209 1,542 206 1,303 230 1,620 221 1,388 243 1,638 295 1,843 342 2,178 2.10 Special dies and tools, N.S.K die sets, jigs and fixtures including 1.88 Source: Bureau of the Census. N.S.K. = Not specified by kind. 138 Steel Foundries SIC 3323 The steel foundries industry has experienced moderate growth in the past decade. Value of shipments of this industry rose 74 percent, for an average annual gain of 5.7 percent from 1958 to 1968, with the bulk of the gain occurring since 1963. On a physical volume basis the annual increase in shipments equals 4.1 percent, rising from 1.1 million net tons in 1958 to an estimated 1.7 million in 1968. Reflecting increased productivity, total employ- ment grew only 2.3 percent annually between 1958 and 1968. GROWTH FACTORS About 85 percent of steel castings production is for commercial sale, the remaining 15 percent being for further finishing or fabricating in captive foundries. Steel castings have major industrial uses and form the framework for heavy machinery and equipment such as locomotives, railroad cars, cranes, hoists, and earthmoving equipment. They are also used in numerous valves and gears. Cast steels are characterized by a diversity of chemical properties, good machinability, and a range of tensile strengths. High-alloy castings find extensive use in the manufacture of chemical, papermill, and dairy equipment. The distribution of steel castings by type in 1967 was as follows: Type of casting Thousands net tons Percent total shipments Carbon steel railway specialties 497 26.8 Carbon steel railway and transit rolling stock Other carbon and alloy steel castings . 216 1,144 11.6 61.6 Total 1,857 100.0 Steel foundries are relatively small establish- ments. According to the 1963 Census of Manufac- turers, 128 out of 268 establishments had less than 100 employees and probably find it difficult to finance or to use optimally much automation. Still the general trend for the industry is toward increased modernization. Capital expenditures averaging about $22 mil- lion from 1958 to 1961, increased 134 percent to $53.6 million by 1966. Most technological advances are directed at cutting costs through increased automation and quality improvement. Expected advances in mold design, for example will result in a more highly finished casting requiring less processing before final shipment to customers. FUTURE PROSPECTS The steel castings industry is heavily dependent on demand of the railroad equipment manufac- turing industry. This industry is the single most important consumer of castings and accounted for almost 40 percent of castings shipments in 1967. Future prospects look bright as a rising population and GNP lead to growth in rail transportation requirements. One analysis, for example, projects a 1967-75 requirement for an additional 62,000 freight cars per year above replacement demand. A total of 558,000 cars over the 9-year period is equivalent to a 31 -percent expansion of the 1967 freight car fleet. The demand for steel castings will be influenced favorably by the expected growth in the demand for products incorporating castings such as engines and turbines, construction equipment, metal- working machinery, and special industry machinery. 139 317-387 O— 68- -10 Table 1. — General Statistics Steel Foundries — SIC 3323 Total employment Production workers Value Capital Value added Wag es per Value added shipments expenditures per dollar production Year Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) of worker ($1,000) (1,000) ($1,000) wages ($) man- hour ($) 1958. 49, 133 254, 338 40, 134 74, 390 186, 778 383, 870 596, 276 22, 239 2.055 2.511 1959. 54, 029 300, 950 51, 544 89, 000 231, 383 489, 244 739, 173 25,258 2.114 2.600 1960. 50, 807 288, 073 45, 223 81,816 219, 753 439, 099 700, 488 19, 221 1.998 2.686 1961. 46, 810 269, 854 41, 652 74, 414 204, 411 410, 809 629, 645 22, 859 2.010 2.747 1962. 50,506 303, 200 45,204 83, 773 235, 983 484, 252 729,688 23, 569 2.052 2.817 1963. 56, 810 361, 378 47, 628 95, 106 280, 433 586. 914 871, 048 27, 832 2.093 2.949 1964. 62, 010 418, 348 52, 603 109, 031 329, 233 661,559 987, 069 31,389 2.009 3.020 1965. 65, 579 456, 090 55, 540 116, 502 362, 212 742, 539 1, 116, 730 39, 376 2.050 3.172 1966. 70, 797 509, 597 59, 753 127, 038 402, 984 855, 212 1, 278, 952 53,563 2.122 3.172 1967. I 68, 740 N.A. N.A. N.A. N.A. N.A. » 1, 113, 098 N.A. N.A. N.A. 1968. i 61, 860 N.A. N.A. N.A. N.A. N.A. ' 1, 038, 000 N.A. N.A. N.A. i Estimated N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2, 3, and 7 are not relevant to SIC 3323. Table 4. — Number of Employees by Size of Establishment Steel Foundries — SIC 3323 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Employees Ship- ments Establish- ments Employees Ship- ments Establish- ments Employees Ship- ments Establish- Employees ments Ship- ments 1958 1963.... 256 267 49, 133 56,810 $596 871 40 47 302 359 $3 11 73 81 3,658 4,148 $42 63 143 45, 173 139 52, 303 $556 797 Source: Bureau of the Census. Table 5. — Key Ratios Steel Foundries — SIC 3323 Item 1958 1963 Investment per production worker : ' $6, 577 $10, 280 Specialization ratio (%) 86 85 Concentration ratios (%) : 4flrms 25 23 Sfirms... 37 36 20firms 56 56 50flrms 77 79 i 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Steel Foundries — SIC 3323 Geographic area All employees Geographic area All employees Total 56, 810 East North Central- Wisconsin Ohio West North Central East South Central All other divisions Louisiana . Washington Oregon -Con. 4,118 New England 1,096 501 15, 751 Connecticut Middle Atlantic 8, 597 3,823 Pennsylvania East North Central Indiana Illinois Michigan 11,817 26, 241 4, 118 7,026 2,382 1, 007 8,892 771 612 1,184 Source: Bureau of the Census. 140 Surgical and Medical Instruments SIC 3841-2 Both the Surgical and Medical Instruments and the Surgical Appliances and Supplies indus- tries have shown rapid and almost continuous growth in employment and value of shipments during the last decade. Total employment in these industries grew from over 34,000 in 1958 to over 77,000 in 1968 — an increase of about 123 percent. During the same period, value of ship- ments increased by 150 percent from $592 million in 1958 to almost $1,479 million in 1968. These industries are currently concentrated in the Middle Atlantic States, where almost 35 percent of their employees are located; New York alone accounts for almost 15 percent of the total U.S. employees engaged in the production of surgical and medical instruments, appliances and and supplies. In California, another center of production, employment more than doubled between 1958 and 1963, and accounted for almost 10 percent of the industries' workers, second only to New York. Expenditures for new plant and equipment showed substantial increases during the 1958-66 period. In 1958, almost $12 million were spent by these industries in new plant and equipment. By 1966, this had risen to $38 million — a more than 200 percent increase. GROWTH FACTORS The growth of these industries has been and will continue to be dependent on the increasing demand and substantially increasing quality of medical care. The Surgical and Medical Instruments In- dustry (SIC 3841) has, and will probably con- tinue to grow at a more rapid rate than the Surgical Appliances and Supplies Industry (SIC 3842) due to more rapid progress in medical practice and technology. One of the major factors which has greatly influenced the growth in instruments is the rapidly increasing trend to disposable apparatus such as hypodermic syringes, hypodermic needles, blood donor kits, and operatory trays. It is esti- mated that, at present, the value of annual pro- duction of disposable hypodermic syringes is over $60 million. In 1955, these items were practically unknown. Similarly, shipments of disposable hypodermic needles in 1968, are estimated at over $40 million, substantially higher than 10 years ago, when the value of all hypodermic needles, dis- posable and reusable, produced was less than a third of this figure. U.S. population increased about 17 percent in the 1955-1965 decade, while at the same time, the number of doctors increased only slightly more, 22 percent. However, there was a very rapid rise and increase in contribution to health services of other health personnel, which contributed sub- stantially to the growth of both of these industries. For example, clinical laboratory personnel in- creased during this period by 70 percent, and pro- fessional nurses in practice by 44 percent. This in- crease in assistance to physicians had a major impact on health services (increasing "physician directed" services by 81 percent) as well as on the utilization of surgical and medical instru- ments, supplies and appliances. Also importantly contributing to the growth of these industries was the almost phenomenal in- crease in the number of persons with hospital expense insurance protection. Between 1950 and 1965, the number of persons with such insurance plans has more than doubled to well over 150 million, and included about 80 percent of the total 141 U.S. population. Since then, Government-spon- sored programs such as Medicare and Medicaid have further increased such participation. It is estimated that the number of beds in both hospitals and nursing homes, 10 years from now, will increase approximately 50 percent from the 2% million now in use. The largest proportional increase is expected in nursing homes, especially for the elderly. Other factors contributing to the rapid growth of this industry are accelerated depreciation allow- ances; the trend toward outfitting additional treatment room by many doctors; and a rise in the number of practicing physicians. FUTURE PROSPECTS Some of the other major factors influencing the continuing growth of both of these industries are population increase, rising levels of education and income, and improved surgical techniques and technology. Increased participation in private and Government medical insurance plans specifically designed to extend to persons of all income levels at least a minimum of medical, surgical and ortho- pedic care is an important factor. Increased em- phasis on early detection and prevention of diseases will also have its impact on these industries. Population increase and changes in age groups will continue to contribute to growth. According to recent estimates by the Bureau of the Census, the U.S. population in 1980 will be between 227 and 243 million. Almost half will be under 19 years of age or over 65. These two segments of our population will receive, in the next 10 years, proportionally more medical services than ever before. The demand for medical care, as well as equip- ment and supplies, is directly related to family income and to educational level. Both of these factors will continue to rise, and with them a rela- tive increase in requirements for medical and surgical care. It is projected that within 20 years, almost two-thirds of U.S. families will have in- comes above $10,000 in 1966 dollars. Another important factor in the future growth of both of these industries is the establishment of neighborhood health centers. In 1969, it is esti- mated that almost $100 million will be spent in equipping them. It is anticipated that this will grow to almost half a billion dollars by the year 1980. It appears certain that the industry can look forward to continued substantial growth in selected products, and normal growth in others. Due to rapidly increasing costs of personal service and professional care in hospitals, it is safe to anticipate greater use of prepackaged trays, kits, disposable products, and other labor-saving devices. Estimates have been made that hospital con- struction and replacement of obsolete equipment in hospitals alone will result in annual expenditures of billions of dollars. This, added to the estimated 8 percent annual increase in use of outpatient clinics, 10 percent annual increase in medical research, and an anticipated accelerated increase in hospital beds and nursing homes, will result in continuing rapid growth in the requirement for surgical and medical instruments as well as related apparatus and supplies. Table 1. — General Statistics Surgical and Medical Instruments — SIC 3841 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958 10,293 44, 878 8,061 16, 162 31,039 85,153 130, 477 2,812 2.743 1.920 1959 10,240 50, 402 7,685 15,447 31,550 84, 309 141,961 2,538 2.672 2.042 1960 11,630 58. 134 8,810 17,604 36, 824 96, 778 159, 588 4,397 2.628 2.092 1961 __. 11,741 61,637 8,893 17, 576 38, 791 106, 966 181, 514 4,780 2.757 2.207 1962 12,373 66, 998 9,217 18,214 40, 787 129, 182 216, 740 6,753 3.167 2.239 1963 15,145 83,332 11,538 22, 916 52, 520 168, 556 284, 014 10, 514 3.209 2.292 1964 14,681 82, 996 11,081 21,939 50,754 165, 687 296,611 6,231 3.265 2.313 1965 15,385 89,412 11,339 22, 467 52, 591 188,288 297, 834 10,864 3.580 2.341 1966 17,584 108, 276 13,374 26, 796 64,421 228, 232 360, 068 13, 381 3.543 2.404 1967 '20,700 N.A. N.A. N.A. N.A. N.A. 1 430, 000 N.A. N.A. N.A. 1968 _ ' 23, 810 N.A. N.A. N.A. N.A. N.A. 1 515, 000 N.A. N.A. N.A. ' Estimated. N.A.=Not available. Source: Bureau of the Census and BDSA. 142 Table 2. — Foreign Trade Surgical and Medical Instruments — SIC 3841 [Dollars in millions] Exports Imports Ex- Im- Product as a as a Year ports ports ship- percent of percent ments shipments of new supply ' 1958 __2$29.1 N.A. $131 2 22. 2 N.A. 1959 230.1 $2.0 150 2 20. 1 1.3 1960 228.8 2.4 160 2 18.0 1.5 1961 233.8 3.0 179 2 18.9 1.6 1962 238.7 3.8 201 2 19.3 1.9 1963 2443 3.9 291 2 15.2 1.3 1964. 251.4 4.6 316 2 16.3 1.4 1965 44.5 5.5 339 13.1 1.6 1966 49.5 6.3 360 13.8 1.7 1967 54.5 7.2 3 414 '13.2 3 1. 7 1968 359.5 38.1 3476 312.5 3 1. 7 1 New supply consists of shipments plus imports. 2 Export data includes respiratory appliances and electromedical diagnostic apparatus. 3 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Surgical and Medical Instruments — SIC 3841 United States buys from— United Kingdom West Germany Japan France Pakistan Source: Bureau of Census. United States sells to- Canada United Kingdom Mexico Japan Netherlands France West Germany Table 4. — Number of Employees by Size of Establishment Surgical and Medical Instruments — SIC 3841 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 231 294 10, 293 15, 145 $130 284 143 731 177 959 $10 18 63 2, 567 82 3, 734 $30 57 25 6, 995 35 10, 452 $90 210 1958. 1963. Source: Bureau of the Census. Table 5. — Key Ratios Surgical and Medical Instruments — SIC 3841 Item 1958 1963 Investment per production worker N.A. 5, 332 Specialization ratio (%) _ N.A. 88 Concentration ratios (%) 4firms N.A. 47 8flrms _ N.A. 58 20firms _. N.A. 72 50flrms N.A. 86 N.A. = Not available. Source: Bureau of Census. Table 6. — Geographic Distribution, 1963 Surgical and Medical Instruments — SIC 3841 Geographic area All em- ployees Geographic area All em- ployees Total ... 15,145 West North Central 1,742 South Atlantic New England 1,965 645 ... 5,284 656 Massachusetts East South Central 370 Middle Atlantic West South Central New York . _ ... 2,474 37 East North Central. ... 2,908 Mountain _ Pacific _ California 37 Indiana .. ... . Illinois Ohio 473 1,246 622 2,146 2,139 Source: Bureau of Census. 143 Table 1. — General Statistics Surgical Appliances and Supplies — SIC 3842 Year 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. Total employment Proc luction workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 24,179 114,867 16, 277 31,460 62, 122 257, 640 461, 846 9,110 4.147 1.975 26, 458 148, 478 17, 561 35,638 71,104 331, 665 547, 620 N.A. 4.665 1.995 27,311 158, 396 17,312 34, 736 72, 860 365, 023 571, 583 12,069 5.010 2.098 27, 868 164,968 17,118 34, 913 73, 677 357, 119 556, 545 N.A. 4.847 2.110 28, 882 175, 897 17, 593 35, 088 78, 422 365, 902 583, 653 20, 355 4.666 2.235 28, 267 161,800 18, 987 37,904 85, 790 370, 273 596, 666 17,831 4.316 2.263 28, 361 168,384 19,017 38, 266 88,841 379, 620 622, 576 18, 376 4.273 2.322 31,561 193, 322 21,336 42, 345 101,596 418, 278 680, 420 17, 274 4.117 2.399 34, 662 216, 273 23, 715 47, 438 116,897 467, 425 768, 930 24,661 3.999 2.464 i 38, 750 1 250, 000 N.A. N.A. N.A. N.A. '861,200 N.A. N.A. N.A. i 43, 400 i 283, 000 N.A. N.A. N.A. N.A. i 964, 550 N.A. N.A. N.A. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Surgical Appliances and Supplies — SIC 3842 [Dollars in millions] Exports Ex- Im- Product as a Year ports ports ship- percent of ments shipments 1958 $23.9 1959 24.9 1960 25.5 1961.. 26.6 1962 32.2 1863 32.5 1964.. - 33.1 1965 35.0 1966 53.8 1967.-- _ 60.3 1968 267.5 N.A. $362 N.A. 443 N.A. 464 N.A. 445 N.A. 478 N.A. 462 $3.8 491 3.7 537 3.8 769 3.9 2 861 2 4.0 2 965 6.6 5.6 5.5 6.0 6.7 7.0 6.7 6.5 7.0 2 7.0 2 7.0 Source: Bureau of the Census and BDSA. Imports as a percent of new supply l N.A. N.A. N.A. N.A. N.A. N.A. .8 .7 .5 2.5 2.4 1 New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Table 3. — Principal Trading Partners Surgical Appliances and Supplies — SIC 3842 United States buys from— United States sells to— Italy Japan Canada United Kingdom Mexico Source: Bureau of Census. Table 4. — Number of Employees by Size of Establishment Surgical Appliances and Supplies — SIC 3842 [Dollars in millions] Year Total 1-19 20-99 100 and ovei Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 590 704 24, 179 28, 267 $462 597 429 542 2,234 2,854 $29 42 114 108 5,198 4,794 $73 77 47 16, 747 54 20, 619 $360 478 1958. 1963. Source: Bureau of the Census. 144 Table 5.— Key Ratios Surgical Appliances and Supplies — SIC 3842 Item 1958 1963 Investment per production worker N.A. $8,597 Specialization ratio (%) N.A. 80 Concentration ratios (%): 4 firms N.A. 49 8firms N.A. 58 20firms N.A. 71 50firms N.A. 84 N.A.=Not available. Source: Bureau of Census. Table 6. — Geographic Distribution, 1963 Surgical Appliances and Supplies — SIC 3842 Geographic area All em- ployees Total 28,267 New England 3,986 Connecticut 1,967 Middle Atlantic 11,036 New York 2,930 East North Central 6,385 Illinois 3,910 Michigan 819 Wisconsin 483 Geographic area All em- ployees Ohio . . 1,148 West North Central ... 1, 353 Minnesota Missouri South 600 620 ... 3, 436 Louisiana . Mountain 212 253 Pacific ... 1,818 California ... 1,769 Source: Bureau of Census. Table 7. — Principal Products Surgical Appliances and Supplies — SIC 3842 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Surgical, orthopedic, and prosthetic appliances and supplies ___ 257 317 Personal industrial safety devices 56 70 Electrical hearing aids 40 47 Surgical appliances and supplies, N.S.K___ 10 "10 •Standard error of estimate of 15 percent or more. N.C. = Not computed. Source: Bureau of the Census. 340 312 320 318 337 370 415 1.62 65 74 98 97 107 127 139 2.47 49 50 48 35 37 36 37 .93 no no •11 11 11 *4 *7 N.C. 145 Synthetic Rubber SIC 2822 Shipments of the synthetic rubber industry have increased about 90 percent during the last 10 years to about $1 bilhon, while employment in this very capital-intensive industry has increased 45 percent. It provides jobs for only a little over 13,000 employees, of whom fewer than 9,000 are production workers. Most of the production occurs near sources of raw materials, e.g. petroleum refineries, and production units are often part of a petroleum complex. Synthetic rubber is of two types, general- purpose elastomers and specialty elastomers. General-purpose elastomers compete with natural rubber, but because of favorable prices, uniform quality, technical assistance, and consumer owner- ship, synthetic rubber has obtained virtually all the growth in the market for general-purpose elastomers. Speciality elastomers are rubberlike materials with unique properties, such as resist- ance to oil, gasoline, and chemicals, or with special physical characteristics, such as maintaining elasticity at very high or very low temperatures. Approximately two-thirds of all rubber is con- sumed in the manufacture of products used in transportation. These include tires and tire products for automobiles, trucks, buses, aircraft, agricultural equipment, and industrial equipment Rubber is also consumed in several other com- ponents of vehicles, including belts, hose, battery boxes, gaskets, weather stripping, engine mounts, wire covering, and seat cushions. GROWTH FACTORS Rubber consumption for tires depends not only on the number of vehicles in operation but also on the vehicle weight, speed of operation, and operat- ing conditions. The 50-percent increase in regis- tered motor vehicles during the last 10 years has resulted in an 80-percent increase in annual tire shipments. About 80 percent of the total rubber consumed for tires and tire products is synthetic rubber. The remaining one-third of rubber consumption finds its way into literally thousands of industrial and consumer products, such as: waterproof and leisure footwear; conveyor and transmission belt- ing; hose and tubing; sponge and foam rubber goods; mechanical rubber goods; shoe products; druggist and medical sundries; and other rubber goods, such as clothing, thread, cement, toys and stationers sundries. From the standpoint of rubber consumption, mechanical rubber goods including hose and belting are by far the most important. The major markets for mechanical rubber goods are capital equipment and consumer durables; therefore, the growth in demand for consumer durables coupled with the demand for new capital equipment and the maintenance of current equip- ment determine the growth rate for this segment of synthetic rubber usage. The military establishment is an important consumer of rubber products and items containing rubber. Of particular importance are aircraft tires, with over 60 percent of 1967 shipments for mili- tary use. During the same period, about 7 percent of truck and bus tire shipments were for military use. The number of truck and bus tires supplied to the military more than doubled between 1963 and 1967. Significant amounts of rubber also find their way into uniquely military equipment, such as tanks, and into products used by both the military and civilians, such as hose, belting, and wire in- sulation. A change in military expenditures, either upward or downward, will have a corresponding effect on the output of synthetic rubber. 146 FUTURE PROSPECTS During the past 10 years, world consumption of synthetic rubber has grown at a rapid rate and may double by 1980. However, consumption has been outpaced by the growing world production and capacity to manufacture synthetic rubber. Non-Communist countries now have about 140 production facilities representing an investment of over $2 billion. There are also over 30 synthetic rubber plants in Communist countries. U.S. exports of synthetic rubber reached a peak in 1960, when they represented 25 percent of total U.S. production. After 1960, U.S. exports declined and then leveled off; currently, exports represent about 14 percent of total U.S. production. Al- though the export market for synthetic rubber may not grow, it is a significant market and should remain important, particularly in view of the fact that U.S. rubber companies have a favorable market in the large number of their foreign manu- facturing subsidiaries. The future growth in the synthetic rubber in- dustry is tied largely to developments in the transportation equipment industries, particularly passenger cars, trucks and buses. Consequently, the approach to the problems of inter- and intra- city transportation will have a profound effect on the future growth of synthetic rubber. If emphasis is placed on the construction of freeways and park- ing lots, more synthetic rubber will be required than if emphasis is placed on rail, water, or air transportation. Table 1. — General Statistics Synthetic Rubber— SIC 2822 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Value added Wages ($1,000) ($1,000) Value shipments ($1,000) Capital ex- penditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) 1958 9,252 60,909 6,223 12,533 37,648 197,866 536,348 16,046 5.256 3.004 1959 9,898 67,759 6,897 14,052 43,890 281,518 703,281 17,275 6.414 3.123 1960 11,026 77,349 7,576 15,283 48,288 275,570 725,773 48,213 5.707 3.160 1961. ._. 10,929 79,830 7,452 14,542 49,107 291,800 696,407 59,535 5.942 3.377 1962 11,592 88,161 7,741 15,744 53,565 318,415 759,036 41,931 5.944 3.402 1963 11,840 93,507 7,844 15,915 56,615 329,520 763,891 32,328 5.820 3.557 1964 11,886 96,264 7,904 16,250 59,565 359,926 819,265 23,263 6.043 3.666 1965 11,880 99,974 7,819 15,900 59,318 391,887 847,674 35,136 6.607 3.731 1966 13,217 111,691 8,561 17,247 66,625 443,440 954,717 41,937 6.656 3.863 1967 '13,100 N.A. N.A. N.A. N.A. N.A. '920,000 N.A. N.A. N.A. 1968 '13,700 N.A. N.A. N.A. N.A. N.A. '1,025,000 N.A. N.A. N.A. ' Estimated. N.A.=Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Synthetic Rubber— SIC 2822 [Dollars in millions] Year Ex- ports Im- ports Product ship- ments Exports as a percent of shipments 1958 $117.3 $5.0 $604 19.4 1959 170.0 4.0 763 22.3 1960 200.7 5.3 789 25.4 1961 172.1 6.4 760 22.6 1962 169.5 6.7 823 20.6 1963 155.5 9.2 862 18.0 1964 _. 179.2 15.5 920 19.5 1965 161.2 19.9 950 17.0 1966 _ 175.1 23.6 1,038 16.8 1967-. - .- 170.4 20.8 21,025 2 16.7 1968 2175.0 225.0 21,136 215.4 ' New supply consists of shipments plus imports. 2 Estimated. Source: Bureau of the Census and BDSA. Imports as a percent of new supply ' 0.8 .5 .7 1.1 1.7 2.1 2.2 2 2.0 2 2.2 Table 3. — Principal Trading Partners Synthetic Rubber— SIC 2822 United States buys from- United States sells to- Canada Japan Source: Bureau of the Census. Canada United Kingdom Netherlands Belgium France West Germany Italy Japan 147 Table 4. — Number of Employees by Size of Establishment Synthetic Rubber— SIC 2822 (Dollars in millions] Total 1-19 20- 99 100 and over Year Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 18 24 9,252 11,840 $536 $764 1 (') ( l ) 1 (') 3 (') 16 9, 252 21 11,840 $536 764 ' Data for these are included in 100 and over employees. Source: Bureau of the Census. Table 5.- Key Ratios Synthetic Rubber— SIC 2822 Item 1958 Investment per production worker '$39,980 Specialization ratio (%) 95 Concentration ratios (%) : 4 firms .-- - 60 8 firms 86 20 firms 100 50 firms N.A. '1957 N.A.=Not applicable. Source: Bureau of the Census. 1963 $53, 314 92 57 80 100 N.A. Table 6. — Geographic Distribution, 1963 Synthetic Rubber— SIC 2822 Geographic area All em- ployees Total 11,840 Northeast and North Central 2,313 South and West 9,527 Texas 3,461 Source: Bureau of the Census. Table 7 not relevant to SIC 2822. 148 Telephone, Telegraph Apparatus SIC 3661 The telephone and telegraph equipment manu- facturing industry is a capital goods growth industry. In the past 10 years, value of shipments and value added by manufacturer have more than doubled. The annual growth rate in the value of shipments has exceeded 9.5 percent, and employment has risen from 80,000 to 127,000, for an increase of 59 percent. GROWTH FACTORS The basic communication service industry is one of increasing output, technological advance, and lower costs. These are healthy growth condi- tions for the equipment manufacturing industry. Growth in output of telephone and telegraph equipment is achieved through expansion and modernization of the telephone and telegraph service industry. Increases in these services and modernization and repair of equipment sustain a high level of demand for telephone and telegraph apparatus. Telephone service, as measured by calls per day, increased by 53.5 percent between 1958 and 1966. The number of households with telephones increased from 72.5 percent to 80.6 percent at the same time. By contrast, the number of pieces of mail handled by the U.S. Post Office Department increased by 25.7 percent from 1958 to 1966. While the cost of first-class mail rose from 3 to 6 cents per ounce, the cost of telephoning station- to-station from New York to San Francisco has decreased from $2.50 to $2 for a 3-minute call and a night rate of $1. The basic reason for growth in both service and equipment production is the increasing complexity and tempo of social and commercial life. Illustra- tive of these social and commercial trends are: Higher standards of living and income; the in- creasing share of economic life which is carried on by market transactions; the rising mobility of individuals and families; the population shift to the cities where people, even though physically closer, are less likely to meet face-to-face. Increased demand for communication service has a self-generating feature. Each time a new telephone is added to the system, a wider circle of contact is made possible not only for the new party but for the older subscribers as well. In addition to private-line telephone service, the telephone network is used for teletypewriter ex- change service, data and facsimile transmission, and transmission of television programs. Television transmission requires as much capacity as 1,000 separate telephone conversations. The interface connection of various computer services through the telephone network is becoming a major growth factor. As a result of rapid growth in telephone com- munication, there has been an absolute decline in telegraph communications. Total messages transmitted declined from 132 million in 1958 to 94 million in 1965. Telegraph is now used mainly when a record of the communication is needed, or to transmit funds and to send gifts and greetings. Technological developments greatly improve the quality of telephone communications service. Developments in transmission through facilities such as coaxial cable, microwave, and electronic central office switching make possible faster service at cheaper rates and, simultaneously, improve the quality of voice transmission. Equipment manufacturing companies are re- search minded and in most cases share their research and development laboratories. The industry has made fundamental contributions in new product 149 development and has adapted new technologies of other industries. Among the new products de- veloped by the industry are: Transistors, elec- tronic switching, and solar batteries. FUTURE PROSPECTS The combination of forces that bolstered growth in the telephone and telegraph equipment industry in the past will provide the stimuli for future growth. Technological developments, the increasing tempo of life, growth in economic activity, widen- ing of human relationships, growth of population, the removal of space and time limitations on personal contacts, and more frequent contact with other countries will all help to generate growth in telecommunications. The technological future portends even greater growth than the immediate past. New develop- ments are here or on the horizon that may make the past seem quite ordinary. Increases in telecommunication capacity, which have been brought about by the application of coaxial cable and microwave and millimeter wave equipment, may be augmented further by laser beams. Automatic mechanical switching which has been outdated by electronic switching, replaced the manual switchboard and increased telecommunication capacity. Satellites which are already being used international communications may be applied to domestic telephone and tele- graph communications networks. Table 1. — General Statistics Telephone, Telegraph Apparatus — SIC 3661 Year Total employment Number Payroll ($1,000) Production workers Number Man-hours (1,000) Wages ($1,000) Value added ($1,000) Value shipments ($1,000) Capital expenditures ($1,000) Value added per dollar of wages ($) Wages per production worker man-hour ($) 1958 80,061 430,739 54,340 105,522 268,869 715,511 1,207,955 102,810 2.661 2.548 1959 80,383 464,099 56,106 111,772 286,906 797,960 1,295,182 N.A. 2.781 2.567 1960 87,488 529,737 61,092 123,994 329,534 845,918 1,484,464 78,231 2.567 2.658 1961 92,237 562,195 62,441 124,155 339,057 1,004,141 1,680,375 65,327 2.962 2.731 1962 98,674 620,722 68,196 136,018 377,974 1,024,651 1,883,602 77,372 2.711 2.779 1963. 89,465 554,375 63,983 122,707 358,741 1,013,792 1,736,358 55,127 2.826 2.924 1964 93,991 630,040 67,573 132,273 409,814 1,128,598 1,954,252 53,500 2.754 3.098 1965 102,226 705,438 75,270 150,136 469,296 1,361,468 2,272,626 89,893 2.901 3.126 1966 112,655 780,364 82,092 158,389 507,277 1,431,775 2,466,996 109,688 2.822 3.203 1967 '127,100 N.A. 84,200 N.A. N.A. N.A. 12,720,000 N.A. N.A. N.A. 1968 '127,300 N.A. 84,400 N.A. N.A. N.A. '2,990,000 N.A. N.A. N.A. ' Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Telephone, Telegraph Apparatus — SIC 3661 [Dollars in millions] Product Exports as Imports as a Year Exports Imports shipments a percent of a percent of shipments new supply ' 1958 $43.9 $4.0 $1, 079 4.1 0.4 1959 33.5 7.8 1,245 2.7 .6 1960 _. 29.9 11.0 1,431 2.1 .8 1961 25.7 13.3 1,583 1.6 .8 1962 35.7 13.2 1,758 2.0 .7 1963 31.3 16.4 1,538 2.0 1.1 1964 38.8 17.3 1,696 2.3 1.0 1965 36.4 17.0 1,953 1.9 .9 1966 37.1 32.6 2,151 1.7 1.5 1967 45.7 30.6 2 2, 271 2 2.0 2 1.3 1968 2 54.0 2 30.0 2 2,400 2 2.3 2 1.2 ' New supply consists of shipments plus imports. 2 Estimated. Source: Bureau of tho Census and BDSA. Table 3. — Principal Trading Partners Telephone, Telegraph Apparatus — SIC 3661 United States buys from- United States sells to- Canada Sweden West Germany Canada United Kingdom Australia Source: Bureau of the Census. 150 Table 4. — Number of Employees by Size of Establishment Telephone, Telegraph Apparatus — SIC 3661 [Dollars in millions] Total 1-19 20-99 100 and over Year Estab- Employees Ship- Estab- Employees Ship- Estab- Employees Ship- Estab- Employees Ship- lishments ments lishments ments lishments ments lishments ments 1958 1963 95 90 85, 544 89,465 40 34 167 192 (') 13 15 664 551 42 41 84, 713 88, 722 (>) 1 Value of shipments omitted, includes extensive duplication. Source: Bureau of the Census. Table 5. — Key Ratios Telephone, Telegraph Apparatus— SIC #3661 Item 1958 1963 Investment per production worker i $7, 250 $13, 362 Specialization ratio (%) Concentration ratios (%) : 4firms 92 92 8firms 97 96 20firms 99+ 99 50firms _ 100 100 Table 6. — Geographic Distribution, 1963 Telephone, Telegraph Apparatus — SIC 3661 Geographic area All employees Total. 89, 465 New England. .. Middle Atlantic. 10, 467 16, 046 Geographic area North Central. South Pacific. Source: Bureau of the Census. All employees 50,681 9,389 2, 882 ' 1957. Source: Bureau of the Census. Table 7. — Principal Products Telephone, Telegraph Apparatus — SIC 3661 [In millions of dollars] Class of product 1958 >8 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 435 418 514 585 613 491 582 700 800 1.84 637 7 821 6 910 *7 992 *5 1,127 *17 1,045 2 1,113 1,249 *4 1,320 *4 2.07 N.C. Telephone switching and switchboard equipment Other telephone and telegraph (wire) apparatus, equip- ment, and components. _ Telephone, telegraph apparatus, N.S.K... N.C. = Not computed. •Standard error of estimate of 15 percent or more. N.S.K. = Not specified by Kind Source: Bureau of the Census. 151 Textile Machinery SIC 3552 Spectacular growth generally marked the textile machinery industry during the 1958-66 period. Modernization of textile mills had been spurred by the 7 percent investment tax credit instituted in 1962. Suspension of the tax credit in October 1966, the tight money situation, and increasing imports of both textiles and textile machinery caused a sharp drop in demand for new U.S. -built ma- chinery in 1967. Restoration of the investment tax credit has not sufficiently stimulated demand to overcome the downtrend which has continued into 1968. Over the 10-year period, however, textile machinery industry shipments doubled in value. GROWTH FACTORS Technological innovation has been characteristic of the industry since the first American cotton mill was built and equipped in 1793. Air condi- tioning of textile mills started as early as 1906. As a result of the technological revolution in textile machinery, today we have high speed, computerized processes throughout modern textile manufacturing plants. Among these machines are the high-speed roving frame, electronically con- trolled hopper feeder, bale-to-sliver processing with multiple cards in a "railroad line," and equipment specifically designed to handle the new man-made fibers. A high percentage of profits invested in research and development resulted in marked advances in all types of te-xtile machinery. These in turn produced more goods of better quality with less floor space and greatly improved working con- ditions. Demand for textile machinery depends upon the requirements of the textile mills, whose operations reflect conditions in the textile prod- ucts markets. Population increases, new technology, domestic and export market promotion efforts and the in- creasing affluence of larger segments of industri- alized countries are the principal factors affecting machinery sales. In the domestic market, the 10-year period saw many clothing and other product changes in fabrics, styles, and design. The growing teenage market, increased job opportunities for minority groups and the resultant ability to buy greatly increased the market for textile mill products. The mill found it necessary to modernize and add high-speed equipment. Imported machinery, until recent years, did not have the built-in stamina necessary for U.S. production requirements. U.S. machinery makers benefited from their advanced management know-how, technology and market- ing programs, which included sponsorship of the biennial Southern Machinery Exhibit and the International Exhibition held every 4 years. After World War II, U.S. machinery makers were active in reconstructing war-torn areas of Europe and Asia. Textile machinery manufac- turers were in the forefront of this effort. The United States maintained a high level of exports, surpassing the $100 million-a-year mark in 1960. In 1967, however, our foreign sales dipped and imports continued to rise as European technology and sales methods began to approach our own. For the first time, 1968 may see a deficit in U.S. international trade in textile machinery. Sections of the industry adversely affected include spinning, weaving and related machinery. However, machin- ery for winding, finishing, knitting, sewing, and carpet manufacturing were holding their own or improving their 1967 international trade records. 152 The Vietnam conflict increased demand for special types of machinery, e.g., sandbag produc- tion items; but in recent months this had been easing. All textile machinery is custom built, requiring at least 4 to 6 months leadtime. Market- ing and production planning is, therefore, on a long-term basis. With increased labor and operat- ing costs, U.S. -machinery manufacturers raised prices of many items, opening opportunities for foreign suppliers who were able to take advantage of their lower costs. To offset this competition, mergers of textile machinery companies in the United States have added to technological re- sources and inspired better long-range moderniza- tion planning. FUTURE PROSPECTS Rapidly growing populations throughout the world, including the expected relative growth in the 18 to 64 age group, to whom new styles and assortments of textile products are increasingly important; enlarged family incomes; intensifica- tion of industrial research and development; possibly friendlier relations with Eastern European nations and Communist China, all portend a bright future for the United States textile machin- ery industry. Table 1. — General Statistics Textile Machinery— SIC 3552 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 1958... 34,313 154, 548 25, 611 51, 206 101, 897 214, 199 376, 340 8,508 2.102 1.990 1959.... 35,766 173, 594 27, 627 58,194 120, 553 271,336 445, 493 6,813 2.251 2.072 I960.... 39,321 188, 265 28,639 61, 559 131, 601 325, 236 538, 480 N.A. 2. 471 2.138 1961.... 37,685 192, 819 26, 550 58,730 129, 806 317, 773 530, 350 N.A. 2. 448 2.210 1962.... 38,678 201, 660 27, 573 60, 730 137, 676 346, 974 574,860 N.A. 2.520 2.267 1963.... 36,004 196, 379 26, 870 56, 145 129,064 314, 190 542, 684 13, 870 2.434 2.299 1964.... 37,533 212, 105 28,231 59, 021 142, 101 359, 354 605, 211 N.A. 2.529 2.408 1965.... 41,241 247, 225 30,809 68,145 166, 264 408, 238 707, 916 20, 220 2.455 2.440 1966.... 42,685 268, 362 31,899 70, 898 181, 620 455, 516 820, 258 25, 195 2 508 2. 562 1967.... ■40,100 N.A. N.A. N.A. N.A. N.A. ' 640, 000 N.A. N.A. N.A. 1968.... ' 37, 300 N.A. N.A. N.A. N.A. N.A. ' 580, 000 N.A. N.A. N.A. ' Estimated. Source- Bureau of the Census and BDSA. N.A. =Not available. Table 2. — Foreign Trade Textile Machinery— SIC 3552 Table 3. — Principal Trading Partners Textile Machinery— SIC 3552 [Dollars in millions] United States Buys From— United States sells to— Exports Imports Ex- Im- Product as a as a West Germany Brazil Year ports ports ship- percent of percent Switzerland Canada ments shipments of new supply ' United Kingdom Spain Italy Mexico India Argentina Japan Philippines 1958 $65.2 $12.7 $322 20.2 3.8 West Germany 1959 74.5 20.6 400 18.6 4.9 Chile 1960 113.8 28.1 494 23.0 5.4 Colombia 1961 138.8 35.4 489 28.4 6.8 Australia 1962 132.0 40.4 532 24.8 7.1 Italy 1963 110.6 38.3 499 22.2 7.1 Spain 1964.. 140.3 56.4 559 25.1 9.2 France 1965 126.7 74.8 664 19.1 10.1 United Kingdom 1966.. 156.8 124.5 761.1 20.6 14.2 Venezuela 1967 128.4 128.1 2 723. 3 2 17.8 2 15.0 Japan 1968 2 121.0 2 164.0 2 579. 2 20.9 2 22.1 Belgium ' New supply consists of shipments plus imports. 2 Estimated. Source: Bureau of the Census and BDSA. Source: Bureau of the Census. 153 Table 4. — Number of Employees by Size of Establishment Textile Machinery — SIC 3552 [Dollars in millions] Total 1-19 20-99 100 and over Year Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- ments ployees Ship- ments 1958 1963 553 561 34, 313 36, 004 $376 543 341 345 2,301 2,256 $27 36 158 156 6,879 6,520 $77 97 54 25, 133 60 27, 228 $272 410 Source: Bureau of the Census. Table 5.— Key Ratios Textile Machinery — SIC 3552 Table 6.— Geographic Distribution, 1963 Textile Machinery— SIC 3552 Item 1958 1963 Geographic area All em- ployees Investment per production worker ' $6,928 $9,493 Specialization ratio (%) _ 87 93 Concentration ratios (%) : 4firms 34 35 8firms 49 52 20firms 64 67 50firms 79 80 Total 36,004 i 1957. Source: Bureau of the Census. New England 14,260 Vermont 211 Massachusetts 9,794 Rhode Island 2,250 Middle Atlantic 8, 707 New York .._ 1,134 New Jersey 1,387 Pennsylvania 6, 186 Geographic area All em- ployees East North Central ... 1,020 Ohio 102 West North Central .;. 42 South ... 11,936 North Carolina ... 5,278 South Carolina-. _ .. ... 4,811 Georgia .... 1.133 West 39 Source: Bureau of the Census. Table 7. — Principal Products Textile Machinery— SIC 3552 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 1966 Ratio 66/58 Textile machinery 144 201 270 265 283 Parts and attachments for textile machinery 169 184 206 205 218 Textile machinery, N.S.K 10 N.A. N.A. N.A. N.A. •Standard error of estimateof 15 percent or more. N.C. = Not computed N.A.=Not available. Souroe . Bureau o{ the Census ^ 253 318 379 451 3.14 232 232 271 313 1.86 14 *9 *14 *12 N.C. 154 1 Toilet Preparations SIC 2844 The value of annual shipments of toilet prep- arations nearly tripled between 1958 and 1968. The number of persons employed by the industry increased by about half in the same period. By far the largest part of the producers are con- centrated in the Middle Atlantic States, princi- pally New York and New Jersey. A number of producers are also located in California and the Midwest. Toilet preparations consist of two distinct seg- ments — toiletries and cosmetics. Toiletries include utilitarian items such as deodorants, shampoo, and toothpaste. Cosmetics are used to enhance or beautify the person and include such things as lipstick, nail enamel, eye makeup, and fragrances. GROWTH FACTORS To a large extent the increase in the demand for toilet preparations has been the result of the growth in population, the rise in per capita in- comes, greater general acceptance of cosmetics, increased urbanization, more leisure time, the emphasis in this country on appearing youthful, rapidly changing fashions, and the rise in the number of women in the labor force. Average per capita expenditures for cosmetics exceeded $17 (at retail) in 1967, compared with $14 as recently as 1963. Every year hundreds of new products are put on the market and very skillfully merchandised. Although many of these products are discontinued because of disappointing sales, a few of the new items account for a large part of the industry's yearly growth. Further, the industry has become especially skilled in the use of packaging for pro- motional as well as functional purposes. Often, the package itself accounts for a sizable share of the cost of an item. The use of fancy packages helps considerably in the sale of toilet articles as gift items. Expenditures for merchandising by the toilet preparations industry are higher than such ex- penditures by most other U.S. industries. In total, expenditures for merchandising toilet preparations average approximately 35 percent of the value of sales. In 1967, network television advertising by the industry amounted to about $280 million and magazine advertising approached $100 million. Manufacturers of cosmetics train the sales per- sonnel and demonstrators who work at the cos- metics counters of many department stores and drug stores. Sales of almost every major toilet preparation have increased substantially in the past few years. During the past 5 years, annual sales of hair color- ing products have more than tripled. Sales of fragrances have been increasing at about 10 per- cent each year. The higher priced men's colognes and aftershave lotions, merchandised like cosmet- ics, are one of the fastest growing segments of the industry. Sales of hah sprays continue to increase but not so rapidly as several years ago. Changing hair styles have been responsible for declining sales of home permanents but this has been at least partially offset by the significant growth in the market for hair straighteners. Other growth products include lipstick, eye makeup, nail enamel, and hand lotions and face creams. Also, the market for deodorants in aerosol cans has been rising substantially. Exports of cosmetics have been rising at a rate slightly less than domestic sales. Exports in 1967 were equivalent to about 1.3 percent of the value of the industry's shipments in that year. A sub- stantial share of the exports go to foreign sub- 155 317-387 O— 6 -Hi sidiaries of U.S. companies. Sales by these sub- sidiaries have been growing at a rapid rate and should continue to do so. With the exception of French perfumes, American-made cosmetics are preferred by many people throughout the world. FUTURE PROSPECTS The toilet preparations industry is likely to continue to grow at a rapid rate as personal income in the United States rises and as more people be- come relatively affluent. The increase in the num- ber of women between 15 and 34 years of age in the population, which will occur in the next 10 years, will further favor the rapid growth of the industry. Also, cosmetics and toiletries are being accepted more and more by American men. Nevertheless, the future of the industry depends very greatly on the innovations that will be forth- coming over the years. Further, advertising will no doubt continue to help mold public tastes so as to increase sales of the various toilet preparations. Table 1. — General Statistics Toilet Preparations — SIC 2844 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 29,464 133, 951 18, 541 36, 010 66,685 697, 529 1,059,161 14,318 10. 460 1.852 31,042 146, 868 19, 792 37, 972 72, 013 838, 202 1, 229, 462 44, 949 11. 640 1.896 30, 841 150, 456 19, 607 38, 300 73, 259 863, 500 1, 261, 392 11, 619 11. 787 1.913 31,571 163, 626 20, 245 40, 057 79, 582 929, 842 1, 363, 490 11,433 11.684 1.987 33, 613 173, 964 20, 877 40,511 80, 662 1,015,903 1, 500, 988 14, 380 12. 595 1.991 34, 338 183, 219 21, 554 42, 448 92, 477 1,232,883 1, 792, 662 20, 186 13. 332 2.179 35, 399 193, 302 21, 725 43, 123 97, 126 1, 378, 836 2, 003, 766 19,870 14. 196 2.252 37, 761 215, 705 23, 888 46, 543 105, 177 1,505,966 2, 201, 155 35, 412 14. 318 2.260 40,644 248, 160 25, 262 49,630 121, 565 1,674,868 2, 430, 620 33, 560 13. 778 2.449 ' 42, 700 N.A. N.A. N.A. N.A. N.A. ' 2,611,606 N.A. N.A. N.A. ' 44, 800 N.A. N.A. N.A. N.A. N.A. ' 2, 863, 582 N.A. N.A. N.A. 1958. 1959. 1960. 1961- 1962. 1963. 1964. 1965. 1966. 1967. 1968. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2.— Foreign Trade Toilet Preparations — SIC 2844 [Dollars in millions] Ex- Im- Product Year ports ports ship- ments Exports as a percent of shipments 1958 $20.8 $6.5 $1,128 1959 25.4 4.7 1,276 1960 25.7 6.6 1,360 1961 24.2 7.5 1,497 1962 26.4 7.5 1,616 1963 .--- 27.5 7.7 1,859 1964 31.5 U0.8 2,089 1965 33.0 U2.3 2,286 1966 -. 36.6 12.4 2,545 1967 36.4 312.7 3 2,765 1968 3 37.0 313.0 33,010 1.8 2.0 1.9 1.6 1.6 1.5 1.5 1.4 1.4 »1.3 '1.2 Imports as a percent of new supply i 0.6 .4 .5 .5 .5 .4 .5 .5 .5 3.5 3.4 1 New supply consists of shipments plus imports. 2 Excludes shaving preparations. 3 Estimated. Table 3. — Principal Trading Partners Toilet Preparations— SIC 2844 United States buys from United States sells to— France West Germany Spain Japan Canada Panama Hong Kong Japan Source: Bureau of the Census. Source: Bureau of the Census and BDSA. 156 Table 4. — Number of Employees by Size of Establishment Toilet Preparations — SIC 2844 [Dollars in millions] Year 1958. 1963. Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- Em- Ship- ments ployees ments 748 707 29, 464 34, 338 $1, 059 1,793 567 524 2,451 2,311 $48 58 116 100 5,174 4,046 $137 103 65 21, 839 $874 83 27, 981 1, 631 Source: Bureau of the Census. Table 5. — Key Ratios Toilet Preparations — SIC 2844 Item 1958 1 1957. Source: Bureau of the Census. 1963 Investment per production worker '$7,534 $9,737 Specialization ratio (%) _ 92 91 Concentration ratios (%): 4 firms.... 29 38 8firms _ 45 52 20firms 70 75 50firms 87 90 Table 6. — Geographic Distribution, 1963 Toilet Preparations — SIC 2844 Geographic area All em- ployees Geographic area All em- ployees Total ... 34,338 ... 3,347 West North Central... 2,370 New England Missouri. South Atlantic 498 ... 17,130 ... 1, 024 Middle Atlantic New York 8,188 470 New Jersey 8,626 Tennessee West South Central 446 Pennsylvania 316 ... 6,527 222 East North Central West Illinois 4,548 1,384 3,248 Ohio C alifornia 3,095 Source: Bureau of the Census. Table 7. — Principal Products Toilet Preparations — SIC 2844 [In millions of dollars] Class of product 1958 1959 1960 1961 1962 1963 1964 1965 Ratio 66/58 Shaving preparations 75 Perfumes, toilet water, and colognes 103 Hair preparations (inc. shampoos) 316 Dentifrices, inc. mouth washes, gargles and rinses _ 198 Other cosmetics and toilet preparations 418 Toilet preparations, N.S.K 16 N.A 'Standard error of estimate of 15 percent or more. N.C. = Not computed. N.A. = Not available. N.S.K. = Not specified by kind. Source: Bureau of the Census 80 86 87 104 Ill 123 145 162 2.1 140 149 183 190 209 242 264 341 3.2 325 365 398 441 593 660 706 761 2.4 206 209 217 219 228 248 259 299 1.5 510 533 605 660 698 800 889 961 2.3 .A. N.A. N.A. N.A. 20 16 •22 *21 N.C 157 Toys and Games SIC 3941 The toys and games industry has achieved an enviable growth record over the past decade. From a half-billion dollar level in 1958, the indus- try has almost tripled shipments to $1.45 billion in 1968. Employment has risen over 55 percent to 66,000. Significantly, this performance was re- corded during a period of sluggish growth in the child population. GROWTH FACTORS Children and toys go together, but the industry's growth rate has surpassed the rate of increase in the number of children. Population under 15 years of age rose from 53 million in 1958 to over 60 mil- lion in 1968, or about one percent each year. To outstrip this growth in the number of prime con- sumers, the industry relied on aggressive market- ing and product innovation to increase spending per child and to attract secondary customers above the age of 15. Developments in consumers' attitudes and rising incomes provided the support for rapidly rising toy sales. Greater acceptance of the educational values of toys and a keener appreciation of the importance of toys to child development aided sales of products for the young. But not all of the industry's products are destined for children. Adult games, hobby kits, and miniature racing cars have wide appeal for other age groups. Older customers turned to the industry for such products which fit into their increased leisure time activities. These developments in toy demand were trans- lated into sales by the continued growth in dis- posable personal income since 1958. Developments in toy marketing also boosted sales significantly. TV advertising became a major selling tool. Whether seen coast-to-coast or only on local stations, commercials showing children en- joying the latest toy appealed to youthful viewers who, in turn, strongly influenced their parents' toy purchases. The marketing of "add-on" type toys also gained prominence in this period. Such toys consist of a modestly priced basic unit to which the consumer can add a wide variety of extra accessories. Most toys have a limited life cycle of several years, but the demand for "add-on" toys appears more long-lived. Seasonality of sales has always been a major problem of the toy industry. At retail, over 50 percent of the dollar volume and roughly 45 per- cent of all toys are purchased in November and December. Although the industry has not solved this problem, a certain amount of the growth in shipments has come from a stretchout in retail purchasing patterns and additional sales of prod- ucts, such as games, puzzles, and hobby kits, which are not as closely tied to the traditional gift-giving Christmas season. Basic to the toy industry's growth has been the sustained ability to create imaginative products and to capitalize on new materials. Particularly noteworthy has been the utilization of the wide variety of plastics developed during this period in both toy products and packaging. Foreign trade has followed the domestic pattern of industry growth. Imports increased almost fourfold from the 1958 level, while exports gained at a rate below that of domestic shipments. A major factor in import growth was the importation by domestic producers of components and finished toys. FUTURE PROSPECTS The industry's performance over the past 10 years, coupled with projected rising affluence and 158 population growth, indicates rapid future growth. The fact that the industry was able to increase substantially its shipments during the mid-60 's when the birth rate slackened is important. Even though projections of the child population vary greatly, there is generally agreement on a pick-up in the birth rate during the 1970's. An increase in the number of young customers added to the anticipated rise in the number of older consumers provides a broadening base for industry expansion. The industry's past pattern of inventive product development should continue into the future. New products incorporating the latest materials and manufacturing technology may be expected. The adaptation of developments in the fields of educa- tion, science and electronics are — and will continue to be — important inputs to the creation of new toys. During the 1960's, battery-operated and space toys came to the fore. In the 1970's, scaled-down teaching machines and electronic toys may be significant sellers. Increasing industry concentration will help provide the necessary financial and marketing strength for future growth. The expenses of TV advertising and national and international toy marketing have created demands on companies' resources which have fostered mergers and stock issues. Recent entries, by acquisition, of large diversified companies into the industry indicate a realization of both the industry's long-range resource needs and its growth potential. Table 1. — General Statistics Games and Toys — SIC 3941 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958... 42,972 149, 725 35, 999 68,007 106, 577 288, 863 544, 056 16, 513 2.710 1.567 1959... 45,358 159, 171 37, 049 69, 753 110,848 308,411 595, 306 N.A. 2. 782 1.589 1960... 45,697 164, 022 37, 569 72, 385 113, 204 342, 536 635, 322 14, 675 3.026 1.564 1961-.. 50,395 183, 266 41, 370 78, 156 126, 003 411,339 736, 507 14, 863 3.265 1.612 1962... 47,956 185, 629 39, 279 77,689 129, 260 406, 076 715,015 18, 082 3.142 1.664 1963... 51,835 206, 744 44, 031 84, 425 145, 243 444, 101 796, 631 27,728 3.058 1.720 1964... 55,078 235, 100 46, 250 89, 557 160, 008 509, 459 937, 368 28, 480 3.184 1.787 1965... 62,141 271, 290 52,568 100, 693 180, 912 575, 641 1, 087, 370 32, 590 3.182 1.797 1966... 62,285 278, 903 52, 389 101, 536 185, 250 621,588 1, 157, 167 28,381 3.355 1.824 1967... '64,200 N.A. N.A. N.A. N.A. N.A. ' 1, 300, 000 N.A. N.A. N.A. 1968... • 66, 000 N.A. N.A. N.A. N.A. N.A. i 1, 450, 000 N.A. N.A. N.A. i Estimated. Source: Bureau of the Census and BDSA N.A. -Not available. Tables 2, 3, and 7 are not relevant to SIC 3941. Table 4. — Number of Employees by Size of Establishment Games and Toys — SIC 3941 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish ments Em- ployees Ship- ments 1958 1963 854 797 42,972 51, 835 $544 797 487 446 2,837 2,392 $38 50 263 230 12, 020 10, 171 $155 159 104 121 28, 115 39, 272 $351 587 Source: Bureau of the Census. 159 Table 5. — Key Ratios Games and Toys — SIC 3941 Item 1958 1963 Investment per production worker '$2,578 $4,921 Specialization ratio (%) 95 92 Concentration ratios (%): 4firms 13 15 8 firms. 22 25 20firms ---. 35 43 50firms 53 63 i 1957. Source: Bureau of the Census. Table 8. — Geographic Distribution, 1963 Games and Toys— SIC 3941 Geographic Area All em- ployees Total 51,835 New England 6,429 New Hampshire 784 Massachusetts 2,487 Connecticut 1,421 Middle Atlantic 25, 969 New York 12,427 NewJersey 8,030 Pennsylvania 5,512 East North Central 10,180 Illinois _ 4,090 Geographic area All em- ployees West North Central 1,651 Minnesota Missouri 1,031 515 . - 1,403 East South Central 939 Tennessee West South Central. 613 ... 1,926 West ... 3, 338 248 California . _.. 3, 037 Source: Bureau of the Census. 160 Trailer Coaches SIC 3791 Trailer coaches, including mobile homes, travel trailers and pickup campers, have enjoyed heady sales and widespread popularity. During the past decade, dollar shipments and total employment have more than doubled. Vacation vehicles, which averaged about one-third of total shipments, grew at a steadier and higher rate than mobile homes in that period. GROWTH FACTORS The industry's focus has changed entirely since its inception in the early 1930's. The first trailer coaches were built as vacation vehicles for those who desired more comfort than was afforded by tent trailers or conventional camping equipment. In the middle 1930's, during the Great Depres- sion, families used trailer coaches to move to sec- tions of the country where jobs were more plenti- ful. Migratory workers used, and still use, trailer coaches for travel and housing on job sites. Al- though most of the trailer coaches on the road dur- ing the 1930's were built in backyards, commercial production grew at such a rate as to make the industry one of the fastest growing in the country. The industry took on a different complexion with the advent of World War II. The fast-paced buildup in military forces and industrial pro- duction caused vast shifts in population location. Areas surrounding military camps could not provide adequate housing facilities for military men or their families. Many of the plants built to produce war materiel were constructed in areas outside of cities, where population densities were low. Temporary housing was needed for construc- tion workers and, later, permanent housing was needed for plant workers and their families. The trailer coach industry stepped in and filled the shelter needs of a large number of these families. Many construction and plant workers and service- men purchased trailer coaches for use as semi- permanent housing when they could not find other more desirable dwellings. The National Housing Agency also purchased a large number of trailer coaches to house production workers near defense plants. Production of trailer coaches helped to alleviate the critical housing shortage that resulted from the return of servicemen and new family formation after World War II. Between 1946 and 1951, the number of manufacturers doubled, while the num- ber of dealers quadrupled. Focus changed once again in the middle 1950's when the industry began to develop two distinct product lines for separate expanding markets: travel trailers for vacation use; and mobile homes for permanent dwelling. Mobile homes became larger and contained more luxurious appointments. According to the Recreational Vehicle Institute, travel trailer sales increased from 32,000 units in 1958 to 130,000 units in 1967, reflecting increases in both disposable personal income and leisure time during the period. Another factor that has influenced travel trailer growth has been the per- sistence of national advertising campaigns to "See America First" sponsored by the Federal Govern- ment, oil companies, airlines, and automobile manufacturers. This advertising has whetted American appetites to see their country, and the travel trailer has provided a relatively inexpen- sive means to do it. Mobile homes have become an increasingly important part of the permanent housing market in the past decade. Sales grew from 102,000 units in 1958 to 240,000 units in 1967. The Mobile Homes Manufacturers' Association estimates that 161 couples under 34 years of age purchase 43 percent of all mobile homes and get two-bedroom homes plus furnishings for an average of $5,700. The elderly and retired, who constitute about 25 per- cent of the market, are attracted by the low price, ease of maintenance, and the convenience of mobile homes. One of the major problems the industry has faced during its development has been the fact that a large proportion of the facilities for parking mobile homes has not been adequate to meet the physical needs of mobile-home dwellers, nor have parks been attractive in location or appearance. Mobile home industry associations have worked to change local zoning ordinances to permit parks to be located on acreage away from major highways, railroad tracks and other areas that are undesirable from a residential point of view. Private builders have become interested in developing mobile-home communities and includ- ing them as part of the overall development plan for the area. While some mobile-home parks cater to the interests of special groups, senior citizens for example, most are structured for family living. FUTURE PROSPECTS Several factors will promote continuing rapid growth in vacation vehicle sales. Unprecedented increases in personal income in the coming decade, coupled with a larger number of national holidays and 3-day weekends, will have a favorable impact on recreation spending in general. Federal and State spending is supporting an interstate high- way program that will facilitate and encourage travel within this country. The Land and Water Conservation Fund Act of 1964 will continue to promote recreational vehicle sales, as it provides funds for establishing new parks and improving old ones. The need for low-cost housing will be the most important factor in mobile-home growth in the near future. Low-cost housing is critically needed to replace slum dwellings as well as to accommo- date young marrieds and retired couples, two of the fastest growing segments of the population. The number of households headed by a young adult, aged 25 years or under, will increase by about 35 percent by 1975. A 15-percent increase in the number of households headed by a person aged 65 years or more is estimated for that year. The mobile home industry already supplies about 75 percent of single-family homes selling for less than $12,500 and nearly 25 percent of all nonfarm single family dwelling units. Manufacturers will continue to produce mobile homes in increasing numbers, while they shift a large proportion of their resources into making factory-built homes to be transported to the site. The experimental town- houses and apartments that are being constructed now, using modified mobile homes as modular units and sections, are the vanguard of low-cost housing in the future. Table 1. — General Statistics Trailer Coaches — SIC 3791 Year Total em ployment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 18, 717 77,129 16, 004 30, 613 58, 969 127, 683 461,053 7,726 2.165 1.926 21, 435 95,383 18, 101 34,940 69, 384 159, 453 538, 654 7,976 2.298 1.986 22, 318 93, 966 18, 616 34, 257 68,173 159, 325 523, 765 N.A. 2.337 1.990 20, 703 88,705 17, 457 29,814 64, 807 135, 111 464, 133 N.A. 2.085 2.174 21, 047 97, 698 17, 949 31, 323 73,889 153, 181 507, 683 N.A. 2.073 2.359 25, 669 125, 002 21,901 43, 390 94, 078 232, 460 713, 119 9,584 2.471 2.168 32,686 161, 401 27,634 55, 747 122, 447 286, 591 929,753 9,634 2.341 2. 196 35, 754 179, 499 30, 035 58,125 132, 787 332, 065 1, 032, 729 12, 573 2.501 2.285 38,573 199, 266 32,462 61, 746 147, 123 354, 890 1, 089, 306 41, 878 2.412 2.383 i 41, 700 N.A. N.A. N.A. N.A. N.A. 1 1, 190, 000 N.A. N.A. N.A. ' 45, 600 N.A. N.A. N.A. N.A. N.A. 1 1, 406, 000 N.A. N.A. N.A. 1958 1959 _. 1960 1961 1962 1963 1964 1965... 1966 1967 1968 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Tables 2, 3 and 7 are not relevant. 162 Table 4. — Number of Employees by Size of Establishment Trailer Coaches — SIC 3791 [Dollars In millions] Year Total 1-19 20-99 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Source: Bureau of the Census. Ship- ments 1958 1963 386 413 18, 717 25, 669 $461 713 177 161 1,003 896 $20 19 149 164 7,247 8,329 $144 216 60 88 10, 467 16, 444 $297 478 Table 5. — Key Ratios Trailer Coaches— SIC 3791 Item 1963 Investment per production worker. Specialization ratio (%) Concentration ratios (%): 4 firms 8 firms 20 firms 50 firms $2, 996 98 22 37 53 71 N.A. = Not available. Source: Bureau of the Census Table 6. — Geographic Distribution, 1963 Trailer Coaches — SIC 3791 Geographic area All em- ployees Total.._ 25,669 New England 30 Middle Atlantic 1,557 East North Central 9,356 Indiana 4,245 Michigan. _ 3,593 Ohio 661 West North Central 2,327 Iowa... 261 Missouri 165 Nebraska 555 Kansas 1,108 South Atlantic 3,298 North Carolina 371 Georgia 1,492 Source: Bureau of the Census. Geographic area All em- ployees South Atlantic — Continued Florida.. 924 East South Central 796 West South Central 1,737 Arkansas 174 Oklahoma 454 Texas... 1,109 Mountain 976 Idaho 405 Colorado 179 Arizona 200 Pacific 5,592 Washington 155 Oregon 322 California 5, 115 163 Truck and Bus Bodies SIC 3713 The manufacture of truck and bus bodies showed remarkable gains during the 10-year period, 1958-68. Factory shipments more than doubled while employment increased 60 percent. Most of the manufacturing operations are con- centrated in the Middle Atlantic and North Central States. GROWTH FACTORS Freight hauling increased in line with popula- tion growth and development of the Nation's highway network. Although the railroads, barge- lines, and airlines continue to be utilized for long hauls, the flexibility provided by trucks for oper- ations at both ends makes trucking more and more important. Much of the freight is carried in truck bodies from the terminals of trailer truck lines. A factor influencing demand for bus bodies was the increasing practice of bussing school students from their homes to the schools. The increase in travel by the large bus lines from city to city also created the need for the manufacture of more bus bodies. Truck bodies, as distinct from trailers, are secured to the chassis frame and include the follow- ing types: pickup truck bodies; utility bodies utilized by plumbers, electricians, and others for hauling tools and equipment; van truck bodies used for general commodity distribution from truck line warehouses to destinations; tank bodies for hauling fuel; and the largest volume item, flat-bed or stake bodies, are utilized extensively by lumbermen and farmers. Many independent manufacturers are involved in truck body manufacture. However, a large percentage of such bodies are the products of 164 captive companies, particularly those controlled by the large automotive product manufacturers. Van truck bodies are made by the same manu- facturers who make trailers. They are shipped in crates for assembly by retailers. Such crates may be as small as 12' x 8' x 3' and can contain a 12' long body for assembly by the retailer. Manu- facturers of hydraulic systems build dump truck bodies which are adjusted to the requirements of the pump and hydraulic hoist business. New technology in the manufacture of bodies for trucks and buses includes the stressed skin construction, adopted from the aviation industry, which permits the use of aluminum for van truck bodies. This lightens the vehicle, permitting a greater payload. The use of aluminum led to a further innovation. Because of the large volume of aluminum they use, the trailer and truck body manufacturers were able to persuade the aluminum industry to produce rolls of 8' wide sheet. This permitted the use of one-piece seamless roofs, making them completely watertight. Truck bodies are generally sold directly by the manufacturer to the retailer. In the case of bus bodies, the manufacturer is often a captive of the busline. The largest buslines in the United States manufacture their bus bodies abroad; one in Belgium and one in Germany. Dump truck body manufacturing is so com- petitive that little or no profit is made on the product. The profit necessarily comes from the installation charge; i.e., the mounting of the body on the chassis, and installing hydraulic systems for dumping. The Vietnam conflict has not been a significant factor in the demand for truck and bus bodies. However, proposed legislation (S. 2658), which would permit bus and truck bodies to be 102" wide instead of 96" would, if passed, outdate many of the truck and bus bodies now on the highways, creating demand for the manufacture of wider bodies. The international trade picture in truck bodies and chassis has been profoundly affected by the United States-Canadian Automotive Product Trade Agreement. Imports from Canada of these products have greatly increased' since 1965. Exports from the United States have not kept pace with this large increase. Large imports for assembly by sightseeing-bus makers are the largest single factor in growing bus body imports. FUTURE PROSPECTS The tendency toward containerization of freight may have a significant effect upon the manufac- ture of truck bodies. It is not yet clear whether bodies fastened to truck chassis will shift exten- sively to the container type. The overall increase in transportation capacity for truck bodies, regardless of type, should be about 5-10 percent per annum during the next few years. Air freight and waterborne freight, while increasing in some areas, should not greatly affect the manufacture of truck bodies. It is expected that, under the United States- Canadian Automotive Product/Trade Agreement, the U.S. will continue to add to its imports of truck bodies and chassis from Canada. Table 1. — General Statistics Truck and Bus Bodies — SIC 3713 Total employment Production workers Value Value Capital ex- Value Wages per Year added shipments penditures added per production Number Payroll ($1,000) Number Man-hours (1,000) Wages ($1,000) ($1,000) ($1,000) ($1,000) dollar of wages ($) worker man-hour ($) 1958... 20,009 91,374 15, 938 30, 741 65, 405 145, 608 307, 769 3, 627 2.226 2. 128 1959... 22,815 108, 904 18,007 35,681 78, 045 157, 582 362, 803 N.A. 2.019 2.187 1960... 24,247 120, 144 21,171 37,686 87,518 172,707 394,813 N.A. 1.973 2.322 1961... 23,237 115,554 18, 278 36, 606 80, 890 160, 341 374, 121 33,843 1.982 2. 210 1962... 25,066 131,713 19, 707 41, 182 94. 448 200, 302 503, 970 N.A. 2.121 2. 293 1963... 24,466 133, 300 19, 729 40, 897 98, 359 229, 472 476, 733 6,554 2,333 2.405 1964... 25,994 143, 799 20, 842 42, 324 103, 720 243, 120 507,617 10, 560 2,344 2,451 1965... 28,032 164,807 22, 535 47, 283 120, 728 273, 240 569, 788 10, 140 2,263 2.553 1966... 31,624 191, 060 25, 762 53, 682 139. 773 322, 292 718, 636 38, 460 2.306 2.604 1967... i 32, 200 N.A. N.A. N.A. N.A. N.A. i 780, 000 N.A. N.A. N.A. 1968... i 32, 800 N.A. N.A. N.A. N.A. N.A. ' 860, 000 N.A. N.A. N.A. 1 Estimated. Source: Bureau of the Census and BDSA. N.A. = Not available. Table 2. — Foreign Trade Truck and Bus Bodies— SIC 3713 [Dollars in millions] Table 3. — Principal Trading Partners Truck and Bus Bodies — SIC 3713 Exports Imports Ex- Im- Product as a as a Year ports ports ship- percent of percent ments shipments of new supply i 1958 $3.4 2 $2.0 $307. 8 1.1 0.6 1959 4.3 2 1.0 362.8 1.2 .3 1960 3.0 2 1.0 394.8 .8 .2 1961 4.4 2 1.5 374.1 1.2 .4 1962 7.0 2 2.3 504.0 1.4 .4 1963 4.9 3 .2 476.7 1.0 (*) 1964 .- 5.6 3 3.4 507.6 1.1 .7 1965 10.0 3 5.0 570.0 1.8 .9 1966 13.3 3 56.8 718.6 1.8 7.3 1967.. _ 12.6 3 64.0 N.A. N.A. N.A. 1968. '7.9 » 123. 3 N.A. N.A. N.A. United States buys from— United States sells to- West Germany Canada United Kingdom Canada Venezuela Iran Source: Bureau of the Census. 1 New supply consists of shipments plus imports. 2 Includes bus chassis as well as bodies. 3 Includes truck and bus chassis as well as bodies. 4 Less than 0.1 percent. 6 Estimated. Source: Bureau of the Census and BDSA. 165 Table 4. — Number of Employees by Size of Establishment Truck and Bus Bodies — SIC 3713 [Dollars in millions] Total Year 1-19 20-99 100 and over Establish- Em- Ship- ments ployees ments Establish- Em- Ship- Establish- Em- Ship- Establish- Em- Ship- ments ployees ments ments ployees ments ments ployees ments 1958. 1963. 662 610 20, 009 24, 466 477 375 2,663 $39 147 6,022 $94 40 11,324 $174 402 3,093 54 163 6,816 133 45 14, 557 290 Source: Bureau of the Census. Table 5.— Key Ratios Truck and Bus Bodies — SIC 3713 Item 1958 1963 Investment per production worker ' $3,994 Specialization ratio (%) 87 Concentration ratios (%) : 4 firms 21 8 firms 31 20 firms 49 50 firms 68 $5, 06 6 22 32 50 66 i 1957. Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Truck and Bus Bodies — SIC 3713 Geographic area All em- ployees Total 24,466 New England 424 Middle Atlantic 3, 362 New York.. 1,075 New Jersey 566 Pennsylvania 1,721 East North Central 10, 864 DJinois 980 Michigan 2,027 West North Central 1, 993 Minnesota 331 Iowa 281 Missouri 1, 128 Nebraska. 152 Geographic area All em- ployees South Atlantic 2,828 Maryland 162 Virginia 423 Georgia 901 East South Central 1,192 Alabama __ 334 West South Central.... 1,006 Texas 475 Mountain 170 Pacific 2, 627 Washington 182 Oregon 280 California 2,165 Source: Bureau of the Census. Table 7 is not relevant to SIC 3713. 166 Truck Trailers SIC 3715 Following World War II the manufacture of truck trailers became a booming business. Factory shipments and employment doubled during the decade beginning with 1958. Manufacturing opera- tions are widespread, but the Middle Atlantic and North Central States account for more than half. GROWTH FACTORS The U.S. population explosion which was accompanied by the highway network expansion and the resultant mobility of people contributed greatly to the growth of this industry. The hauling of freight of every description increased and keen competition for such business developed between the traditional handlers, the railroads, and the fast developing trucking services. The railroads maintained their supremacy in the field of long distance bulk commodity shipments, but the flexibility provided by truck trailer operations proved advantageous when rapid short hauls were required for packaged goods. Design and material technology, some of which was developed by airplane manufacturers, per- mitted the building of stronger and lighter trailers. The imposition of gross weight ceilings by State laws meant that equipment weight had to be reduced if payloads were to increase. Thus modern vans are now made of aluminum instead of steel, and 40-foot trailers are replacing 26-foot steel, single-axle types. A recent development in the industry is the "land bridge concept." Practically all container- ized marine cargo has to move, at least a short dis- tance, by truck. Railroad container-on-flatcar movement is uneconomical for distances of less than 200 miles. Thus the modern cargo container, for which 122 container ships were under construc- tion in the last 6 months of 1967, can become a re- placement for the van or tank trailer handled by highway tractor at both ends of the ocean voyage. The interchangeability of equipment on a world- wide basis will call for adjustments and modifica- tions which will be far reaching, including the possibility of diminishing U.S. exports of truck trailers as now designed. Other influences are at work to cause concern about our foreign truck trailer markets, which amounted to over $17 million in 1966, the best year. In addition to the impact of high labor and material costs on selling prices, there is the lon- gevity of trailers. Many on U.S. highways are over 10 years old and some have been in use over 30 years. As long as length and weight factors per- mit a profitmaking operation, truckers are reluc- tant to replace equipment. Military and other Government requirements have increased in recent years. These, plus exports, were estimated at over 12,000 units in 1967, com- pared with 6,177 in 1966. This was about 10 per- cent of the total output of trailers, estimated at more than 111,000 for 1967. Because of the relatively small capital invest- ment and production know-how needed, trailer manufacturing has its share of starters who stay in business for only short periods. Two large firms, operating through more than 100 branches, annually obtain a large share of the market, ranging from 55 to 70 percent. Thus franchised dealerships are no longer relied upon to the extent that they were prior to World War II. In recent years large orders for containers sent directly to factories by railroads have diminished the importance to the manufacturer of the small trucker, because of the high cost of sales per unit to the latter. Another recent development which 167 will have a beneficial effect in the industry is the possible passage of Federal legislation (S. 2658) permitting trailers in interstate commerce to be 6 inches wider. It is estimated that, if passed, 70 percent of the vans in current use will become obsolete. FUTURE PROSPECTS The legislation referred to above plus the economics of containerization will effect large increases in total production. Adding 6 inches to trailer width will increase payloads substantially, and every van trailer now in use will have to be considered for replacement. There were 1.5 million units in the national fleet in 1966. Normally about 100,000 are added annually. Replacement of outmoded models with conventional types should almost double for a few years before con- tainer application to freight movement becomes general. At that time conventional trailer pro- duction should begin to taper off and may be severely curtailed. Table 1. — General Statistics Truck Trailers— SIC 3715 Year Total employment Production workers Value Value Capital ex- Value Wages per added shipments penditures added per production Number Payroll Number Man-hours Wages ($1,000) ($1,000) ($1,000) dollar of worker ($1,000) (1,000) ($1,000) wages ($) man-hour ($) 15, 669 78, 142 12, 090 24,564 55, 390 131, 140 334, 724 5,072 2.368 2.255 20, 622 107, 127 16, 701 35,413 77, 990 203, 195 505,418 N.A. 2.605 2.202 18,854 101, 564 14, 729 29, 583 72, 725 170, 094 438, 548 7,899 2.339 2,458 17, 205 94,260 13,255 26, 274 65, 792 158,058 405, 403 10, 182 2.402 2.504 20, 205 117, 329 15, 833 31, 789 83,029 218, 489 543, 804 6,150 2.631 2.612 19, 429 112, 876 15, 455 30, 896 81,703 205, 475 515, 661 5,265 2.515 2.644 21,788 129,363 17, 341 34, 377 94,686 231,384 588,412 13, 789 2.444 2.754 24, 056 150, 065 19,475 39,649 111,343 268, 445 690, 397 7,566 2.411 2.808 28,082 175, 222 22, 859 44, 915 129,257 314,409 795, 592 25, 472 2. 432 2.878 1 29, 500 N.A. N.A. N.A. N.A. N.A. ' 900, 000 N.A. N.A. N.A. ' 31, 000 N.A. N.A. N.A. N.A. N.A. ' 1, 000, 000 N.A. N.A. N.A. 1958. 1959. 1960. 1961. 1962. 1963. 1964. 1965. 1966. 1967. 1968. 1 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 2. — Foreign Trade Truck Trailers— SIC 3715 [Dollars in millions] Year Ex- ports Im- Product ports ship- ments Exports Imports as a as a percent of percent shipments of new supply ' 1958 $20.6 N.A. $334.7 6.2 N.A. 1959 22.9 N.A. 505.4 4.5 N.A. 1960 18.2 N.A. 438.5 4.2 N.A. 1961 14.0 N.A. 405.4 3.5 N.A. 1962..- 14.4 N.A. 543.8 2.6 N.A. 1963 14.8 N.A. 515.7 2.9 N.A. 1964 19.9 $3.5 588.4 3.4 0.6 1965 15.8 *2.8 690.4 2.3 .4 1966.. 17.2 1.3 795.6 2.2 .2 1967 14.4 1.0 2590.1 2 2.4 2.2 1968 214.7 21.5 2 563 .4 22.6 2.3 Table 3. — Principal Trading Partners Truck Trailers— SIC 3715 United States buys from- TJnited States sells to— Canada United Kingdom West Germany Japan Mexico Canada Bahamas Argentina Mexico Saudi Arabia Venezuela Guatemala Source: Bureau of the Census. 1 New supply consists of shipments plus imports. 2 Estimated. N.A. = Not available. Source: Bureau of the Census and BDSA. 168 Table 4. — Number of Employees by Size of Establishment Truck Trailers— SIC 3715 [Dollars in millions] Total 1-19 20-99 Year 100 and over Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments Establish- ments Em- ployees Ship- ments 1958 1963 170 197 15, 669 19,429 $335 516 77 92 590 602 $12 13 54 60 2,714 3,156 $53 67 39 45 12, 365 15, 671 $269 435 Source: Bureau of the Census. Table 5. — Key Ratios Truck Trailers— SIC 3715 Item 1958 1963 Investment per production worker ' $5, 015 Specialization ratio (%) 84 Concentration ratios (%): 4 firms 52 8 firms 63 20 firms. 77 50 firms 93 $6, 200 92 si 93 ' 1957. Table 6. — Geographic Distribution, 1963 Truck Trailers— SIC 3715 Geographic area All em- ployees Geographic area All em- ployees Total ... 19,429 Smith Atlantic 975 East South Central New England 101 1,595 Middle Atlantic ... 3,891 West South Central 2,041 New York 184 Mountain Pacific Oregon California . New Jersey 152 478 Pennsylvania East North Central 3,555 . . . 5, 961 2,191 227 Michigan 168 . . . 2, 196 ... 1,641 West North Central Iowa 380 Table 7 not relevant to SIC 3715. 169 Tufted Carpets and Rugs SIC 2272 The tufted carpets and rugs industry is one of the most rapidly growing industries. Value of shipments increased 280 percent to $1.2 billion between 1958 and 1966. Total employment increased 145 percent to 28,212, and capital expenditures increased 236 percent to $26.9 million during this period. About 60 percent of all domestically produced tufted carpets and rugs are manufactured in Georgia. GROWTH FACTORS Technological developments are the primary factor underlying both the establishment and the rapid growth of the tufted carpets and rugs industry. Before the development of carpet tufting machines, most domestically produced carpets and rugs were woven on looms. Carpet weaving is a slow and expensive process, and the cost of woven floor coverings restricted their market. Carpet tufting machines operate at high speeds and output per machine hour is greater than is possible with carpet looms. Because manufacturing costs per square yard are lower for tufted than for woven floor coverings, the producers of tufted carpets and rugs can price their products substantially below those of woven carpets and rugs. In the early phases of its development, the tufted carpet and rug industry relied heavily on the new markets that its relatively low-priced floor coverings were able to create. Early growth of the tufted carpet industry was based almost entirely on the low cost of the tufting process. In recent years, the industry has broadened its market by improving product quality. Technology in the tufting process has developed rapidly, and the new types of tufted floor coverings introduced offer most — if not all — of the qualities long associated only with woven carpets and rugs. Tufting machines used by the industry produce floor coverings in a wide range of colors, patterns, textures, and pile densities. As the quality of tufted floor coverings improve, tufted goods are displacing woven carpets and rugs. For products of similar quality, tufting is still substantially less expensive. This displace- ment has occurred at a rapid rate and is an impor- tant reason for the growth of the tufted carpet industry. Technological improvements in tufting equipment are the essential factor in this develop- ment. A second factor in improved quality of tufted carpets and rugs is the use of a larger variety of fibers. Cotton used to be the predominant fiber used. Later, rayon was used extensively. Non- cellulosic man-made fibers currently account for nearly two-thirds of the face yarns used in tufted floor coverings. The introduction of bulked, continuous fila- ment carpet nylon was a milestone in the rapid expansion of tufted carpeting. With nylon, manu- facturers could create a wide variety of colors and styles. Currently, acrylics, olefins, and poly- esters make it possible to broaden the range of useful qualities of tufted floor coverings. The improved qualities and low cost of tufted carpets and rugs have broadened the market for soft-surfaced floor coverings. In residential hous- ing, wall-to-wall carpeting is increasingly favored by both homeowners and apartment dwellers. Carpeting is now being used in kitchens, bath- rooms, porches, and patios. In nonresidential construction, an area in which hard surfaced floorings once predominated, tufted floor coverings are rapidly gaining favor. Schools, 170 auditoriums, and even supermarkets now install carpeting. Foreign trade data on tufted carpets and rugs are confined to import figures beginning in 1964. Before 1964 there were no separate import classi- fications for tufted floor coverings. Exports of tufted floor coverings are still not reported separately. The available statistics show that imports are less than 1 percent of new supply. Even though no export figures are available, it is believed that exports of tufted floor coverings are small. Indications are that imports and exports will remain small. The technological leadership which domestic producers have enjoyed will probably be of less significance in the future since the production of tufted floor coverings is increasing rapidly abroad. However, carpet tufting is not a labor intensive process, and the domestic industry may remain competitive with foreign producers. The rapid growth in the foreign production of tufted carpets and rugs indicates that the market for U.S. exports is not likely to increase substantially. FUTURE PROSPECTS Prospects for future growth of the tufted carpets and rugs industry are good. It is not expected however, that growth will continue indefinitely at its past rate. Displacement of woven floor coverings, which has been such an important growth factor in the past, will be of less consequence in the future as tufted products now account for more than 85 percent of the total yardage of soft-surfaced floor coverings currently produced. Rising consumer incomes and population growth should increase the demand for floor coverings. And there is no indication that consumer prefer- ence for soft-surfaced floor coverings is decreasing. In addition, the growth of carpeting in non- residential construction is likely to expand further. One major manufacturer of carpet fibers has established standards for commercial carpeting which permit the maker to guarantee carpeting against surface wear for a specified period. The Federal Housing Administration and the Veterans Administration permit the cost of wall-to wall carpeting to be included in mortgages. Financial institutions making home and com- mercial building loans are expected to follow suit. The manufacturers of hard-surface floor cover- ings are following the traditional carpet weavers, into the tufting industry. All of these events point to a continued robust growth of the tufted carpets and rugs industry. Table 1. — General Statistics Tufted Carpets and Rugs SIC 2272 Total employment Production workers Value Wages per Value added Value shipments Capital expenditures added per dollar of production worker Year Number Payroll Number Man-hours Wages ($1,000) (1,000) ($1,000) ($1,000) ($1,000) ($1,000) wages ($) man-hour ($) 1958 11,528 36, 313 9,880 19, 532 26, 936 108, 846 317, 639 8,007 4.041 1.379 1959—- 12,487 41, 476 10,688 21, 454 30, 776 125, 479 364, 354 6,639 4.077 1.435 1960 13,272 46,630 11,320 23, 548 34, 261 147, 132 436, 934 6,920 4.294 1.455 1961 _. 14,937 55, 069 12, 327 26, 082 39, 366 182, 931 549, 886 10, 245 4.647 1.509 1962 17,528 70, 724 14, 652 32, 072 51,576 248, 733 791, 896 11,897 4.823 1.608 1963 19,854 80, 470 17, 188 36, 359 61,312 259, 343 801, 804 11,512 4.230 1.686 1964 24,852 104, 094 20,204 44,282 77, 755 325, 450 1, 043, 279 N.A. 4.186 1.756 1965 26,371 121,834 22, 326 50, 196 92, 140 362, 534 1,121,257 27, 027 3.935 1.836 1966 28,212 132, 838 23, 504 51, 477 98, 928 398, 178 1, 206, 422 26, 906 4.025 1.922 1967. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1968 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. = Not available. Source: Bureau of the Census and BDSA. 171 317-387 O — 68- -12 Table 2. — Foreign Trade Tufted Carpets and Rugs— SIC 2272 [Dollars in millions] Product Exports as Imports as Year Exports Imports shipments a percent of a percent of shipments new supply ' 1958 N.A. N.A. $317.6 N.A. N.A - 1959 NA. N.A. 364.4 N.A. N.A- 1960 N.A. N.A. 436.9 N.A. N.A- 1961 N.A. N.A. 549.9 N.A. N.A- 1962 N.A. N.A. 791.9 N.A. N.A- 1963 N.A. N.A. 801.8 N.A. N.A. 1964 N.A. $6.0 1,043.3 N.A. .6 1965 N.A. 7.4 1,121.3 N.A. .7 1966. N.A. 10.9 1,206.4 N.A. .9 1967 N.A. 2 9.9 N.A. N.A. N.A 1968 N.A. N.A. N.A. N.A. N.A 1 New supply consists of shipments plus imports. 2 Preliminary. N.A. = Not available. Source: Bureau of the Census and BDSA. Table 3. — Principal Trading Partners Tufted Carpets and Rugs — SIC 2272 United States buys from— United States sells to- Canada Belgium Italy Japan N.A. N.A. = Not available. Source: Bureau of the Census. Table 4. — Number of Employees by Size of Establishment Tufted Carpet and Rugs— SIC 2272 [Dollars in millions] Year Total 1-19 20-99 100 and over Establish- Employees Shipments Establish- Employees Shipments ments ments Establish- Employees Shipments ments Establish- Employees Shipments ments 1958 1963 92 11,528 $318 20 184 $5 181 19,854 802 60 408 13 38 2, 179 $64 63 3, 208 148 34 9, 165 $249 58 16, 238 641 Source: Bureau of the Census. Table 5. — Key Ratios Tufted Carpets and Rugs — SIC 2272 Item 1963 Investment per production worker. $6,726 Specialization ratio (%) 96 Concentration ratios (%) : 4 firms 25 8 firms 41 20 firms 65 50 firms 87 Source: Bureau of the Census. Table 6. — Geographic Distribution, 1963 Tufted Carpets and Rugs — SIC 2272 Geographic area All employees Geographic area All employees Total 19, 854 South South Carolina Georgia Pacific California 16, 091 1,587 Northeast and North C entral. . ... 2,337 1,518 12, 260 1,426 Pennsylvania 1,426 Source: Bureau of the Census. Table 7 is not relevant to SIC 2272. 172 Appendix A INDUSTRY DEFINITIONS 2011 Meat Packing Plants — Establishments primarily engaged in the slaughtering, for their own account or on a contract basis for the trade, of cattle, hogs, sheep, lambs, calves, horses, and other animals except small game, for meat to be sold or to be used on the same premises in canning and curing, and in making sausage, lard, and other products. Establishments primarily en- gaged in manufacturing sausages and meat specialties from purchased meats are classified in industry 2013; and establishments primarily engaged in killing, dressing, packing, and can- ning poultry, rabbits, and other small game in industry 2015. Some slaughtering operations are conducted in establishments which are not included in the census of manufactures, such as those chiefly engaged in wholesale or retail trade, locker plant services, etc. A check of the 1958 Census of Manu- factures records with those of the U.S. Depart- ment of Agriculture indicated that the census of manufactures included about 90 percent of the volume of commercial livestock slaughter. A sim- ilar comparison of the 1963 census slaughter statistics with those of the U.S.D.A. indicates that coverage of commercial slaughter is about at the same level. 2037 Frozen Fruits, Fruit Juices, Vegetables and Specialties — Establishments primarily engaged in quick freezing and cold packing (freezing) fruits, fruit juices, vegetables, and specialties. Excluded from this industry are establishments primarily engaged in packing fruits and vegetables for freezing but not freezing the product; cold storage warehouses freezing foods for others, frozen food locker and other establishments freezing for individual consumers or farms and ranches producing frozen fruits and vegetables. Establishments primarily freezing meats and poultry are included in Industry Group 201, Meat Products. 2256 Knit Fabric Mills — Establishments primarily en- gaged in knitting tubular or flat fabric, and in dyeing or finishing knit fabric. 2272 Tufted Carpets and Rugs — Establishments pri- marily engaged in tufting carpets and rugs from any textile liber. Important products of this industry include tufted carpets, rugs, scatter rugs, and bathmats and bathmat sets except terry woven. Finishers of these products also are included in this industry. 2522 Metal Office Furniture — Establishments primarily engaged in manufacturing metal office furniture, whether padded or plain. Establishments pri- marily engaged in manufacturing safes and vaults are classified in industry 3492. 2621 Paper Mills, Except Building Paper Mills- Establishments primarily engaged in manufactur- ing paper (except building paper — industry 2661) from wood pulp and other fibers, and which may also manufacture converted paper products (confined almost exclusively to off-machine paper coating). Pulp mills combined with paper mills, and not separately reported, are also included in this industry; where separately reported, they are classified in industry 2611. Establishments primarily engaged in manufactur- ing converted paper products from purchased paper stock are classified in Industry Group 264 or 265. 2653 Corrugated and Solid Fiber Boxes — Establish- ments primarily engaged in manufacturing corrugated and solid fiber boxes and related products from purchased paperboard of fiber stock. Important products of this industry in- clude corrugated and solid fiberboard boxes, pads , partitions, display items, pallets, single face products, and corrugated sheets. 2655 Fiber Cans, Tubes, Drums, and Similar Products — Establishments primarily engaged in manufactur- ing fiber cans, cones, drums, and similar prod- ucts with or without metal ends, from purchased materials; and vulcanized fiber boxes. 2711 Newspapers: Publishing, Publishing and Print- ing — Establishments primarily engaged in pub- lishing newspapers, or in publishing and printing newspapers. These establishments carry on the various operations necessary for issuing news- papers, including the gathering of news, and the preparation of editorials and advertisements, but may or may not perform their own printing. Commercial printing is frequently carried on by establishments engaged in publishing and print- ing newspapers, but even though the commercial printing may be of major importance such establishments, are included in this industry. Establishments not engaged in publishing news- papers, but which print or lithograph newspapers for publishers, are classified in industry 2751 or industry 2752. News syndicates are classified in service industries. Establishments primarily engaged in publishing shopping news are classified in industry 2741. 173 Publications have been classified as periodicals (industry 2721) rather than as newspapers if their news and editorial presentations are not typically directed to the public at large. Where the news is of general interest publications are considered periodicals if they are not the primary printed source of such news. Among the types of publications sometimes considered news- papers, but treated in the census as periodicals, are the following: trade journals; house organs, local church or school papers and like publica- tions with very limited or specialized newstreat- ment. Generally, publications issued by nonprofit organizations (educational, religious, charitable, labor, business, professional, etc.) are classified as periodicals, as are magazine and comic supple- ments for Sunday newspapers. 2731 Books: Publishing, Publishing and Printing — Establishments primarily engaged in publishing only, or in publishing and printing books and pamphlets. Establishments primarily engaged in printing, or in printing and binding (but not publishing) books and pamphlets are classified in industry 2732. Industry 2731 also includes data on book publish- ing activities obtained from nonprofit organiza- tions whose employees are covered under the Social Security System and were able to report their book publishing operations as a separate establishment. 2732 Book Printing — Establishments primarily engaged in printing only or in printing and binding books and pamphlets, but not in publishing. Establish- ments primarily engaged in publishing, or in publishing and printing books and pamphlets, are classified in industry 2731. Establishments en- gaged in both printing and binding books, but primarily binding books printed elsewhere, are classified in industry 2789. Establishments classified in industry 2732 are similar in character to some establishments primarily engaged in commercial letterpress printing (industry 2751) and in commercial lithography (industry 2752). The distinction is that the establishments classified in industry 2732 derive the greater part of their revenue from printing books and pamphlets, while such operations are secondary activities for establish- ments classified in industries 2751 and 2752. 2752 Commercial Printing, Lithographic. — Establish- ments primarily engaged in printing by the litho- graphic process. The greater part of the work in this industry is performed on a job or custom basis; but in some cases lithographed calendars, maps, posters, decalcomanias, etc., are made for sale. Offset printing, photo-offset printing, and photolithographing are also included^ in this industry. Establishments primarily engaged in lithographing books and pamphlets, without publishing, are classified in industry 2732, and greeting cards in industry 2771. 2761 Manifold Business Forms Manufacturing — Estab- lishments primarily engaged in designing and printing, by any process, special forms for use in the operation of a business, in single and multiple sets, including carbonized or interleaved with carbon or otherwise processed for multiple re- production. The principal types of manifold business forms are continuous, unit-set, and salesbooks. 2818 Industrial Organic Chemicals, N.E.C.— Establish- ments primarily engaged in manufacturing in- dustrial organic chemicals, n.e.c. Important products of this industry include: (1) noncyclic organic chemicals such as acetic, chloroacetic, adipic, formic, oxalic and tartaric acids and their metallic salts; chloral, formaldehyde and methyl- amine; (2) solvents such as amyl, butyl and ethyl alcohols; methanol; amyl, butyl and ethyl acetates; ethyl ether, ethylene glycol ether and diethylene glycol ether; acetone, carbon disulfide and chlorinated solvents such as carbon tetra- chloride, perchloroethylene and trichloroethylene; (3) polyhydric alcohols such as ethylene glycol, sorbitol, pentaerythritol; (4) synthetic perfume and flavoring materials such as coumarin, methyl salicylate, saccharin, citral, citronellal, synthetic geraniol, ionone, terpineol, and synthetic vanillin ; (5) rubber processing chemicals such as accelera- tors and antioxidants, both cyclic and acyclic ; (6) plasticizers, both cyclic and acyclic, such as esters of phosphoric acid, phthalic anhydride, adipic acid, lauric acid, oleic acid, sebacic acid, and stearic acid; (7) synthetic tanning agents such as naphthalene sulfonic acid condensates ; (8) chemical warfare gases; and (9) esters, amines, etc. of polyhydric alcohols and fatty and other acids. Establishments primarily engaged in manufacturing plastic materials and nonvulcan- izable elastomers are classified in industry 2821 ; synthetic rubber in industry 2822; essential oils in industry 2899; wood distillation products, naval stores, and natural dyeing and tanning materials in Industry Group 286; rayon and other synthetic fibers in industries 2823 and 2824 ; specialty cleaning, polishing and sanitation prep- arations in Industry 2842; and paints and pig- ments in Industry Group 285. Distilleries en- gaged in the manufacture of grain alcohol for beverage purposes are classified in industry 2085 . 2821 Plastics Materials, Synthetic Resins, and Nonvul- canizable Elastomers — Establishments primarily engaged in manufacturing synthetic resins, plastics materials, and nonvulcanizable elasto- mers. Important products of this industry include : cellulose plastic materials; phenolic and other tar acid resins; urea and melamine resins; vinyl resins; styrene resins; alkyd resins; acrylic resins; polyethylene resins; rosin modified resins; cou- marone-indene and petroleum polymer resins; and miscellaneous resins, including polyamid resins, silicones, polyisobutylenes, polyesters; vul- canized fiber; casein plastics; and regenerated cellulose. This classification does not includ- nonchemical manufacturers who merely purchase resin or plastics materials to produce fabricated plastics products, film, and sheets, classified in industry 3079. 2822 Synthetic Rubber (Vulcanizable Elastomers) — Establishments primarily engaged in manufac- turing synthetic rubber by polymerization or copolymerization. An elastomer for the purpose of this classification is a rubber-like material capable of vulcanization, such as copolymers of butadiene and styrene, or butadiene and acrylo- nitrile, polybutadienes, chloroprene rubbers, and isobutylene-isoprene copolymers. Butadiene co- polymers containing less than 50% butadiene are 174 3323 3334 classified in industry 2821. Chlorinated rubber and cyclized rubbers are considered as semi- finished products, and are classified in industry 331: 3069. 2824 Synthetic Organic Fibers, Except Cellulosic — Establishments primarily engaged in manufac- turing synthetic organic fibers except cellulosic (including those of regenerated proteins, and of polymers or copolymers of such components as vinyl chloride, vinylidene chloride, linear esters, vinyl alcohols, acrylonitrile, ethylenes, amides, and related polymeric materials) in the form of monofilament, yarn, staple or tow_ suitable for further manufacturing on spindles, looms, knitting machines or other textile processing equipment. Establishments primarily engaged in manufac- turing textile glass fibers are classified in industry 3229. 2834 Pharmaceutical Preparations — Establishments pri- marily engaged in manufacturing, fabricating, or processing drugs into pharmaceutical preparations for human or veterinary use. The greater part of the products of these establishments are finished in the form intended for final consump- tion, such as tablets, capsules, ointments, solu- tions and suspensions. Products of this industry consist of two important lines, namely, (1) pharmaceutical preparations primarily advertised or otherwise promoted to or prescribed by the health professions: medical, dental, pharmaceuti- cal, nursing, etc.; and (2) pharmaceutical prepara- tions primarily advertised or otherwise promoted to the general public. Establishments compound- ing drugs and medicines and selling these "over 3522 the counter" are classified in trade industries. 2844 Perfumes, Cosmetics, and Other Toilet Prepara- tions — Establishments primarily engaged in manufacturing perfumes (natural and synthetic) , cosmetics and other toilet preparations. This industry also includes establishments primarily engaged in blending and compounding perfume bases; and those manufacturing shampoos and shaving products, whether from soap or synthetic detergents. Establishments primarily engaged in manufacturing synthetic perfume and flavoring materials are classified in industry 2818, and essential oils in industry 2899. 2911 Petroleum Refining — Establishments primarily engaged in producing gasoline, kerosene, distillate 3531 fuel oils, residual fuel oils, lubricants and other products from crude petroleum, and its fractiona- tion products either through straight distillation of crude oil, redistillation of unfinished petroleum derivatives, cracking or other processes. Estab- lishments primarily engaged in producing natural gasoline from natural gas are classified in mining industries. Those manufacturing lubricating oils and greases by blending and compounding purchased materials are included in industry 3534 2992. 3079 Miscellaneous Plastics Products — Establishments primarily engaged in molding primary plastics for the trade, in manufacturing film, sheets, sheeting, rods, tubes, and other stock shapes from purchased resins, and in fabricating mis- cellaneous finished plastics products. Establish- ments primarily engaged in manufacturing plastics 3537 materials in the form of sheets, rods, tubes, granules, powders, or liquids made from resins produced in the same establishment are classified in industry 2821, and those primarily engaged in manufacturing artificial leather in industry 2295. Blast Furnaces (Including Coke Ovens), Steel Works and Rolling Mills — Establishments pri- marily engaged in manufacturing hot metal, pig iron, silvery pig iron, and ferroalloys from iron ore and iron and steel scrap ; converting pig iron , scrap iron and scrap steel into steel; and in hot rolling iron and steel into basic shapes such as plates, sheets, strips, rods, bars and tubing. Merchant blast furnaces and byproduct or bee- hive coke ovens are also included in this industry . Included in this industry are all establishments engaged in the manufacture of blast furnace ferroalloys. However, establishments which manu- facture ferro or nonferrous additive alloys by electrometallurgical process are classified in industry 3313. Also, establishments which draw wire from purchased rod and bar; establishments which perform only cold rolling, drawing or finishing operations; and establishments which produce welded, seamless, and heavy riveted pipe from purchased materials are not included in industry 3312, but are included in industries 3315, 3316, and 3317, respectively. Steel Foundries — Establishments primarily en- gaged in manufacturing steel castings. Primary Production of Aluminum — Establish- ments primarily engaged in producing aluminum from alumina, and in refining aluminum by any process. Establishments primarily engaged in rolling, drawing or extruding aluminum are classified in industry 3352. Farm Machinery and Equipment — Establishments primarily engaged in manufacturing farm ma- chinery, including equipment and wheel tractors, for use in the preparation and maintenance of the soil; planting and harvesting of the crop; pre- paring, on the farm, crops for market; or for use in performing other farm operations and proc- esses. This industry includes wheel tractors, except contractors' off-highway type which are classified in industry 3531. Establishments pri- marily engaged in manufacturing industrial trucks, tractors, and trailers used for handling materials in industrial plants, depots, and docks are classified in industry 3537; and farm hand tools in Industry Group 342. Construction Machinery and Equipment — Estab- lishments primarily engaged in manufacturing heavy machinery and equipment used by the construction industries, such as bulldozers; concrete mixers; cranes, except industrial plant; dredging machinery; pavers, and power shovels. Establishments primarily engaged in manufactur- ing mining equipment are classified in industry 3532, and well drilling machinery in industry 3533. Elevators and Moving Stairways — Establishments primarily engaged in manufacturing passenger or freight elevators, automobile lifts, dumb waiters, and moving stairways. Establishments primarily engaged in manufacturing commercial conveyor systems and equipment are classified in industry 3535, and farm elevators in industry 3522. Industrial Trucks, Tractors, Trailers, and Stackers — Establishments primarily engaged in manufacturing industrial trucks, tractors, trailers, stackers (truck type), and related equipment, 175 used for handling materials on floors and paved surfaces in and around industrial and com- mercial plants, depots, docks, and terminals. Establishments primarily engaged in manu- facturing motor vehicles and motor vehicle type trailers are classified in Industry Group 371 ; farm type wheel tractors in industry 3522; wheel tractor shovel loaders, tracklaying tractors in 3581 industry 3531 ; and wood pallets and skids in industry 2499. 3541 Machine Tools, Metal Cutting Types — Establish- ments primarily engaged in manufacturing power-driven machines, not supported in the hands of an operator when in use, that shape metal by cutting or use of electrical equipment ; the rebuilding of such machine tools, and the manufacture of replacement parts for them . 3585 Metalworking, or primarily metalworking, ma- chine tools designed primarily for home work- shops are also included. Establishments primarily engaged in the manufacture of electric welding equipment are classified in industry 3623; and portable powerdriven hand tools, gas welding and cutting equipment, and automotive mainte- nance equipment in industry 3548. 3544 Special Dies and Tools, Die Sets, Jigs, and Fix- tures — Establishments primarily engaged in manufacturing, on a job or order basis, special tools and fixtures for use with machine tools, hammers, die casting machines, and presses. The products of establishments classified in this 3622 industry include a wide variety of special tool- ings, such as dies; punches; die sets and compo- nents, and subpresses; jigs and fixtures; and special checking devices. Establishments pri- marily engaged in manufacturing metal molds for casting metals, for rubber working, plastic work- ing, glass working and similar machinery are also 3634 included. This industry comprises establishments com- monly known as contract tool and die shops ; also included are captive tool and die shops of metal-products producers, where such shops were separately operated and separate reports were filed. However, the total value of shipments excludes the captive production of tool and die departments making these products for the 3651 exclusive use of the producing establishment. 3552 Textile Machinery — Establishments primarily en- gaged in manufacturing machinery for the textile industries, and extra parts, attachments, and accessories. Establishments primarily engaged in manufacturing domestic or industrial sewing machines are classified in industry 3636. 3564 Blowers, Exhaust and Ventilating Fans — Estab- lishments primarily engaged in manufacturing blowers, and exhaust and ventilating fans for general industrial, commercial, and household use. Establishments primarily engaged in manu- 3661 facturing complete air conditioning units are classified in industry 3585, and free air circulating fans for use on desks, pedestals, or wall brackets in industry 3634. 3564 Industrial Gas Cleaning Equipment — Industrial gas 3662 (part) cleaning equipment includes: air purification and dust collecting equipment; industrial dust and fume collecting equipment; air filters; electro- static precipitators. 3571 Computing and Accounting Machines, Including Cash Registers — Establishments primarily en- gaged in manufacturing computing machines including electronic, accounting machines, and cash registers. Establishments primarily engaged in manufacturing typewriters are classified in industry 3572, and office duplicating machines and devices and autographic registers in industry 3579. Automatic Merchandising Machines — Establish- ments primarily engaged in manufacturing auto- matic merchandising units, also referred to as vending machines (excluding music, amusement, or gaming machines) and coin-operated mecha- nisms for such machines. Coin-operated amuse- ment and gaming machines are classified in industry 3999 and coin-operated phonographs in industry 3651. Refrigerators and Refrigeration Machinery, Except Household; and Complete Air-Conditioning Units — Establishments primarily engaged in manufacturing equipment and systems utilizing the basic refrigeration cycle, including mechanical and absorption refrigerators for commercial and industrial use; refrigeration machinery, and com- plete air-conditioning units for domestic, com- mercial, and industrial use. Establishments primarily engaged in manufacturing soda foun- tain and beer-dispensing equipment are classified in this industry, and those primarily engaged in manufacturing household refrigerators and home and farm freezers in industry 3632. Industrial Controls — Establishments primarily en- gaged in manufacturing motor starters and controllers, control accessories, electronic con- trols, and other industrial controls. Establish- ments primarily engaged in manufacturing auto- matic temperature controls are classified in industry 3822. Electric Housewares and Fans — Establishments primarily engaged in manufacturing electric housewares for heating, cooking, and other purposes; and electric fans. Important products of this industry include electric air heaters, bed coverings, blenders, broilers, deep fat fryers, flat irons, food mixers, hot plates, percolators and coffee makers, roasters, toasters, desk and bracket fans, and hassock or floor fans. Radio and Television Receiving Sets, Except Com- munication Types — Establishments primarily engaged in manufacturing equipment for home entertainment. This industry also includes estab- lishments primarily engaged in manufacturing public address systems, and music distribution apparatus, except records. Establishments pri- marily engaged in manufacturing records are classified in industry 3652; radio and television receiving type tubes in industry 3671; and tele- vision receiving type cathode ray tubes in in- dustry 3672. Telephone and Telegraph Apparatus — Establish- ments primarily engaged in manufacturing wire telephone and telegraph equipment and parts especially designed for telephone and telegraph use. Radio and Television Transmitting, Signaling, and Detection Equipment and Apparatus — Estab- lishments primarily engaged in manufacturing (1) radio and television broadcasting equipment; (2) electric communication equipment and parts, except telephone and telegraph; (3) electronic field detection apparatus, light and heat emission 176 operation apparatus, object detection apparatus and navigational electronic equipment, and air- craft and missile control systems; and (4) other electric and electronic communication and signal- ing products, n.e.c. Establishments primarily engaged in manufacturing transmitting tubes are classified in industry 3673. 3672 Cathode Ray Picture Tubes — Establishments pri- marily engaged in manufacturing television re- ceiving type cathode ray tubes. Establishments primarily engaged in manufacturing other radio and television receiving type electron tubes are classified in industry 3671 ; and transmitting tubes in industry 3673. 3674 Semiconductor (Solid State) and Related Devices — Establishments primarily engaged in manufactur- ing semiconductor (solid state) and related de- vices, such as semiconductor diodes and stacks, including rectifiers; transistors; solar cells; and light sensitive semiconductor (solid state) devices. 3713 Truck and Bus Bodies — Establishments primarily engaged in the manufacture of truck and bus bodies, for sale separately or for assembly on purchased chassis. Establishments primarily engaged in manufacturing complete trucks and busses are classified in industry 3717, and stamp- ed body parts for trucks and busses in industry 3461. 3715 Truck Trailers — Establishments primarily engaged in the manufacture of truck trailers and truck trailer chassis for sale separately, but not engaged in manufacturing complete trucks and busses. Establishments primarily engaged in manufactur- ing trailer bodies are classified in industry 3713. Those primarily engaged in manufacturing pas- senger car trailers are classified in industry 3799; and those primarily engaged in manufacturing trailer coaches are classified in industry 3791. 3717 Motor Vehicles and Parts — Establishments pri- marily engaged in manufacturing or assembly of complete passenger automobiles, car bodies, trucks, commercial cars and busses (except trackless trolleys, industry 3742), special pur- pose motor vehicles such as ambulances, fire engines, taxicabs, scout cars, personnel carriers, amphibian motor vehicles, and selected parts and accessories for motor vehicles. Establish- ments primarily engaged in manufacturing motor vehicles on purchased chassis (ambulances, fire engines, etc.) are classified in industry 3713. In the 1963 Census of Manufactures, as in 1958, the three SIC industries (3711, 3712, and 3714) have been combined because of a major problem of defining the reporting unit in terms of these industries. This difficulty arises from the fact that many large establishments have integrated operations which include the production of parts or bodies and the assembly of complete vehicles at the same location. Included in industry 3717 are such parts as passenger-car bodies, motor vehicle engines (except diesel), brakes, clutches, axles, radiators, differentials, transmissions, wheels and frames, windshield wipers, automotive bumpers, cam- shafts, connecting rods, crankshaft assemblies, cylinder heads, drive shafts, exhaust systems, fuel systems, heaters, hoods, horns, instrument board assemblies, lubrication systems, mufflers, power-transmission equipment, rear-axle hous- ings, shock absorbers, steering mechanisms, universal joints, wheel rims, windshield frames, and automobile accessories, n.e.c. A considerable number of components, parts, and accessories for motor vehicles are not classi- fied in industry 3717 but are classified in other Standard Industrial Classification industries based on the characteristic of the product itself rather than the use to which it is put. Among the more important of these are automotive hard- ware, industry 3429; automotive stampings, industry 3461; diesel and semidiesel engines, industry 3519; sealed beam and other electric lamps, industry 3641; motor vehicle lighting fixtures, industry 3642; tire and inner tubes, industry 3011; automobile glass, industry 3211; ignition equipment such as spark plugs, distribu- tors, switches, ignition coils, generators, crank- ing motors, etc., industry 3694; storage batteries, industry 3691; automobile radios, industry 3651; and carburetors and pistons, industry 3599. 3721 Aircraft — Establishments primarily engaged in manufacturing or assembling complete aircraft. This industry includes establishments primarily engaged in factory type aircraft modification on a contract or fee basis. Establishments primarily engaged in manufacturing engines, propellers, and other aircraft parts and auxiliary equipment are classified in industries 3722, 3723, and 3729. 3732 Boat Building and Repairing — Establishments primarily engaged in building and repairing of boats, except rubber boats (industry 3069). Establishments primarily engaged in cleaning and storing boats and the rental of dock space, and yacht clubs are classified in nonmanufactur- ing industries. 3742 Railroad and Street Cars — Establishments pri- marily engaged in building and rebuilding rail- road, street, and rapid transit cars and car equipment for operation on rails for freight and passenger service. This industry also includes establishments primarily engaged in manufactur- ing trackless trolley busses. Establishments primarily engaged in manufacturing mining cars are classified in industry 3532. Repair shops owned and operated by railroad or local transit companies, rebuilding or repairing cars, or build- ing new cars for their own account, are classified in Major Groups 40 and 41. 3791 Trailer Coaches, Housing Type — Establishments primarily engaged in manufacturing trailer coaches (mobile dwellings) for attachment to passenger cars and pick-up coaches (campers) for mounting on pick-up trucks. 3821 Mechanical Measuring and Controlling Instru- ments Except Automatic Temperature Controls — Establishments primarily engaged in manufac- turing industrial process instruments for indicat- ing, recording, measuring and controlling tem- perature (except automatic temperature controls, industry 3822), pressure and vacuum, fluid flow and liquid level, mechanical motion, rotation, humidity, density, acidity, alkalinity and combustion; dial pressure gauges; physical property testing apparatus such as hardness, tension, compression, torsion, ductility, elasticity testing apparatus. 3831 Optical Instruments and Lenses — Establishments primarily engaged in the production of optical 177 lenses and prisms, and in manufacturing optical instruments such as microscopes, telescopes, field and opera glasses; and optical measuring and test- ing instruments such as refractometers, spectrom- eters, spectroscopes, colorimeters, polariscopes. Establishments primarily engaged in manufac- turing eyeglass lenses, frames, or fittings are classified in industry 3851; and those engaged in manufacturing sighting and fire control instru- ments, but not engaged in manufacturing optical components, in industry 1941. 3841 Surgical and Medical Instruments and Apparatus — Establishments primarily engaged in manufac- turing medical, surgical, ophthalmic, and veteri- nary instrument and apparatus. Establishments primarily engaged in manufacturing surgical and orthopedic appliances are classified in industry 3842; and electrotherapeutic, electromedical, and X-ray apparatus in industry 3693. 3842 Orthopedic, Prosthetic and Surgical Appliances and Supplies — Establishments primarily engaged in manufacturing orthopedic, prosthetic, and surgi- cal appliances and supplies, arch supports, and other foot appliances; fracture appliances, elastic hosiery, abdominal supporters, braces, and trusses; bandages; surgical gauze and dressings; sutures; adhesive tapes and medicated plasters; and per- sonal safety appliances and equipment. Estab- lishments primarily engaged in manufacturing surgical and medical instruments are classified in industry 3841. Establishments primarily engaged in manufacturing appliances and in the personal fitting to the individual prescription of a physician are classified in trade industries. 3843 Dental Equipment and Supplies — Establishments primarily engaged in manufacturing artificial teeth, dental metals alloys and amalgams, and a wide variety of equipment, instruments, and supplies used by dentists, dental laboratories, and dental colleges. Dental laboratories construct- ing artificial dentures, bridges, inlays and other dental restorations on specifications from dentists are classified in service industries. 3861 Photographic Equipment and Supplies — Establish- ments primarily engaged in manufacturing (1) photographic apparatus, equipment, parts, attach- ments, and accessories, such as still and motion picture cameras and projection apparatus; photo- copy and microfilm equipment; blueprinting and diazotype (white printing) apparatus and equip- ment; and other photographic equipment; and (2) sensitized film, paper, cloth, and plates, and prepared photographic chemicals for use there- with. Establishments primarily engaged in manu- facturing photographic paper stock (unsensitized) and paper mats, mounts, easels and folders for photographic use are classified in Major Group 26; photographic lenses in industry 3831; photo- graphic glass in Major Group 32; chemicals for technical purposes, not specifically prepared and packaged for use in photography, in Major Group 28; and photographic flash, flood, enlarger and projection lamps in industry 3641. 3911 Jewelry (Precious Metal) — Establishments primar- ily engaged in manufacturing jewelry and other articles, worn on or carried about the person, made of precious metals with or without stones (including the setting of stones where stones are used), including cigarette cases and lighters, van- ity cases and compacts; trimmings for umbrellas and canes; and jewel settings and mountings. Establishments primarily engaged in manufac- turing costume jewelery from nonprecious metals and other materials are classified in industry 3961. 3941 Games and Toys, Except Dolls and Children's Ve- hicles — Establishments primarily engaged in manufacturing indoor games and game sets for adults and children, and mechanical and non- mechanical toys. Important products of this in- dustry include games such as chess, checkers, dominoes, puzzles, and other indoor games; and toys, such as toy furniture, doll carriages and carts, construction sets, mechanical trains, toy guns and air rifles, and other mechanical games and toys. Establishments primarily engaged in manufacturing dolls are classified in industry 3942; children's outdoor wheel goods and vehicles, except bicycles, in industry 3943; and sporting and athletic goods for children and adults in industry 3949. 178 APPENDIX B Glossary SOURCES The tabular data presented for each industry covered in Pace Setters in American Industry are from published Bureau of the Census sources, except as otherwise noted, for all years but 1967 and 1968. The sources of data for the respective tables are: Table 1 Title General Sta- tistics Foreign Trade Principal Trad- ing Partners Number of Em- ployees by Size of Estab- lishment Key Ratios Geographic Dis- tribution Principal Prod- ucts Source 1963 Census of Manu- factures; 1965 and 1966 Annual Survey of Manufactures; BDSA estimates for 1967 and 1968. Exports and Imports as Related to Output, 1965 and 1964; BDSA estimates for 1966, 1967, and 1968. FT-UO U.S. Exports; FT-135 U.S. Imports. 1933 Census of Manu- factures. 1963 Census of Manu- factures. 1963 Census of Manu- factures. 1963 Census of Manu- factures; 1965 and 1966 Annual Survey of Manufactures. THE STANDARD INDUSTRIAL CLASSIFICATION (SIC) Data in tables 1, 4, 5, and 6 of this volume are classified within the framework of the Bureau of the Budget Standard Industrial Classification (SIC) of 1957. The purpose of the SIC is to provide a means for classifying establishments according to their primary activities, for the purpose of col- lection, tabulation, presentation and analyses of data relating to establishments. The SIC identifies four-digit manufacturing in- dustry codes in the following manner: 1. The first two digits identify the general type of activity; e.g., the code 20 refers to the manufacture of "Food and Kindred Products." 2. The third digit identifies a subgroup within the general type of activity, e.g. 201 represents "Meat Products." 3. The fourth digit identifies a specific in- dustry within each subgroup, e.g. 2011 identi- fies "Meat Slaughtering Plants," 2013 "Meat Processing Plants," and 2015 "Poultry Dress- ing Plants." In the Annual Survey and Census of Manu- factures, each manufacturing establishment is assigned a four-digit code which reflects the pri- mary activity of that establishment. The data shown in tables 1, 4, 5, and 6 represent totals for establishments classified with the same SIC code (i.e., the same four digits). PRODUCT CLASSES To provide more detailed information on prod- uct shipments, the Census Bureau has added a fifth digit to the four-digit SIC code described above. Continuing the above example, within the four-digit industry classification 2011 for "Meat Slaughtering Plant Products," the Census Bureau has developed a series of product classes such as: 20111 "Beef, Fresh and Frozen" 20112 "Veal, Fresh and Frozen" 179 20113 "Lamb and Mutton, Fresh and Frozen" 20114 "Pork, Fresh and Frozen." The data in table 7 are reported, with some modification, on the basis of the five-digit product class codes. It is essential to note that the product class codes differ from the SIC, in that their purpose is not to classify establishments but rather to classi- fy product groups. The codes assigned to these product classes are based on the industries to which they are primary. Data reported on a product-class basis reflect the total shipments of products (wherever made), rather than the char- acteristics of establishments that are primarily engaged in making those products. In table 2, data are shown on a four-digit "product group" basis. While the code and de- scription are identical to the SIC, the data shown are "product" as opposed to "industry" data. The shipments data represent totals of the five- digit product class shipments, within a four-digit group. The export and import data are converted from the Schedule B and Tariff Schedule of the United States, Annotated (TSUSA) to conform as closely as possible to the primary products de- fined within each four-digit group. MODIFICATION OF PRODUCT CLASS CODES In table 7 certain modifications have been made in the product classes developed by the Census Bureau in order to: 1. Adjust for changes in product class defi- nitions since 1958, and 2. Adjust for the fact that similar products are produced in and are defined as primary to more than one industry. The first type of adjustment was made in those cases where more detailed product classes have been established since 1958. In this publication, the data for the new product classes have been combined, in order to present comparable data since 1958 rather than for just 1965 and 1966. A five-digit code ending in "A," "B," or "C" identi- fies this type of combination. The second type of adjustment was made in those cases where the same product class is pri- mary to more than one industry. For example, sausage is a primary product of both meat slaugh- tering plants and meat processing plants. In this publication, total shipments of sausage would be shown under each industry. These two types of modifications have been carried out in order to present comparable data for all years, 1958 to 1966, and to show data, to the greatest degree possible, on a wherever made basis. DEFINITIONS Table 1 presents data on employment, payroll, production workers, wages, man-hours, value added, value of shipments, capital expenditures, value added per dollar of wages, and wages per production worker man-hour. The definitions of these terms are as follows: Total Employment: All full-time and part-time employees on the payrolls of operating manufac- turing establishments who worked or received pay for any part of the pay period ended nearest the 15th of selected months. Included are all persons on paid sick leave, paid holidays, and paid vaca- tions during these pay periods. Excluded are members of the Armed Forces and pensioners carried on the active rolls but not working during the period. All plant employees, including plant officials, are included except proprietors and partners of unincorporated firms. Total employment generally consists for "pro- duction workers" of an average of four monthly figures for March, May, August, and November plus for "all other employees" the mid-March figure. Payroll: This total represents gross wages and salaries paid in the calendar year to all employees on the payroll of operating manufacturing estab- lishments, following the definition of payrolls used for calculating the Federal withholding tax. In- cluded are all forms of compensation, such as salaries, wages, commissions, dismissal pay, all bonuses, vacation and sick leave pay, and compen- sation in kind, prior to such deduction as em- ployees' social security contributions, withholding taxes, group insurance, union dues, and savings bonds. The total includes salaries of officers of these establishments, if a corporation; it excludes payments to the proprietor or partners, if an unincorporated concern. Also excluded are pay- ments to members of the Armed Forces and pen- sioners carried on the active payrolls of manu- facturing establishments. Production Workers: All workers (up through the working foreman level) engaged in fabricating, processing, assembling, inspection, receiving, stor- age, handling, packing, warehousing, shipping (but not delivering), maintenance, repair, jani- 180 toriaJ, watchman services, product development, auxiliary production for plants' own use (e.g., power plant) record keeping, and other services closely associated with these production opera- tions at the establishment covered by the report. Supervisory employees above the working fore- man level are excluded from this category. Production Worker Man-Hours: All plant man- hours of production workers as defined above, represents all man-hours worked or paid for at the plant including actual overtime hours (not straight-time equivalent hours). The total ex- cludes hours paid for vacations, holidays, or sick leave, when the employee was not at the plant. Where employees elected to work during the vaca- tion period, only actual hours worked by such em- ployees were reported. Wages: Gross earnings paid in the calendar year to all production workers on the payrolls of operating manufacturing establishments. Value Added: This measure is derived by sub- tracting the cost of materials, supplies, containers, fuel, purchased electricity, and contract work from the value of shipments of products manufactured plus receipts for services rendered. The result of this calculation is then adjusted by the addition of value added by merchandising operations (that is, the difference between the sales value and cost of merchandise sold without further manufacture, processing, or assembly) plus the net change in finished goods and work-in-process inventories between the beginning and end of the year. "Value added" avoids the duplication in the "value of shipments" figure which results from the use of products of some establishments as materials by others. Consequently, it is useful for comparing the relative economic contribution of the manufacturing process among industries and geographic areas. Value oj Shipments: Dollar amounts of the re- ceived or receivable net selling values, f.o.b. plant, after discounts and allowances, and excluding freight charges and excise taxes. However, where the products of an industry are customarily deliv- ered by the manufacturing establishment (e.g., bak- ery products, fluid milk, and soft drinks), the value of shipments is based on the delivered prices of the goods. Value of production data rather than shipments are collected in several instances where value of shipments does not provide a good measure of activity, and where information regarding the value of production is readily reportable. For certain large leadtime products (e.g., aircraft) value of work done is substituted. The value of shipments shown for a product class may differ from the value of production of that class because of inventory changes during the year. In addition, the shipments data do not reflect the output of products produced and used for further processing in the same plant. Included in value of shipments are: All items made by or for each establishment from materials owned by it, whether sold, transferred to other plants of the same company, or shipped on con- signment; receipts for contract work; and receipts for such miscellaneous activities as sale of scrap and refuse, installation work by plant employees, research and development, and repair work. The net selling value of products made in one plant on a contract basis from materials owned by others was reported by the plant providing the materials. The value of products bought and resold without further processing (merchandising) was reported separately and is included in the value of shipments totals for each industry, but is not included in product class totals. For multi-unit companies, the value of products transferred to other establishments of the same company (i.e., other manufacturing plants, sepa- rate sales branches, or retail stores) was tabulated as though each establishment were a separate economic unit. Included in "value of interplant transfers within the company" are not only the direct costs of production but also a reasonable portion of "all other costs" (including company overhead) and profit. Capital Expenditures: For establishments in operation and establishments under construction but not yet in operation, these data include ex- penditures for (a) permanent additions and major alterations to manufacturing establishments, and (b) new machinery and equipment used for replace- ment purpose and additions to plant capacity, if these are of the type for which depreciation accounts are ordinarily maintained. These totals exclude that portion of expenditures for new facilities and equipment leased from non- manufacturing concerns, new facilities owned by the Federal Government but operated under con- tract by private companies, and plant and equip- ment furnished to the manufacturer by communi- ties and organizations. Expenditures for used plant and equipment, expenditures for land, and costs of maintenance and repairs charged as current operating expense are also omitted. 181 Value Added per Dollar oj Wages: Computed by dividing "wages" into "value added." The result- ing ratio measures the relative importance of "wages" to other components of value added. Wages per Production Worker Man-Hour: Com- puted by dividing "man-hours" into "wages." The resulting dollar figure is a rough measure of average hourly earnings. It is not a measure of the wage rate since "wages" includes premium pay- ments for overtime as well as vacation and sick leave pay, bonuses, etc. The definitions of shipments and employment given above also apply to tables 4 and 6 which show employment size and geographic distribu- tions of plants in each industry. Table 2 presents product import, export, and shipment data and computed ratios of exports as a percent of shipments and imports to new supply (shipments plus imports). Table 7 presents product shipments at a more detailed level than is shown in table 2. The following definitions of terms apply to these tables. Value of Shipments: On a "product" basis repre- sents the total value of shipments of classes of products, wherever made. They include not only shipments of these products by the industry in which they are primary, but also shipments as secondary products, by establishments in other manufacturing industries. Dollar amounts shown are the received or receivable net selling values, f.o.b. plant, after discounts and allowances and excluding freight charges and excise taxes. However, where the products are customarily delivered by the manu- facturing establishment (e.g., bakery products, fluid milk, and soft drinks), the value of ship- ments is based on the delivered price of goods. There is a very important distinction between the industry and product value of shipments. This distinction is reflected at the four-digit level in industry table 1 and in product table 2. The difference is accounted for by the fact that the industry shipments are based on total shipments of establishments classified in an industry and therefore include not only shipments of primary products of that industry but also shipments of other products and other receipts from contract work, resales, etc. The product shipments repre- sent only shipments of primary products, including those made by establishments not in the industry to which the products are primary. Imports: The dollar value shown for imports is defined ordinarily as the market value in the foreign country and excludes U.S. import duties, transportation, insurance and similar costs. In some cases, imports may be valued at the "Ameri- can selling price." In practice, only the values reported for imports subject to an ad valorem rate of duty (approximately 10 to 15 percent of U.S. imports) tend to conform to this definition. For other imports, the reported values may inadvertently include ocean freight or related costs. Exports: The dollar value of exports is defined at the point of exportation. Included are the selling price, or cost if not sold, and expenditures for freight, insurance, and other costs to the exporta- tion point. Table 5 presents selected key ratios on each industry, namely investment per employee, spe- cialization ratio, and concentration ratios. Investment per Employee: Represents the value of all fixed depreciable assets on the books of the establishments classified in the specific industry at the end of the year divided by the average number of production workers in the industry dur- ing that year. The values (book value) represent the actual cost of the assets at the time they were acquired, including all costs incurred in making the assets usable (such as transportation and installation). Included in the investment figure used are all building, structures, machinery and equipment for which depreciation reserves are maintained. Ex- cluded are nondepreciable and capital assets such as inventories and intangible assets such as patent rights and royalties. A more detailed description of gross book value of depreciable assets as used in this publication as "Investment" can be found in the Annual Survey of Manufactures publication M65(AS)-6 published by the Bureau of the Census. Specialization Ratio: Derived by dividing the total output (both primary and secondary prod- ucts) of the industry's plants into their output of products primary to the industry. The resulting percentage measures the extent to which the in- dustry specializes in making its primary products. Concentration Ratios: Concentration ratios are measures of the share of total activity or resources of a given segment of the economy accounted for by its largest companies. In table 5, the percentage share of total shipments in 1963 of a given industry accounted for by the 4, 8, 20, and 50 largest firms is shown. These data are developed from reports 182 submitted by every manufacturing establishment in the United States. Each establishment is classi- fied into the four-digit SIC industry that best describes the principal products of that plant. Shipments data for all establishments operated by the same company within each industry are then totaled. The companies are ranked by shipment values and shipment totals for the 4, 8, 20, and 50 largest companies in each industry calculated. Finally, percentages are computed based on the calculated totals in relation to the industry total. Taking an example, industry 3571 (Computing and Related Machines), the concentration ratios indicate that in 1963 the four largest companies accounted for 67 percent of the industry's $2,019 million shipments; the eight largest shipped 80 percent of the total; the 20 largest shipped 92 percent; and the 50 largest shipped 98 percent. It is important to note that these industry con- centration ratios do not measure the proportion of total shipments of given products accounted for by large firms. Continuing the above example, the stated percentages do not indicate that 67 percent of the computing and related machines were shipped by the four largest companies. In fact, only 63 percent of such machines were shipped by the four leading firms. Data on the concentration ratios by product are available in table 4 of Concentration Ratios in Manufacturing Industry, 1963 published by the Bureau of the Census. In table 6 "Geographic Distribution, 1963," for many industries, data are not presented for some States. This may be due either to the absence of the industry from the particular State or to avoid disclosure of information reported by individual companies. In the latter case, the figures shown for States within a region may not add to the total for the region. The regional total includes the data not shown separately, by State, in order to avoid disclosure. METHODS OF COMPILATION Most of the data were collected as part of the Census of Manufactures and Annual Survey oj Manufactures programs. Data for 1958 and 1963, except foreign trade, are based on reports covering all manufacturing establishments, and represent, therefore, the most accurate across-the-board in- formation available on U.S. manufacturing ac- tivity. Data for 1959-1962 and 1964-1966 are estimates based upon reports received from a probability sample of all manufacturing establish- ments. The estimates obtained from the sample will vary from the totals that would have been obtained from a complete canvass of all manu- facturing establishments. The relative magnitude of the sampling variation is indicated in the Annual Survey oj Manufactures publications under the caption "standard error of estimate." These standard errors are not shown in this report. However, where the standard error of estimate is 15 percent or more, for industry data the figures are indicated as not available (N.A.) and in the case of product classes an asterisk (*) preceding the data is used to identify years in which the standard error is 15 percent or more. In using the time series on industries or product classes, it is important to note that both the data in any given year other than 1958 or 1963 as well as the year-to-year changes will be influenced in part by sampling variability. Import and export data may be affected in some commodity areas by the fact that low valuation transactions are not included. Commodity infor- mation is not collected for individual import and export shipments valued under $100 or for imports on informal entries. Informal entries, by definition, contain only items valued at not more than $250. This does not seriously understate the published data. Another problem with foreign trade data arises from the fact that in many cases the classification and valuation of products to be imported or ex- ported is done basically by the importer, exporter, or a designated representative. Inaccuracies, par- ticularly with respect to export data, may occur through errors in classification. PRICE CHANGES In using time series based on dollar valuation, it should be remembered that none of the data have been adjusted for changes in prices. Therefore, the real growth in shipments for a given item, for example, during any period may be understated or overstated relative to other products or items. CHANGES IN PRODUCT MIX Although the classification of industry and product statistics presented in this publication changed little during the period covered, there were some substantial shifts in the relative im- 183 portance of products within industries or product classes. The characteristics of an industry may- have changed substantially during the 1958-1966 period as a result of such changes in the product mix. Related changes in types of processes or materials used may also significantly affect the meaningful comparison of an industry or product class over time. For analysis of changes in product mix, data on individual products are available on a continuing basis for many products from the Current Industrial Reports series of the Bureau of the Census and for all products in years for which a complete Census of Manufactures is conducted. DUPLICATION IN SHIPMENTS DATA The value of shipments data shown in this publication may contain some duplication. This occurs because the shipments of one plant become the "materials" of another plant. For example, where parts are classified with the equipment of which they are part of, shipments of the parts by parts manufacturers to equipment manufacturers would be double counted. COMPARING EXPORTS, IMPORTS, AND SHIPMENTS Caution should be used in comparing product class shipments with imports and/or exports as reported in table 2. As was mentioned earlier, the methods of valuation used are substantially dif- ferent. Shipments are valued at f.o.b. plant, exports at f.o.b. port of exportation, and imports at f.o.b. port of exportation. Other reasons for using caution in comparing shipments, export and imports include: (a) Shipments as described above may include duplication that would overstate their value in relation to exports or imports. (b) Shipments in some areas are classified in not-specified-by-kind classes which can therefore understate shipments in other areas. (c) Shipments are subject to sampling variabil- ity in non-Census years and imports and par- ticularly exports may be subject to error due to reporting procedures used. (d) Used commodities are included in exports and imports thereby slightly overstating these data relative to shipments. 184 Index SIC Code Page 2011 Meat Packing 71 2037 Frozen Fruits, Juices & Vegetables 49 2256 Knit Fabrics 62 2272 Tufted Carpets and Rugs 170 2522 Metal Office Furniture 80 2621 Paper Mills, Except Building 97 2653 Corrugated & Solid Fiber Boxes 31 2655 Fiber Cans, Tubes & Drums 46 271 1 Newspapers 87 2731-2 Book Publishing & Printing 14 2752 Commercial Printing, Lithographic 21 2761 Manifold Business Forms 65 2818 Organic Chemicals 94 2821 Plastics Materials & Resins 111 2822 Synthetic Rubber 146 2824 Man-made Fibers, Non-cellulosic 68 2834 Pharmaceutical Preparations 103 2844 Toilet Preparations 155 2911 Petroleum Refining 100 3079 Plastic Products 114 3312 Blast Furnaces & Steel Mills 8 3323 Steel Foundries 139 3334 Primary Aluminum 117 3522 Farm Machinery & Equipment 43 3531 Construction Machinery 28 3534 Elevators & Moving Stairways 40 3537 Industrial Trucks & Tractors 57 3541 Metal-cutting Machine Tools 77 3544 Special Dies & Tools 137 3552 Textile Machinery 152 3564 (part) Industrial Gas Cleaning Equipment 52 3571 Computing & Related Machines 24 3581 Automatic Vending Machines 5 3585 Refrigeration Machinery 130 3622 Industrial Process Controls 54 3634 Electrical Housewares, Fans 37 3651 Radio & TV Receiving Sets 123 3661 Telephone & Telegraph Apparatus 149 3662 Radio, Communication Equipment & Apparatus 120 3672 Cathode Ray Picture Tubes 18 3674 Semiconductors 134 3713 Truck & Bus Bodies 164 3715 Truck Trailers 167 3717 Motor Vehicles & Parts 83 3721 Aircraft 1 3732 Boat Building & Repairing 11 3742 Railroad Cars 127 3791 Trailer Coaches 161 3821 Mechanical Measuring Devices 74 3831 Optical Instruments & Lenses 91 3841-2 Surgical & Medical Instruments 141 3843 Dental Equipment & Supplies 34 3861 Photographic Equipment 107 3911 Jewelry, Precious Metal 60 3941 Toys & Games 158 U.S. GOVERNMENT PRINTING OFFICE: 1968— 0-3 17-387 185 I Growth Watchers Handbooks □ These companion volumes help you Relate your product to competitive areas Discover new investment opportunities Evaluate current investments Measure the performance of U.S. manu- facture from 1958-1966 Industry Profiles, 1958-1966— Statistics on employment, wages, shipments. Ratios for in-depth analyses, compari- sons among industries. Identifies larg- est, fastest growth industries. New edition. 196 pages. $1. Growth In Shipments, 1958-1966-Com- prehensive data on over 1700 classes of products. Growth in shipments rank- ings. Pinpoints fastest growing indus- tries. 80 pages. 45£. Order your copies now. Call: Any U.S. Department of Commerce Field Office Write: Superintendent of Documents, Government Printing Office, Washington, D.C. 20402 These two books, along with Pace- setters in American Industry show you where U.S. industry is headed by show- ing you where it has been. U.S. DEPARTMENT OF COMMERCE / Business & Defense Services Administration ^•"O'Co, £ C \ PE 7,f 1 7 ; A 1 {EUNIVERSITY LIBRARIES A0000715flbSfl7