Monday, Mar. 11, 1946

Where Are the Goods?

No one expected U.S. industry to reconvert as fast as it had. No one expected that six months after V-J day, it would have produced so little. In big & little shops all over the nation, businessmen agonized, like Laocoon, in the coils of strikes, shortages or price troubles. Overall U.S. production was down to the levels of 1941, and the manufacture of many consumer's goods far below that. Last week Civilian Production Administration Boss John D. Small gave the latest box score on the output, and a miserable story it told. In January, before the steel strike had hobbled industry, the U.S. had turned out:

P: About 500,000 radios, less than half of the prewar rate.

P: 100,000 refrigerators, only 30% of prewar output, and production was skidding.

P: 12,000 sewing machines, only one-quarter of the 1939 rate.

P: 58,575 autos and 54,791 trucks.

P: Building materials, cast-iron pipe, lumber, bricks, laths, radiators, etc. were far below the minimum requirements for the nation's housing program.

The steel strike had cut this production, small as it was, even more. Now that the strike was over, said Small, "The thawing of this winter's labor-management freeze-up should enable manufacturers to move rapidly into high gear." Would it? Few businessmen thought so.

The steel industry had gotten its open hearths going in double-quick time. It would be up to 78.4% of capacity this week. But weeks will pass before steel is flowing evenly to industry again. And the boost in steel prices has raised a host of new problems for suppliers. OPA hoped that the raise might be absorbed along the line. But where and how? The price raise may make it harder than ever for manufacturers to break the bottlenecks --e.g., in castings--which have plagued industry as viciously in peace as in war. For lack of one small part, many a product has remained in the factory, instead of moving into the stores.

Hedged by these obstacles, U.S. production may have a hard time climbing to where it has to go. Detroit's automakers were a significant case in point. They had planned to be clicking out 140,000 cars a week by this time. This week, they hope to make 6,000 cars.

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