RAW MATERIALS.

Auckland Star, Volume LXX, Issue 88, 15 April 1939, Page 10

RAW MATERIALS.

STOCKS IN DOMINION.

GOVERNMENT INQUIRING.

MANUFACTURERS' POSITION. Manufacturers in Auckland and other parts of the Dominion have been asked by the Government to produce information regarding their supplies of raw materials in all cases in which applications are lodged with the Customs Department for licenses to import from overseas. This development, which is the latest phase of import control as,it affects the secondary industries, is expected to operate generally when licenses are issued during the next few weeks for the latter half of the year.

Although some manufacturers have reserve stocks of materials to maintain their activities for several months ahead, a stocktaking of the position is not expected to disclose any large margin to meet the increase now occurring in wholesale and retails orders. A number of factories have already experienced a shortage of materials which can be obtained only from overseas, and to add to the difficulty, the delays in the placing of orders have been caused through the round-about procedure involved in the licensing system. There is a feeling in some quarters that the Department machinery is not working as smoothly and expeditiously as it should.

Manufacturers appreciate the desire of the Government to assist them to expand their operations as the demand for their products increases, but such an expansion, as was foreseen at the outset by many engaged in industry, cannot be brought about rapidly. One of the essentials is an adequate reserve of raw materials to ensure continuity of activity and to assist industry iii meeting fluctuations and sudden changes in demand.

Decline in Stocks. Since the licensing system came into force at the beginning of December manufacturers, it is stated, have been unable to enlarge their stocks of raw materials. On the other hand, they have been compelled to draw in varying degrees upon the stocks normally cai° ried. In some instances retail orders have begun to accumulate, due to a diversity of factors, and the firms affected, instead of being- in a position to undertake the planning for future development which the Government is so anxious to bring about, are grapplin"with problems connected with supplying immediate needs. °

A shortage of skilled operatives is one of the outstanding difficulties encountered.- Another is a tendency apparent in some branches of the retail trade to order in excess. A third problem is that of factory space and equipment. The scarcity of labour is stated to be most acute in positions usually filled by girls and women. There is also a general unsatisfied demand for boys. In some clothing factories overtime is being worked, but this is expensive

"We are unable to see very far ahead." remarked one large employer today. "What we need is a steady flow of orders and an increased supply of labour to enable production to be expanded. We cannot train large numbers of operatives in a short time and at the same time maintain the efficiency of our factories."