MASS PRODUCTION

Press, Volume LXIV, Issue 19480, 29 November 1928, Page 14

MASS PRODUCTION

•> SOLVING NEW ZEALAND'S » TROUBLES. MANUFACTURER'S VIEWS. Mass production was suggested by Mr A. W. Beaven. retiring president of the Canterbury Manufacturers' Association, in his presidential address last night as a solution of New Zealand's industrial troubles. » "I would suggest that our troubles can be summed up aa want of opportunity to produce enough of any one class of goods to return us a fair profit on our expenditure, for buildings, plant, taxes, supervision, office expenses, distribution, and all the other items making up what we call overhead," said Mr Beaven. "What is it that prevents us producing, under what is called in other countries 'mass production.'? "First —Want of population, that is gradually being improved, and our population consumes considerably more of nearly every item of expenditure than that of any other country in the world, except America. "Second—Want of protection against goods produced by lower paid workers and against goods produced by mass production in more highly organised countries. "Third—We toake far too many different varieties of articles of the same class; we must standardise more. Here is good scope for work within trade sections. "Fourth —Cost of transit: our eight centres of commerce separated by gaps which have to bo crossed by steamer or rail traffic, and the charges for this work exceed anything charged elsewhere. Our multiplicity of harbours is very expensive, however good ethically. "Fifth—The large amount of 'added value' to the cost of manufacturing caused by small production at high wages, plus high taxation, making our goods cost so much more than they can be produced for in other countries. Tariffs. ] "We must study these aspects with a view to lessen their handicap on our industries. I stilJ do not believe in high indiscriminating tariffs on all goods coming into our country. We must pay closer attention to obtain tariff increases for those industries which have our natural productions to work on—as wool, leather, iron. Choose carefully those items we can expect to sell the largest number of, concentrate our machinery, talents, capital, energy, upon these and then claim full protection on these items, so that those products from other countries are absolutely eliminated, and we can then make these items in such larger numbers, that the price of them can be reduced and industry secure its due reward. Harrows and Drills.

"For instance, last year more disc harrows and drills were imported into New Zealand than were made here, say, 1000 of each. If our local manufacturers were placed in a position -to make this 1000 in addition to what they are now making, the price could be lowered because of the reduction in overhead. I have no doubt that similar examples could also be found in the boot and woollen industries. "To make more of a fewer number of articles should be our aim; to do this difficulties Tvill have to be surmounted with customers, architects, etc., who like each to have bis own special fancied article and object to standardised poods, but these can be educated to think differently. Other countries have found that successful manufacturing is secured only by mass production. "Incomplete Profits." "In old times many manufacturers prided themselves on making a complete line of goods. Under old conditions that was possible, but under present conditions it means very incomplete profits. Investigations all over the world are showing that styles and patterns can be cut down in number. An American manufacturer found that of his 3000 styles and sizes, seven styles made up 90 per cent, of his total manufacture

"A shoe maker with three grades and 2500 styles cut his production down to one grade on 100 styles and increased nis total production over 50 per cent, by such concentration. There were 40 styles of reinforcing steel bars rolled in America. A committee of experts cut these down to 11; think of the tremendous saving not only in cost of manufacturing but in the volume of stocks kept by merchants. "The Institute of Engineers in Australia found there were 100 different sets of general conditions of contracts in use. involving a lot of trouble and anxiety to contractors, and they are cutting these down to a few general conditions applicable to all contracts. "At the present time we have only a revenue tariff which allows enough stuff to come in to prevent us from making enough, of any one article in paying quantities. If we manufacturers each in his trade section would give up something in order that each factory would concentrate, great good to the whole would result, prices could be lowered, and the public be made ready to meet us in the matter of tariffs. If we could see the production of a large number of the same article ahead of us, we could put in automatic machinery, our employees would specialise each on one operation and costs could be brought down. Factories could make each a standardised article, and thus lead on to combinations, which have proved to be so successful under the Kartel systems of Germany, and the cost of distribution would be considerably lessened.

"We cannot hope to produce and manufacture everything in New Zealand, but we can specialise on' certain productions as butter, cheese, lamb, crossbred wool, and also by concentrating on those comparatively few lines of manufacture of which we can expect to make a fair quantity, and then claim the support of the whole community in obtaining a sufficient Customs tariff to secure the whole of the trade in those lines. Duty on Wheat. "We willingly gave our support to a sufficient duty on wheat to give the New Zealand farmer the monopoly of growing wheat for the Dominion; we ask the same thing for a sufficient r umber of lines of manufacturing to keep our industrial population employed. "On us will lie the responsibility of choosing those lines so that good will come to our manufacturers and little, if any, handicap to our primary pronot suitably protected the consumer is left to the tender mercies of the manufacturer and trusts in foreign lands who can charge what they like. Permanent Tariff Committee. "There is one point that we manufacturers must continue to force on the Government, viz., the necessity for a permanent tariff committee which shall be available at all times to investigate* adjudicate upon, settle anomalies, and proposed new tariff duties. The committee could consider even the abolishing of protection on lines that are not being manufactured in the quantities that the public need. "At present we know nothing of bow the tariff regulations are arrived at. Influences are brought to bear, of which nothing is known till the decision is given and the matter settled. Officialdom is acting behind closed d.oors and other sections besides the aotive peti-