Japan’s Challenge To Cotton Trade

Manawatu Times, Volume LIV, Issue 7242, 23 August 1933, Page 12

Japan’s Challenge To Cotton Trade

WHY LANCASHIRE IS LOSING TRADE SOME STARTLING FACTS With 2000 spinning mills, representing a capital investment of £124,000,000, Lancashire in 1913 exported 95 per cent of her cotton products, representing 25 per cent of all British exports and between 60 and 70 per cent of the world trade. Last year these percentages were halved. Lancashire’s share of British exports was 12.5 per cent and of world trade 35.5 per cent.; of her 520,000 cotton operatives 33 per cent were unemployed in July 1932. Lancashire is devastated (says Prof. Charteris in the Sydney Sun) because it depends upon an export trade, now largely lost by the enormous expansion of Japanese competition. In all probability Lancashire has lost to Japan the providing of coarse cloths on which her pre-war supremacy in India and China depended. The year 1930-31, however, was a burst of “Indian summer.” Her cotton exports to India and Coylon increased by 150,000,000 square yards and to China by just under 50,000,000. To Australia the increaso was from

102.5 million to 141.5 million, and it was doubtless due to the remarkably beautiful fine cotton dress-goods which took our women by storm, tired as they were of 30 years’ reign of silk. In these fine fabrics Lancashire will long maintain her pre-eminence, but in the coarser counts her loss is heavy and seems permanent. Her tragedy is that as her industry is at present organised she still requires to export about 80 per cent of her cotton products in order to regain prosperity. Lower Costs. So far from Japanese success depending on Government subsidy, its secret is to be found to consist mainly in: (1) Lower labour costs; (2) superior organisation; (3) intensive rationalisation; (4) centralised buying and marketing. Depreciation of the yen and other indirect Government assistance also play their part. Let us examine these factors: Cost of Production. —In respect of spinning, the cost is, article for article, substantially lowor in Japan tnan ih Lancashire, while labour costs less than half. In weaving costs in Japan are again much lower, although partly off-set by higher over-head expenses. Coal, for example, costs 4s a ton more in Japan than in Lancashire. The finer the yarn and the finer the fabric, however, the relative efficiency of Lancashire’s spinners and weavers makes itself felt, and the advantage in cost lies less and less with Japan.

Superiority of Organisation.—ln technichal equipment Japan plumps for automatic looms and ring spindles of the latest model and works a two-shift system of 81 hours. Between 30 and 50 automatic looms arc worked by a single Japanese weaver; in Lancashire, where the mule-spindle, excellent for fine cloth, prevails, the weaver now operates only six. Rationalisation.—-Japan has reduced her export mills to four great organisations, and the Japanese spinning company, on an average, possesses three itmes the spindles owned by a. British firm and twice as many looms. Centralised Buying.—ln contrast with the large number of Liverpool merchants and brokers importing and holding cotton, SO per cent of the cotton imported into Japan is supplied by three great firms, who also handle approximately the same percentage of cotton yarn and piece-goods exported.