ARMAMENT NEEDS

New Zealand Herald, Volume LXXIII, Issue 22488, 4 August 1936, Page 10

ARMAMENT NEEDS

LOCAL TRADE AFFECTED DELAYS IN DELIVERY HARDWARE PRICES RISING One effect of Britain's rearmament programme is being felt by Auckland importers of hardware and metal goods ii\ increased prices and delayed deliveries. Many of tho new prices are no doubt due to a general movement in that direction that has been noted for some time, but others are undoubtedly a result of the demand for plant and materials for armament making. This demand shows itself most in the inability of a number of British manufacturers to lill orders as promptly as usual. One Auckland house lately sent forward an order for a particular kind of lathe, and was informed that it could bo supplied at the earliest in 54 weeks. This is an extreme ease, but there are others not very unlike it. Canada as Alternative Tho pressure seems to bo felt most in regard to heavy goods, such as machine tools and other lines required in industry, but it is having an increasing effect on tho delivery of what are known in the trade as "shelf goods," including a wide range of consumers' lines. "We are getting letters by every mail saying that orders cannot be filled for so long, or that delivery is uncertain," said one informant, " and the situation seems to be getting more acute. A great many manufacturers have very adaptable plants, and can switch over to Government orders with very little difficulty. If things got worse we can, of course, go elsewhere. Canada is an alternative, but lately we ordered a line of tools there and were told that prompt delivery could not be given. No doubt the reason is that Canada is coming out of the depression and demand is a little ahead of production for the time being." Building Activity in Britain Other people in the trade were inclined to think that armament orders would bo slow to have an e/lect on ordinary household lines manufactured in, say, Birmingham, although they agreed that prices wore going up all round by small percentages from time to time. " The manufacturers are treating us very reasonably," said one. "We got notice the other day that aluminium ware would bo o per cent dearer. Builders' hardware is anything up to 10 per cent, but when one considers the amount of building that is going on in England that is not surprising."

Another executive said that merchants complaining of delays would probably have less trouble if they possessed London representatives with authority to make the best possible arrangements on the spot. His own concern had a number of long-term contracts, and the goods were coming forward regularly without the least interruption. Admittedly it did not deal in the lines most likely to be affected by pressure of Government orders.