QUALITY AND VALUE

Otago Daily Times, Issue 21019, 7 May 1930, Page 19

QUALITY AND VALUE

“SECOND TO NONE” FACTORY PRODUCTION h STEADY PROGRESS MADE By MR E. SHEED , . (District .Officer, Department of Industries and* Commerce). As one who is constantly in-direct touch with the manufacturing, industries of Dunedin I can only say that I have nothing but admiration for; and appreciation of, the initiative and vision of those men who have often from very small beginnings, built up their factories to what they are to-day. It is'need«u • snsr tha * these men-.will not now rest upon their laurels,-but will 1 give of their best in the future Towards the further development 'of that which has already been done. : One. has but to see their products in the process of manufacture to realise. that thc adoption of the slogan, “ Second to None in Quality and Value is no idle boast of the Manufacturers’ Association. Th competition, with overseas producers, the local manufacturer/has been compelled to keep nimeelf abreast of the’latest economical'methods of . production by the creation of up-to-date factories* the installation of up-to-the-minute machinery, the application of science to'industry, and by the necessity for procuring an increased ' output per head 1 of employees and per popnd of capital invested. Improved methodsof packing are demanded, while a close watch must’he kept upon avenues of distribution. The products of Dunedin are already known from one end of the_Dominion to .the.other. Their.quality stands as a criterion for others to emulate, and their value is compatible with long and satisfactory utility. It is. however., regretted that production in the majority'of factories is not np to maximum capacity. Short time is worked by many-of the employees, and the prosprects for the future often do not reveal any marked degree of possible expansion. It is true that in the years to coine, as in tlie past, an increase in population _ will permit of a gradual extension of activities,' blit surely some more definite prospect_ than this should'be held out for the manufacturer himself and. for the quicker absorption of an influx of desirable emigrants to swell such population. The exertion of a preference to buy more and more New Zealand-made goods must have-a cumulative effect in that while the manufacturer himself would benefit, so would the progress of the a whole tend towards the elimination of those econoniic forces . which perplex and retard. r . Owing to the arrangements for “ Made in New Zealand Week ” being approximately^six weeks earlier than last year's, effort, it has not been possible to procure the factory production figures which are usually available early in June. However, some preliminary .figures of certain industries for the year ended March 31. 1929, have been released by the Government Statistician, and a short,summary of a few of these is given below, CONFECTIONERY AND BISCUIT-MAKING. . Year .ended March 31,

In practically -all phases of this industry increases are disclosed when compared with the preceding 12 months. The total value of land, buildings and plant shows an increase of 12 per cent, over that for the previous year’ the total number of. persona engaged shows ad advance of 4 per cent but the total salaries and wages bill advanced by only £1244. The cost of materials used rose from £790,682 to £836.158, a percentage increase of 6, while the value Of products increased by 3 per cent. The “ added value ” (difference between cost of materials used and value of products) receded a shade from the 1927-28 figure, ihe various products totalling £1,679,990 comprise:—

tab l e ®!' ow s the importance of this industry to tlio Dominion py S'vmg the value of biscuits and confectionery produced, together with the imports and exports during the past five years:— . - 1 tne Balance Percentage ■ retire- of N.Z. . sentlng con- . producTear ended Produced in ' sumptlon tlon t 0

, .{P 1 ® outstanding point in the foregoing table is the recession of 22 per cent, fin the.value of imports of biscuits and confectionery during the year ended December 31, .1928, as compared with the previous 12 months, I'aoo on p ? rce ?! age ' Ca ! production to total consumption during the year 1928 ; 29-:viz.. 86 per cent is indeed a remarkable total, emphasising how production is almost, approaching total demand, > ■** PRINTING AND PUBLISHING. . ' Year ended March-31.

Conditions inthis industry show a marked improvement over the preceding 12 months. Establishments’have increased by, 12, the'value of land, buildings, plant, and machinery has advanced by £470,000, the number of persons actively -was 3 per cent, in advance of the former year, and ; this latter increase is reflected in the total salaries and wages bill for the year, which shows an in- ~ pe J _. The added in process of manufacture rose from £5,276,171 to £3;476,787 —an advance of no less than 6 per cent. The “ efficiency ” . indices disclose a gain of 3 per cent, in the added value per person engaged during the year 1928-29 as compared with the year 1927-28. ! Ail analysis of the. materials used during the past three years furnishes some interesting information;—. car Ink . Newsprint paper for job printing. and other' Total March 31, , Quantity. Cost. lb. Cost. materials. , cost 1927;...- 48,235,633 £466;013 18,410,324 £481,154 £158,857 £1,106,024 1928 52,763.397 486,325 19,364,439 469,369 179,179 1 134 873 1929 rm." 52.719,286 467,328 18.466,783 491,568- ‘ 207,042 "1,1651)38 Ihe products past three years are also shown hereunder:— Year ended . Other March 31. Newspapers. Job printing. products. Total. 1927 ' .. £2,411,634 £1.774,435 £341,627 £4,527,696 , J 928 .. 2,419,200 *1,635,497 356,355 4,411,052 # 1929 .. 2,480,758. 1,700,791 461,176 4,642,725 * Including £28,489 not allocated between newspapers and job printing. WOOLLEN MILLS. ; Year \mded March 31.

, . figures for this industry show that practically all activities were maintained on a level slightly ;above those for the previous year. Employees increased fu 5 p< i r 0611 V; selarres and wages by 5 per cent., while the value of output and the value added in process of manufacture show advances of 2 and 3 per cent, respectively. . . ' Thc a ™2' , J? t „ of „ scour , cd wool used during the year ended March .31. 1929, was just over 4,000,0001 b. valued at £509,000. The principal products for thc same period were: — , ”...

1,,=. f* i S most ,n te rostn.g to note the volume of competition from overseas that las to be faced by the local mills.. The average importations of woollen manuP " re °f ■ ’, n l Xed ' V0 , 01 ). appanal, and ready-made clothing for the past five years amounted to a va|ue' of £2,968,453 per annum, while the average local production for the same period amounted to £1,184,510 per annum. The import figures shown do not include all the woollen fabrics, nor do they include all cotton., silt, or other fabrics which, may generally be regarded as collaterally competing-with the products of the local woollen mills Neither do these import figures coyer such itenn as hats and caps, hosiery, millinery, drapery woollen piece goods, and rugs. 1 TANNERIES.

AUhough a favourable turn in prices, which found expression in a hieher raw material bill and a relatively higher aggregate value of was show d nn J° r ta f nneries during the year ended March 31, 1929, P the statistics i MI f x P lans 1 ans . ,0 V n % tanning industry. Competition from overseas C tlle , leatl , ler industry continues to become keener. New USe oibor ' ai i- Hides, pelts, and Q.?a 1 n' I ' SW • & c °f- Z C T- $■ c » st ISIS ffi rs fffi 9S g&l IKS HS« »£» 1028-20 202 ■:,« l;g 5S i?gl The sheepskins treated in 1928-29 showed gains of 31 nnrl gq n . P elte - alld oth - skins increased Scoured and 5=3- fr -fL. ur. | iffsli lIS Is is si Ms in 109 O ft9Q tl i'l t n n lT.! ; a , drop l o£ 5 P. er cent in the quantity of leather produced in 1928-29 the value showed a gain of 7 per cent. Pickled pelts (including ordinary dry .P. e Hs) increased by 12 per cent, in both quantity and value in comparison with 1927-28. ■’ u,m 1,1 BOOTS AND SHOES.

- . The statistics for*tins industry show that the level of production has not been maintained during the last year. Seven factories were closed for the greater part of the year, while the number of employees and the wages paid to them have decreased by 1,92 per cent, and 3.19 per cent, respectively ~ . ie materials used,: £580,927 (New Zealand- leather £328 194 imnorted leather £162,359, and other materials £99,374) have, however,S

of 2.77 per cent. The principal products for the year ended March 31. 1929, - du I b ? 0t ? 6h °? s .’, , 1 > 251 > 442 pairs valued at £1,037,630; slippers, «R l n?i air6 Ti, aU ; e<l at , f27 . 83 : childrens boots and shoes, 111,526 pairs valued at 1000 ■’j' Tflvi ™^ r * 8 of adults and childrens footwear for the calendar years lmzo ana were:— , • . . Pairs. Value. 1828 ■ 3,002,436 f 962,573 1929 • • • • 3,213,216 1,066,939 , 'V' C * is > vea , H ® ed . tha t the quantity of boots and. shoes imported is more alf ° Ca P roductlon * severity of overseas competition, will become OTHER INDUSTRIES, industries for which production figures are available* for the year ended March 31. 1929, 6how the following results:- ■ j p iate - and chemical fertilisers show a; decrease of 4 per cent, in au , ? ore . a ® e °f , 3 Per cent, in value when compared with e V r?:i OUS lncr ease is recorded in the quantity of materials used! fttfSirz, ssr cent! °i u the^vafue°ofatmeaL D ’ P ° ,lard P roduced - and a of 5 per 31 A'm 6 dpnlf atld the statistics for the year ended March a, ’ decrease practically all phases of the 1 industry bv j Z B n h p-j e *l OUs y , ear - , The number of. persons engaged receded oy o per cent* as also did the value o£ output. tainedTt’TTteadv ! s <^ Mv^ es iu th i e industry have been main- ■ used hc 4 valup nf fv hstandln^o a o in the cost of material thc oi tnut 7 thc , year 1928-29 was 2 per cent, greater than TSITLZ 19-7-28. Both these latter movements are reflected in an advance of 0 Per cent, in the value added m. process, of manufacture. ■ -Building, and Construction.'—The figures for the rear 1928*20 diqnlns#' ncreases in practically all spheres pertaining to the industry. It is interesting to note that m 1400 establishments no fewer than a total of 11 700 persons are engaged while the value of work done # approaches-'£10,090,000. ’ ' ■ ‘

Number of establishments 1028. . 83 1929/ 93 Persons engaged .. .. » . . 2,640 2,734 Salaries and wanes paid . .£ 373.896* £ 375,140 1 Cost of materials used .. . £ 700,682 £ 836,158 Value of products .. . . >s . £1,637,597 £1,679,990 Added value . f 846,916 ' £ 843,832 Value of land, buildings, plant, etc. £ 935,281 £1,050,207

Biscuits .. Confectionery .. .. £942,174 Other products .. £248,637

March 31. How Zealand. Imports.* Totals. Exports.* Zealand. sumption. 1925 £1,€69,808 £277,431 f U47.239 £13,290 £1.733,949 90 1926 1,588,459 331,340 1,919,805 8,760 1,911,039 83 1927 1,626,269 324,074 1.930,343 6,683 1,944.660 84 1928 - 1,637,397 357,905 1,995,502 6.182 1,989,340 82 1929 . 1,679,990 279,469 1,959,459 7,223 1,952,236 86 Year ended December 31 preceding. .

Establishments .; .. 1 .. 1928. ... 346 1929. 358 Value land, buildings, plant, etc. .. .. £3,580,230 £4,050,272 Persons ■ engaged .. 8,0538,322 Salaries, and wages paid .. .. .. £1,805,690 £1,838,262 Cost of materials used .. 1,134,873 1,165,938 Value of output .. .. 4,411,052 4,642,725 Added vahie ,, .. 3,276,179 3,476,787

Establishments .. .. .. 1928. 12 1929. ■ 12 Value of land, buildings, plant,; etc. .. £ 938.249 £ 898,869 Persons dhenced .. .. .. .. 2,451 2 576 Salaries and wages naid .. f 381,651- £ 399’560 Cost of materials used .. . .. 581,845 588,879 Value ;>of output -I, .; 1.236i578 Added value .. .. .. .. 627,305 647,699

Tweeds and cloths .. 1,061,888 yards Flannel .. 1,350,500 yards Blankets . 129,741 yards Shawls and rugs 81.178 Yarn .. 531,083 lb

Year ended March 31. Establishments .. . 1928. -. 14 1929. * 14 \alue of land, buildings,, plant, etc. Persons engaged .. £181,Sol .. 422 £166,727 409 Salaries and wages paid ., ' Cost of materials .. .. Value of products .. .. , \ Added value £107,740 418,907 597.348 178,441 £106,801 457,276 660,668 203,392

Year ended March 31. Establishments 1928. ... gj 1929. Value of land, buildings, plant, etc.' Persons engaged . - £ 403,432 . 1 2,338 74 £ 415,613 2.293 Salaries and wages paid .. f 405.443 £ 580.927 1,144,869 563.942 Cost of materials used .. Value-of products Added value .. .. .. ’ | 565.250 .. 1,168,737 603,487