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Flax-milling. Official statistics, year ended 31st March : — 1925. 1926. 1927. Establishments (number) .. . . . . 67 71 73 Employees (number) .. .. .. 1,243 1,241 1,193 Wages paid .. .. .. .. £226,313 £275,755 £233,897 Value of output .. .. .. .. £519,867 £553,285 £495,784 Value added by manufacture .. .. £388,420 £430,393 £369,465 Rope and Twine Making. Official statistics, year ended 31st March : — 1925. 1926. 1927. Establishments (number) .. .. .. 9 6 7 Employees (number) .. .. .. 233 227 228 Wages paid .. .. .. .. £43,005 £44,144 £45,151 Value of output .. .. .. . . £223,234 £237,573 £227,562 Value added by manufacture .. .. £95,366 £105,676 £100,198 These two industries are, of course, closely related. It will be seen that the former discloses a considerable decline in the value of output and in the number of employees. The flax-milling industry has not been in a strong position in recent years. More attention is now being paid to this natural product by those engaged in scientific investigation, and it is hoped that considerable improvements will at no distant date be made in plant-selection, cultivation, treatment, and grading. Those engaged in the rope- and twine-making industry report that conditions are fairly stable, and that an improvement was experienced since the figures quoted above were compiled. Larger wheat crops have increased the demand for binder-twine, which is the main product of these works. Prospects are fairly satisfactory. Clothing. Official statistics, year ended 31st March : — 1925. 1926. 1927. Establishments (number) . . .. 211 221 229 Employees (number) .. .. 6, 652 6,833 6,881 Wages paid .. .. ... £775,943 £844,383 £873,140 Value of output .. .. .. £2,339,462 £2,515,280 £2,600,462 Value added by manufacture .. £1,088,768 £1,168,595 £1,211,716 . Imports, calendar years :• — Apparel and ready-made clothing .. £2,259,558 £2,202,791 £1,994,525 It will be noted that in the clothing-manufacturing industry there have been steady increases in the number of establishments, number of employees, wages paid, value added in process of manufacture, and in the value of products. The latest information available points to further progress since the statistics above were prepared. Recent reports state that, while certain branches of the trade in men's clothing have been quiet, in other lines output has been fully maintained, and in some instances has necessitated a slight increase in the number of employees. The better class of ready-made clothing for men and boys is largely made up from locally-produced cloths. In the Auckland District manufacturers advise that, as the local factories are now able to cater for the prevailing fashions and demand for men's wear, they are obtaining a much larger proportion of this trade than formerly, with the result that the factories have been working at high pressure during the past year, and are still kept fully employed. In respect of women's clothing the position is apparently not quite so satisfactory, and a considerable proportion of women's goods is imported. Some factories making this class of clothing have, however, been kept fully occupied, and the prospects are considered reasonably satisfactory. Dominion manufacturers of knitted goods are producing a class of article which is finding a satisfactory market, and the position in this respect is encouraging. Clothing-manufactures in Canterbury and Wellington Districts report that trade conditions have been satisfactory, though somewhat erratic. Price competition among local makers has been very keen, but prospects in most lines appear to be distinctly good. Agricultural and Dairy Machinery and Implement Making. Official statistics, year ended 31st March : — 1925. 1926. 1927. Establishments (number) .. . . . . 27 28 25 Employees (number) .. .. .. 986 1,040 885 Wages paid ■■ •• ■■ £198,073 £220,482 £191,002 Value of output . . .. ■■ •• £619,775 £716,672 £607,339 Value added by manufacture .. .. £279,833 £366,889 £311,614 During the past three years there has been considerable fluctuation in this industry, and a marked depression was experienced during the year ended 31st March, 1927. This state of affairs continued in the South Island until quite recently. In the North Island, however, an improvement was noticed during the spring of 1927, and business has been good since that time. The greatly increased use of

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