H.—44.

Comparisons of Group 4, covering industries which may be termed the genuine manufacturing industries for the years 1938-39 and 1939-40, indicate that the number of wage-earners increased by 4,784 and salaries and wages paid by £1,457,235. Cost of materials used, value of products, and " added value," all show substantial increases. The following chief differences between the years 1939-40 and 1938-39 are shown from the data available in respect to the various industries : — Number of Establishments. Increases. —Engineering, iron and brass, &c., 24; furniture, 22; concrete block and fibrous plaster, 21 ; sawmilling, 17 ; electrical engineering, 15. Decreases. —Printing and publishing, 7 ; butter and cheese, 5. Persons engaged. Increases. —Clothing, 931 ; boot and shoe, 656 ; woollen-milling, 574 ; sawmilling, 570 ; meat freezing and preserving, 385 ; hosiery, 355 ; engineering, iron and brass, &c., 353 ; electrical engineering, 338 ; biscuit and confectionery, 306. Decreases. —Coachbuilding, motor engineering, &c., 1,197 ; printing and publishing, 217 ; butter and cheese, 85 ; gasworks, 53 ; flaxmilling, 38. Salaries and Wages. Increases. —Meat freezing and preserving, £258,166 ; clothing, £249,611 ; sawmilling, £225,870 ; boot and shoe, £154,682; woollen-milling, £128,667 ; engineering, iron and brass, &c., £123,515; electricity generation and supply, £88,511 ; biscuit and confectionery, £77,266 ; hosiery, £72,626. Decreases. —Coach-building, motor engineering, &c., £240,529 ; printing and publishing, £16,953. Cost of Materials used. Increases.—Butter and cheese, £2,421,967 ; meat freezing and preserving, £2,233,140 : electricity generation and supply, £676,328 ; tobacco and cigarettes, £419,546 ; clothing, £322,579 ; sawmilling, £249,507 ; woollen-milling, £231,371 ; boot and shoe, £229,604 ; superphosphates and chemical fertilizers, £225,428. Decreases. —Coachbuilding, motor engineering, &c., £164,167 ; lime and cement, £21,239. Value of Output. Increases. —Meat freezing and preserving, £3,150,842 ; butter and cheese, £2,506,253 ; electricity generation and supply, £813,820 ; clothing, £809,441 ; sawmilling, £655,891 ; tobacco and cigarettes, £641,739 ; woollen-milling, £510,117 ; boot and shoe, £508,922; superphosphates and chemical fertilizers, £423,192. Decreases. —Coachbuilding and motor engineering, &c., £659,456; agricultural machinery, £159,890 ; fish-curing, £12,203 ; flaxmilling, £8,636. Added Value. Increases. —Meat freezing and preserving, £917,702 ; clothing, £486,862 ; sawmilling, £406,384 ; boot and shoe, £279,318 ; woollen-milling, £278,746 ; tobacco and cigarettes, £222,195 ; engineering, iron and brass, &c., £210,659 ; superphosphates and chcmical fertilizers, £197,764 ; hosiery, £196,659 ; paint and varnish, £181,061. Decreases. —Coachbuilding and motor engineering, &c., £495,289 ; agricultural machinery, £149,794 ; printing and publishing, £40,036. Land and Buildings, Plant, and Machinery. Increases. —Electricity generation and supply, £1,603,774 ; printing and publishing, £156,408 ; meat freezing and preserving, £154,144 ; engineering, iron and brass, £140,138; electrical engineering, £135,445 ; biscuit and confectionery, £112,889 ; superphosphates and chemical fertilizers, £94,892. Decreases.— Lime and cement, £63,694 ; grain-milling, £47,950 ; sail, tent, and oilskin, £22,508. Manufactuking : Genebal Comments. The past year is the first full twelve months of business under war conditions, the previous year including five months' peacetime trading. This is probably the paramount factor to be taken into consideration when reviewing trading conditions for the period. Returns which would have previously been regarded as disappointing are accepted as being satisfactory, having regard to the changed conditions arising out of the war under which the business community has been operating. The disturbances consequent upon war and dislocated overseas markets and distribution have intensified, affecting manufacturer and merchant alike ; yet satisfaction must be expressed that the impact within New Zealand has not as yet proved as severe as might have been expected. To some extent the quantity of goods produced has been conditioned not by the consumer demand, but by the adequacy of the supply of raw materials required in the processes of manufacture. As regards the demand for domestically manufactured goods, under the operation of the Import Control Regulations this has shown an increasing tendency as stocks of similar lines of previously imported goods have become non-existent. On the production side, manufacturers appear to have received reasonable supplies of raw materials, although in some cases these have been inadequate to enable the demand for finished goods to be fully met. On the other hand, certain other factors affect production, the chief of which is the shortage of skilled and even casual labour, so that in some cases the reduced staffs now available would be unable to cope with greater quantities of raw materials.

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