Showmen's Trade Review (Oct-Dec 1944)

36 SHOWMEN'S TRADE REVIEW October 7, 1944 CHAIRS ARE TOPS ON THE POSTWAR PRIORITY LIST "How soon after conversion from war work at factories that supply the chairs we need will new theatre seats be available?" That question is one of the most persistent of the many queries regarding theatre equipment, to be addressed to the editors of this publication by exhibitors. In seeking an answer to the question, Showmen'^ Trade Review has, in turn, made inquiries in many quarters which, because of their control of factors that might be expected to determine the ultimate answer, would seem to be the authority to consult — if, under the natural uncertainties existent, there can be any real authority for the answer desired. Heretofore there has been no very definite or concrete information, nor even enlightening speculation based on substantial considerations of the elements involved in the huge task that manufacturers will face in terminating their present war materials manufacture and converting to volume production of theatre seats. Now, thanks to the cooperation of H. M. Taliaferro, president of American Seating Company, it is possible to outline the controlling factors and in a general way, indicate the course that appears to lie ahead for the supply of new chairs to theatres. To begin with, the length of time between the cessation of war and the delivery of chairs will be determined largely by overall conversion policies established by the Government. These policies will determine the speed with which inventories of raw materials can be established. Raw materials and labor conditions within the area in which manufacture is located are the determining factors as to the speed with which deliveries can be made following conversion to civilian manufacture. The principal raw material required for the i Here Are The Answers To 9^ P Theatre Owners' Queries 9 About Styles and Delivery ■ Expectancy of New Seats ■ atre chairs is steel. But there is also need for a number of other materials which are now virtually unobtainable, and such substitutes for the latter as are available are not regarded satisfactory. But assuming that steel can be obtained in quantity and that reasonably satisfactory substitutes can be found — a good finishing material, good upholstery material and a few other items — it is estimated that American Seating Company should be delivering theatre seats in less than three months from the time production is started. This result is expected because the company's Postwar Planning Committee has its program well defined and is ready to put the plan into effect as soon as materials and labor are released for civilian production. The second phase of exhibitor questions regarding theatre chairs is : "Will the first chairs manufactured be the same models that were being made before the war?" On this score there is every indication that the new chairs will be improved in design. It is certain, however, that manufacturers, in the interests of speed of delivering the product (as well as preventing factory idleness and widespread unemployment in order to entirely retool) will utilize basic tools that will be ready for immediate use. Moreover, so far as such articles as theatre chairs are concerned, it must be borne in mind that actually there has been very little of raw material development. It is most likely that there will be increased use of some light materials and plastics, but the principal structural materials will not be greatly changed. The new materials, Mr. Taliaferro points out, may be used for decorative purposes rather than for structural members of theatre seats. As to the probable cost of postwar chairs as compared with pre-war costs, Mr. Taliaferro sums up that point for us as follows : "In a general way cost of postwar theatre chairs is expected to increase in about the same ratio as such other durable goods products as the automobile, refrigerator, radio, etc. The guesses that have been made about the amount of this increase vary considerably. "Automobile manufacturers expect their early models to be much like the 1942 product and are giving publicity to increases of from 20 to 30 per cent. This without doubt is pretty well informed opinion and is put out at this time to prepare the buying public for the inevitable and to forestall, if possible, their reaction against the high cost of living which may have had some effect in bringing about the buyers' strike of 1920 and 1921. "The present prices under OPA are the 1942 prices, and since then both material and labor — both labor and material go into overhead — have increased considerably. It is not certain, of course, that the OPA will permit this increase to take effect immediately or in a short period. "The only hope of offsetting these increased prime costs is in technological improvements, and how much effect they can have will not be determined until after production is gotten underway. As about 85 per cent of all costs is some form of labor, you cannot increase the labor cost without directly increasing the cost of the article unless the unit cost is reduced by higher rates of production." To return to the first question as to the speed of delivery of new postwar seats for the theatres, the industry must realize that this is a matter that is not entirely one for the manufacturer to handle. The greatest deterrent to manufacturers getting quickly into civilian production will be the length of time required by the government agencies to clear plants that are now working on war materials as soon as possible after cancellation of such contracts. Unless th&se plants are speedily cleared of raw material and that which is in process, as well as the special equipment required for the war work, and the contractor is promptly reimbursed for the money he has tied up in war materials, he cannot quickly get back into peacetime production. Another deterrent to speedy reconversion, a great many manufacturers aver, is the risk that the manufacturer takes against the present corporate tax situation which absorbs 95 per cent of profits. These two deterrents, manufacturers point out, must be cleared if industrial production facilities are to be quickly converted from 'var production to civilian goods. ROW UPON ROW of new theatre chairs will be needed to fill the requirements of existing theatres which have plans for reseating as soon as new equipment is available. Improved design is one of the features which theatre owners can look for in the chairs that will be delivered when postwar deliveries start, for as revealed in the accompanying article a postwar planning committee now has a program set and ready to be put into effect as soon as materials and labor are released for civilian manufacture at its company's plant.