Television digest with AM-FM reports (Jan-Dec 1951)

TIGHTER NICKEL MEANS FEWER TV-RADIOS: Nickel shortage looms so real that it may soon force reduction of TV-radio output in direct proportion to impending cut in raw material supply — at least 50%, possibly even more. That's the current trade forecast from highest govt, sources, to be spelled out in detail by top mobilization officials when they meet with industry representatives in Washington next Tuesday (see Mobilization Notes). DO orders already placed would consume 85% of available supply of nickel if they aren't trimmed, as reported here last week (Vol. 7:14). For receiving tubes and kinescopes , there appear to be no all-out substitutes or real shortcuts. Tungsten will be next serious shortage to hit industry — and govt, metals experts say its effects on tube industry could be more crippling than nickel crisis. If condition were merely short-range, this might be welcome news to great number of distributors-dealers with "digestive tracts" figuratively "constipated" with excess of merchandise — but at the factories and among rank-and-file employes the situation presents grim prospects for later this year. Plain, unvarnished fact is that the public, with a few spotty exceptions, has taken a walk on TV buying. Whole trade is in dither. Instead of the 1,000,000 or so TVs estimated in inventories (Vol. 7:14), one of biggest set makers this week calculated nearer 2,000,000. Factory layoffs are spreading, union leaders plenty worried — latter now awake to need for hurrying end of freeze and adding their considerable influence to pressures being exerted for relaxation of Regulation W. Whole trade blames these factors in main for present situation, plus confusion about prices, color, etc. Cutbacks are order of the day, especially since defense orders are coming through in mere driblets. Hardly a receiver, tube or components factory has been lucky enough to escape layoffs. "Long vacations" this spring and summer may be tactic used by some. RCA layoffs at Camden are reported at 1300 to date, mainly recent additions to payroll. Emerson dropped 250 in Jersey City plant. DuMont , already on 4-day work week, this week laid off 500 of 3500 workers in Paterson plants, and Westinghouse dropped 130 off usual 1300-1500 payroll at TV plant in Sunbury, Pa. Others had already cut rolls, notably in Chicago (Vol. 7:13-14). Philco . which has enjoyed fairly steady production pace, issued this statement this week: "Starting April 23, part of TV-radio production of Philco will be cut back temporarily due to an adjustment of production schedules in line v;ith the requirements of govt, regulations and the spring sales demand. Philco is continuing full production of all govt, work, auto radios, export products as well as refrigerators, freezers, electric ranges and air conditioners." Two-week furlough of 5000 employes is indicated, some of whom may not be called back soon. ❖ Irony of situation is that, if nickel curtailment cuts tube supply and re [ duces output of small as well as big radios and TVs, lower production rate may force ' higher prices because of inability to maintain economies of mass production. Thus if manufacture slows down and even a modicum of demand is maintained, present stocks next fall and winter might be "worth their weight in gold." That's v/hat v/holesalers and retailers are being told — but their retort is that it's scant comfort to them while huge credits are tied up in warehouses. , Every conceivable sales gimmick is currently being employed to move goods — I giveaways of all sorts, even of watches and candy for the kiddies. "Warehouse" and "surplus stock" sales offer even branded merchandise at 20% to 50% off. Yet the , only items moving at anything like normal pace seem to be TV table models at $200 ] and under and radios, especially portables. i 8