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

WITH AM“FM REPORTS 1519 CONNECTICUT AVE. N.W. if WASHINGTON 6, D. C. • TELEPHONE MICHIGAN 2020 Nobilizalion Report September 8, 1951 ] MORE METAL CUTS CONING-AHD THEN SOME: Less steel in fourth quarter than expected for TV-radio and other consumer durable industries. . .another slash due in copper... and tube plants facing serious curtailment next month because of nickel shortage. "The big pinch is here now" on civilian economy, said defense mobilizer Charles E. Wilson this week. But to most TV-radio manufacturers, the "big pinch" is academic — for their production is now well below the levels permitted by NPA. It's the sales situation — not materials — that's chief worry of the set makers today. But, while manufacturers voluntarily lowered their production goals to conform with demand, they're going to find it difficult or impossible to raise them again when inventories are depleted and demand exceeds supply. Rumblings on the materials front are ominous — boding steeper cuts in the supply of metals that are the brain, bone and sinew of TV-radio, threatening everlowering ceilings over potential production. Last July, makers of consumer durable goods were told they'd receive, in fourth quarter, steel at 65% of rate they used it in first-half 1950, copper at 54%, aluminum at 48%. But military and defense-supporting demands on steel for fourth quarter are taking bigger chunk of the pie than anticipated. So NPA did some more chopping. TV-radio manufacturers, in their fourth quarter allotments, are getting CMP tickets for about 60% of the steel they used during average quarter of first-half 1950 vs. 70% this third quarter. Further cuts in copper were virtually assured even before the disastrous strike which shut off 95% of nation's output of that basic electrical metal. As strikers began returning to the pits at week's end, it appeared probable that consumer goods manufacturers might not be able to cash in their CMP paper for the copper that's supposed to be reserved for them. Copper situation has govt, planners nearly frantic. DPA-NPA boss Manly Fleischmann Sept. 5 called it "desperate , " revealed he had ordered copper mills to give "preferential treatment" to military orders — clear indication he believes there won't be enough copper in bank during fourth quarter to fill all CMP orders. "Most critical of all large tonnage non-ferrous metals" — that's description of copper in NPA's newly-revised "List of Basic Materials," compiled before strike. Imports of the red metal have fallen off because foreign price is higher than price ceiling in U.S. DPA indicated Sept. 5 it would seek price relief from OPS to encourage imports, but next day mobilization chief Wilson publicly put his foot down on any such move. To make matters worse, shortage of copper scrap, which normally comprises about 40% of copper supply, has already forced virtual shutdown of ingot industry. * ^ * So new and deeper cuts in copper and steel to consumer durable manufacturers — who are last in line for vital materials — are certain next quarter, and again in first quarter of 1952 when arms program picks up more speed. But that's not all; New round is probable by mid-1952. Temper of Congress, pushing for bigger rearmament program, is solid indication. Present mobilization plans are based on 95-group Air Force, 24 Army divisions. But lawmakers are pressing for 150-to-162group Air Force, 30-division Army, more carriers and bigger anti-submarine fleet for Navy. While this will eventually mean more military orders, raising our sights this way will throw entire materials-control blueprint out the window. ■r ^ ^ if If materials shortages are academic today to TV-radio set manufacturers, they're very real in the factories turning out electronics' most basic components — vacuum tubes. Unless there's quick action by the Govt, at high level, nickel snarl 11