ENDUSTRIAL CHARACTERISTBCS AS THEY AFFECT COMMUNITIES, AN' EVALUA‘HON AND CLASSiFICATlON Thais 6e4- fihe Dumb at M. U. P. MQCHIGAN STATE UNIVERSITY Robert? .Bames Warner i956» TH 5518 U tt’T'frnmflt {3’ , ‘4 /' "9 “L “4678» INDUSTRIAL CHARACTERISTICS AS THEY AFFECT COMMUNITIES, AN EVALUATION AND CLASSIFICATION BY ROBERT JAMES WERNER A THESIS Submitted to the College of Agriculture of Michigan State University of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER IN URBAN PLANNING Department of Landscape Architecture and Urban Planning 1956 .mism erb’g ABSTRACT Statement of the Problem The rapid expansion of American industry within the past few years has resulted in keen competition among communities for the location of new plants. As there are more communities seeking new' industry than there are industries seeking new locations, promotional efforts of communities have been primarily directed toward attract- ing new industries per se. Little attempt has been made to evaluate the characteristics of each industry in terms of the kinds and amounts of benefits each might contribute to individual communities. As industrial characteristics vary from industry to industry, propensity to contribute beneficially to a community varies from one industry to another. It is. the intent and purpose of this study to evaluate a number of these industrial characteristics as they affect communities, and, further, to classify industries in terms of these characte ri stics and capacities to benefit communities. Evaluation and Classification For the purposes of this study, the following industrial char- acte ri stic s we re e xamined: ii Reliance on supplementary industries. Reliance on related industries. Economic stability. Seasonality of employment. Composition of labor force employed. Labor skills employed. Personnel policies and wage rates. Plant management and Operation. Size of establishment. An evaluation was made to determine what possible effects each industrial characteristic might have on communities. In ad- dition, industrial groups as determined by the United States Bureau of the Census were classified in tabular form by the capacity of each to provide benefits to communities in terms of the industrial characte ristic. Summary and Conclusions Although primary emphasis in locating new industrial plants must be given to such locational factors as proximity. amount and quality of raw materials, labor, transportation, power, and markets, this does not necessarily result in the maximization of industrial benefits to a community. iii Communities can be benefited in various ways by industrial- ization-~depending to a great extent on the type of industry introduced. The principle reSponsibility in determining the most beneficial type of industry lies with the community. Proper consideration of maximum industrial benefits will assist communities in attracting new industry. Although most in- dustries are primarily concerned with locating in an area that will be most favorable to an industry, at least secondary consideration is given to the potential benefits of an industry to a community. An industrial promotion campaign that stresses benefits to both an in- dustry and a community might reasonably be expected to be more successful in attracting a new industry than would a promotion cam- paign that stresses only the benefits that would be accruable to an industry . iv ACKKNOWLE DGMENTS The author wishes to express his sincere thanks to Professor Charles W. Barr for his helpful guidance and assistance during the development of this study. Grateful acknowledgment is also due to Mr. Richard D. Duke for his constructive criticisms and encouragement, and also to Miss Rosemarie Michi for her assistance in the preparation of the manu- script. TABLE OF CONTENTS STATEMENT OF THE PROBLEM .................. RELIANCE ON SUPPLEMENTARY INDUSTRIES ......... Evaluation . . Evaluation . . Classification ooooooooooooooooooooooooooooooo SEASONALITY OF EMPLOYMENT .................. Evaluation . . Classification ............................... COMPOSITION OF LABOR FORCE EMPLOYED ......... Evaluation . . Classification ............................... LAB OR SKILLS EMPLOY ED ...................... Evaluation . . Cla s s ification vi 13 13 14 16 16 18 23 2.3 27 38 38 4O 51 51 53 PERSONNEL POLICIES AND WAGE RATES ........... Evaluation . Classification ............................... PLANT MANAGEMENT AND OPERATION ............. Evaluation . IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Cla s sification ............................... SI Z E OF ESTABLISHMEN T ....................... Evaluation . Classification ............................... SUMMARY . . . BIBLIOGRAPHY IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 00000000000000000000000000000 vii 60 66 66 69 72 72 73 79 81 LIST OF TABLES TABLE I. Reliance on Supplementary Industries 11. Economic Stability ............. III. Seasonality of Employment ....... IV. Composition of Labor Force Employed: Female Employees, by Industry . . . . V. Composition of Labor Force Employed: Youthful Employees, by Industry . . . VI. Composition of Labor Force Employed: Aged Employees, by Industry ...... VII. Labor Skills Employed .......... VIII. Average Annual Wage and Salary, by Industry, 1947 ................ IX. Type of Ownership and Operation . . . X. Size of Establishment, by Number of Employees ................... viii 19 29 42 45 48 54 61 71 74 STATEMENT OF THE PROBLEM American industry Spent a reputed $27.3 billion on expansion in 1955.1 This rapid expansion of industry has resulted in keen competition among communities for the location of new plants. Many communities have resorted to elaborate promotional campaigns de- signed to attract industries. Competition has become so severe that, in many cases, direct subsidies in the form of tax reductions, rent- free facilities, and free sites have been offered as incentives to new industry. Primary emphasis in promotional efforts has been placed on the various advantages and benefits which would be accruable to industries as a result of locating in a particular area. Principal consideration has been given to locational factors such as availa- bility of production materials, labor, sites, industrial fuel, transpor- tation facilities, markets, and utility systems. The importance of these factors can neither be denied nor questioned, as they form the basis upon which industries may properly select new locations. 1"Wanted: New Industry," Time, September 26, 1955. p. 88. 2 On the other hand, with the exception of anticipated increases in tax base and payrolls, most communities have given little consider- ation to other potential advantages and benefits that might result from new industrial establishment. Recent studies1 have attempted to measure the impact of new industries on communities in terms of community services and functions, trade and commerce, labor and wages. These studies, however, have measured only the effects of specific industries on Specific communities. No attempt was made to examine the major characteristics of industry which cause these effects. Because of the broad diversity of industrial operations, each industry has different combinations of certain characteristics which have varying effects on communities. There are certain character- istics of industry that notably affect all cities. These character istics not only directly affect the economic structure and com- position of cities, but also indirectly affect many parts of the physical structure, such as traffic patterns and types of homes. They include factors such as reliance on supplementary and related industries, economic stability, seasonality of employment, composition 1See: W. Calef and C. Daoust, What Will New Industry Mean to My Home Town? US Dept. of Commerce, Washington, D.C., April, 1955, 19 pp.; and What New Industrial Jobs Mean to a Com- munity, Economic Researzh Dept., U.S. Chamber of Commerce, mgton, D.C., 1954, 13 pp. of labor force employed, labor skills employed, personnel policies and wage rates, plant management and operation, and size of estab- lishment. It is the purpose of this study to examine each of these in-~ dustrial characteristics as they relate to communities, and to further attempt a classification of major industrial groups (as es- tablished by the United States Census Bureau) in terms of these characteristics. Data derived from this study will be presented so as to aid in appraising potential industrial expansion as it relates to the future growth of communities. RE LIAN CE ON SUPPLEMENTARY INDUST R113 81 E valuation Certain industries, such as welding shops and ice plants, are of general value to an entire community. The nature of their prod- ucts and services, however, also makes them of value to major industries within an area. For example, welding Sh0ps are bene- ficial to the electrical appliance industry, and ice plants are useful to the meat-packing industry. Concerns such as these may be con- sidered as supplementary industries. Their value to major industries of an area is enhanced if they are readily and closely available. Supplementary industries are useful to other industries in several ways. First, they may supply products or services which are not being produced in the major industries of an area. Al- though most sizable industries are self-sufficient in turning out their products, there are some accessories, parts or services which are for them cheaper or more conveniently bought than manufactured. Local availability of such supplementary products is of considerable value to these industries. 1Based on data from Basic Industrial Location Factors, U.S. Dept. of Commerce, Washington, D.C., 1947. 4 Second, supplementary industries may supply products or services to augment those already being produced in the major in- dustries. Local availability of these supplementary industries may be of benefit to major industries in situations where continuous production is threatened or halted by an emergency such as a fire or work stOppage caused by 'machine failure, or where unusual peak production loads can be eased by placing work with nearby plants or shOps. Third, the. presence in a community of one or more supple- mentary industries may be an incentive to encourage the establish- ment of major industries which might be aided in production by such supplementary industries. Conversely, incentive for the estab- lishment of supplementary industries would represent a twofold gain, (1) providing added assurance of a local market and possibly ex- panded employment for the established firms, and (2) securing added employment from the new concerns. As supplementary industries provide their products and se r— vices for general community use as well as for major industries of the community and surrounding area, they are not, in the strict sense, necessarily dependent upon the major industries for their existence. The establishment of supplementary industries, there- fore, not only supplies a community and its major industries with needed products and services, but also tends to strengthen the econ- omic stability of a community (see "Economic Stability, p. 16). There are five supplementary industries which are of general value to most major industries where the need arises in instances such as those previously discussed. These include (1) a Machine Job Shop, (2) a Carpenter Sh0p, (.3) an Electrical Job Shop, (4) a Sheet Metal ShOp, and (5) a Mill Supply House. Except for the latter, many major industries maintain these facilities to some ex- tent, but additional local availability of such supplementary industries is usually of value. In addition to these five, there are fourteen other supplementary industries which may also be of production value to Specific major industries, as indicated in Table I. These basic supplementary in- dustries were selected by the United States Department of Commerce. It is not intended that the list be all-inclusive; there are undoubtedly other possibilities. An attempt has been made, however, to list those supplementary industries that are of most general use to communities and their major industries. TABLE I RELIANCE ON SUPPLEMENTARY INDUSTRIES Key a. Bag plant (burlap, cloth, paper) i. Foundry (ferrous and non- b. Boiler shop ferrous) c. Box (wood, paper) and Shook j. Galvanizing shop factory k. Heating and ventilating shop d'. Car and foundry plant 1. Ice plant (natural, dry) e. Container plant (glass, metal, m. Tool and die shop tin, paperboard) n. Welding shop (gas, electric) f. C00perage plant N. R. No relationships g. Electroplating shop N.A. Information not available h. Forge shop from sourcea Supplementary . ' ' b Major and Submajor Industr1al Groups Industries Used Apparel and related products Children's outerwear ................. c,e Fur goods ......................... c,e Men's and boys' furnishings ............ c,e Men's and boys' suits and coats ......... c,e Millinery .......................... c,e Women's and children's undergarments ..... c,e Women's and misses' outerwear ......... c,e -Miscellaneous apparel and accessories ..... N.A. Miscellaneous fabricated textiles ......... N.A. Chemicals and allied products ~Drugs and medicines ................. c,e Fertilizers ........................ a,e Gum and wood chemicals .............. c,e,f Industrial inorganic chemicals ........... c,e,f Industrial organic chemicals ............ c,e,f Paints and allied products .............. c,e,f Soap and related products .............. c,e,f Vegetable and animal oils .............. c,e,f Miscellaneous chemical products ......... N.A. TABLE I (Continued) Supplementary M ' a d S b a' I d t ' 1 8401' n u m jor n us r1a Groups Industries Used Electrical machinery Communication equipment .............. c,e,g,m Electrical appliances ................. c,e,g,h,i,k,m,n Electrical industries apparatus .......... c,e,g,m Electrical lamps .................... c,e Engine electrical equipment ............. h,i,m,n Insulated wire and cable ............... N.A. Miscellaneous electrical goods ........... N.A. Fabricated metal products Cutlery, .hand tools, and hardware ........ c,e,m Fabricated wire products .............. N.A. Heating and plumbing equipment .......... c,e,g,i Lighting fixtures .................... c,e,g,k,m Metal stamping and coating ............. c,e,f,j,k,m Structural metal products .............. c,e,g,m,n Tin cans and other tinware ............. c Miscellaneous fabricated metal products . . . . c,e,g Food and kindred products Bakery products ..................... c,e Beverages ......................... c,e Canning, preserving, and freezing ........ c,e,l Confectionery and related products ........ c,e,l Dairy products ...................... c,e,l Grain mill products .................. a,e,e,f Meat products ...................... c,d,e,l Sugar ............................ a,h,i,n Miscellaneous food preparations .......... N.A. Furniture and fixture s Household furniture .................. N.R. Office furniture ..................... N.R. Partitions and fixtures ................ N.R. Public and professional furniture ......... N.R. Screens, shades, and blinds ............. N.R. Miscellaneous furniture and fixtures ....... c TABLE I (Continued) Supplementary Ma' a d S b ' I d t ° jor n u major n us rial Groups Industries Used Instruments and related products Mechanical measuring instruments ........ c,e,g,m Medical instruments and supplies ......... c,e,g,m Ophthalmic goods . . .................. c,e,g,m Optical instruments and lenses .......... c,e,g,m Photographic equipment ................ c,e,g,m Scientific instruments ................. c,e,g,m Watches and clocks .................. c,e,g,m Leather and leather products Footwear (except rubber) .............. c,e Footwear cut stock . .................. c,e Handbags and small leather goods ........ c,e Industrial leather belting ............... c,e Leather gloves and mittens ............. c,e Leather tanning and refining ............ c Luggage .......................... c,e Miscellaneous leather goods ............ N.A. Lumber and products, except furniture Lumber and timber basic products ........ N.R. Millwork and related products ........... N.R. Wooden containers ................... N.R. Miscellaneous wood products ............ N.A. Machinery , except electrical Construction and mining machinery ....... b,g,h,i,j,m,n Engines and turbines ................. b,g,h,i,j,m,n General industrial machinery ............ g,h,i,j,m,n Metal-working machinery .............. b,g,h,i,j,m,n Office and store machines .............. c,e,g,m Service and household machines .......... c,e,g,m Special-industry machinery, n.e.c.C ....... g,h,i,j,m,n Tractors and farm machinery ........... b,g,h,i,j,m,n Miscellaneous machine parts ............ c,m 10 TABLE I (Continued) Supplementary b M ' S b ' d ' ‘ ajor and u major In ustrial Groups Industries Used Paper and allied products Envelopes ......................... c,e Paper bags ........................ c,e Paper coating and glazing .............. c,e Paperboard containers and boxes ......... c,e Pulp, paper, and paperboard ............ c,h,i,j,n Pulp goods and miscellaneous paper products . N.A. Petroleum and coal products Coke and by-products . ................ a,e,e,f Paving and roofing materials ............ b,f,h,i,n Petroleum refining . . ................. b,c,e,i,n Miscellaneous petroleum and coal products . . N.A. Primary - m etals industry Blast furnaces and steel mills ........... b,h,i,m Iron and steel foundries ............... b,h,i,m Nonferrous foundries ................. b,h,i,m Nonferrous metal rolling and drawing ...... C,e,h,i Primary nonferrous metals ............. b,h,m Secondary nonferrous metals ............ b,h,m Miscellaneous primary-metal industries . . . . N.A. Printing_and publishing industries Bookbinding and related industries c,e Books ............................ c,e Commercial printing .................. c,e Greeting cards ...................... c,e Lithographing ....................... c Newspapers ........................ N.R. Periodicals . . ...................... N.R. Printing trades service industries ........ c,e Misc ellaneous publishing ............... c , e 11 TABLE I (Continued) J; J. Supplementary Ma' (1 S b ' I d t ' l jor an u major n us r1a Groups Industries Used Rubber produc ts Reclaimed rubber .................... c,e,i,m,n Rubber footwear ..................... c,e,i,m,n Tires and inner tubes . ._ ............... c,e,i,m,n Rubber industries, n.e.c.c .............. N.A. Stone, clay, and_glass products Cement, hydraulic ................... c Concrete and plaster products ........... c Cut-stone and stone products ............ N.R. Flat glass . . . . . . ................... c,e,h,i,n Pottery and related products ............ c Pressed and blown glassware ........... c,e,h,i,n Products of purchased glass ............ c,e,f Structural clay products ............... c Miscellaneous nonmetallic mineral products . . N.A. Textile mill products Carpets and rugs .................... c,e,k Cotton and rayon broad-woven fabrics ..... c,e,k Finishing textiles, except wool ........... c,e,k Hats, except cloth and millinery ......... c,e Knitting mills ...................... c,e,k Narrow-fabric mills .................. c,e,k Woolen and worsted manufacturers ........ c,e,k Yarn and thread mill, except wool ........ c,e,k Miscellaneous textile goods ............. N.A. Tobacco manufacturers Chewing and smoking tobacco . . . . . . . . . . . c,e,f,k Cigarettes ......................... c ,e Cigars ........................... c,e Tobacco stemming and redrying .......... c,e,f,k 12 TABLE I (Continued) Supplementary b M ' d S b ‘ d i l ajor an u major In ustr a Groups Industries Used Transportation equipment Aircraft and parts ................... c,e,g,h,i,j,k,m,n Motor vehicles and equipment ........... g,h,i,j,k,m,n Motorcycles and bicycles .............. c,e,g,h,i,j,m,n Railroad equipment ................... b,d,g,h,i,j,k,m,n Ships and boats . .................... N.A. Transportation equipment, n.e.c.c ......... N.A. Misc ellaneous manufac turing Costume jewelry and notions ............ c,e,g,m Jewelry and silverware ................ c,e,g,m Musical instruments and parts ........... c,e,g,m Office supplies ...................... c,e,g,m Toys and sporting goods ............... c,e,g,m Plastics products, n.e.c.C .............. c,e,m aSource: Based on data from Basic Industrial Location Fac- tors, U.S. Dept. of Commerce, 1947, pp. 6-13. Items underlined are major industrial groups as defined for census purposes by the U.S. Department of Commerce. All other entries are submajor industrial groups. Subsequent tables are treated in like manner. Cn.e.c. = "not elsewhere classified.” All subsequent tables are treated similarly. RELIANCE ON RELATED INDUSTRIES Evaluation There are many industries which are directly related to other industries in that they use products, by-products, or waste materials of these industries for the manufacture of new products. For instance, pharmaceuticals, candles, leather, gelatins, glue, bone meal, and fertilizers are all produced by industries using materials obtained from the wholesale meat slaughtering and meat packing industry.l Such manufacturing concerns are termed "related indus- tries." Related industries are benefited by local proximity to major industrial establishments through time savings, efficiency, and re— duced cost in the shipment of materials. This provides an incentive for related industries to establish in an area capable of supplying needed materials through existing local major industries. On the other hand, closely related industries are also subject to the economic vagaries ‘of the major industries; an economic 1Basic Industrial Location Factors, U.S. Dept. of Commerce, 1947, p.14. ' 13 14 recession in a major industry might be expected to have similar repercussions in any industries closely related to it. Thus. a com- munity having as its principal economic base only one major in- dustry and its related industries might be in an undesirable position should the major industry suffer an economic recession. One method of circumventing this situation is to encourage, whenever possible, related industries to manufacture additional products which are not related to the basic industry of an area. In periods of economic adversity for the major and related industries. production of unrelated products might then continue in the related industrie s. Clas sifi cation No attempt has been made to classify the industries which are related to each major industrial group. The list would be too lengthy and complex were it to cover all 143 major industrial groups itemized by the United States Census Bureau. Two studies. how- ever, have already attempted to indicate such relationships. The publication Industrial Uses of Selected Timber Species is a Specific aid in determining industries related to the wood and paper indus‘ tries. In addition, the publication Industrial Uses of Selected Min- erals aids in the determination of industries related to the mineral 15 industry. Basic Industrial Location Factors may also be of general .___V value in determining related industries. These three publications are by the United States Department of Commerce. 15 industry. Basic Industrial Location Factors may also be of general value in determining related industries. These three publications are by the United States Department of Commerce. 15 industry. Basic Industrial Location Factors may also be of general value in determining related industries. These three publications are by the United States Department of Commerce. E CONOMIC ST ABILIT Y Evaluation Industries usually prefer to locate in communities already in existence and firmly established. Likewise, communities will favor sound and prospering industries. Unstable industries merit little consideration. About 50 per cent of the firms that started manu- facturing between 1946 and 1948 were out of business two years later, according to the Federal Reserve Bank of Chicago. These failures, however, were usually caused by short-run factors such as faulty management, insufficient capital reserves, or canceled war contracts. They do not indicate the overall stability of the industrial groups they represent. Primary consideration should be given in- stead to the long-run stability of industries. Most growing communities desire a well-balanced economy with reasonable protection against the long—run cyclical or episodic business fluctuations. Past records have shown, however, that manufacturing industry in itself, is not particularly stable in the long run. Highly industrialized areas have shown a marked sensi- tivity to the vagaries of the business cycle.1 V—v— 1John Shirer, ”What A Community Looks For in New Industry," Arizona Economic and Business Review, Vol. 1, No. 6, June, 1957., p. 5. 16 a 17 This does not mean that industrialization cannot bring in- creased stability to communities. Many areas that are industrially underdeveloped, and whose present economies are unbalanced, may be considerably stabilized by industrialization. This is especially true if incoming industries represent a variety of products, markets, and types of Operation. It is not desirable that an industry he so sensitive to fluctu- ations of the business cycle that it might close down at the first signs of an economic recession. The economic stability of an in- dustry is reflected primarily through its employment pattern. In the depression years of the early 1930's, for instance, the musical instruments industry was forced to reduce its employment by 67.4 per cent; whereas the soap and related products industry continued to Operate with only a 1.4 per cent reduction in employment. Sudden or prolonged employment lay-offs are a threat to local economy, disrupting sales expectations of merchants and forcing charge accounts, time payments, and prOperty taxes to be- come delinquent. Thus it is desirable for communities to encourage industries with comparatively stable employment patterns for reces— sion as well as prosperity. This observation is especially applicable to smaller com- munities. Large cities can better utilize economically sensitive 18 industries since they constitute a relatively small portion of total employment. Such concerns in smaller communities, however, where they constitute a sizable portion of employment, may be disastrous in an economic recession. Classification Table II classifies each major and submajor industrial group by percentage of employment decrease accruing to each group from 1929 to 1931 or 1933, whichever was greatest. Industrial groups are ranked in order of decreasing employment stability. No attempt was made to account for employment decreases caused by technologi- cal improvements or other similar variable factors. 19 TABLE II ECONOMIC STABILITY Pct. Decrease in Employment 1929 to 1931 or 1933 Major and Submajor Industrial Groups Soap and related products ................ 1.4 Paper bags .......................... 2.8 Cigarettes ........................... 4.8 Chewing and smoking tobacco ............. 5.6 Bakery products . ...................... 9.2 Sugar . ............................. 10.0 Outerwear . .......................... 10.0 Footwear (except rubber) ................ 11.8 Meat products . ....................... 12.1 Knitting mills ........................ 13.1 Grain mill products .................... 13.5 Food and kindred products ............... 13.8 Tobacco manufactures ................... 14.1 Leather gloves and mittens ............... 14.1 Leather and leather products .............. 14.3 Petroleum refining ..................... 14.6 Women's clothing ...................... 14.8 Rubber industries, n.e.c. ................. 14.9 Medical instruments and supplies ........... 15.2 Pulp, paper, and paperboard .............. 15.5 Leather tanning and refining .............. 15.8 Periodicals .......................... 15.9 Dairy products ........................ 16.2 Paperboard containers and boxes ........... 16.2 Beverages ........................... 16.4 Men's and boys' suits and coats ........... 17.6 Chemicals and allied products ............. 17.6 Woolen and worsted manufactures .......... 18.4 Pulp goods and miscellaneous paper products . . 18.6 Petroleum and coal products .............. 19.3 Paints and allied products ................ 19.5 Drugs and medicines ................... 19.9 I l [ill-lilfll. ‘1..- ill. {Ill 1 . 20 TABLE II (Continued) Pct. Decrease in Employment 1929 to 1931 or 1933 Major and Submajor Industrial Groups Carpets and rugs ...................... 34. Office and store machines ................ 35. Cigars ............................. 20.5 Cotton and rayon broad-woven fabrics ....... 20.8 Canning, preserving, and freezing .......... 21.1 Confectionery and related products .......... 21.8 Hats (except cloth and millinery) ........... 22.0 Industrial chemicals .................... 22.0 Handbags and small leather goods .......... 22.1 Undergarments ........................ 22 .9 Envelopes . .......................... 23.1 Lithographing . . ....................... 23.2 Optical instruments and lenses ............ 23.7 Toys and sporting goods ................. 24.7 Miscellaneous leather goods .............. 25.0 Tin cans and other tinware ............... 26.0 Printig_and publishingfiindustries .......... 26.5 Miscellaneous food preparations ............ 27.0 Glass products ........................ 28.1 Fabricated wire products ................ 28.4 Wooden containers ..................... 28.8 Miscellaneous petroleum and coal products . . . . 28.9 Metal stamping and coating ............... 29.0 Millinery ............................ 29.8 Books .............................. 30.5 Photographic equipment .................. 30.8 Blast furnaces and steel mills ............. 31.1 Footwear cut stock ..................... 31.6 Motorcycles and bicycles ................ 31.8 Bookbinding and related industries .......... 31.9 Pottery and related products .............. 33.3 Secondary nonferrous metals .............. 33.3 Rubber products ....................... 33.4 Textile mill products and apparel .......... 34.1 9 1 21 TABLE II (Continued) Pct. Decrease in Employment 1929 to 1931 or 1933 Major and Submajor Industrial Groups Miscellaneous nonmetallic mineral products . . . 35.3 Coke and by-products ................... 36.2 Men's and boys' furnishings .............. 37.2 Fertilizers .......................... 37.3 Iron and steel products .................. 37.5 Rubber footwear ................. » ...... 38.1 Industrial leather belting ................. 38.5 Cutlery, hand tools, and hardware .......... 39.4 Lumber and timber basic products .......... 39.5 Heating and plumbing equipment ............ 40.1 Tires and inner tubes ................... 40.9 Gum and wood chemicals ................ 43.5 Watches and clocks .................... 43.5 Ships and boats ....................... 43.9 Jewelry and silverware .................. 44.7 Furniture and fixtures .................. 45.4 Stone, clay, and glass products ............ 45.5 Motor vehicles and equipment ............. 45.6 Aircraft and parts ..................... 46.9 Transportation equipment ................ 47.3 Lumber and products (except furniture) ...... 47.6 Fur goods ........................... 48.1 Paper and allied products ................ 50.0 Vegetable and animal oils ................ 50.0 Machinery (except electrical) .............. 51.4 Luggage ............................ 55.3 Lighting fixtures ...................... 55.5 Millwork and related products ............. 55.9 Cut-stone and stone products .............. 56.5 Concrete and plaster products ............. 56.6 Electrical machinery ................... 60.2 Structural metal products ................ 61.0 Engines and tractors ................... 62.5 Scientific instruments ................... 63.3 22 TABLE II (Continued) Pct. Decrease in Employment 1929 to 1931 or 1933 Major and Submajor Industrial Groups Structural clay products ................ . 65.9 Railroad equipment ..................... 67.3 Musical instruments and parts ............. 67.4 r Vv—v T *7— *1 Source: Based on data from Solomon Fabricant, Employ- ment in Manufacturin& 1899-1939, National Bureau of Economic Research Inc., New York, New York, 1942, pp. 179-214. SEASONALITY OF EMPLOYMENT Evaluation Some industries, because of the nature of their products, em- ploy workers only sporadically throughout the year; that is, employ- ment levels in these industries vary from season to season. For instance, the fruit and vegetable canning industry has a large volume of activity and employment during the summer harvesting season, but has a relatively inactive period and lower employment for the remainder of the year.1 Such industries are known as "seasonal industrie s. " There are two major causes for seasonal irregularities in industry; namely, climate and custom. Climate causes seasonal variations in two ways. First, climatic conditions control the supply of many raw materials to industries which use them. This is es- pecially noticeable in industries using perishable crOps, as in the canning industry. Second I, climatic conditions control the demand for certain products during the year. Seasonal activities in the 1See Table III, "Seasonality of Employment," p. 29. 23 24 manufacture of ice, beverages, and ice cream are representative of the effects of a climateecontrolled demand. Customs manifest their effect on certain industries through the recurrence of holidays, typified by Christmas and Easter, or other similar periods such as ”spring house-cleaning time" and "vacation time." Each of these periods is responsible for a stimu— lated demand for certain products. The exchange of gifts at Christmas time is one of the most important causes of fall activity in many industries such as toy and jewelry manufacturing. Easter augments the demand for confectionery, millinery, clothing, and other articles appropriate to the season. The causes of seasonal irregularities are of no more signifi- cance than are the effects such irregularities have on a community which derives a substantial Share of its economic wealth from seasonal industries. Seasonal fluctuations in industry possibly pro- duce more unemployment in the long run than do cyclical variations. Unless some provision is made for workers who find them- selves jobless at the end of a seasonal activity, both the workers and the community will suffer. The workers will lose earnings and C. Saunders, Seasonal Variations in Employment, Longmans, Green and Co., New firk, 1936, pp. 41-52. 2 3 Ibid . Ibid . w m 25 be annually confronted with a recurrent drain on any savings ac- cumulated during the work period. The community may lose or be delayed in receiving tax revenues, or lose potential home owners because of unassured incomes for local workers. In addition, be- cause wages paid in seasonal industries may be insufficient to permit the accumulation of money reserves by workers, communities may be confronted with families who require social aid. If seasonal industries predominate in an area's economy. other industries less subject to seasonal fluctuations should be en- couraged. It is even more desirable to encourage industries that will employ personnel from existing industries in off~seasonal jobs. This coordination of employment between industries is called ”dove- tailing." Dovetailing takes place when two or more industries coop- erate to provide more steady employment for workers by inter- changing employees during annual complementary peak and slump periods of employment. Dovetailing of employment in communities may achieve not only stabilization of employment but also a more complete utilization of local labor markets. Dovetailing of seasonal employment will not necessarily solve a community's unemployment problem, but if it eliminates seasonal unemployment, it helps employees attached to 26 seasonal industries to approximate "full time " employment, increase annual earnings, and make possible a higher standard of living. Dove- tailing may also be of benefit to industries by reducing their unemploy- ment contribution rates to employment compensation funds. There are five fundamental conditions which must be considered in dovetailing of employment by industries.1 (1) The production periods of the industries must be high and low at approximately Opposite seasons; that is, industries employing relatively high numbers of personnel during one season of the year must be dovetailed with industries employing a high number of personnel during other seasons of the year. (2) The degree of seasonal employment and unemployment must be approximately equal be- tween industries to be dovetailed; that is, industries releasing a certain number of workers during a particular season must be dovetailed with in- dustries that require approximately the same number of additional workers for the same season. (3) Wage rates between the industries being dove- tailed should be similar. This would tend to reduce the possibility of friction arising over wage policies between the industries and employees. (4) The skill requirements between dovetailed industries should be similar. The employment of personnel in two or more industries has its limitations. Practically, it may be limited to low- or unskilled workers. Most semiskilled or skilled workers lSam Arnold, Planned Dovetailing of Seasonal Employment, Ohio State University Re seareh Monograph Number 35, Columbus, Ohio, 1944. 27 have only one skill, and it unreasonable to believe that a men might have to or more deveIOped skills at his command. It is possible, however, that some job Skills might be transferable from one in- dustry to another. In addition, dovetailing would probably be most beneficial to unskilled workers in that they are, financially speaking, usually more in need of year-around employment. (5) Union juris- dictions must be permissive. This may be eSpecially true where two or more different unions are involved. Complete understanding of the situation by all concerned would aid greatly in reducing the possibility of friction between workers, unions, and the industries. Classification The major industrial groups are classified by month of highest and lowest employment in Table 111. High and low figures are listed as percentages of average annual employment for each industrial group. For instance, tobacco manufacturing the first major indus- trial group in Table III, has its period of highest employment in January. Employment for that month is 12 per cent higher than the average yearly employment. The average size tobacco factory has 1 03 employee 5. 1See Table X, "Size of Establishment by Number of Em- ployees," p. 74, No attempt has been made to account for the effects of economic unemployment or other types of work stoppage. 28 29 TABLE 111 SEASONALITY OF EMPLOYMENT AM Pct. of Pct. of Mo. of Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ— Yearly Employ- Yearly ment Employ- ment Employ~ ment ment Apparel and related products ............. Oct. 7. 3 July 6.4 Children's outerwear . . . . Oct. 12.0 May 11.3 Fur goods . .......... Oct. 18.6 Feb. 32.9 Men's and boys' fur- nishings ........... Nov. 4.3 July 7.1 Men's and boys' suits and coats .......... Oct. 3.6 July 4.4 Millinery ............ Mar . 13 .4 [June 12 . 7] (Nov. 12.7] Women's and children's undergarments ....... Nov. 10.3 July 6.0 Women's and misses' outerwear .......... Oct. 8.9 May 10.2 Miscellaneous apparel and accessories ...... Nov. 12.6 June 9.5 Miscellaneous fabricated textiles ............ Nov. 8. 3 May 6. 0 Chemicals and allied products ............. Oct. 1.3 June 2.7 Drugs and medicines . . . . Mar. 2.0 Dec. 2.9 Fertilizers ........... Mar. 18.2 July 15.6 Gum and wood chemicals . June 2.8 Dec. 1.5 Industrial inorganic chemicals .......... Dec. 2.2 Jan. 4.3 Industrial organic chemicals .......... Apr. 12.0 June 3.4 Paints and. allied products. Aug 0.8 Jan. 2.4 Soap and related products. Nov 2.5 Aug. 1.4 30 TABLE III (Continued) Pct. of Pct. of Mo. of Increase Mo. of Decrease Highest over Avg. Lowest under Avg. Employ- Yearly Employ- Yearly Major and Submajor Industrial Groups ment Employ- ment Employ- ment ment Vegetable and animal oils .............. Oct. 15.3 May 10.6 Miscellaneous chemical products ........... Oc t. 2 .1 June 2.3 Electrical machinery Feb. 4.3 July 4.1 Communication equipment . Feb. 8.9 May 6.5 Electrical appliances . . . . Dec. 7.4 Aug. 4.1 Electrical-industries apparatus .......... Feb. 1.1 July 1.6 Electric lamps ........ Jan. 3.7 Aug. 2.7 Engine electrical equip— ment .............. Feb. 7.1 Dec. 7.1 Insulated wire and cable Feb. 7.1 Aug. 5.4 Miscellaneous electrical goods ............. Jan. 9.4 July 9.5 Fabricated metal products . Dec. 2.1 July 3.1 Cutlery, hand tools, and hardware ........... Mar . 4.1 July 4 .5 Fabricated wire products . Mar. 3.4 May 4.0 Heating and plumbing equipment .......... Nov. 3 .8 July 3 .9 Lighting fixtures ....... Feb. 4.4 July 6.6 Metal stamping and coating ............ Dec. 2.4 July 3.9 Structural metal products . Dec. 3.4 Jan. 3.1 Tin cans and other tinware ............ Sept. 8.5 Mar. 6.2 Miscellaneous fabricated metal products ....... Mar. 3.7 July 2.8 31 TABLE III (Continued) Pct. of Pct. of Mo. of Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ- ment ment Food and kindred products ............. Sept. 14.7 Feb. 9.2 Bakery products ....... Oct. 2.4 Feb. 2.8 Beverages ........... Sept. 8.5 Feb. 7.6 Canning, preserving, and freezing . .......... Sept. 85.7 Mar. 34.3 Confectionery and related products ........... Oct. 19.0 July 13.1 Dairy products ........ July 12.9 Dec. 11.5 Grain—mill products . . . . Oct. 4.0 Aug. 3.3 Meat products ........ Dec. 9.5 Aug. 6.3 Sugar .............. Nov. 61.1 Feb. 28.6 Miscellaneous food preparations ........ Aug. 5.7 Dec. 5.8 Furniture and fixtures . . . Dec. 7.1 July 4.4 Household furniture ..... Dec. 8.3 July 5.3 Office furniture ....... Dec. 3.3 July 4.9 Partitions and fixtures . . Nov. 3.5 Apr. 3.1 Public and professional furniture ........... Feb. 1.7 July 3.7 Screens, shades, and blinds ............. Dec. 9.4 Mar. 5.5 Miscellaneous furniture and fixtures ......... Oct. 1.8 July 2.9 Instruments and related products ............. Feb. 2.3 July 1.8 Mechanical measuring instruments ......... Feb. 3.8 Nov. 4.2 Medical instruments and supplies ........... Feb. 4.3 Sept. 3.4 32 TABLE 1H (Continued) Pct. Of Pct. of Mo. of Increase MO. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ- ment ment Ophthalmic goods ...... Jan. 9.7 Nov. 6.5 Optical instruments and lenses ............. Oct. 1.1 Apr. 0.9 Photographic equipment . . Jan. 0.6 June 0.6 Scientific instruments . . . Oct. 2.7 Jan. 3.4 Watches and clocks ..... Nov. 1.9 July 2.7 Leather and leather products ............. Nov. 5.4 June 5 9 Footwear (except rubber) . Dec. 4.6 May 5 O Footwear cut stock ..... Dec. 5.7 June 7.0 Handbags and small leather goods ........ Oct. 20.2 June 21.2 Industrial leather belting . Mar. 7.3 Sept. 6.8 Leather gloves and mittens ............ Nov. 10.0 May 10.6 Leather tanning and refining ............ Nov. 3.2 July 3.5 Luggage ............. Nov. 11.1 May 8.5 Miscellaneous leather goods ............. Jan. 9.0 July 12.2 Lumber and products, except furniture 1 ........ Aug. 2.5 Jan. 5.0 Lumber and timber basic products ....... Aug. 3.7 Jan. 7.0 Millwork and related products ........... Nov. 4.6 Feb. 4.3 Wooden containers ..... Apr. 2.5 Dec. 4.3 Miscellaneous wood products ........... Mar. 2.7 Aug. 1.7 33 TABLE III (Continued) Pct. of Pct. of Mo. of 'Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ- ment ment Machinery (except electrical) ............ Apr. 1.0 July 1.7 Construction and mining machinery .......... Dec. 1.8 Sept. 1.1 Engines and turbines . . . . Feb. 3.3 Nov. 2.4 General industrial ma- chinery . . . . ........ Mar. 1.9 July. 1.9 Metalworking machinery . . Feb. 5.0 Nov. 3.8 Office and store machines. Dec. 7.0 July 13.4 Service and household machines ........... Dec. 4.6 Jan. 6.4 Special-industry ma- chinery, n.e.c. ....... Apr. 0.9 Jan. 1.7 Tractors and farm machinery .......... Dec. 5.1 Jan. 6.7 Miscellaneous machine parts ............. Mar. 4.0 Sept. 3.6 Paper and allied products Dec. 2.2 July 2.8 Envelopes ........... Dec. 1.3 July 2.8 Paper bags .......... Jan. 3.4 July 5.7 Paper coating and glazing. Dec. 1.7 July 2.3 Paperboard containers and boxes .......... Jan. 3.0 July 4.6 Pulp, paper, and paper- board ............. Dec. 2.7 Jan. 2.1 Pulp goods and miscel- laneous paper products Dec. 2.1 July 3.4 34 TABLE III (Continued) Pet. of Pct. of Mo. of Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ— ment ment Petroleum and coal products ............. Aug. 2.5 Jan. 3.0 Coke and by-products . . . Dec. 2.1 Jan. 3.4 Paving and roofing ma— terials ............ Oct. 5.4 Feb. 6.8 Petroleum refining . . . . . Aug. 3.0 Apr. 2.4 Miscellaneous petroleum and coal products . . . . . Jan. 2.2 July 3.3 Primary-metals industry . . June 0.8 July 1.4 Blast furnaces and steel mills ......... Aug. 1.5 Jan. 2.0 Iron and steel foundries . . Mar. .1 July 1.9 Nonferrous foundries . . . . Jan. 9.6 Aug. 6.7 Nonferrous metal rolling and drawing ......... Jan. 10.3 July 7.9 Primary nonferrous metals ............ Mar. 1.5 Sept. 1.6 Secondary nonferrous metals ............ May 2.9 Aug. 3.5 Miscellaneous primary- metal industries . ..... Dec. 1.9 July 1.8 Printing and publishing indust—rigs ....... “I". . . . Dec. 2.9 Jan. 2.2 Bookbinding and related industries .......... Oct. 2.0 July 2.5 Books .............. Dec. 1.4 Jan. 1.1 Commercial printing . . . . Dec. 3.1 Jan. 1.5 Greeting cards ........ Nov. 8.1 Apr 4.1 Lithographing ......... Dec . 4 .2 Jan. 3 .3 Newspapers .......... Dec. 3.4 Jan. 3.9 35 TABLE III (Continued) Pct. of Pct. of Mo. of Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ- ment ment Periodicals ........... Dec. 3 .0 June 1.6 Printing trades service industries .......... Dec. 2.0 Jan. 2.2 Miscellaneous publishing Mar. 1.2 Sept. 1.8 Rubber products ........ Jan. 5.5 July 5.8 Reclaimed rubber ...... Feb. 2.3 July 3.5 Rubber footwear ....... Feb. 9.0 July 20.9 Tires and inner tubes Jan. 4.8 Aug. 3.1 Rubber industries, n.e.c. Jan. 6.0 July 5.6 Stone, clay, and glass products ............. Nov. 1.7 Feb. 1.8 Cement, hydraulic ...... Aug. 3.3 May 7.4 Concrete and plaster products ........... Oct. 5.0 Jan. 8.9 Cut-stone and stone products ........... Oct. 6.1 June 12.9 Flat glass ........... Dec. 4.2 Mar. 1.6 Pottery and related products ........... Dec. 4.1 July 4.2 Pressed and blown glassware .......... Jan. 2.3 July 4.9 Products of purchased glass ............. Mar. 3.9 July 5.6 Structural clay products . . Nov. 3.6 Feb. 5.8 Miscellaneous nonmetallic mineral products ..... Mar. 1.4 July 2.2 36 TABLE III (Continued) Pct. of Pct. of Mo. of Increase Mo. of Decrease Major and Submajor Highest over Avg. Lowest under Avg. Industrial Groups Employ- Yearly Employ- Yearly ment Employ- ment Employ- ment ment Textile mill products . . . . Dec. 4.1 Aug. 3.1 Carpets and rugs ...... Dec. 11.0 Jan. 6.0 Cotton and rayon broad- woven fabrics ....... Dec. 2.5 July 2.5 Finishing textiles, except wool . ............. Dec. 4.1 July 5.7 Hats (except cloth and millinery) . ......... Feb. 10.7 May 5.7 Knitting mills ......... Dec. 7.0 July 6.5 Narrow-fabric mills . . . . Jan. 6.1 July 7.3 Woolen and worsted manufactures ........ Jan. 6.3 July 7.3 Yarn and thread mill, except wool ......... Jan. 5.7 July 6.1 Miscellaneous textile goods ............. Feb. 6.6 July 7.2 Tobacco manufactures . . . . [Jan. 12.0] [Oct. 12.3] May 16.7 Chewing and smoking tobacco ............ Jan. 7.8 May 16.3 Cigarettes ........... Feb. 5.6 May 10.0 Cigars .............. Feb. 8.3 May .1 Tobacco stemming and redrying ........... Sept. 50.4 July 48.6 Transportation equipment . . Apr. 3.9 July 4.3 Aircraft and parts ..... Jan. 7.4 Sept. 4.4 Motor vehicles and equipment .......... Dec. 3.2 May 3.6 Motorcycles and bicycles . Dec. 5.8 Jan. 7. Railroad equipment ..... Dec. 4.0 July 2.1 37 TABL E 1H (Continued) Pct. of Pct. of Mo. of Increase Mo. of Decrease Highest over Avg. Lowest under Avg. Employ- Yearly Employ- Yearly Major and Submajor Industrial Groups ment Employ- ment Employ— ment ment Ships and boats ....... Apr. 17.2 Aug. 23.1 Transportation equip- ment, n.e.c. ......... Mar. 7.? Dec. 14.3 Miscellaneous manufactures Nov. 6.9 July 6.9 Costume jewelry and notions . . . . . . ...... Nov. 10.9 June 12.3 Jewelry and silverware Nov. 7.5 July 8.7 Musical instruments and parts ............. Dec. 6.5 Jan. 6.8 Office supplies ........ Mar. 8.0 Aug. 7.4 Toys and Sporting goods . . Nov. 13.7 July 7.9 Plastics products, n.e.c. Nov. 4.3 July 4.6 Source: Based on data from 1947 Census of Manufactures, General Summary, U.S. Department of Commerce, Bureau of Cen- sus, Chapter 11, "Employment and Payrolls," 1950. xi 1 1 ll! .Ilrlli<.'. COMPOSITION OF LABOR FORCE EMPLOYED Evaluation The composition of the labor force employed by an industry is determined primarily by the type of product and manufacturing process used. Because of the uniqueness of manufacturing Operations and prod- ucts, most industries vary in the sex and age ratios of personnel em- ployed. Some industries, such as printing and publishing, employ a large amount of youthful workers. Other industries, such as leather prod- ucts, employ a relatively higher proportion of elderly workers. The ap- parel and accessories industry uses a considerable amount of female labor. Industries such as these may serve the purpose of turning labor composition peculiarities of an area to advantage. Factors such as an unbalanced male-female labor supply or a surplus of youthful or aged workers are problems confronting many communities. A growing number of career women and ‘working wives has become an increasingly important factor in the labor force of some communities.1 Modern medical advances which in- crease the life expectancy of workers, and outmoded retirement plans have created unemployment problems for elderly people in many 1A. M. Baetjer, Women in Industry, Saunders, Philadelphia, 1946. 38 39 areas.1 Other communities are confronted with the problem of pro- viding adequate employment Opportunities to the youth of the area who are being lured elsewhere to work and live. The manner in which industries can be of value in solving these problems depends to a great extent on the long-range desires of the community. For instance, a community desirous of per- petuating an existing unbalanced labor composition situation should encourage industries which will employ the existing labor supply. The state of Arizona, for example, has a proportionately large num- ber of inhabitants who have moved to the area for reasons of health or retirement. In consideration of this. Arizona is encouraging in- dustries which can utilize these partially handicapped or aged workers, either in split shifts or to augment regular Shifts during seasonal peaks. On the other hand, a community wishing to achieve a more balanced labor force composition should encourage industries which V m _—f—v 1W. T. Donahue, Earning Opportunities for Older Workers, University of Michigan Press, Ann Arbor, Michigan, 1955. zNational Manpower Council, A Policy for Skilled Manpowegr, Columbia University Press, New York, 1954, pp. 76-158. 3,N. M. Ringstrom and L. W. Casaday, "The Community In- vestment in New Industry," Arizona Business and Economic Review, University of Arizona, Vol. lfNo. 6; June, 1953, p. 3.. 40 will attract and employ from other areas the kinds of personnel that will help to achieve the balance desired. Planning to provide employment Opportunities for an existing labor composition is not too difficult a task, as most industries are more partial to locating in an area which already has the kind of labor composition that is best suited to the industry. Planning to provide employment opportunities for a more balanced future labor composition, however, might prove to be a more challenging propo- sition. One of the most difficult considerations involved in the problem of determining what is a desirable labor force composition. The social and economic complexities of this problem prohibits closer examination in this study. It may be stated, however, that communities which do have an unbalanced labor force composition might benefit greatly by encouraging apprOpriate industries which will tend to alleviate the particular situation. Classification Table IV ranks in order the employment of female labor in various industrial groups. Table V ranks in order the industrial groups employing youthful workers. ‘It is generally considered that twenty-one years of age places workers in an adult classification. The maximum age 41 of nineteen years was selected on the basis that it was the age group closest to twenty-one for which statistics were available. Table VI ranks in (order the employment of elderly workers in various industrial groups. TABLE IV COMPOSITION OF LABOR FORCE EMPLOYED: FEMALE EMPLOYEES, BY INDUSTRY 42 Pct. of Major and Submajor Industrial Groups T0121 Em- ployees-- Female Apparel and accessories ..................... 72.4 Apparel and other fabricated textiles ............ 71.0 Knittingmills.................... ........ 62.3 Miscellaneous fabricated textile products ......... 55.0 Tobacco manufacturers ...................... 53.7 Confectionery and related products .............. 50.0 Footwear (except rubber) .................... 49.6 Watches and clocks and clock devices ........... 47.3 Leather products, except footwear .............. 45.8 Leather and leather products .................. 43.4 Textile mill products ....................... 42.5 Yarn, thread, and fabric mills ................. 41.0 Canning and preserving fruits, vegetables, and sea foods ............................. 39.6 Miscellaneous manufacturers .................. 37.0 Miscellaneous textile mill goods ............... 36.1 Pottery and related products .................. 36.0 Electrical machinery, equipment, and supplies ...... 35.4 Miscellaneous paper and pulp ................. 35.2 Paperboard containers and boxes ............... 34.0 Professional and photographic equipment and watches . . 32.9 Not specified food industries .................. 32.7 Carpets, rugs, and other floor coverings ......... 30.1 Professional equipment and supplies ............. 30.0 Photographic equipment and supplies ............ 29.2 Rubber products ........................... 25.0 Printing—publishingL and allied industries ......... 24.9 Glass and glass products .................... 24.6 Office and store machines and devices ........... 23.9 Drugs and medicines ....................... 23.9 23.7 Synthetic fibers ........................... TABLE IV (Continued) 43 Pct. of Major and Submajor Industrial Groups Total Em- ployees-- Female Paper and allied products ..................... 23.7 Miscellaneous food preparations and kindred products . 23.2 Bakery products ............................ 23.0 Food and kindred products .................... 23.0 Dairy products . ............................ 20.4 Meat products ............................. 20.4 Chemicals and allied products .................. 19.9 Fabricated nonferrous metal ................... 19.6 Fabricated metal products . .................... 17.6 Stone, clay, and glass products ................. 17.6 Not specified metal industries .................. 17.4 Fabricated steel products ..................... 17.3 Paints, varnishes, and related products ........... 17.1 Miscellaneous chemicals and allied products ........ 17.1 Miscellaneous wood products ................... 17.0 Dyeing, finishing textiles, except knit goods ........ 16.8 Miscellaneous nonmetallic, mineral, and stone products. 16.0 Furniture and fixtures ....................... 15.9 Leather: tanned, curried, finished ............... 13.9 Machinery (except electrical) ................... 13.6 Grain mill products ......................... 13.3 Miscellaneous machinery ...................... 13.0 Aircraft and parts .......................... 12.8 Motor vehicles and equipment ........... . ....... 12.5 Beverages ................................ 12.4 Pulp, paper, and paperboard mills ............... 12.0 Transportation equipment ..................... 11.8 Petroleum refining .......................... 11.2 Structural clay products ...................... 11.1 Primary nonferrous industries .................. 11.0 Railroad and miscellaneous transportation equipment 10.9 Tractors and agricultural machinery ............. 10.9 Petroleum and coal products . .................. 10.7 6.5 Primaeretals industry ...................... 44 TABLE IV (Continued) Pct. of Major and Submajor Industrial Groups Total Em- ployees-- Female Miscellaneous petroleum and coal products ......... 6.2 Ships and boats, building and repairing ............ 6.2 Other primary iron and steel industries ........... 5.9 Blast furnaces, steel works, and rolling mills ....... 5.4 Cement, concrete, gypsum, and plaster products ..... 5.1 Lumber and wood products, except furniture ........ 4.6 Sawmills, planing mills, and millwork ............ 3.5 Logging . ................................. 1.1 I Z Source: Based on data from "Industrial Characteristics," Census of Population, U.S. Department of Commerce, Bureau of the Census , 1950. TABLE V COMPOSITION OF LABOR FORCE EMPLOYED: YOUTHFUL EMPLOYEES, BY INDUSTRY 4L 45 Pct. of Total Em- Major and Submajor Industrial Groups ployees-- Under 20 Years Old Pringg, publishing, and allied industries .......... 15.1 Footwear, except rubber ...................... 8.5 Logging ....... . .......................... 8.2 Leather and leather products ................... 7.5 Knitting mills . . ........................... 7.2 Sawmills, planing mills, and millwork ............ 7.1 Lumber and wood products, except furniture ........ 7.1 Leather products, except footwear ............... 7.0 Bakery products ............................ 7.0 Miscellaneous fabricated textile products .......... 6.9 Food and kindred products .................... 6.5 Apparel and other fabricated textile products ....... 6.4 Apparel and accessories ...................... 6.3 Dairy products ............................. 6.3 Watches and clocks and clock devices ............ 6.2 Paperboard containers and boxes ................ 6.2 Confectionery and related products ............... 6.1 Furniture and fixtures ....................... 6.0 Miscellaneous manufacturers ................... 5.7 Miscellaneous paper and pulp products . ........... 5.6 Miscellaneous wood products ................... 5.5 Miscellaneous textile mill goods ................ 5.5 Not specified food industries ................... 5.3 Drugs and medicines ........................ 5.2 Beverages ................................ 5.0 Textile mill products ........................ 4.8 Leather: tanned, curried, and finished ............ 4.7 Pottery and related products ................... 4.6 Canning and preserving, fruits, vegetables, and sea foods ....................... TABLE V (Continued) 46 Major and Submajor Industrial Groups Pct. of Total Em- ployees-- Under 20 Years Old Paper and allied products ..................... Yarn, thread, and fabric mills .................. Electrical machinery, equipment, and supplies ....... Structural clay products ...................... Grain mill products ......................... Glass and glass products ..................... Fabricated nonferrous metal ................... Cement, concrete, gypsum, and plaster products ..... Professional and phot_ographic equipment and supplies . . Stone, clay, and glass products ................. Paints, varnishes, and related products ........... Miscellaneous food preparations and kindred products . . Carpets, rugs, and other floor coverings .......... Not specified metal industries .................. Dyeing and finishing textiles, except knit goods ...... Professional equipment and supplies .............. Tobacco manufacturers ....................... Meat products ............................. Office and store machines and devices ............ Tractors and agricultural machinery ............. Fabricated metal products ..................... Photographic equipment and supplies ............. Fabricated steel products ..................... Chemicals and allied products .................. Pulp, paper, and paperboard mills ............... Miscellaneous nonmetallic mineral and stone products. . Rubber products ............................ Machinery (except electrical) ................... Motor vehicles and equipment .................. Miscellaneous petroleum and coal products ......... Miscellaneous chemicals and allied products ........ Synthetic fibers ............................ Miscellaneous machinery ...................... 'NNNNpNNNwwwwwwwuwwwwwusshenanigans»: emqqqmoooowwsemaoxox-qqxoooooHHNLprLpLaba 47 TABLE V (Continued) Pct. of Total Em- Major and Submajor Industrial Groups ployees—- Under 20 Years Old Transportation equipment ..................... 2.2 Primary nonferrous industries .................. 2.2 Other primary iron and steel industries ........... 2.0 Blast furnaces, steel works, and rolling mills ....... 2.0 Primary metals industry ...................... 2.0 Railroad and miscellaneous transportation equipment 1.6 Aircraft and parts . ......................... 1.3 Petroleum and coal products ................... 1.3 Petroleum refining . ......................... 1.1 Ships and boats, building and repairing ............ 1.0 Source: Based on data from "Industrial Characteristics," Census of Population, U.S. Department of Commerce, Bureau of the Census, 1950. 48 TABLE VI COMPOSITION OF LABOR FORCE EMPLOYED: AGED EMPLOYEES, BY INDUSTRY Pct. of Total Em- Major and Submajor Industrial Groups ployees~- Over 64 Years Old Miscellaneous wood products ................... Leather: tanned, curried, and finished ............ Leather products, except footwear ............... Carpets, rugs, and other floor coverings ........... Furniture and fixtures . ...................... Railroad and miscellaneous transportation equipment Miscellaneous nonmetallic mineral and stone products Pottery and related products ................... Other primary iron and steel industries ........... Leather and leather products ......... ‘9 ......... Dyeing, finishing textiles, except knit goods ........ Canning and preserving fruits, vegetables, and sea foods .............................. Miscellaneous machinery ...................... Structural clay products ...................... Printing, publishing, and allied industries .......... Sawmills, planing mills, and millwork ............ Lumber and wood products, except furniture ........ Miscellaneous manufacturers ................... Machinery (except electrical) ................... Miscellaneous petroleum and coal products ......... Stone, clay, anchlass products ................. Grain mill products ......................... Footwear, except rubber ...................... Tobacco manufacturers ....................... Miscellaneous food preparations and kindred products Paints, varnishes, and related products ........... Office and store machines and devices ............ Glass and glass products ..................... Fabricated steel products ..................... rhnvD-AAa-Arh-AAUTUIO HHHNNWAU‘OWN wwWWWWWWWWWWWWrb-Anhrh erthU‘O‘C‘O‘KJxlmCDCDQOOOOH 49 TABLE VI (Continued) Pct. of Total Em- Major and Submajor Industrial Groups ployees-- Over 64 Years Old Cement, concrete, gypsum, and plaster products ..... Miscellaneous paper and pulp products ............ Confectionery and related products ............... Fabricated metal products ..................... Primary metals industry ...................... Miscellaneous textile mill goods ................ Beverages . ........................ : ...... Professional equipment and supplies .............. Apparel and accessories ...................... Apparel and other fabricated textile products ....... Tractors and agricultural machinery ............. Fabricated nonferrous metal products ............. Primary nonferrous industries .................. Paper and allied products ..................... Food and kindred products .................... Logging .................................. Not specified metal industries .................. Pulp, paper, and paperboard mills ............... Miscellaneous fabricated textile products .......... Textile mill products ........................ Not specified food industries ................... Ships and boats, building and repairing ............ Blast furnaces, steel works, and rolling mills ....... Motor vehicles and equipment .................. Paperboard containers and boxes ................ Yarn, thread, and fabric mills .................. Bakery products ............................ Professional and photoggraphic equipment and watches . . Transportation equipment . .................... Drugs and medicines ........................ Rubber products ............................ Dairy products ............................. Meat products ............................. mesmmmoquuooooxoxoxooooooooo--ivivwiv®i~i~ 50 TABLE VI (Continued) Pct. of Total Em- Major and Submajor Industrial Groups ployees- Over 64 Years Old Watches and clocks and clock devices ............ 2.2 Miscellaneous chemicals and allied products ........ 2.2 Chemicals and allied products .................. 2.2 Knitting mills ............................. 2.1 Electrical machinery, equipment, and supplies ....... 1.5 Photographic equipment and supplies ............. 1.4 Aircraft and parts . ......................... 1.3 Petroleum and coal products ................... 1.2 Petroleum refining . ......................... 0.9 Synthetic fibers ............................ 0.8 Source: Based on data from "Industrial Characteristics," Census of Population, U.S. Department of Commerce, Bureau of the Census, 1950. LABOR SKILLS EMPLOYED Evaluation The present trend toward automation of industrial production, as well as mechanization of office Operations, will probably elimino ate the need for many workers who now perform variously Special- ized and routine jobs. In addition, greatly increased capital investment per worker will increase the risks of using workers with limited train- ing. These two factors will increase demands for highly trained workers in industries. A high ratio of such trained workers is a desirable trait of the labor force in most communities. as it usually results in larger payrolls and higher average earnings. Employment mainly of un- trained labor usually tends to lower the general level of earnings in a community. Most communities would also benefit by the development of industries that require a great variety of jobs and occupational skills. Industries such as these would provide a wider range of job 1National Manpower Council, A Policy for Skilled Manpower, Columbia University Press, New York,.. 1954, pp. 101-105. 51 52 opportunities for residents not now employed. Potential employment might also be provided for workers whose employment in present occupations is seasonal or intermittent. Diversity of occupational skills might also provide higher-paid jobs for some local workers. These in turn would promote larger consumer purchases and more business profits in general. Less generally appreciated in communities are industries which employ or require the services of professional people and scientists. Industrial research laboratories and engineering firms are among the better prospects. Industries such as these should be encouraged in areas which can provide higher-education facilities. For instance, New England, which lost more than a quarter‘million textile jobs to other areas in thirty-four years, is now recouping its losses with new electronics industries. Principal attractions for these industries have been the availability of skilled labor and re- search facilities, such as Massachusetts Institute of Technology and the American Research and Development Corporation.1 Aside from purely economic considerations, professional and other highly skilled workers are likely to become home owners and civic leaders, and generally contribute to the social and cultural development of a community. Mfi V—v—v r 1"Wanted: New Industry," Time, September 26, 1955. p. 88- 53 A further consideration is‘that the industrial composition of an area also sets the pattern of labor skill distribution. A new in- dustry in an area will either attract the necessary skills. from other areas or convert existing skills to fit its needs. The implication of this is that communities confronted with a predominantly untrained labor force need not be so burdened forever. Substantial improve- ment in the training level of a labor force can be accomplished by the introduction of appropriate skill-dependent industries in the area. Classification Table VII lists by percentages the composition of eight major occupations by major industrial groups. TABLE VII LAB OR SKILLS EMPLOYED 54 Major and Submajor Industrial Groups Per Cent of Total TV Worker 5 in Industrya A B C D E F G H Apparel and other fabricated textiles ................. l 5 7 . 2 6 77 1 1 Apparel and accessories 1 4 6 2 6 79 1 1 Miscellaneous fabricated textile products 2 7 9 3 9 66 1 3 Chemicals and allied products 12 6 15 5 16 33 3 10 Drugs and medicines . ...... 18 8 22 8 11 26 3 4 Paints, varnishes, and related products .............. 10 8 19 7 11 37 2 6 Synthetic fibers .......... 8 2 7 0 21 53 2 7 Miscellaneous chemicals and allied products .......... 12 6 15 5 16 32 3 11 Electrical machinery, equip- ment, and supplies ......... 9 3 15 2 18 47 2 4 Fabricated metal products . . . . 5 5 12 2 24 43 2 7 Fabricated nonferrous metal products .............. 4 8 11 2 32 38 1 4 Fabricated steel products 5 5 12 3 23 43 2 7 Not specified metal industries. 5 7 11 2 25 39 2 6 Food and kindred products 3 8 11 5 15 45 3 10 Bakery products .......... 1 7 8 7 32 39 3 3 Beverage industries ....... 3 9 11 9 14 41 2 11 Canning and preserving fruits, vegetables, and sea foods 3 6 10 2 12 51 2 14 Confectionery and related products .............. 2 5 11 5 8 61 3 5 Dairy products ........... 4 9 l4 3 10 49 2 9 Grain mill products ....... 3 11 13 5 15 34 3 16 TABLE VII (Continued) 55 Major and Submajor Industrial Groups Per Cent of Total Workers in Industrya A B C D E F G H Meat products . . ......... 2 6 11 5 8 53 2 13 Miscellaneous food prepara— tions and kindred products . . 5 9 11 5 14 39 2 15 Not specified food industries 11 9 17 7 13 30 4 9 Furniture and fixtures ...... 2 5 8 2 26 50 1 6 Leather and leather products . . 3 8 2 6 76 1 3 Footwear (except rubber) . . . . 2 8 1 6 79 1 2 Leather products (except footwear) . ............. 2 6 7 3 7 72 1 3 Leather: tanned, curried, and finished ............ 2 4 8 1 10 63 1 11 Lumber and wood products, except furniture ........... 1 6 4 1 10 38 1 39 Logging, sawmills, planing mills, and millwork ...... 1 4 l 0 10 l 77 Miscellaneous wood products. . l 6 4 l 11 45 1 31 Machinery (except electrical) . . 7 5 14 2 31 35 2 4 Agricultural machinery and tractors .............. 6 4 15 2 26 38 2 7 Office and store machines 8 5 17 6 23 39 1 1 Miscellaneous machinery 7 5 13 2 33 34 2 4 Paper and allied products 3 4 ll 2 15 53 2 10 Paperboard containers and boxes ................ 2 5 10 3 13 57 1 8 Pulp, paper, and paperboard mills ................ 4 3 9 1 16 52 2 13 4 6 16 4 13 48 2 7 Miscellaneous paper products . TABLE VII (Continued) Major and Submajor Industrial Groups Per Cent of Total Worker 3 in Industry3 56 A B C D E F G H Petroleum and coal products 14 6 17 2 21 28 2 10 Petroleum refining ........ 15 6 18 2 22 26 2 9 Miscellaneous petroleum and coal products . .......... 6 7 9 5 18 34 2 l9 Primary-metals industry ..... 4 2 10 1 29 34 2 18 Blast furnaces, steel works, and rolling mills . ....... 4 2 10 1 30 30 2 21 Other primary iron and steel foundries . . . ....... 3 3 1 31 36 2 17 Primary nonferrous industries. 5 3 11 1 23 41 3 l3 PrintinLand publishing industries ............... 10 8 18 15 35 12 1 1 Professional and phogggraphic equipment and watches ...... 10 5 16 3 22 40 2 2 Photographic equipment and supplies .............. 14 3 18 2 19 38 2 4 Professional equipment and supplies .............. 10 6 17 3 25 35 2 2 Watches, clocks, and clock- work-operated devices 6 8 12 1 13 55 2 3 Rubber products ........... 5 4 14 2 14 52 3 6 Stone, clay, and glass products . 4 5 9 2 15 46 2 17 Cement, concrete, gypsum, and plaster products ...... 4 8 7 2 18 39 1 21 Glass and glass products . . . . 4 3 11 2 14 53 2 11 Pottery and related products. . 5 3 7 1 9 62 1 12 Structural clay products 4 5 7 l 13 36 1 33 Miscellaneous nonmetallic and stone mineral products 6 7 12 2 21 38 2 11 TABLE VII (Continued) 57 Major and Submajor Industrial Groups Per Cent of Total Workers in Indus trya A C E F G H Textile mill products ....... 2 3 6 10 71 3 4 Carpets, rugs, and other floor coverings ......... 4 3 10 12 59 2 9 Dyeing and finishing textiles, except knit goods ........ 3 3 10 11 65 2 5 Knitting mills ............ 1 3 6 8 79 1 1 Yarn, thread, and fabric mills. 1 2 5 ll 73 2 5 Miscellaneous textile mill products . ............. 2 6 11 9 62 2 5 Tobacco manufacturers ...... l 4 6 8 68 3 8 Transportation equipment 7 2 12 29 42 2 5 Aircraft and parts ........ 15 2 15 36 29 2 1 Motor vehicles and equipment . 4 2 11 23 51 2 6 Ships and boats, building and repairing .............. 5 3 10 5 4 18 2 8 Railroad and miscellaneous transportation equipment 7 3 14 3O 35 3 7 Miscellaneous manufacturers 3 8 12 17 51 2 3 aA = professional, technical, and kindred workers. B = managers, officials, and proprietors. C = clerical and kindred workers. D = sales workers. E = craftsmen, foremen, and kindred workers. F : operatives and kindred workers. G = service workers. H : laborers. Source: Based on data from "Industrial Characteristics," Census of Population, U.S. Dept. of Commerce, Bureau of the Gen- sus, 1950. PERSONNEL POLICIES AND WAGE RATES E valuation Modern management has had many advocates of personnel policies that stress good employee relations. This factor may be taken as a rather reliable indicator of whether management has kept abreast of the times. Such matters as effective employee counsel- ing and supplementary benefits, including recreational facilities, group insurance, and retirement plans, reflect quite accurately the degree to which an employer feels a community responsibility. Many industries have inaugurated training programs of their own. In such cases, employees are given time off during working hours to attend school. Thousands of workers are annually given rudimentary training of one type or another. The educational level of a community stands to rise both by added educational interest and by immigration of workers from other areas. These training programs are also of benefit to the industries in that they serve to increase the transferability of workers within the plant. It is now considered good management to train workers so that they may be shifted from one job to another as the market demands changes in products or new technology creates new methods of production. 58 59 A community usually will have a more favorable attitude toward industries known to have had good relations with labor. Any concern with a long history of labor strife will be regarded as a doubtful community prOSpect. Areas which are relatively undeveIOped industrially are typically characterized by congenial relations between workers and management (see "Size of Establishment," p. 72). As the working force becomes more industrialized a greater incidence of labor diSputes may be expected to occur.1 This aspect of indus- trialization can be minimized, however, by devoting some community attention to the character of the labor force likely to be employed or imported, and to the attitude and policy of the management toward its employees, particularly with regard to wage rates. An employer in search of substandard wages should not be regarded as a good industrial prospect. Payment of fair wages pro- vides the best assurance of a quality market. Also, it is against such a background that a community may anticipate a high ratio of home ownership and a general high level of business activity. fv—v +7 v fl 1 N. M. Ringstrom and L. W. Casaday, "The Community In- vestment in New Industry." Arizona Business and Economic Review, University of Arizona, June, 1952, p. 4. 60 Classification Table VIII lists annual wages and salaries per employee by major industrial groups. Wages and salaries per employee for such major industrial groups are recorded by percentage of wages and salaries per employee for all industries. The average wage and salary per employee for all industries was $2,777. No attempt was made to consider loss of wages due to work stOppages or other factors that may have affected statistics. 61 TABLE VIII AVERAGE ANNUAL WAGE AND SALARY, BY INDUSTRY, 1947 Pct. of Avg. Annual Major and Submajor Industrial Groups Wages for All Industries per Employeea Fur goods ............................. 152.5 Printing trades service industries ............ 148.4 Lithographing ........................... 1 32 . 5 Petroleum refining . ...................... 132.3 Petroleum and coal products ................ 125.6 Periodicals . . . . . . . ..................... 123.4 Metalworking machinery ................... 122.3 Tires and inner tubes . .................... 121.7 Soaps and related products ................. 120.0 Paints and allied products .................. 119.4 Reclaimed rubber ........................ 119.2 Miscellaneous primary metal industries ........ 118.8 Engines and turbines ..................... 115.6 Aircraft and parts ....................... 115.4 Partitions and fixtures .................... 115.3 Miscellaneous petroleum and coal products ...... 114.9 Printing and publishing industries ............ 114.6 General industrial machinery ................ 114.4 Special industry machinery, n.e.c. ............ 114.3 Newspapers ............................ 114.3 Blast furnaces and steel mills ............... 114.2 Motor vehicles and equipment ............... 113.4 Transportation equipment .................. 113.4 Industrial organic chemicals ................ 113.2 Paper coating and glazing .................. 112.8 Ships and boats ......................... 112.5 Industrial inorganic chemicals ............... 112.5 Construction and mining machinery ........... 112.4 Structural metal products .................. 112.1 Railroad equipment ....................... 112.1 p—a g..- H O \0 Machinery (except electrical) ................ 62 TABLE VIII (Continued) Pct. of Avg. Annual Major and Submajor Industrial Groups Wages for All Industries per Employeea Primary metals industry ................... 111.8 Office and store machines .................. 111.6 Commercial printing ...................... 111.5 Flat glass ............................. 111.1 Coke and by-products ..................... 111.0 Secondary nonferrous metals ................ 110.7 Pulp, paper, and paperboard ................ 110.6 Jewelry and silverware . ................... 110.0 Nonferrous foundries . .................... 109.7 Photographic equipment .................... 109.2 Scientific instruments ..................... 109.0 Chemicals and allied products ............... 109.0 Rubber products ......................... 108.9 Paving and roofing materials ................ 108.5 Service and household machines .............. 107.9 Miscellaneous fabricated metal products ........ 107.8 Nonferrous metal rolling and drawing .......... 107.1 Primary nonferrous metals ................. 106.9 Iron and steel foundries ................... 106.9 Beverages ............................. 106.4 Leather tanning and refining ................ 105.9 Electrical industries apparatus .............. 105.4 Miscellaneous publishing ................... 105.3 Motorcycles and bicycles .................. 105.3 Miscellaneous machine parts ................ 105.3 Mechanical measuring instruments ............ 105.3 Fabricated metal products .................. 105.1 Heating and plumbing equipment .............. 104.8 Drugs and medicines ..................... 104.3 Optical instruments and lenses .............. 104.1 Tractors and farm machinery ............... 103.9 Miscellaneous chemical products ............. 103.6 Instruments and related products ............. 103.3 63 TABLE VIII (Continued) Pct. of Avg. Annual Major and Submajor Industrial Groups Wages for All Industries per Employeea Miscellaneous nomnetallic mineral products ..... 103.2 Public and professional furniture ............. 102.8 Engine electrical equipment ................. 102.8 Metal stamping and coating ................. 102.6 Meat products . ......................... 102.6 Paper and allied products .................. 102.5 Millinery . ....... . ..................... 102.5 Envelopes . . . . . . ....................... 102.3 Electrical machinery . .................... 102.1 Fabricated wire products .................. 101.7 Electrical appliances ..................... 101.4 Books ................................ 101.3 Medical instruments and supplies ............. 101.2 Office furniture ......................... 101.2 Cutlery, hand tools, and hardware ............ 101.1 Finishing textiles ........................ 101.1 Communications equipment ................. 100.6 Lighting fixtures ........................ 100.5 AVERAGE ANNUAL WAGE = $2,777 ........... 100.0 Musical instruments and parts ............... 99.8 Cement, hydraulic ‘ ....................... 99.6 Rubber industries, n.e.c. ................... 99.6 Carpets and rugs ........................ 99.4 Grain mill products ...................... 99.1 Watches and clocks ...................... 98.9 Bakery products ......................... 98.7 Miscellaneous furniture and fixtures ........... 98.6 Insulated wire and cable ................... 98.2 Tin cans and other tinware ................. 97.8 Millwork and related products ............... 97.6 Vegetable and animal oils .................. 97.2 Miscellaneous electrical goods ............... 97.2 Women's and misses' outerwear ............. 97.2 _ 64 TABLE VIII (Continued) _‘ .44 I‘— 1 AL Pct. of Avg. Annual Major and Submajor Industrial Groups Wages for All Industries per Employeea Men's and boys' suits and coats ............. 96.9 Industrial leather belting ................... 96.2 Paperboard containers and boxes ............. 95.6 Plastic products, n.e.c. .................... 95.3 Stone, clay, and glass products .............. 94.9 Pulp goods and miscellaneous paper products . . . . 94.6 Food and kindred Jroducts . ................ 94.6 Cut—stone and stone products ................ 94.5 Office supplies . . . . . . .................... 93.7 Miscellaneous manufacturing ................ 93.5 Rubber footwear . ........................ 93.1 Pressed and blown glassware ............... 92.9 Sugar ................................ 92.8 Hats (except cloth and millinery) ............. 92.7 Luggage .............................. 92.6 1 Furniture and fixtures .................... 92.0 Transportation equipment, n.e.c. ............. 91.8 Miscellaneous textile goods ................. 91.4 Woolen and worsted manufacturers ............. 91.4 Products of purchased glass ................ 91.3 Pottery and related products ................ 91.2 Miscellaneous food preparations .............. 91.2 Ophthalmic goods ........................ 91.1 Bookbinding and related industries ............ 90.9 Screens, shades, and blinds ................. 89.0 Structural clay products ................... 87.9 Household furniture ...................... 87.9 Greeting cards .......................... 87.7 Dairy products .......................... 87.6 Electric lamps .......................... 87.5 Gum and wood chemicals .................. 87.4 Paper bags ............................ 87.1 0 Concrete and plaster products ............... 87. 65 TABLE VIII (Continued) +v 1 a L I Pct. of Avg. Annual Major and Submajor Industrial Groups Wages for All Industries per Employeea Confectionery and related products ............ 84.3 Apparel and related products ................ 84.1 Costume jewelry and notions ................ 83.9 Narrow-fabric mills ...................... 82.1 Toys and sporting goods ................... 82.9 Textile mill products ..................... 82.4 Cigarettes . . . . . ....................... 82.2 Leather and leather products ................ 82.1 Fertilizers . ........................... 80.7 Miscellaneous wood products ................ 80.0 Miscellaneous leather goods ................ 79.4 Handbags and small leather goods ............ 79.3 Cotton, rayon broad-woven fabrics ............ 78.9 Footwear cut stock ....................... 78.0 Footwear, except rubber ................... 77.5 Miscellaneous fabricated textiles ............. 77.1 Knitting mills .......................... 76.9 Lumber and products, except furniture ......... 75.8 Children's outerwear ..................... 75.7 Women's and children's undergarments ......... 75.4 Miscellaneous apparel and accessories ......... 75.2 Canning, preserving, and freezing ............ 74.8 Chewing and smoking tobacco ............... 73.3 Wooden containers ....................... 72.7 Lumber and timber basic products ............ 70.4 Yarn and thread mills, except wool ........... 70.4 Tobacco manufacturers .................... 66.3 Men's and boys' furnishings ................ 64.9 Leather gloves and mittens ................. 64.7 Tobacco stemming and redrying .............. 60.6 Cigars ............................... 58.4 a'Avg. annual wage per employee .for all industries = $2,777. Source: Based on data from 1947 Census of Manufactures, General Summary, U.S. Dept. of Commerce, Bureau of the Census, Chapter II, T'Employment and Payrolls," 1950. PLANT MANAGEMENT AND OPERATION Evaluation Industries in search of new locations usually insist that communities be progressive. Towns or cities are expected to have up-to-date schools, streets, water and sewer systems, and fire and police protection. Reversing the situation, communities may simi- larly demand of industries that they, too, be progressive--that they have the latest in plant equipment, production controls, marketing systems, personnel policies, and in general a responsible attitude toward the community. In other words, such communities are placing a premium on good management. In the industrial communities of the nineteenth century, in- dustries were powerful forces because industrial leaders usually dominated local activities and organizations. As cities grew in size, these industrial leaders lost much of their power because they were no longer able to control the multitude of local activities 1 and organizations, Many modern industrialists, however, realize fi v—v—v v 1D. C. Miller and W. H. Form, Industrial Sociology, Harper and Brothers, New York, 1951, pp. 804-805. 66 67 that they still have an important part to play in the community--a part of less power and more responsibility. Managers of many industries have inaugurated broad com- munity programs including such items as student scholarships, athletic teams, youth organizations, community services. and many philanthrOpies. Other industries which require public support and good will for their Operations have deveIOped complex public relations departments. Many industries also accept their responsibility in the growth of communities by bearing an equitable share of the cost of building new schools and other capital facilities. New industries should have no less interest than established firms in assuring that civic instal- lations not supported by tax revenues are maintained. New industry usually brings about an influx of new residents. Acceptance of a fair share of the responsibility for the added burden placed on ex- isting facilities would recommend an industry to most communities. An often overlooked but potential benefit of such industries to a community is that of improved civic Spirit. The influx of new ideas and economic activities often brings an awakened interest in civic affairs and a general social and environmental improvement to a community . 68 Rather than searching elsewhere for possible candidates, civic leaders might well examine the capabilities of local enterprise rs. The quality of management can thus be appraised more easily. A local industry with outstanding managerial talent may lack only new capital and community support to develop into a substantial enterprise worth having in any community. Local ownership also usually gives greater recognition to the interests and needs of the community than do those who control or determine policies from far away. One study reports a situation wherein absentee owners of local factories lost the support of man- agers of locally owned factories in a labor diSpute problem. Local businessmen as well as citizens were supporting local laborers against absentee ownership. A distinction should also be made between moving an entire plant to a new location and establishing a new branch plant. If the industry has been strongly dissatisfied with an old location, the new community might also find it difficult to meet expectations of the in- dustry .1 Greater confidence in the permanence of a plant location would result if it were known to have resulted from long and careful v f iv v 1W. L. Warner and J. 0. Low, The Social System of the Modern Factory, Yale University Prestew Haven, 1947. 69 study. A financially unsound industry might be seeking a new loca- tion in a desperate attempt to forestall bankruptcy. Opening up a new branch plant, however, is a nonnal incident of an expanding organization. With the establishment of a branch plant there is probably less uncertainty as to future moves than where a main plant has been relocated. A branch plant whose out- put is integrated with many products of the parent concern is usually expected to have more stable employment than a branch making a specialized product (see "Economic Stability, p. 16). Branch plant Operations are also believed to offer the best source of supply for small industrial units1 (see "Size of Establishment," p. 72). The degree of autonomy granted the local plant manager is also an important consideration. The higher the delegation Of authority the more likely it is that the plant will be reSpOnsive to lo cal need 5 . Classification Unfortunately, detailed data for corporate management and type of Operation are not available. Existing census data compiled 1N. H. Ringstrom and L. W. Casaday, "The Community In- vestment in Industry," Arizona Economic and Business Review. Vol. 1, No. 6, June, 1952, 13:5. 7O statistics only for the twenty major industrial groups listed in Table IX. Data are listed in this table by relative percentage of multi- or singlecunit Operation and corporate or noncorporate management. 71 TABLE IX TYPE OF OWNERSHIP AND OPERATION Pct. of Major Industrial Classification 3:12:31: Corporately Operations Owned Units Apparel and related products ........ 6.7 45.3 Chemicals and allied products ....... 30.0 74.7 Electrical machinery ............. 22.3 72.4 Fabricated metal products .......... 10.5 54.9 Food and kindred products ......... 23.6 48.7 Furniture and fixtures ............ 7.2 50.3 Instruments and related products ..... 12.5 57.8 Leather and leather products ........ 13.4 59.6 Lumber and products, except furniture 1 15.8 23.8 Machinery (except electrical) ........ 10.0 53.6 Paper and allied products .......... 35.2 81.3 Petroleum and coal products ........ 46.9 82.8 Primary-metals industry ........... 24.5 65.6 Printing and publishiggt industries 4.9 40.0 Rubber products ................. 21.1 74.7 Stone, clay, andfiass products ...... 14.7 42.8 Textile mill products ............. 22.5 72.2 Tobacco manufactures ............. 21.3 37.3 Transportation equipment .......... 18.6 58.9 Miscellaneous manufacturing ........ 7.0 45.9 A—— —A ' ! _.___ _ ' j _1_L fl Source: Based on data from 1947 Census of Manufactures, General Summary, U.S. Dept. of Commerce, Bureau of the Census, Chapter IV, ”Type of Organization," 1950. SIZE OF ESTABLISHMENT Evaluation A recent study1 Of the effects of plant size (as determined by number of employees) on industrial relations in communities indi- cates the following generalized conclusions: (1) Small plants were less susceptible to unionization. (2) Small plants. as a group had lower wages and smaller fringe benefits than large plants. This was offset, however, by the use of more planned overtime and informal fringe benefits by the small plants. (3) Small plants had a major advantage in the form Of plant atmOSphere between workers and management. (4) Strikes were less prevalent in small plants. (5) Small plants Offered steadier year-around employment than large plants. Indication was also given that small branch plants of multi- unit corporations may have some of the advantages of both small and large plants. Their small size may allow them to deveIOp a small-plant atmosphere utilizing the personal approach while having 1The Influence Of Plant Size On Industrial Relations, Indus- trial Relations Section, Dept. of Ecofiamics'and SocioTogy, Princeton. New Jersey, 1955. 72 73 higher wages and fringe benefits and drawing upon the Specialists provided through their relationship with the large parent corporation. However, corporation-wide strikes may increase the incidence of local strikes. The lack of decentralized decision-making may also prevent utilization of many advantages of small size. The size of plant as pertains to the number of workers em- ployed per acre Of land also bears consideration. Industries employ— ing a high ratio of workers per acre of land are called "intensive" industries. Those employing only a few persons per acre Of land are called "extensive" industries. In areas where industrial lands are limited and employment needs are high it may be well to en- courage the Operation of intensive industries, as they will Offer more employment Opportunity for a limited amount of available industrial land. Classification Table X lists the size of establishments by the relative num- ber of employees for each major industrial group. The average number of employees for all industries was fifty-nine. TABLE X 74 SIZE OF ESTABLISHMENT, BY NUMBER OF EMPLOYEES _l fig Y 11' Major and Submajor LI 3— r v; Industrial Groups Avg. No. of Employees Concrete and plaster products ................. Costume jewelry and notions Cut-stone and stone products .................. Commercial printing ..... Dairy products ......... Miscellaneous leather goods Printing trades service industries .............. Miscellaneous fabricated textiles ............... Lumber and timber basic products .............. Products of purchased glass Millinery . . . . ......... Miscellaneous food preparations ................ Miscellaneous petroleum and coal products ........ Lumber and products, except furniture . .......... Partitions and fixtures . . . Screens, shades, and blinds Printiniand publishingfiindustries .............. Handbags and small leather goods .............. Grain mill products ..... Industrial leather belting . . Luggage ............. Jewelry and silverware . . . Miscellaneous wood products Newspaper ............ Children's outerwear . . . . OOOOOOOOOOOOOOOOOOO Misc ellaneous chemical products ............... Beverages ............ Women's and misses' outerwear ............... Periodicals ........... Bookbinding and related industries .............. Soap and related products . Miscellaneous apparel and accessories ........... Misc ellaneous manufacturer 5 11 12 15 16 17 17 19 20 20 21 21 22 23 23 24 24 25 25 26 27 27 27 27 28 28 29 29 30 31 32 32 32 33 33 75 TABLE X (Continued) ’—r— .5 _I L Y— 1 i 7—74 A‘ A 3 1 _ . j Major and Submajor Industrial Groups Avg. No. Of Employees Leather gloves and mittens ................... 34 Toys and sporting goods ..................... 34 Apparel and related products .................. 35 Millwork and related products ................. 35 Food and kindred products ................... 36 Vegetable and animal oils .................... 36 Footwear cut stock . ........................ 36 Lithographing . ............................ 37 Nonferrous foundries ....................... 38 Bakery products . .......................... 39 Medical instruments and supplies ............... 39 Stone, clay, and glass products ................ 40 Office supplies . ........................... 40 Metal stamping and coating ................... 41 Furniture and fixtures ...................... 42 Paving and roofing materials .................. 44 Plastics products, n.e.c. ..................... 44 Fertilizers .............................. 45 Women's and children's undergarments ........... 46 Wooden containers ......................... 46 Household furniture ........................ 47 Paints and allied products .................... 47 Structural metal products .................... 47 Metal-working machinery .................... 50 Confectionery and related products .............. 52 Miscellaneous fabricated metal products .......... 52 Miscellaneous machine parts .................. 52 Canning, preserving, and freezing .............. 53 Special industry machinery, n.e.c. .............. 53 Cigars ................................. 57 Narrow-fabric mills ........................ 57 Secondary nonferrous metals .................. 57 Optical instruments and lenses ................ 57 Fabricated metal products .................... 58 AVERAGE FOR ALL INDUSTRIES .............. 59 Drugs and medicines ....................... 60 k 76 TABLE X (Continued) ‘— ——w 1 W A 1’: fix.; L 1+ LT Trf Arr- I'— L L1 Avg. No. of Major and Submajor Industrial Groups Employees Structural clay products ..................... 62 Fabricated wire products .................... 62 Men's and boys' furnishings .................. 63 Books .................................. 63 Chemicals and allied products ................. 63 Musical instruments and parts ................ 65 Miscellaneous nonmetallic mineral products ....... ' 66 Meat products ............................ 69 Paperboard containers and boxes ............... 72 Gum: and wood chemicals .................... 72 Leather and leather products .................. 72 Fur goods . ...... . ....................... 73 Knitting mills . ........................... 74 Public and professional furniture ............... 74 Miscellaneous textile goods ................... 77 Pulp goods and miscellaneous paper products ...... ' 77 Men's and boys' suits and coats ............... 78 Pottery and related products .................. 78 Hats (except cloth and millinery) ............... 79 Miscellaneous electrical goods ................. 82 Cutlery, hand tools, and hardware .............. 83 Envelopes ............................... 84 Machinery (except electrical) .................. 86 Instruments and related products ............... 89 Scientific instruments ....................... 94 Leather tanning and refining .................. 95 Office furniture ........................... 98 General industrial machinery .................. 99 Paper coating and glazing .................... 100 Tobacco manufacturers ...................... 103 Paper and allied products .................... 110 Greeting cards ............................ 111 Paper bags . ............................. 115 Mechanical measuring instruments .............. 115 Heating and plumbing equipment ................ 118 Finishing textiles except wool. ................. 122 TABLE X (Continued) 77 . _ .» A: A ‘Wfi A fi— T'T I I Major and Submajor Industrial Groups 1AM A Avg. No. of Employees Ophthalmic goods . ..................... Insulated wire and cable ................. Ships and boats . ...................... Electrical appliances ................... Reclaimed rubber . ..................... Iron and steel foundries ................. Photographic equipment .................. Rubber industries, n.e.c. ................. Watches and clocks .................... Textile mill products . .................. Construction and mining machinery ......... Chewing and smoking tobacco ............. Petroleum and coal products .............. Tractors and farm machinery ............. Miscellaneous primary metals industries ..... Tobacco stemming and redrying ............ Industrial inorganic chemicals ............. Footwear (except rubber) ................ Yarn and thread mill, except wool .......... Carpets and rugs ...................... Sugar .............................. Miscellaneous publishing ................. Service and household machines ............ Electrical machinery ................... Electrical industrial apparatus ............. Motorcycles and bicycles ................ Primary-metals industry ................. Tin cans and other tinware ............... Woolen and worsted manufactures .......... Pulp, paper, and paperboard .............. Cement hydraulic ...................... Lighting fixtures ...................... Coke and by-products ................... Communication equipment ................ Transportation equipment, n.e.c. ........... Office and store machines ................ 122 124 135 136 138 138 139 146 146 151 152 153 153 156 157 159 159 160 188 193 196 197 202 202 205 205 216 216 217 223 230 231 233 251 273 274 78 TABLE X (Continued) J A. f fi'fi—V f A Avg. No. of Major and Submajor Industrial Groups Employees Rubber products ........................... 296 Transportation equipment .................... 318 Petroleum refining . ........................ 334 Industrial organic chemicals .................. 366 Motor vehicles and equipment ................. 368 Electric lamps . ........................... 385 Engine electrical equipment ................... 399 Cotton and rayon broad-woven fabrics ........... 410 Pressed and blown glassware . ................ 419 Primary nonferrous metals . .................. 486 Nonferrous metal rolling and drawing ............ 549 Engines and turbines . . ..................... 616 Aircraft and parts . ........................ 661 Railroad equipment ......................... 747 Flat glass ............................... 801 Cigarettes ............................... 988 Rubber footwear ........................... 1,082 Blast furnaces and steel mills ................. 1,711 Tires and inner tubes ....................... 2,029 T— r} I _ :" L1 is; T A Source: Based on data from 1947 Census of Manufactures, General Summary, U.S. Department of Commerce, Bureau of the Census, Chapter 1, “Summary Statistics,” 1950. SUMMARY Industries in search of new locations are primarily con- cerned with locational factors of the communities considered. On the other hand. most industries are also anxious to locate in areas ’- where they will be most welcome and beneficial. It is here “that the most profitable returns from community industrialization can be max- imized. The point to be primarily emphasized is that communities should not encourage industries simply to add new payrolls and in- crease the tax base per se. These are very real and worth-while benefits to be sure, but these benefits will also result from the lo- cation Of almost any reasonably stable industry in almost any com- munity. There are other possible benefits which a community can but will not gain unless they are considered. This study has analyzed various industrial characteristics as they affect and benefit communities. The analyses are intended to serve as supplementary criteria to the presently accepted methods. of determining industrial locations. Consideration Of the effects of these industrial characteristics in conjunction with other standard 79 80 locational factors would aid considerably in maximizing the benefits of community industrialization. A community which can stress the potential benefits Of an industry in conjunction with the locational advantages would have an advantage over a similar area which has stressed only its locational advantages. Such efforts would also indicate to an industry that there is active local interest in improving the community. This study has made no attempt to determine or establish criteria from which a community can select fixed goals. For in- stance, no criteria are available from which a community could es- tablish an ideal labor force composition. On the other hand, it is possible for a community to evaluate its labor force composition and determine a marked degree of unbalance. From such a determina- tion the situation could be alleviated by encouragement Of apprOpriate industries. Similar analyses and remedies could be applied to other peculiarities of almost any community. More thought and consideration should be given by communi- ties to the potential benefits of industrialization. Establishfnent Of an industry in a community is a relatively short-term proposition, but the effects of industrialization on the character Of a community will persist for the duration of the community's existence. BIBLIOGRAPHY Arnold, Sam. Planned Dovetailing of Seasonal Employment, Ohio State University, Research Monograph Number 35, Columbus, Ohio, 1944. Baetjer, A. M. Women in Industry, Saunders, Philadelphia, 1946. Calef, W., and C. Daoust. What Will New Industry Mean to My Home Town, U.S. Depfiaftment ofTCommerce, Washington, D.C., April, 1955. Cleland, Sherill "The Influence of Plant Size on Industrial Rela- tions," Industrial Relations Section. Department of Economics and Sociology, Princeton, N.J., 1955. Donahue, W. T. Earning Opportunities for Older Workers, University of Michigan Press, Ann Arbor, Michigan, 1955. V Fabricant, Solomon. Employment in Manufacturing, 1899-1939, Na- tional Bureau Of Economic Research Inc., New York, 1942. Miller, D. C., and W. H. Form. Industrial Sociology, Harper and Brothers, New York, 1951.“ National Manpower Council. A Policy for Skilled Manpower, Colum- bia University Press, NewfiYork, 1954. Ringstrom, N. M., and L. W. Casady. "The Community Investment in New Industry," Arizona Business and Economic Review, University of Arizona, Vol. 1, Number 6, June, 1953, p. *3. Saunders, C. Seasonal Variations in Employment.Longmans, Green and Co., NeVYork, 1936. Shirer, John. "What A Community Looks for in New Industry," Arizona Economic and Business Review, Volume 1, Number 6, fine. 1952, p. 5. F7 81 U.S. 82 Chamber of Commerce, Economics Research Department. What New Industrial Jobs Mean to a Community, Washington, D.C., 1954. ' . Department of Commerce, Bureau of the Census. "Employment and Payrolls," Chapter II, 1947 Census of Manufactures, Gen- eral Summary, Washington,fiD.C., 1950. m . Department of Commerce, Bureau of the Census. "Industrial Characteristics," Census of Population, Washington, D.C., 1950. - . Department of Commerce, Bureau of the Census. "Summary Statistics," Chapter I, 1947 Census of Manufactures, General Summary, Washington, TIC” 1950. I . Department of Commerce, Bureau Of the Census. "Type of Organization," Chapter IV, 1947 Census of Manufactures, General Summary, Washington?D.C., 1950. . Department of Commerce, Office of Domestic Commerce. Basic Industrial Location Factors, Washington, D.C., 1947. "Wanted: New Industry," Time, September 26, 1955, p. 88. Warner, W. L.. and J. 0. Low. The Social System of the Modern Factory, Yale University Iii-ess, New Haven, 1947. .I '. I'll. .1 ... . f. . [i ital. .Lwiln.(} 4v Demco-293 i I I III I I II I I II I I I I III I II I I I I I II I I I I 143 1830 3 1293 03