FEARS OF A SLUMP

Ashburton Guardian, Volume 57, Issue 245, 28 July 1937, Page 3

FEARS OF A SLUMP

POSITION OF MANUFACTURERS.

NO ORDERS ON HAND.

(Per Press Association.)

WELLINGTON, July 27

New Zealand manufacturers are seriously alarmed at the imminent prospect of a tremendous slump in factory production accompanied by widespread unemployment. Rising costs of raw materials necessitated by the shorter working week and other restrictions caused- by the recent legislation have brought about a general rise in prices. In many cases it is now cheaper to import than manufacture, as New Zealand manufacturers are now unable to compete with overseas producers. Unless immediate action is taken, many factories may be obliged to close down. In a single month the position has suddenly grown acute. Manufacturers who have been working at top speed for the last 12 months have suddenly been confronted with an almost complete absence of demand for New Zealandmade articles. During the boom period retailers and others on whom manufacturers depend for their sales have laid in heavy stocks, against a further rise in prices, consequently to-day the market for many kinds of wares is hopelessly glutted. The position is reflected in the May import statistics, which show an excess of .more than £1,250,000 over the figures for May last year. In an interview to-day the secretary of the New Zealand Manufacturers’ Association (Mr R. O’Shea) stated that this critical state of affairs was by no means hallucinatory. He could produce signed statements by manufacturers all over the Dominion showing that they had no orders on hand, no prospects of work in the immediate future, that in many cases they had already been obliged to reduce their stall's and in some instances the position was so grave that the factories concerned were faced with ceasing operations.