Canadian Woollen Business.

Hokitika Guardian, 18 February 1922, Page 4

Canadian Woollen Business.

BETTER PROSPECTS. VANCOUVER, Jan. 12.

Canadian woollen manufacturers have completed a quiet year and have entered upon one which promises to be somewhat better. The woollen mills, as a whole, did not experience such prosperity as was the case with the knit goods manufacturers. Export business was practically nil, and domestic trade was unsettled by falling prices and lack of confidence on the part of buying interests. Ordinarily tlic woollen manufacturers sell the hulk of their output of overcoatings, mackinaws, etc., in the early months of the year for autumn delivery. Tn 1921 buyers were indisposed to operate until they were certain that prices were on a stable basis. Purchasing did pick up in the latter part of the year, hut not sufficiently to provide a normal season’s business.

Now that the prices of raw materials are stabilised, there is a prospect of better business. The policy of hand-to-mouth buying still prevails, however, and there is no definite assurance at the moment that export business of consequence will he forthcoming, except, perhaps, for a few firms that specialise on certain high-grade lines. Conditions are considerably changed from the wartime basis, whe nail the woollen mills of the country had all the business they could handle. Eighteen mouths ago, British woollen manufacturers were indifferent about taking on more business, since they had already more than they could handle. The wave of cancellations that set. in shortly afterward, and the undermining of confidence in the stability of prices, brought about dull conditions in the

British industry. The mills hastened jto make full deliveries o forders for goods bought at peak prices, with emI barrassing conseqences to the reputable customers who refused to repudiate their contracts. The process of liquidating these stocks of high-priced goods has gone on slowly throughout the past year, and there is reason for believing that the trade is in a healthier condition than it was earlier in the period of readjustment. POLICY OF EXPANSION. The Canadian woollen industry benefitted' considerably from its wartime experiences. Some of the larger mills took advantage of tlie experience they had gained by branching out into new lines, manufacturing a more varied assortment of goods than previously. These firms now occupy a more assured position relatively in the Canadian market. Not all the mills were able to 1 broaden out in this way, on account ot lack of capital or expeirence. Luring the past year a number of tlie mills were forced to take losses from retail failures, involving substantial amounts in a few cases. On the whole, however, there lias been a surprising lack of commercial casualties in the retail field, and since their stocks of goods are light it is apparent that the reeds of next season will- bring out a reasonable amount of business for the manufacturers. Costs of raw materials have evidently reached, and in most instances passed, the low point. There is general admission that labour efficiency has increased, but exceptions are m.ted. One cloth manufacturer in Ontario stated that he was not obtaining any greater efficiency than in busy years. Wages have not been reduced to the same extent as in certain other ir civ.stries. Bonuses have, for the most part, been discontinued, and some manufacturers report wage decreases averaging about 10 iter c-ont. 1 One of the largest cloth m unit a ; turers iw Ontario asserted t int 'he 1 ottom in prices has been readied and that the excessive cost of. making doth into suits and costumes's holding things hack. This high cost ii mv.kirg clothing is keeping retail me vaunts from purchasing, and it is deem ed that a readjustment in this section of the business is necessary Indore normal buying is resumed. The outlook for 8»22 is fair, with the likelihood that there will be- little ordering ahead. Coin'idenoe in prices is growing gr-i-.l jsillv, and this constitutes the-greatest cause for I mix 1 in 1H22 business.