SLUMP THREAT.

Waikato Times, Volume 121, Issue 20257, 28 July 1937, Page 6

SLUMP THREAT.

FACTORY PRODUCTION. MANUFACTURERS’ FEARS. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. New Zealand manufacturers are seriously alarmed at the Imminent prospect of a tremendous slump In factory production, aooompanled by widespread uqemployment. Rising costs of raw materials, higher wages and Increased staffs, necessitated by the shorter working week, and other restrictions caused by 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 past 12 months, have suddenly been confronted with an almost complete absence of demand for New Zealand-made 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, 1936.

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 exaggerated.