H. —44.

2. Boot and Shoe Making. All firms report increased business over the corresponding period of last year. In many cases new plant lias been installed, but output has been hindered by the difficulty of obtaining machinists, necessitating increased overtime being worked. The industry has been considerably stimulated by the constant heavy demand for military footwear, and activities in this direction have naturally taken precedence over output for ordinary commercial and domestic needs. A number of new units have been established and are now approaching capacity output. Existing units have increased their staffs. During the past year some attention has been given to the manufacture of men's and women's tigh-grade shoes to meet the demand for lines similar to those previously imported. 3. Engineering. Allowing for the usual fluctuations in this industry, the volume of business has, generally speaking, increased substantially. General building requisites and roofing materials are in short supply, and the continual rise in overseas prices is hampering progress. On the other hand, boiler-making, mechanical engineering and brass finishing foundries, and general repair work have had an extremely busy year. Turnovers are in most cases up, but there has been some difficulty in obtaining sufficient skilled workers. Ihe activities of the industry have been extended to include Dough brakes for the baking industry, electrical wringers, irons, washing-boilers, radiator valves, electric welders, electric-lift apparatus. 4. Sauce, Pickle, and Vinegar Making. Pickle-factories, aided by the restriction on imported pickles, have been very active during the year. Manufacturers have extended their range of lines, and arrangements have been made in some cases with local growers to plant additional areas to furnish supplies of raw materials. 5. Soap and Candle Making. Sales are slightly better than last year, and manufacturers have been very busy over the last few months due to heavy buying in anticipation of overseas price-rises. Business has been very good in respect of bar soap, soap-powders, and sandsoap. As the result of import control local firms have entered whole-heartedly into the campaign to manufacture toilet soap and allied toilet preparations. Increases in the number of employees appear to have been general, and many new lines, including a wide range of fancy gift boxes, are now produced. An overseas firm has recently completed the erection of a big factory in the Wellington district, and production has commenced. One stearine factory is at present reorganizing and extending its plant and will shortly be in a position to supply all requirements in both higher and lower grades of stearine. 6. Coach and Motor-body Building and Cycle-works. In the early part of the year steady business was done, and in the Christchurch district a new assembly plant was erected. However, petrol-restrictions imposed with the outbreak of war, combined with the import restrictions, have had the effect of creating a temporary setback in the coach-building industry. A compensating factor is the increase in repair work owing to the fact that old cars which would normally be turned in are being kept in commission. 7. Biscuits and Confectionery Making. Factories engaged in this industry were exceptionally busy over the greater part of the year under review. Increased sales of chocolate confectionery have resulted from intensive radio advertising, and the Centennial Exhibition entailed a considerably increased production of fancy boxes. It is anticipated that production will continue at a satisfactory level. During the year a new factory commenced operations in the Wellington district, giving employment to some 150 people. 8. Furniture and Cabinet Making. Firms report having a good trading year, and in some cases factories have been extended and staffs increased. Demand has been steady, and although there is a shortage in supply of certain timbers the general position does not appear to have been affected. Factors which have contributed to the growth of this industry over the past year have been the State housing scheme, the Centennial Exhibition, and the supply of furniture to the military establishments. 9. Ham and Bacon Factories. Conditions in this industry have been normal, although from a number of causes, including the severe winter, there h%3 been a shortage of pigs for curing purposes. ID. Bricks, Pipes, Tiles, and Pottery Making. Requirements of the State housing scheme have provided a considerable market for manufacturers of these products. An increasing range is being turned out, and considerable development in the tilemanufacturing side of this business has been noted. In addition, new units have come into production, and it seems probable that further business will have an assured market in the Dominion, both in replacements and in new building activity.

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