Some of the main competitive imports are forged steel, pipe flanges, welded fittings from England and Germany, cold-drawn English steel, and aviation parts. One company stated, "We have had a serious labor situation, as we have had to lay off workers due to the competition of companies that get material from England and Germany." However, the industry as a whole seemed to feel that foreign competition was negligible.

FABRICATED METAL PRODUCTS

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A large group of fabricated metal products come within this classification. manufactures covered in the survey make heating and air-conditioning equipment, machine tools, screws, bolts, nuts, and washers, domestic stoves, automobile parts and hardware, metal shipping containers, plumbing fixtures and supplies, kitchen and window hardware, electric and carbide lanterns, mouse traps, and plowshares, as well as many more similar products.

Three-fourths of the industry export in appreciable quantities. One manufacturer commented, "We are interested in expanding our export trade, but expansion is largely dependent upon financing of shipments. The freight charge is a decisive factor. We need more participation in the financing of exports from private commercial banks. The United States banks have never carried out this function as do the banks in England, France, Germany, and elsewhere." A third of the companies use varying amounts of imported raw materials, including nickel, cork, tungsten, copper, cobalt, antimony, tin, zinc, manganese, aluminum, diamonds, steel, and rubber. Although some of these are not consumed in large quantities, they are all essential to the industry.

A third of the group reported import competition. The screw manufacturers are seriously affected and have asked for tariff relief. The problem, as stated by several concerns, is this: Given equipment as modern and efficient as that used in the United States, a foreign producer, with low labor costs, can make a product with which it is impossible for United States manufacturers to compete. However, the industry in general did not feel that import competition was a serious problem.

MACHINERY, NONELECTRICAL

A higher percentage of manufacturing employment is found in this category than in any other in the State. Products range from farm equipment, automotive, equipment, hydraulic presses, sewing machines, and typewriters to food packaging machinery and parking meters.

Almost 90 percent of the companies reporting export. The majority would like to increase this phase of their business. Many said that trade restrictions of other countries were severe but the dollar shortage and lack of convertibility were considered the greatest deterrents to trade. About one-third of the companies import raw materials directly.

Competition from foreign-made products is increasing, especially in such items as sewing machines, typewriters, and special types of presses. Nevertheless, there was no general indication that more protection was needed. As expressed by one company official, "Competition to us is a creative force-not a destructive one. What is needed more than any other single ingredient is freedom. The United States is in a good position to set this example."

There is a high percentage of small businesses in this field. Their situation was expressed by one executive who stated, "Recent history in this country is such that the small business is threatened. Increase of imported products in the domestic market is a threat to small businesses. There should be some provisions made so that these small industries are not forced out of business."

ELECTRICAL MACHINERY

This is one of the fastest growing industries in the State, ranking next to nonelectrical machinery in total number of employees. Under this classification are produced all types of communication equipment, recording and phonographic equipment, electric appliances, outboard and fractional motors, switches, controls, and countless other items in the field of electronics.

Exports are increasing in this industry to the extent that 93 percent of those interviewed report exporting in amounts ranging from small to substantial. The great majority would like to increase this phase of business but find foreign restrictions on imports a limiting factor.

Half of the companies reporting used imported raw materials; the other half used processed materials and did not import directly. Only a small percentage

considered United States import restrictions as affecting them seriously. One man said the amount imported was negligible but, "I couldn't stay in business without it."

Competition from foreign products is not considered severe in this industry. Such imported items as machine tools, fractional motors, condensers and speakers, tape recorders, and record changers do compete, but not as much as domestic products. The status of this industry relative to the total domestic industry is growing.

TRANSPORTATION EQUIPMENT

Products of this industry include railroad equipment, motor vehicles and equipment, aircraft and parts, motorcycles and bicycles.

Ninety percent of the companies interviewed export in varying amounts. Half of these consider foreign imrort restrictions as severe. The most serious limitation was felt to be the dollar gap. One man suggested improvement of international banking arrangements for countries lacking dollars. About onethird of the companies report using imported materials in amounts varying from negligible to moderate.

The most serious import competition in this category is found in the bicycle industry. At the time of the survey bicycle imports were rising steadily, at the same time the domestic industry was declining. Domestic labor costs, which were rated 4 to 6 times higher than foreign labor costs, and higher material costs here, were given as reasons for the situation. The industry felt they had a most extreme case of need for aid. The other segments of the industry were not so much affected by import competition.

Fact survey: Illinois exports as related to gross sales (1954 data)

1 Only those companies are included that gave both gross sales and number of employees.

2 Source: Bureau of Labor Statistics, July 1955; Employment and Earnings, vol. 12, No. 4, October 1955. • Includes some chemicals manufactured by food processors.

The farmlands of the Middle West are a vast reservoir for the food industry in Illinois which supplies to the consumer many types of products varying from meat to beverages. The food companies covered in the survey fall into four major groups: meat processors, who make byproducts besides packing meat; candymakers and confectioners; bakers; and milk handlers, including both liquid milk distributors and makers of dairy products.

Two-thirds of the food companies use some form of imported materials. The amounts used vary from negligible to half of their basic materials. A partial list of these products is coconut oil, cocoa and cocoa products, sugar, tapioca, spices, nuts, coffee and tea, olives, essential oils, chicle, molasses, beef canned, and jute bags, There were some negative comments concerning United States import restrictions and controls on such products as fruit, cheese, sugar, and nuts.

Because of the perishable nature of their products the bakers and milk handlers export very little. The candymakers ship limited quantities out of the country, and the meat processors export relatively large quantities of food. Such products as lard, salt pork, inedible animal products, and canned meats make up the bulk of these exports.

The two segments of the industry chiefly affected by competing imports are the meat processors and candymakers. In view of the overall shortage of fats in the Iron Curtain countries, the meat industry expressed concern over the restrictions on the shipment of fat into the countries which in turn export canned hams to the United States. It was commented that "canned hams from Poland and Holland constitute one-third of the market. This competition is felt more on the east coast than in Illinois. The packing industry has not asked for protection against this importation but, in return, does want these countries-particularly Poland-to allow United States imports of lard." A candy manufacturer stated: "I'm not worried about imports. They are different from domestic candy but not too popular. We would like to export more, but red tape both here and abroad makes it discouraging. I do feel that we should trade with foreign countries, however, to develop better feelings. If an industry can stand competition here at home, they'll weather it from foreign countries too."

CHEMICALS AND ALLIED PRODUCTS

The chemical industry in Illinois is thriving because of the demand for chemicals and the availability of raw materials.

The chemical manufacturers, especially around Chicago, have many of their customers right at their door. The steel, fabricated metal, and metal-finishing industries consume in quantity such chemicals as oxygen, sulfuric acid, other heavy acids, metal cleaners, and plating materials. The steelmakers are also chemical producers, recovering coal tar derivatives as byproducts from coking.

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The meat processors use chemicals in converting their by-products to soap, glue, fertilizer, etc., and in addition produce synthetic organic compounds and pharmaceuticals. Paints, phosphates, rare earth compounds, vitamins, hormones, formaldehyde, alcohol, water treatment chemicals, insecticides, cosmetics, photographic compounds, plastics, and household cleaners are some of the chemicals and related products made in Illinois.

Over three-fourths of the chemical companies export. Several stated that even though the percentage was small it was important to a profitable operation. Most of those exporting would like to increase the amount, but some felt that they would prefer to build plants in countries with sufficient demand for their product. The restrictions of foreign countries were thought to be serious, especially in Europe. One man said, "Our company has a serious problem when trying to sell materials to England, France, or Belgium because of high duties and quota restrictions." However, one drug manufacturer commented, "This industry as a whole is a favored one, because many foreign countries will make funds available for the importation of drugs that would not be available for other industries. Drugs receive a high priority if dollars are available. The dollar shortage is a very serious problem.'

Three-fourths of the companies import raw materials. Nut oils, crude botanicals, waxes, gums, essential oils, ores, and metal are some of the more important imports.

One-half of the companies reported competition from imports. The foreign products are considered comparable in quality to the domestic ones. Labor costs

are thought to be higher in the United States but are offset in most cases by more efficient production methods. However, one company said they had established foreign plants because of the labor cost factor. In general, it was felt that while the effect of foreign competition on a single product might be serious, total exports often keep the balance favorable to the domestic manufacturer.

APPAREL, TEXTILES, LEATHER AND RELATED PRODUCTS

A wide variety of apparel is made in Illinois. Products include such items as men's clothing, children's snow suits, uniforms, sportswear, school caps and gowns, women's dresses, and foundation garments. The textile industry is rather specialized. The reporting companies gave woolens and specialty materials as their principal products. The leather group includes both tanners and makers of shoes, gloves, and other leather goods.

Almost a third of the companies export directly. Most of these would like more export business, and others who do not export at present would like to start. About half of the companies interviewed use imported products or raw materials. The clothing industry listed silk from Japan, Italy, and France, woolen cloth from England, and cotton from Egypt. The textile mills buy wool from Australia. The tanning industry is particularly dependent on imports, since quebracho and chrome chemicals used in tanning are not available from domestic raw materials. A third of those companies interviewed report import competition in varying amounts. A clothing manufacturer stated that "in the clothing business our more efficient manufacturing methods and lower transportation costs can more than overcome foreign competition. We also have an advantage in styling." Italian and English shoes and gloves were mentioned as particularly competitive. The "individual styling" of foreign shoes was stressed, in contrast to our highproduction high-quality output. One glove manufacturer recommended that we "confine United States imports to products requiring only a small amount of labor to manufacture"-bringing up the point of higher labor costs in the United States. The textile industry felt that one of its problems stemmed from too much domestic competition, rather than import competition, but does not want its troubles increased by cheaper competing imports. It was said that "the textile industry is, at present, in a convalescent condition. There has been too much overexpansion and overproduction here at home."

WOOD PRODUCTS AND FURNITURE

Under the wood products classification, the companies range from makers of prefabricated houses, through garage doors to picture frames. Upholstered sofas and chairs, metal kitchen furniture, fine living and dining room furniture, and office fixtures are some of the products made by the furniture industry in the State. Almost two-thirds of these companies use some imported materials such as jute, rubber, marble, mahogany, other hardwoods, veneers, and even saws and knives. Whereas some of the companies in this category do export, the group as a whole does not have a high percentage of export business.