A third of these concerns report import competition, some of it serious. Furniture from Scandinavia, Italy and England, and toys from Japan and Germany are the principal competing products. United States protection is moderate. The views of these industries are varied. One manufacturer said, "Japan can make our products at lower prices than we can produce them here. We realize, however, that we must help put Japan's economy on its feet. When this temporary situation is ironed out, then the United States should take the necessary steps for protection of this industry.' Another said, "When we couldn't compete with one product, we changed to another and it was worth it." Very few asked for more protection. PAPER AND PAPER PRODUCTS Illinois does not have a large primary pulp and paper industry. The principal products covered by the survey include corrugated boxes, paperboard, waxed paper, labels, and miscellaneous paper products. Thirty-six percent of the companies export, but only one company considered the amount substantial. Forty-eight percent would like to export more of their products. Transportation limits both the export and import of boxes and related bulky products. However, the cartons and other packaging materials made by these companies are used in many instances for exported products. Forty-four percent of the companies use imported raw materials, the most important being pulp, both ground wood and chemical. There were no complaints about United States' restrictions. Twenty-four percent of the companies reported import competition. Only one company classed the competition as serious. One comment was, "If present tariffs are lowered, our industry will be hurt. Competition is very keen in this country, and we have low profits generally. Any importing of a foreign product would affect our business seriously." PUBLISHING AND PRINTING Publishers of large newspapers, magazines, textbooks, etc., as well as commercial printers, were interviewed. Markets for the products of the United States publishers and printers are primarily domestic because of language. United States-produced books, magazines, etc., find foreign markets in Englishspeaking countries, primarily Canada. Only one company reported printing foreign language editions of its periodicals. Experts of this industry are therefore relatively small, and opinion was about equally divided on the advisability of increasing them. Canada is the source of the industry's main import, newsprint. Since this commodity enters duty-free and Canada absorbs the freight charges, the industry as a whole feels that it is unaffected by foreign trade restrictions. Only a few firms reported that their products faced competition from imported items. The competing products are negatives, colored reproductions, and maps and atlases. There is no tariff protection against the first; the protection against the other items was termed "moderate." The trend of imports of all three has been upward in the past 5 years. PETROLEUM AND PETROLEUM PRODUCTS This class includes the petroleum refiners and processors and the manufacturers of secondary products. Fourteen companies were covered in the survey: 10 are refiners or processors; 4 are manufacturers of secondary products such as asphalt roofing, etc. The Illinois refiners do not export because of their location. In the case of large companies, exports move from plants more favorably located in coastal areas. This also applies to the use of foreign crude oil. In several instances the possible effect of the St. Lawrence seaway on exports and imports was mentioned. The companies emphasized their feeling that the use of foreign crude oil permits the United States to conserve its natural resources. One refiner mentioned some competition from Canadian imports. The secondary manufacturers export some of their products and import raw materials principally asbestos from Canada and oil from Venezuela. However, none of the manufacturers felt they had a problem as far as import competition was concerned. CERAMICS, GLASS, CEMENT, BRICK, ETC. Structural clay products, brick, cut stone, glass, pottery, concrete and plaster products, and ceramics are some of the materials included in this industry. Most 75018-56-35 of these commodities are bulky, heavy, and easily damaged, and are not readily exportable. As a group, these firms feel that their business is primarily domestic and will so remain. Small quantities of tile, plumbing fixtures, and porcelain insulators are exported. Some found foreign regulations on imports to be very restrictive. About half of the companies import from abroad. English clays, Canadian asbestos, and French pebbles were some of the most important imports. None complained of unreasonable United States tariff rates. One-third of those interviewed report competition from imported products. Products listed as competitive included statuary, glass, artware, and porcelain fixtures. United States tariff rates were felt to afford little protection. During the last 5 years, imports of Japanese and Italian artware have risen, but sales of the affected domestic companies have, for the most part, also risen for the same period, leaving their status, relative to the total domestic industry, unchanged. INSTRUMENTS AND RELATED PRODUCTS Under this classification are such items as scientific instruments, optical instruments and lenses, medical instruments, mechanical measuring devices, photographic equipment, watches and clocks. Although foreign restrictions on imports were felt by almost three-fourths of those exporting, 94 percent of the total reporting have some export business. The force of restrictions was expressed by one executive who stated, "We are blocked in most foreign countries by substantial tariffs, currency regulations and disadvantageous rates of exchange.' Imported materials were reported used by almost four-fifths of the companies. Competition from imported products is considered serious by some segments of this industry. Principal competition came from Swiss watches, compacts and cigarette lighters from Italy, and cameras and lenses from Germany, England, and Japan. Higher labor costs were mentioned as an important factor by practically all of the companies. One executive suggested, "The industry should figure means to diversify, as the watch industry has done, to prevent a serious situation." MISCELLANEOUS MANUFACTURING This category includes all products not listed elsewhere. These range from jewelry and silverware, through musical instruments, to sporting goods. In this summary report, rubber has also been included because it constitutes too small a proportion of Illinois industry to be considered alone in this survey. Most of these companies reported some small export business. As in many other types of industries, the restrictions placed on imports by other countries affected the amount of exports. Imported raw or semifinished materials are used in small quantities in the products of less than half the companies included. Import competition is considerable, or even severe, in some instances. The most serious situation is faced by toy manufacturers. High labor and material costs were mentioned as factors which make it difficult for these companies to compete with foreign-made goods. One toy manufacturer states, "If this industry is not given some protection, it will be drastically reduced." The rubber companies face little competition from abroad, since foreign production is low. COMPETITIVE IMPORTS BY COUNTRIES, COMPILED FROM QUESTIONNAIRES Australia and New Zealand: Alinement machines Butter Drafting tools Powdered milk Belgium: Corn starch Sisal binder twine Brazil: Starch Canada: Biscuits Distilled spirits Denmark: Canned hams Cheese England: NONCOMPETITIVE RAW AND SEMIFINISHED IMPORTS, BY CONTINENTS, COMPILED Illinois lies largely within the region commonly known as the Corn Belt, one of the most efficient agricultural producing areas in the world. Combinations of the major crops corn, soybeans, oats, wheat, and hay-and of livestock hogs, beef cattle, and dairy cattle-form the basis for the organization of farms. The relative importance of these crops and kinds of livestock varies in different sections because of differences in condition of soil, climate, and economic factors. The following statistics will help give a picture of the importance of agriculture to Illinois. Farm size varies from 14,000 under 10 acres to 400 farms 1,000 acres or larger. In July 1952 Prof. R. C. Ross of the University of Illinois College of Agriculture said: "During the last decade, farmers in Illinois have generally enjoyed good incomes. Production both of crops and livestock has been at high levels, prices have been favorable, and the increased use of capital has added greatly to the production per acre. During this period, however, and especially in the years since World War II, costs of production have advanced rapidly and have held profits in check. "Illinois agriculture is dynamic, as indicated by the variety of products grown and by the shifts that have taken place in response to price changes and national needs, as in the increase in the acreage of soybeans and in the use of hybrid corn. Illinois' position as a producer of surplus feed grains, its location with regard to transportation, and the favorable soil and climatic conditions for producing many products, provide a sound basis for adjustments in Illinois agriculture as conditions change.' Because of the importance of agriculture to the prosperity of Illinois and to the country as a whole, and because the principal crops of Illinois are of some importance in the agricultural export-import picture, it is natural that Illinois farmers have an interest in and an understanding of the problems involved in world trade. 1 |