Trends in Foundry Production in the Philadelphia Area [Reprint 2016 ed.] 9781512814446

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INDUSTRIAL RESEARCH DEPARTMENT WHARTON

SCHOOL OF FINANCE

UNIVERSITY

AND

COMMERCE

OF PENNSYLVANIA

RESEARCH STUDIES III

TRENDS IN FOUNDRY PRODUCTION IN THE PHILADELPHIA AREA

TRENDS IN F O U N D R Y PRODUCTION IN THE

PHILADELPHIA A R E A

BY

ANNE BEZANSON AND

ROBERT GRAY Industrial Research Department University of Pennsylvania

PHILADELPHIA UNIVERSITY

OF P E N N S Y L V A N I A

1929

PRESS

C o p y r i g h t , 192.9, by the UNIVBSSITY

OF

PENNSYLVANIA

PKBSS

ACKNOWLEDGMENTS Professor J. Frederic Dewhurst, in his capacity of Statistician at the Philadelphia Federal Reserve Bank, deserves the credit of foreseeing the value of current foundry data and of starting the compilation of records. T h e study was carried on by the bank from 1924 to the end of 1927. T h e Industrial Research Department of the University of Pennsylvania has made the contact with foundrymen more direct than was possible through the bank, with its many calls for other types of data, and has consequently brought the information closer to a review of the trade. Scarcely a month goes by without some foundry executive's questioning our figure of prices, our ratio of production to capacity, the representative character of the data or their applicability to the varying conditions of the foundry trade. In answering these friendly inquiries we are kept in direct touch with the industry and are given every opportunity to visit plants and discuss specific problems. In making the data available, acknowledgment is made to the Philadelphia Federal Reserve Bank, to foundry executives and to the Metal Manufacturers' Association of Philadelphia. Credit is due to Miriam Hussey for criticism of the text and standardization of the presentation as well as to Majorie C. Denison for the drawing of charts and for assistance in the compilation of data.

V

T A B L E OF CONTENTS PACE INTRODUCTION

XIII

IRON FOUNDRIES

I

T h e T o n n a g e P r o d u c e d in G r a y Iron F o u n d r i e s T h e T r e n d of J o b b i n g and M a n u f a c t u r i n g F o u n d r i e s T h e P r o d u c t i o n of L a r g e and S m a l l F o u n d r i e s T h e P r o d u c t i o n of C i t y a n d O u t - o f - T o w n F o u n d r i e s . . . C o m p a r i s o n of G r a y I r o n P r o d u c t i o n with Pig Iron P r o d u c t i o n S h i p m e n t s of G r a y I r o n C a s t i n g s T h e T r e n d of U n f i l l e d O r d e r s T h e R a t i o of P r o d u c t i o n to C a p a c i t y C a u s e s of O v e r - F . q u i p m e n t Competition T h e T r e n d of P r o d u c t i o n in M a l l e a b l e Iron F o u n d r i e s STEEL FOUNDRIES

I 3 5 11 12 15 21 24 34 36 39 42

T h e T o n n a g e P r o d u c e d in Steel F o u n d r i e s S h i p m e n t s of Steel C a s t i n g s Unfilled Orders T h e R a t i o of P r o d u c t i o n to C a p a c i t y R a w Stock N e w Orders for S t e e l C a s t i n g s

42 46 48 51 51 51

SUMMARY

56

APPENDIX

62

APPENDIX

TABLES

66

INDEX

75

LIST OF T A B L E S 1. F r e q u e n c y D i s t r i b u t i o n of A n n u a l P r o d u c t i o n of G r a y Iron in 3 3 F o u n d r i e s C l a s s i f i e d b y O r g a n i z a t i o n and L o c a t i o n . . . . 2. P r o p o r t i o n of J o b b i n g and M a n u f a c t u r i n g Foundries

by 33 G r a y

6

Iron 12

3. Indices of P r o d u c t i o n of G r a y Iron C a s t i n g s in 3 3 F o u n d r i e s in the P h i l a d e l p h i a F e d e r a l R e s e r v e D i s t r i c t and P i g Iron in E a s t e r n P e n n s y l v a n i a 1 9 2 4 - 1 9 2 9

15

4. A v e r a g e P r i c e P e r P o u n d of S h i p m e n t s of G r a y I r o n C a s t i n g s .

20

5. F r e q u e n c y D i s t r i b u t i o n Capacity

of

Annual

Ratio

of

Production

. to

30

6. R a t i o of P r o d u c t i o n to C a p a c i t y in 3 3 G r a y I r o n F o u n d r i e s bv Months

32

7. R a t i o of P r o d u c t i o n to C a p a c i t y in 3 3 Classified by Size

33

vii

G r a y Iron

Foundries

Vili

LIST

OF TABLES

(Continued)

8. Ratio of Production to Capacity in 33 G r a y Iron Foundries Classified by Location and Organization

34

9. Average Price Per Pound of Shipments of Steel Castings.

. . .

10. Ratio of Production to Capacity in 12 Steel Foundries by Months

48 51

LIST OF CHARTS I. Production of Gray Iron Castings in 37 Foundries 19261929 (Absolute numbers in thousand pounds)

2

I I . Indices of Production of Gray Iron Castings in 19 Jobbing and 14 Manufacturing Foundries 1926-1929 (Base-average of 1926)

4

I I I . Indices of Production of Gray Iron Castings in 21 Large and 12 Small Foundries 1926-1929 (Base-average of 1926).

7

I V . Indices of Production of G r a y Iron Castings in 15 Philadelphia Foundries and 18 Out-of-Town Foundries 1 9 2 6 1929 (Base-average of 1926)

10

V. Indices of Production of Gray Iron Castings in 33 Foundries in the Philadelphia Federal Reserve District and of Pig Iron in Eastern Pennsylvania 1924-1929 (Base-average of 1926)

13

V I . Indices of Production and Shipments of Gray Iron Castings in 33 Foundries 1926-1929 (Base-average of 1926). . . .

16

V I I . Indices of Tonnage and Value of Shipments of Gray Iron Castings in 33 Foundries 1926-1929 (Base-average of 1926)

18

V I I I . Indices of Price Per Pound of Shipments of Gray Iron Castings in 33 Foundries and of Unfilled Orders for G r a y Iron Castings in 21 Foundries 1926-1929 (Base-average of 1926)

22

I X . Indices of Value of Shipments of G r a y Iron Castings in 33 Foundries and of Unfilled Orders for Gray Iron Castings in 21 Foundries 1926-1929 (Base-average of 1926). . . .

23

X . Indices of Production of Gray Iron Castings in 33 Foundries and Unfilled Orders for Gray Iron Castings in 21 Foundries 1926-1929 (Base-average of 1926)

25

X I . Ratio of Production to Capacity in 33 G r a y Iron Foundries.

31

X I I . Indices of R a w Stocks on Hand in 28 Iron Foundries 19261929 (Base-average of 1926)

38

X I I I . Indices of Production of Malleable Iron Castings 1925-1929 (Base-average of 1926)

40

X I V . Production of Steel Castings in 12 Foundries (Absolute numbers in thousand pounds)

43

1926-1929

LIST

OF CHARTS

(Continued)

X V . Indices of Production of Steel Castings 1 9 2 6 - 1 9 2 9 average of 1926)

ix (Base45

X V I . Indices of T o n n a g e and Value of Shipments of Steel Castings in 1 2 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926) . . .

47

X V I I . Indices of Value of Shipments and of Unfilled Orders in 1 2 Steel Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1 9 2 6 ) . .

49

X V I I I . Indices of Production and of Unfilled Orders in 1 2 Steel Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

50

X I X . R a t i o of Production to C a p a c i t y in 1 2 Steel Foundries 1 9 2 6 1929

52

X X . Indices of R a w Stocks on H a n d in 12 Steel Foundries 1 9 2 6 1929 (Base-average of 1926) X X I . N e w Orders for Steel Castings 1 9 2 0 - 1 9 2 9 X X I I . Composite Weighted Index of Production of G r a y Iron, Malleable Iron and Steel Castings 1 9 2 6 - 1 9 2 9 (Baseaverage of 1926)

53 55

60

LIST OF APPENDIX TABLES 1 - A . Chart I Production of G r a y Iron Castings in 37 Foundries 1 9 2 6 1929 (Absolute numbers in pounds)

66

2 - A . Chart II Indices of Production of G r a y Iron Castings in 19 J o b b i n g and 14 M a n u f a c t u r i n g Foundries 1 9 2 6 - 1 9 2 9 ( B a s e - a v e r a g e of 1926)

66

3 - A . Chart I I I Indices of Production of G r a y Iron Castings in 21 L a r g e and 1 2 Small Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

67

4 A . Chart I V Indices of Production of G r a y Iron Castings in 1 5 Philadelphia Foundries and 18 Out-of-Town Foundries 1 9 2 6 1929 (Base-average of 1926)

67

5 - A . Chart V Indices of Production of G r a y Iron Castings in 3 3 Foundries in the Philadelphia Federal R e s e r v e District and of Pig Iron in E a s t e r n P e n n s y l v a n i a 1 9 2 4 - 1 9 2 9 ( B a s e - a v e r a g e of 1926). See T a b l e 3 in text

14

6 - A . Chart V I 1 4 , 68 Indices of Production and Shipments of G r a y Iron C a s t ings in 3 3 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926). See T a b l e 3 in text for production

X

LIST

OF APPENDIX

TABLES

(Continued)

7 A. Chart V I I Indices of Tonnage and Value of Shipments of G r a y Iron Castings in 3 3 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926). See T a b l e 6 - A for index of tonnage

68

8 A. Chart V I I I Indices of Price Per Pound of Shipments of G r a y Iron Castings in 33 Foundries and of Unfilled Orders for G r a y Iron Castings in 21 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

69

9 - A . Chart I X Indices of Value of Shipments of G r a y Iron Castings in 3 3 Foundries and of Unfilled Orders for G r a y Iron Castings in 21 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

69

1 0 - A . Chart X Indices of Production of G r a y Iron Castings in 3 3 Foundries and of Unfilled Orders for G r a y Iron Castings in 21 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

70

1 1 - A . Chart X I R a t i o of Production to Capacity in 3 3 G r a y Iron Foundries. See Table 6 in text

32

1 2 - A . Chart X I I Indices of R a w Stocks on Hand in 28 Iron Foundries 1 9 2 6 1929 (Base-average of 1926)

70

13 A. Chart X I I I Indices of Production of Malleable Iron Castings 1 9 2 5 1929 (Base-average of 1926); 4 foundries in the Philadelphia Federal Reserve District; 137 foundries reporting to the United States Department of Commerce

71

14 A. Chart X I V Production of Steel Castings in 12 Foundries 1 9 2 6 - 1 9 2 9 (Absolute numbers in pounds) 15 A. Chart X V Indices of Production of Steel Castings 1 9 2 6 - 1 9 2 9 (Baseaverage of 1926); 1 2 foundries in the Philadelphia Federal Reserve District; 1 3 0 foundries reporting to the United States Department of Commerce

71

16 A. Chart X V I Indicesof T o n n a g e a n d Value of Shipments of Steel Castings in 1 2 Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926) 17 A. Chart X V I I Indices of Value of Shipments and Unfilled Orders in 1 2 Steel Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926). See T a b l e 1 6 - A for value of shipments 18 A. Chart X V I I I Indices of Production and Unfilled Orders in 1 2 Steel Foundries 1 9 2 6 - 1 9 2 9 (Base-average of 1926). See T a b l e 1 5 - A for production

72

72

73

73

LIST

OF APPENDIX

TABLES

(Continued)

A. Chart X I X R a t i o of Production to Capacity in 12 Steel Foundries 1 9 2 6 1929. See Table 10 in T e x t A. Chart X X Indices of R a w Stocks on Hand in 12 Steel Foundries 1 9 2 6 1929 (Base-average of 1926) A. Chart X X I New Orders for Steel Castings 1920-1929. See Survey of Current Business published by the Department of Commerce; March 1929 p. 19 and M a y 1929 p. 25 Chart X X I I Composite Weighted Index of Production of G r a y Iron, Malleable Iron andSteel Castings 1 9 2 6 - 1 9 2 9 (Base-average of 1926)

INTRODUCTION The purpose of this study is to show the significance of changes in the trend of foundry production in the Philadelphia district. T h e study is concerned with the production of one of the basic industries in the manufacturing process. T h e industry may be said to serve all other industries. Its output fluctuates with every change in general prosperity. In fact, castings play a part in the manufacture of almost every commodity. If castings do not enter directly into the manufacture of the article, castings form part of the machinery which is used to manufacture the article. A cursory examination of various leading industries shows the widespread use of foundry products. Textile machinery is one of the leading items in the output of several foundries in the area. Metalworking, woodworking and paper mill machinery use large numbers of castings in their construction. Hardly a manufacturing establishment in the country is at present operating without the products of some foundry. T h e transportation industries also require castings in order to maintain and extend their services. T h e development of the railroads after 1830 created a demand for larger castings than had previously been made. This challenge was met by the foundrymen, and they have continued to supply a large tonnage of material for locomotive and engine works. T h e casting of car wheels has increased in importance until it is now almost a separate branch of the foundry industry. Shipbuilding plants either maintain their own foundries or purchase castings from jobbing firms for use as parts of machinery and as furnishings for ships. Automobiles depend upon castings for a large part of their engines. T h e electrical industry consumes an increasing amount of foundry products. T h e Conowingo Dam Project on the Susquehanna used cast steel valves 27 feet in diameter. 1 T h e further development of either giant or super-power 1

The Foundry, January 15, 1927, page 950. xiii

xiv

INTRODUCTION

plans will necessitate tons of castings for valves, housings, wheels, wickets and turbines. T h e use of electricity, in addition to its generation, employs castings. The most recent demand from this source has been that of the iceless refrigerator manufacturers. Previously other household machinery, especially washing machines and vacuum cleaners, had been using foundry products. T h e building and construction industries furnish a large market for castings. The casting of stoves and radiators has been a distinct branch of the foundry trade ever since colonial times. T h e discovery of the centrifugal process of casting pipe has further intensified the specialization of cast iron pipe foundries. Much of the hardware that goes into houses, apartments, and office buildings comes from malleable and gray iron foundries. Agriculture, which first felt the Industrial Revolution in an increased demand for farm products, has since adopted mechanical aids to production. Castings are essential as parts of agricultural implements such as plows, harrows and cultivators. The larger equipment, as typified by tractors and combines, is also dependent upon the foundry. Other extractive industries demand castings. Dredges and steam shovels use castings for dipper teeth, frames, gears, racks, and parts of engines. Mine cars use cast wheels and bearings, and other conveying equipment depends also on castings. Drilling machinery is largely composed of parts which were originally produced in a foundry. T h e widespread use of foundry products, the place of castings at the very start of the roundabout process of manufacturing, and the dependence of the industry upon the demand of other industries make foundry tonnage a very sensitive barometer of business activity. T h e character of the foundry product restricts its market to a small geographical area. With a bulky commodity, of comparatively low cost, it is normally unprofitable to ship to great distances. Some of our foundries depend upon the business of the small center in which they are located. Even those which compete in a wider area may be said to depend

INTRODUCTION

XV

primarily upon the manufacturing activity of the locality. It is this limitation of market that gives especial significance to foundry data collected for specific localities. Despite the wide use of foundry products and despite the fact that foundry output is of interest to industry in general as well as to foundrymen and to students of business conditions, no general index of foundry production is available and, so far as is known to us, this is the first study of identical gray iron foundries in any area. The Survey of Current Business* reports activities of gray iron foundries in Ohio as compiled by the Ohio State Foundrymen's Association. The reports from month to month are not from identical firms and the firms reporting vary in number from 40 to 70; thus any variations may be due merely to differences in the number of firms reporting. The ratio to " n o r m a l " as given is hardly comparable to our ratio of production to capacity because, first, it deals with meltings while our criterion is the production of good castings, and second, " n o r m a l " seems to be the average actual output for some period of time while our capacity represents the maximum amount which could be produced. The Biennial Census of Manufacturers for 1925 gives no total figures for the production of gray iron castings. Most of the census figures are collected on the basis of type of product, and items such as cast iron pipe, stoves and radiators are listed under separate headings. In another section are given foundry and machine shop products not classified elsewhere. Even this does not include foundry products produced within a plant for its own use. Adequate data are at present available from the malleable iron and steel branches of the industry. The Department of Commerce collects reports from identical firms covering most of the industry. Our figures on malleable iron and steel are mainly of interest in comparing the Philadelphia area with the country as a whole. T h e data for this study, collected directly from foundries in the Philadelphia Federal Reserve District, include the ' P u b l i s h e d monthly b y the U . S. D e p a r t m e n t of C o m m e r c e .

XVI

INTRODUCTION

monthly reporting of gray iron, malleable iron and steel foundries. No attention has yet been given to the nonferrous branches of the industry, though the demand for brass, bronze and aluminum castings is steadily increasing. The method of collection and the data upon which the analysis is based are given in the appendix. It is sufficient to note here that the monthly records cover production, shipments, unfilled orders and raw stocks of pig iron, scrap and coke on hand. Though a figure of total output is not available, it is known that the 37 gray iron foundries and the 12 steel foundries participating in this study produce a substantial amount of each class of tonnage of castings made in the district. The area does not make a large amount of malleable castings and our record for four malleable iron foundries is more representative than might be inferred from the number of firms. There are some duplications; two firms reported both gray and malleable iron, one both gray iron and steel, and one gray iron, malleable iron and steel. The overlapping in the use of different raw materials in the same plant made it necessary to use a smaller group of firms for some of the comparisons. Consequently every chart indicates the number of firms included in each curve. For instance, the first chart in this study shows the tonnage of gray iron produced by 37 firms. The charts of indices of production and shipments include only the 33 foundries producing gray iron castings exclusively. By means of this classification, a more accurate comparison can be made between tonnage and value of shipments than would be possible if various grades of raw stock were included. Because all of the foundries were not able to report unfilled orders and raw stocks on hand, these data are used only for the group of plants with complete reports. This summary of the findings is presented in two parts: the first deals with the records of iron foundries, the second with those of steel foundries.

IRON THE TONNAGE

FOUNDRIES

P R O D U C E D IN G R A Y

IRON

FOUNDRIES

G r a y iron foundries, like most industries, show wide differences in operation from period to period. Normally there are seasonal peaks in March, J u n e and October. Each year there is some tapering off in volume in midsummer and a distinct let-down in December or J a n u a r y . This seasonality is evident in Chart I, which shows in absolute figures the monthly tonnage of good castings in 37 foundries. T h e curve of 1926 shows the highest rate of operation in recent years, with activity well sustained up to the very end of the year. In the early months of 1927 the market for castings was irregular, and the summer developed unusual dullness. A steady downward trend prevailed throughout the year, until by December the output for the month was only 4,500 net tons by the same firms which had reached a tonnage of 7,500 tons in the peak month of the previous year. These two years show the extremes of activity and inactivity. Signs of improvement were evident in the early months of 1928, but it was six months before the monthly tonnage was brought back even to the low levels of the first half of 1927. Better demand characterized the last half of 1928 and the start of 1929. The rapidity of recovery in 1928 is indicated by the October production, which over-topped that of the same month in 1926. At the present time ( M a y 1929) production is 7.8 per cent above the level of the same period in 1927 and 10.4 per cent above 1928, a record which approaches the high levels of the prosperous spring of 1926. T w o features impress one in connection with Chart I : the rhythmic seasonal changes, and the wide variations in the activity in the same foundries at different times. T h e fluctuation gives some idea of the heavy overhead for idle plant and equipment which has tended to limit the margin of profits 1

2

TRENDS

IN FOUNDRY

PRODUCTION

IRON

FOUNDRIES

3

in a period of keen c o m p e t i t i o n for orders. T h e c h a r t on an absolute basis is useful merely in g i v i n g a general p i c t u r e of the spottiness o f p r o d u c t i o n . O t h e r factors can be m o r e easily indicated b y the use of relatives. The Trend oj "Jobbing and Manufacturing

Foundries

In C h a r t I the p r o d u c t i o n of all t y p e s of foundries w a s combined. F o u n d r i e s m a y be classified into jobbing concerns d o i n g custom w o r k , d e p e n d e n t w h o l l y for their orders upon o t h e r industries, and manufacturing foundries, maintained primarily to s u p p l y the castings used in the m a n u f a c t u r i n g plant o f their o w n c o m p a n y . F r e q u e n t l y the m a n u f a c t u r i n g f o u n d r y has a c a p a c i t y larger than is necessary to t a k e care of the m a x i m u m needs of the p l a n t w i t h w h i c h it is connected. J o b b i n g w o r k is then u n d e r t a k e n to utilize, as far as possible, the excess e q u i p m e n t a b o v e the needs of the m a n u f a c t u r i n g p l a n t . I f a reduction in p l a n t a c t i v i t y occurs, the m a n u f a c t u r i n g f o u n d r y bids along w i t h j o b b i n g foundries for the orders of o t h e r industries. B o t h t y p e s of f o u n d r y , n o r m a l l y , do some j o b b i n g w o r k , b u t the e x c l u s i v e l y j o b b i n g concern m u s t u n d e r t a k e a wide v a r i e t y of special w o r k , o f t e n booking m o s t of its orders for i m m e d i a t e d e l i v e r y . Obviously the f o u n d r y c o n n e c t e d w i t h a m a n u f a c t u r i n g p l a n t has some a d v a n t a g e in t h a t p a r t of its p r o d u c t is in some measure s t a n d a r d i z e d . Y e t there is no sharp line o f d e m a r cation between j o b b i n g foundries and those p r o d u c i n g primarily for the c o n s u m p t i o n of their o w n plant. D o m a n u f a c t u r i n g foundries operate more r e g u l a r l y than j o b b i n g foundries or are they both s u b j e c t to the s a m e u p s and d o w n s ? A c t u a l l y , in the period of this s t u d y , there is little difference in s t a b i l i t y in the t w o t y p e s o f o r g a n i z a t i o n . T h i s conclusion m a y be readily c h e c k e d b y c o m p a r i n g the relative c u r v e s in C h a r t II. T h e s e curves, based on the a v e r a g e m o n t h l y p r o d u c t i o n in 1926, represent 19 j o b b i n g and 14 m a n u f a c t u r i n g foundries. T h e r e is a larger proportion of small c a p a c i t y foundries in the j o b b i n g t h a n in the m a n u f a c t u r i n g g r o u p . A n analysis of the total p r o d u c t i o n of the 33 foundries s h o w s t h a t two-thirds o f the t o n n a g e is

IROX FOUNDRIES

5

j o b b i n g and only one-third intended for further m a n u facture within the plants. T h r o u g h o u t 1 9 2 6 and 1 9 - 7 the curves are r e m a r k a b l y close, crossing and recrossing each other at intervals. In 1928 there appears to be a decided slowing down in the rate of the m a n u f a c t u r i n g group. T h e widening of the area between the two c u r v e s which s t a r t e d in April 1928 became especially m a r k e d in M a r c h 1929. Since the same tendencyis evident, in this period, in the curves of large and small foundries, it is possible that the explanation is connected with the t y p e of product rather than with either size or organization. A t a n y rate, our a n a l y s i s does not indicate that the foundries connected with m a n u f a c t u r i n g plants as a group h a v e a n y a d v a n t a g e o v e r the j o b b i n g foundries in stability of production.

The Production of Large and Small

Foundries

T h e nature of f o u n d r y work m a k e s it an industry of small scale units. T h i s is especially true of iron foundries. A few firms in the g r a y iron group produce less than 500 net tons a y e a r ; others produce more than 6,000 tons, though the largest yearly o u t p u t reported was less than 7,000 tons. T h e frequency grouping according to the annual production shows that one-half the foundries produced 1 , 7 5 0 tons or less in 1926 and that one-third of the foundries were a b o v e 3 , 2 0 0 tons. ( T a b l e 1) W i t h this variation in m i n d , it has been necessary to m a k e some division according to size. P e r h a p s too a r b i t r a r i l y , we h a v e called foundries with a m o n t h l y capacity of 1 7 5 tons or less small and those above 1 7 5 tons large. T h i s classification is based somewhat upon opinion and literature in the i n d u s t r y . R a w l i n s o n 2 describes a small foundry as one in which the a v e r a g e tonnage produced would be from 1 0 to 40 net tons of iron castings per week. In our classification of firms, capacity rather than actual production was used as an indication of size. 2 Rawlinson, William, 1 9 2 8 , p. 5.

Modern

Foundry

Operations

and

Equipment,

London,

6

TRENDS

IN FOUNDRY TABLE

PRODUCTION I

F R E Q U E N C Y D I S T R I B U T I O N o r ANNUAL PRODUCTION OF G R A Y IRON IN 3 3 F O U N D R I E S C L A S S I F I E D BY ORGANIZATION AND LOCATION Number of Foundries Thousand Pounds 1926

Under 1000. . . 1000 and under 2 0 0 0 . . 2000 and under 3 0 0 0 . 3000 and under 4000. . 4000 and under 5000. . 5000 and under 6000. . 6000 and under 7000. . 7000 and under 8000. . . 8000 and under 9 0 0 0 . . 9000 and under 10,000. 10,000 and over

Manufacturing

Jobbing

Total 1926

1918

1928

1926

1927

1928

5

6 6 I 5 1

2 2 I

Total

2 2

3 1

1

2 I I

I I

•9

14

I

5

2

3

33

33

33

19

19

•4

3 5 0 0 2857 2 7 1 4 3250 2750 2600 4000 3000 3 0 0 0

Median

Number of Foundries Thousand Pounds

In Philadelphia 1926

Under i c o o 1000 and under 2000 and under 3000 and under 4000 and under 5000 and under 6000 and under

2000 3000 4000 5000 6000 70C0

2

2

I

I

I

2 2

3 I

3 I I

I

2 I I

10,000 and over

3

Median

1928

2

8000 and under 9000

Total

1927

Outside Philadelphia

«5

2 I I

2 2

2

1926

1927

1928

3 4 2

3

4

3

3

3 I I

I I I

I j

2

2

ij

18

3 I I I I


•

o

v9 CM cr

I


'3

5

IO4.4 105.0 103.2 92.8 90.5

91.4

9 1 3

90.0 107.1

IOI . 2

106.3

96.2

111 . I IOO.5

77.2

80.I

81.6 95 5 87-3 94 I

81.3 84.9 68.9 66.1

1929

74.6 78.4 89 3 92.8 91.8

8

76.9 85.8 64.6

131 75

2

78.8 85.6 77-8

86.7

1°1

72.1

T A B L E 4-A INDICES o r PRODUCTION OF G R A Y IRON C A S T I N G S IN 1 5 P H I L A D E L P H I A F O U N D R I E S AND 1 8 O U T - O F - T O W N F O U N D R I E S 1 9 2 6 - 1 9 2 9

(Base-Average of 1926) 18 Out-of-Town Foundries

15 Philadelphia Foundries Month

» 1926

January February.... March April May June July August September.. . October November... December. . .

1927

1928

1929

82.7 86.4 92 6 81.1 92.9 95.2 91.0

102.7

103.0 89.6

82.0 81.3 96.8 92.9 88.7 89.9 78.4 90.6 97.8 91.8 81.6

89-3

75-3

92 .0 95

3

120.6

I >3 9

103.7 108.0

95 4 93 4 95 8

96 95

3 I

113.6 106.0 87.1

See Table 3 in text for Table 5-A.

93 8

113.1 109.4 114.5

1926

73

2

88.3 101.3 95

5

103.0 105.5

91 1

no.8 102.1 110.6 104.8 107.9

«927

1928

72-5 99 5 i°7 3

68.9 70.9 82.0 66.6

92.4 89.0

91

3

76.2 85.9 72.8 77-4 75-7

56.0

7 1 5

78.1 72.2 85.9 81.2 94-4

78.4 64.5

1939

745

70.6 71.4 74-7

64.9

TRENDS

IN FOUNDRY

PRODUCTION

T A B L E 6-A INDF.X OF SHIPMENTS o r G R A Y I R O N C A S T I N G S IN 3 3 F O U N D R I E S 1926-1919

(Base-Average of 1916) Month January February March April May June July August September October November December

1926

1927

1928

1929

83.0

83.0

83-9

84.1

78.4 81.8 87.9 78.2 94.8 96.8 89.9

91.8 88.9 100.9

98.3 9S 6 832 91-4

105.9 107.2

101.0 107.3 96.6 100.0 109.3 H I .7 98.0 96.2

89.1

96.5 108.1

97-3 90.4 80.7

107.6 104.0

97 I

100.6 120.8 107.4

87-5

See Table 3 in text for production.

T A B L E 7-A INDEX

OF

V A L U E OF SHIPMENTS IN 3 3 F O U N D R I E S

OF G R A Y 1926-1929

IRON

CASTINGS

(Base-Average of 1926) Month January February March April May June July August September October November December

1926

1927

1928

1929

84.8 87.0 100. J 102.3

83.0 81.8 96.9 90.1 82.2 87.6 84.6 96.6 112.7 102.6

76.2

80.8 81.6 87.9

95-7 79 0

92.2 76.4

99 9 101.2 97-7 9J.2 115.7 116.8

101.7 97 3

See Table 6 - A for index of tonnage

78.2

83 9 71-S 82.j

83 I

80.8 84.9 90.0

3

93 5 96.2

APPENDIX TABLE

69

8-A

I N D I C E S OF P R I C E PER P O U N D OF S H I P M E N T S OF G R A Y IRON C A S T I N G S IN 3 3 F O U N D RIES AND OF U N F I L L E D O R D E R S FOR G R A Y IRON C A S T I N G S IN 21 F O U N D R I E S 1926-1929 (Base-Average o f 1926) Price of Shipments

Price of Unfilled Orders

Month 1926

January... . February... March April May June

102.2

July

101.1 95.2 105.9 104.6 103.8 IOI . I

August September.. October. . . . November.. December. .

i°3 7 94 9 95 4 98.9

94 3

IQ27

100

97 98

94 98

95 94 100 104 105 105

97

1926

1928

97 95 95 92

87 8? 89 87 89 87 85

88 0 91 8 87 i 86 9 92 5

99 96

i°3

90 91

94 98 101 101 107 105 106

87

TABLE

1927

1928

1929

99

96 96

76

104 114 101 104 110 113

"3 i°3

104 109

9'

81

78

97 86 86 86

76 80

87 89 89 84 88 84

9-A

I N D I C E S OF V A L U E OF S H I P M E N T S OF G R A Y IRON C A S T I N G S IN 3 3 AND OF U N F I L L E D O R D E R S FOR G R A Y IRON C A S T I N G S IN 21 F O U N D R I E S

FOUNDRIES 1926-1929

(Base-Average o f 1926) Value of Unfilled Orders

Value of Shipments Month

January February... . March April May June July August September... October November... December...

1926

1927

1928

1929

1926

85.1 88.0

83 81

76

i°3 9

95

103.0 100.9 102.2

90

83 76

85 85 91

83

85

83 81 90 82

96.1 114.1

84

84 81

94

97 9

i>3 9 99 3 95-7

88 107 100

94

78

77

88 9' 107 92 78

96

99

97

105 105 105 107 117 118 104

1927

73 o 95 4

1928

112.5 109.7 118.8 132.6 131.1

110.5 119.7 127.8 129.0 13° 8 143 6 1380

1387 144.2 146.1 130.8 101.4

147.2 130.2 108.6 129.3

'53 8

1929

93

81 91 88 105

70

TRENDS

IN FOUNDRY

PRODUCTION

TABLE io-A INDICES o r riLLED

PRODUCTION o r ORDERS

FOR

G R A Y I R O N C A S T I N G S IN 33 F O U N D R I E S

GRAY

IRON

CASTINGS

IN

21

AND o r

FOUNDRIES

UN-

1926-1929

(Base-Average of 1926) Production

Unfilled O r d e r s

Month

January February.... March

April May June July August September... October November.. . December. . .

1929

1926

192 7

1928

83 4 92.8

77-8

7Í-7 78.8

I I I .9

89 3 101.3

I06.0

92.6

87.0

9.1 4 8? 9 9« O 98

0

95

9

1926

1927

1928

«929

8l .4

73-4 91.2

114.2

I I I .9

I2J. I

i°3

99.6

I3O.7

» 3

82.7 87.9

i "S3

103.6

89.0

77-9 86.9

90 3 106.3

91.

89.9

H I .9

122.9

166.0

9 6 3 IOI . J

78.0

84.2

107.6

117.9

IJ6.7

88.6

96

104

124.8

172.4

98.2

85.8

141.4

164.9

106.0

85.8

93 6 109.4

109.7

142.8

152.1

96.2

79-5 66.8

97 S 80.8

» 3 5 98.6

122.

123.2

9 7 1

3

3

10Í.9

i

112.J

3

9 .9 127.7

107.1

i

I48.2

in

110.

IJ2.6

IJ2.6

See Table 6 in text for Table 1 i-A.

T A B L E INDICES

or

RAW

STOCKS

ON H A N D

12-A I N 28 I R O N

FOUNDRIES

1926-1929

(Base-Average of 1926) Scrap Iron

Pig Iron

Coke

Month

January February March April May June July August September.... October November.... December

1926

1927

88.7 99-8 108.3 107.2 106.2 90.3 92.9 94 3 105.0 103.1 99-1 105.1

103.0 100.8 110.9 IC8.7 105.4 95-1 97.0 88.7 100.9 IOI .7 102.6 88.0

1928

1929

1926

1927

1928

1929

1926

1927

1928

1929

84-5 80.6 72.0 79-4 73-7 52.2 57-7 65.1 62.8 58.3 6,.i 72.9

65.8 66.5 61.2 55-9 60.1

91.6 78.7 IOO.I 124.1 967 91-7 104.8 »7S 112.6 108.6 1054 98.2

9>-3 I10.4 109.7 109.8 107.4 I13.1 117.4 118.9 US*S 110.7 94-7 108.3

112.6 III.I 102.0 89-8 86.0 105.3 999 60.9 96.6 97 0 92.2 87.5

78.0 64.9 75-0 77.0 68.2

93-9 86.0 104.5 102.5 99-3 108.6 104.1 101.6 87.0 97-7 102.9 111.8

115.0 107.6 118.3 136.6 117.0 117.6 100.3 95-4 88..S 94-4 108.8 977

79-4 93-5 82.8 68.2 66.8 73-7 71.6 S1.8 57-2 55-2 7V8 838

64.7 64.9 76.0 9a*7 78.3

APPENDIX INDICES

or

71

T A B L E 13-A or M A L L E A B L E IRON (Base-Average of 1926)

PRODUCTION

CASTINGS

4 Foundries*

1925-1929

137 Foundriest

Month 1Q25

January. . . February.. March. April May June July August... . September. October November. December. .

1926

1927

97-8 102. i 128.6 122 .1 111. i 108.7 97-5 90.7 97 o 84.7 78.2 81.3

1928

81.6 73-4 99.1 91 7 86.8 93- 1 60 I 76.6

73 76 89 99 103 81 77 88 6 8 . 8 85 66.4 89 61.7 74 62.2 73

1929

88 92 100 88 IOI 81

1925

3 7 9

6 104 3 101 3 97 95

94 97 "3 100 109

1926

i°3 110 123 HI

100 102 93 96 98 96 78 85

1927

87 5 96 3 in.6 99 8 97.0 99 4 82.0 88.2 78.5 81.1 72.2 83.2

1928

1929

94 4 1 1 3 . 1 101.0 1 1 4 . 2 108.3 130.6 97 9 103-5 103.7 93 2 106.0 96.8 108.2 98.2 91.8

* In the Philadelphia Federal Reserve District, t Reporting to the U. S. Dept. of Commerce.

PRODUCTION

Month January February March April May June July August September October November December

or

TABLE 14-A 12 F O U N D R I E S 1926-1929 (Absolute Figures in Pounds)

S T E E L CASTINGS IN

1926

1927

1928

1929

13,210,356 13,139,800 14,444,000 13,058,400 12,752,351 15,458,000 12,692,000 12,768,000 14,766,000 13,668,000 11,300,000 15,096,000

14,812,000 14,302,000 14,404,000 9,130,000 8,692,000 10,060,629 9,784,000 12,358,946 9,818,000 7,898,128 8,563.403 8,150,000

11,103,118 11,340,200 10,665,500 8,652,083 10,227,363 11,746,542 10,357,190 11,158,385 8,027,455 10,977.901 10,101,790 10,960,137

12,071,942 12,001,000 14,551,000 15,227,000 14,943,000 13,435,000

72

TRENDS

IN FOUNDRY

PRODUCTION

T A B L E 15-A INDICES OF PRODUCTION OF S T E E L CASTINGS

1926-1919

(Base-Average of 1926) 12 Foundries* 1926 97 97 106 96 94 114 93 94 109 101 83 III

1927 109 106 67 64 74 72 91 72 J8 63 60

130 Foundriest

1928

1929

82.1 83.8 78.8 64.0 75-6

89.2 88.7 107.6 112.5 110.4 99-3

86.8

76.6 82.5 59 3 8r. i 74-7 81.0

1926

100 121 119 108 104 95 89 •87 87 93 89

1927

1928

91.9 93 9 108.6 100.1 91.8 92.7 84 3 92.0 74-1 66.1 62.5 61.8

78 92 98 90 98 96 82 92 79 92 86 86

* In the Philadelphia Federal Reserve District, t Reporting to the U. S. Department of Commerce. T A B L E 16-A INDICES OF T O N N A C E AND V A L U E OF S H I P M E N T S OF S T E E L CASTINGS IN 1 2 F O U N D RIES 1 9 2 6 - 1 9 2 9

(Base-Average of 1926) Tonnage

Value

Month

January February.... March April May June July August September.. October November... December. . .

1926

1927

1928

1929

1926

1927

1928

1929

97 6 98.0 107.0 106.0 93 3 103.8 96.4 93-1 100.8 1053 91.1 107.5

98.7 "6.3 115.8 78.0 67.6 64.1 72.2 90.1 77-4 62.1 59 I 62.1

75 2 82.5 82.8 70.8 70.8 78.0 79.1 85.2 71.2 81.9 81.4 80.8

91 4 95 5 117.8 "7 5 116.2 111.9

98.0 98.2 no.8 99 0 92.9 100.6 90.8 88.3 120.8 104.5 93-2 103.0

97 6 106.6 129.8 93 ° 84.0 67.4 70.0 83 9 "9 7 109.3 59.6 64.6

72.I 78.7 837 72.9 7«-7 76 .5 77 3 75-3 639 78.8 74-4 73 >

85.1 845 101.8 no.7 in.9 96.7

APPENDIX T A B L E 17-A INDEX OF V A L U E OF UNFILLED ORDERS IN 1 2 STEEL FOUNDRIES 1926-1929

(Base-Average of 1926) Month

January February March April May June July August September October November December

1926

1927

105. i 90 6 105.7 151.0 13'

4

1928

1929

61 55

7 1

73-3

7 55-8

3«

0

78-5

53

i

39

54

7

5'

9

64

61

6

60.9

54

7

113

4

55-2

47

93

3

3 9

73

6

52.0

45

2

7

55

4 1

1

53

63 7 62.9

41.2 4'

71

44

-4

45

40

852 68.2 84 4

7

137-7

43-1

70.8

2

See Table 16-A for value of shipments. T A B L E 18-A INDEX OF UNFILLED ORDERS IN 1 2 STEEL FOUNDRIES 1929

1926-

(Base-Average of 1926) Month

January February March April May June July August September October November December

1926

» 4

9

81

3

" 3

1

162.2 139-7 137

4

110.2 82.1 67.9 60 8 55

1928

1927

9

74-7

51

4

66.0

61

1929

4

49

6

54-7

37

0

53

39 56

I 8

42

0

43 38

6

i

56.4 61.4 6 7 3 47-1

I

41.9 46.4 42.4

48

i

51

2

61

5

50-5

57

5

See Table 15-A for production. See Table 10 in text for Table 19-A.

80.8

79.6 89.8 92.7 80.4 102 6

74

TRENDS

IN FOUNDRY

PRODUCTION

TABLE IO-A INDICES OF RAW STOCKS OK HAND IN 1 2 STEEL FOUNDRIES 1926-1929

(Base-Average of 1926) Scrap Iron

Pig Iron

Month 1936

1927

January 82.4 February X04.1 March 1 4 3 0 IISl Apr« May 6 7 1 93-4 100.2 July August IIO.O September.... 1 0 6 . 7 October 97-3 November.... 9 0 S December. .. 9 0 . 2

1928

1929

92.0 S4-I 83-4 84-3 6 1 . 5 77-4 7 0 . > 57-5 »3-2 5 5 - 4 44-» 90.2 39-9 5 5 » 121.6 SOS 43-2 91.9 35-0 79-1 4 2 . 4 38.8 7 4 0 80.6 S3-3 104.8 53-5 96.7 5»-9 86.0

1926

121.0 105.0 112.3 103.9 108.4 96.8 91.9 88.2 91.0

96.1 91.0

94.2

1927

1928

IOI.I

95-4

102.1 105.s

87.3

102.9 106.5

89-7 833 75» 78-9 731 74-6 7 9 - S 7 4 6 74-4 92.2 77« 95.1 7 2 . 0

98.6 86.3

102.4

69.3

Coke 1929

1926

1927

70.4 89.2 133-6 675 85-9 1 3 0 . 3 74-6 1 2 2 . 8 1 3 6 . 3 60.1 137-3 • 57-9 92.1 1 1 0 . 0 1 4 1 . 1 100.0 94-5 1 2 4 . 3 75-7 1 1 4 - 7 7S-8 1 1 0 . 2 118.9 99.6 97-5 1 1 2 . 7 102.2 110.9 109.6 97-1

1928

1929

94-8 8i.c 72.8 «9-7 75-3 70.3 7 2 . 5 74-1 7 9 0 771 64.1 64.2 57-6 78-3

103.8

88.3

105.2 107.0

See Survey of Current Business published by the Department of Commerce; March 1929, p. 18, and May 1929, p. 2j, for Table 21-A. TABLE 22—A COMPOSITE WEIGHTED INDEX o r PRODUCTION OF GRAY IRON, MALLEABLE IRON AND STEEL CASTINGS 1 9 2 6 - 1 9 2 9

(Base-Average of 1926) Month January February March April May June July August September October November December

1926

91 3 94 9

109.9

101.7

99 4 no.7 95 I 97.8 104.1

103-4 90.1 104.8

1927

1928

96.1 98.0 104.1 82.2 78.6

79- 2 81. s

74.6 89.6 79.6

79-4

83 5

73 9 71.6

63-3

836 70.7 80.2 86.9 87.2 76.9

94.0 84.6

78.7

1929

89.4 86.2 loi .4

103-5 101.9

INDEX Agricultural castings, x v i , 56 A l l o y s , 37 A p p e n d i x , 62 A u t o m o b i l e castings, 39, 56 Bessemer process, 37 Building castings, x v i , 56 Capacity: cupola, 26 definition of, 24, 26-27 effect o f change in equipment, 27 effect of location, 33-34 effect of size o f foundry, 33 effect of type o f casting, 27 method of c o m p u t i n g , 57 m o n t h l y , 24, 28 potential, 26 practical estimates, 29-30 ratio o f production to, 24, 26-34 United States D e p a r t m e n t o f C o m merce formula, 28 unused, 29 used as indication of foundry size, 5 C a s t i n g s , uses of, x v i , j 6 C e n t r i f u g a l process of casting pipe, xvi C h a i n index of g r a y iron production, 12 C i t y foundries, 11, 3 3 - 3 4 Competition: causes of, 3 6 - 3 7 founding with stamping and welding, 14, 37 g r a y iron industry, within, 36-37 g r a y iron with steel and malleable iron, 37, 51 C o s t s y s t e m , 36 Costs: all foundries, 58 g r a y iron foundries, 17 C u p o l a , c a p a c i t y , see " C a p a c i t y " C u s t o m w o r k , see " J o b b i n g f o u n d r i e s " D r i l l i n g machinery castings, x v i E l e c t r i c a l equipment castings, x v i E x c e s s capacity. (See also " Idle equipm e n t " ) , 56 F a r m and garden castings, x v i , 57 Fluctuation: causes of, 58 g r a y iron, 39 malleable iron, 41

Fluctuation—(Continuel) seasonal, 1, 32 steel, 42, 44 with equipment, 27 with type of p r o d u c t , 5, 14, 27, 35 Forged products, 14, 37 Furnace castings, 56 H o u r s o f work, 27 Household m a c h i n e r y castings, x v i , 56 Idle e q u i p m e n t : causes of, 32, 35 in m a n u f a c t u r i n g foundries, 3, 58 resulting from c o m p e t i t i o n , 37 resulting from specialization, 35-36 Index o f production: base year, 44 chain index o f g r a y iron production, 12 general, xvii o f ferrous castings, 61 of j o b b i n g and manufacturing foundries, 3 - f o f Philadelphia and out-of-town foundries, 11 o f small and large foundries, 8 Jobbing foundries: definition of, 3 index o f production, 5 ratio of production to c a p a c i t y , 34 Large foundries: definition of large iron foundries, 8 definition o f large steel foundries, .46 index o f production, 8 ratio o f production to c a p a c i t y , 33 M a n u f a c t u r i n g foundries: definition o f , 3 index o f production, 5 ratio o f production to c a p a c i t y , 34 M a r k e t , restriction of, x v i M e t a l - w o r k i n g m a c h i n e r y castings, x v M o l d i n g floor space: effect on tonnage, 27-28 use of, 29 M o t o r castings, see " A u t o m o b i l e " N e w orders for steel castings, 54 Non-ferrous castings, x v i i i , 37

INDEX

76 Normal production, xvii Number of employees, 27

Out-of-town foundries, 1 1 , 33-34 Output, effect of cupola capacity, 27 Over-equipment: causes of (See also " I d l e equipment"), 35-36 Paper mill castings, x v Peaks: effects on prices of gray iron, 19 ferrous castings, 61 gray iron production, 8 malleable iron production, 39-41 steel production, 42 Pig iron, 12, 1 j , 3 J , 37, 3 9 , 5 1 Pipe castings, xvi Pressed metal, 14 Price cutting, 36 Prices, gray iron: average by years, 20 compared with tonnage, 19 definition of, 19 effect of peaks of activity, 19 effect of recession in production, 19 effect of type of casting, 19 need of cost system, 21, 36 of gray iron castings* 17, 36 of unfilled orders compared with shipments, 21 Prices, steel: absolute figures, 46, 48 effect of size of foundry, 46 effect of type of casting, 21 Production: actual distinguished from potential, 27 chain index of gray iron and pig iron, 1 2 of city and out-of-town foundries, 11 of jobbing and manufacturing foundries, 3 - 5 of large and small foundries, J ,

8-9

of malleable iron, 59 of pig iron, 1 2 - 1 5 , 59. 61 ratio of, to capacity, see " R a t i o " Profit margin of gray iron castings, 17 Questionnaire used, 64 Radiator castings, 56 Railway equipment, x v , 56-57 Ratio of activity of small manufacturing foundries, 58

Ratio of production to capacity (See also " C a p a c i t y " ) : genera], xvii gray iron, 30-32 — — steel, 51 R a w stock: gray iron, 37 steel, 51 Seasonality: depression, 1, 8 gray iron, 39 malleable iron, 41 peaks, 1 , 3 2 , 56-57 steel, 42, 44 Shipbuilding castings, x v Shipments, gray iron: compared to tonnage, 15 method of reporting, 15, 17 prices of, 20 tonnage and value compared, 1 7 , •

Shipments, steel: prices of, 46 tonnage and value compared, 46, 58 Size of foundries, 3 Small foundries: definition of small iron foundries, 5. 8 definition of small steel foundries, index of production, 8 ratio of production to capacity, 33 Specialization, 3, 35 Stamped products, 14, 37 Stock on hand, 39 Stove castings, xvi, 35, 56 Textile machinery castings, xv, 35 Tonnage: absolute figures for gray iron, 1 as a business barometer, xvi, 56 as a unit of measuring capacity, 30 of malleable iron, 1 of unfilled orders, 2 1 - 2 4 unit used in this study, 64 Trends in industry: capacity, 8 ferrous castings, 61 forged and stamped products, 14, .37 . jobbing and manufacturing foundries, 3. 9, 35 large and small foundries, 9 pig iron, 37 prices for castings, 17, 20 production per unit of man-power,

17

INDEX

77

Trends in industry—(Continued) ratio of production to capacity, 30-31 steel castings, 54

Unfilled orders—(Continued) price compared with that of shipments, steel, 48 tonnage of gray iron, 21-24

Unfilled orders: price compared with that of shipments, gray iron, 21

Welding, 14, 37 Wood-working machinery castings, xv