Document 1Qxwe61kgL0dvnrd8vkD7EyJq

PRATT & LAMBSRT-MC. 19 5 8 TECHNICAL ACTIVITIES 0007-PTL-001012 s md l s io m ?Ai?rr d e v e l o p me n t s Purchased PVA emulsions are uBed in the manufacture of P&L emulsion paints, of which we produced 3&3*000 gallons (in the U. S.) during 1958* We have successfully made PVA emulsions of our own in glass laboratory equipment and at the Celanese Corp. pilot plant. This work was initiated because attractive cost savings seemed possible by making emulsions Instead of buying then. Late in 1958, commercial PVA emulsions were slashed in price, thereby altering the economics of captive production. Some authorities believe that price reduction was precipitated by the paint industry's wholesale interest in making its own emulsions. If this were true, our research work paid off--but not in the way that was anticipated. Development work to date has cost $3694 While production of our own emulsions is not so attractive as it was, it seems likely that we will one day wish to make PVA or other emulsions. The motives will be the same as for making our own alkyd resins--control over and ability to vary the properties of a key vehicle and cost savings. Most English paint manufacturers now make their own PVA emulsions. Our emulsion paint volume should continue to grow as we make additional items on this basis. We are currently trying to make an emulsion floor paint for concrete; #1157 have been spent on this project. We are also evaluating emulsion house paints, although the conservative technical opinion is that wholesale production of emulsion house paints is not imminent. Industrial finishes are, however, expected to be produced on an emulsion basis in the near future, primarily because of the fire hazard associated with solvent-thinned industrial paint. All signs seem to point toward Increased reliance upon emulsion vehicles. As new raw materials are offered for making Improved emulsions, we will evaluate them. A joint factory**laboratory cost study is being undertaken to determine the volume level at which production of our own emulsions will become feasible, and the capital Investment that will be required for such a move. We spent #3580 In 1958 in research on emulsion type industrial finishes. New emulslonB designed specifically for industrial use are now being offered with increasing frequency and in steadily improved quality. Until late last year, emulsions had been commercially applied only to Industrial primers; emulsion enamels were in the embryonic stage. The safety of a water**thinned primer was, therefore, not much of a sales advantage, if it had to be used in conjunction with a solvent-thinned top coat. Both ADM and Rohm & Haas are now offering water-thinned vehicles (Arolon 1000 and Rhoplex AC-200, respectively} for industrial enamels. Neither product is quite right, although they represent great strides toward the desired objective. The ADM product lacks chemical and solvent resistance. The Rohm & Haas product pinholes and lacks mar resistance. We have successfully made metal baking primers from emulsions and have found that they perform as well as solvent-thinned alkyd 0007-PTL-001013 2 primers. They can bo uaod under almost any kind of top coat. Alp dry emulsion primers have few desirable qualities; they remain water-sensitive and can be recoated with only a limited number of paint types. So far, we have only one account that Is Interested In a water-thinned primer. In this case, the water-thinned primer provided better adherence and Impact resistance than other primers, and was used for these reasons--not for reasons of safety. The account refinishes bowling pins, the finish coat of which is white lacquer. RESEARCH OH NEW RESIN TYPES Urethanes and vinyltoluene copolymers are being intensively studied as paint vehicles. We have made up s whole series of experimental urethane vehicles (by reaoting tolylene dlisocyanate with alkyds, vegetable oils, polyethers, etc). They seam to upgrade the chemical and wear resistance of other vehicles, but have an unfavorably high cost (a urethane floor finish, for example, costs three times as much as "61" Floor Varnish, but Is not three times better). We are currently evaluating urethanes in floor finishes and are making exposure tests in Florida. Othsr paint companies are also evaluating urethanes; duPont Is currently test marketing a urethane floor $ .finish. The cost of our research work on urethanes now totals 3800 We have begun to manufacture vinyltoluene-alkyd copolymers in the factory, but the process has been somewhat unpredictable and required close laboratory supervision. Most of the production difficulties have now been brought under control. Vinyltoluene Is related to styrene, the long chemical name of which Is vinylbenzene. Styrenated alkyds are well established, but vinyltoluene-alkyd copolymers are still in their Infanoy. Our basic research work in this field has cost 65* We are attempting to use vinyltoluene-alkyd copolymers in three ways---to make a fast drying floor finish, to make a more color permanent Vitrallte Enamel, and to make a low cost industrial flnlih . Our experimental Floor Finish VT, made from a vinyltoluene alkyd, won a less than enthusiastic sales reception. Odor and poor re coating qualities were criticized, although a competing product (Moore's One Hour Varnish) had similar disadvantages. VitPalite Enamel, made from a vinyltoluene copolymer, was more color permanent than the standard formula, but had an objectionable initial and residual odor. Since one sales feature ot Vitrallte Enamel is Its freedom from objectionable odor, samples were not sent out for sales evaluation. It Is hoped that the odor handicap can be reduced; there is little prospeot of eliminating it entirely. An industrial hammered metal finish, made from a vinyltoluene copolymer, has enabled the Industrial Sales Department to acquire several new accounts because of its attractive cost. At least one of these new accounts may develop into a large volume customer. Eilioono-alkyd vehicles, for use in Sildura, were satisfactorily processed in pilot plant equipment. Development work cost ^8U|. 0007-PTL-001014 i -3- Vfhile the operation was technically successful, Sildura seems to be dead because we cannot economically manufacture the base resin in small volume* ALKYD HSr.I?l DEVELOPMENTS The 1958 recession would have dealt a serious blow to our alkyd resin production volume, had it not been for the adoption of PM. resins in place of Rohm & Haas Duraplex P65A. The latter resin had been used for years in Vitrallte Enamel Gloss, Effecto Enamel White, and Bone White, Verdure Trim & Shutter Finish, Lyt-all Stippling Eggshell, and Palkyd Enamel White Gloss* As a result of our deoision to use PM. resin in these products early in 1958, a larger volume of alkyd resin was produced in 1958 than in 1957 or 1956* Hesins of the D65A type accounted for 127*000 gallons of 1958 alkyd production. The use of our own resins will provide annual savings of $16,600. The changeover culminates several years of development work, the total cost of which was 3155* One item, Lyt-all Stippling Eggshell, was unintentionally upgraded as a result of the above changeover. This item had been criticized repeatedly because of its high initial gloss and the slowness with which its gloss became stabilized. Lyt-all Stippling Eggshell, made from our own resin, was found to dry with much lower initial gloss than when made from purchased resin; strangely enough, the product also attained its ultimate sheen in only a week or two instead of a month* Isophthalic alkyd vehicles, like those used by W* P. Fuller in house paint, were restudied in 1958 at a cost of #1110* This project illustrates one of the less logical facets of research work* Much of our research is defensive, simply because we dare not ignore the implication of certain commercial developments-- even though we think that they deserve no attention. From the standpoint of prior technical knowledge, there was no reason to believe that isophthalic alkyd would extend the life of house paint by several years (as claimed by Fuller)* However, we had never actually tried to make house paint from isophthalic alkyd, nor had we tested such s paint in Florida, or elsewhere* Testa made in 1<>8 provide no evidence that would encourage ua to use an laophtballo alkyd vehicle in house paint. While this supports our previously-held opinions, there was an outside chance that we might have overlooked the possibilities of the resin* Fuller's enthusiasm can be based on exposure conditions that are peouliar to California weather and that are not duplicated elsewhere. Technical people in other paint concerns are baffled to explain the "why* behind Fuller's promotion of isophthalic alkyd in house paint. 0007-PTL-001015 TRADE SALES, DEVELOPMENTS New listed items that were put on the market in 1958 included: Sffecto Spray Enamel (12* items) - Special formulas for aerosol packaging were developed at a cost of $2505 Vapex Masonry Paint (11 colors and Surface Conditioner) - Development work done in previous years cost #10,2*00. Concluding activities in 1958 cost $111*7. Total development cost #11,52*7. Vapex Enamel White Semi-Gloss - Development work done in previous years cost $i7i*0. Concluding work in 1958 cost #2811. Total development cost #1*551* Vapex Flat Wall Finish Celling; White - Development cost #99. Painter line (3 items - "68" and "Gl" Alkyd Enamel White Semi-Gloss and h99H Alkyd Enamel White Gloss) - Development cost #1586, of which #315 was underwritten by Eastern Sales Division. Low Luster House Paint 81x2 Black - Development cost $1*2. Expedite Paint & Varnish Remover. Non-Flammable. Wash-Off Type - Work done in 1958 cost $685. Without backgrounddata socumulsted over the past 20 years, this year*s program would have taken longer and cost much more. Multipurpose Tinting Colors (20 items) - This line is a by-product of work undertaken the last two to three years to insure independence of Rookcote, if and when we should wish to make our own colorants. In 1957, an offset for Rookcote'a "universal" vehicle was developed. The Rockoote vehicle is contained in the "A" type colorants we buy from Rockcote. In 1958, we used the vehicle to produce offsets for the "A" colorants themselves and to develop offsets for our present Oil Color line. Since the two problems were inter-related, they were undertaken as a single project. Multipurpose Tinting Colors (which are basically Oil Colors made with a "universal" vehicle} are now ready for production. Offsets for "A" Colorants have been formulated, but further work has been suspended, pending the action we take on machine dispensing. In the meantime, package stability tests are being conducted in lead tubes and in polyester bags. Whether we can economically package our oim Tube Colorants in the future will depend on the colorant volume that remains, if and when machine dispensing is established. Development work on colorants during 1958 amounted to $7820. The cost of the vehicle development, completed in 1957* was $1740* Not included in the above expense, was an $811*1 project aimed at modifying Vapex Plat Wall Finish so it would aocept Multipurpose Tinting Colors and/or "A" Colorants. The problem remains unsolved. We found no way to aohleve the objective without sacrificing color (in White) and washabillty In all colors. 0007-PTL-001016 a -5- The colorant problem Is now entering a new phase as we undertake a crash program to develop a short line of lead-free and. If possible, alkali-resistant, colorants for machine dispensing* The program is expected to cost 5000* In 1958, we completed our evaluation of 4"8llon palls for packaging Tube fystem Bases* This work cost 1407* The Tube System has been, and continues to be, an extremely costly project in terms of technical work* Prom 1955 to 1957, Inclusive, we spent 32*480 on Tube System laboratory work* 195$ activities cost us 17,368* 1959 activities will oost at least 5000. The total of all these figures is 54#814-8* If this is added to the cost of chip racks, chips, chips that had to be destroyed because of color drift, losses that were absorbed In shifting from.our initial oolorants to "A" colorants, it seems unlikely that the Tube System has made money for us to date. Whether we would have made less money without a Tube System--as a result of lost businoss--is, of course, not known, but is the rational reason for our actions. Improvements or changes were made In the following established trade sales items during 1958: Hew Lyt-all Flowing Flat White* Bases, and Petal Pink - Calcined clay, a new type inert with some hiding qualities, was introduced In place of part of the titanium dioxide. This change will provide annual savings of 27,200. While the hiding of the White could have been upgraded, instead of maintaining the hiding and decreasing the cost, restrictions imposed by our intermix system preclude such a step. The Tube System places similar restrictions on the Bases. Development work cost $1600* House Paint 300 Outside White - Elimination of lead pigment in 1958 will provide annual savings of $21,300. Last year*a development work cost $275* However, exposure tests and related work had been going on for a period of more than fifteen years. They provided the background data and the assurance for making the change. House Paint Tints and Bases - Replacement of varnish oil with raw linseed oil will provide annual savings of $5900. Again, this development culminated years of prior testing and evaluation* Lyt-all Stippling Plat (Hew) - Alkyd formula, adopted in 1958, dries more positively than previous oil bsse formula, hides better, and has better color permanence* Development ooet $69* Karine Yacht Whites (3 itwas) - Lead-free alkyd formulas, adopted in 1958, dry faster, cost less, and are safe from standpoints of toxicity and discoloration (from gas generated by sewage-contaminated harbor waters). Development cost $800. Karine Deck Paint (2 Items) - Alkyd formulas, adopted in 1958, have seme qualities as n61R Floor & Porch Enamel. Development cost $488. 0007-PTL-001017 -6- House Paint 305 Exterior Primer - Settling minimized. Develonraent coat $2*>0. Elimination of Lead Pigments - Cellu-Tone Satin, Solidex, Vitralite Enamel Eggshell, and Sffeoto Enamel were reformulated to eliminate lead pigments and the stigma associated with their use on surfaces that might be chewed by children. Laboratory development work cost #1934 Manufacture of lead-free formulas in these four lines will reduce our profit by about #1475 per year. Exterior Fustic Stains (12 items) - Reformulated to contain a more color permanent shingle oil. Development costs were negligible; they are burled in our general Test Fence Program. A common thread that runs through many of the completed developments in 1956 is their dependence upon supporting work done one,. two, three, and, in one instance, twenty, years ago. Research is like compound interest. We benefit from the initial research on almost any project and then we profit from the information that is gradually accumulated on the same or related subjects. The productivity of a brand new paint laboratory without background knowledge and experience would be small in comparison with that of an established laboratory. Lack of adequate background knowledge prevented us from taking advantage of the favorable price relationship that existed between soya and linseed oils in 1958. A maleic-treated soya oil, made by Spencer-Kellogg, could have been advantageously substituted for bodied linseed oil (made by us) in house paint. Savings at the rate of $26,000 per year would have resulted for as long as the price differential existed. The substitution was not authorized because it would have led to decreased Buffalo plant production and would have resulted in increased manufacturing costs on our residual gallonage. Since we had never attempted to offset the Spencer-Kellogg oil, we could not produce an equivalent product in our own plant. Such an oil has now been developed end will undergo exposure tests in house paint. The results will not be known for several years, but we will then be in a position to use maleictreated soya oil, if and when the price structure favors such a move in the future, and if our maleio-treated oil proves to be as good as linseed oil. House Paint was criticized in 1958 on the grounds of flashing. Most oomplaints occurred in the west during early summer. They were attributed to the weather conditions (cool and wet) that existed on a country-wide basis at the time. Nonetheless, we have spent #905 on research aimed at making a more foolproof paint under these drying conditions. A formula modification resulting from this work is now undergoing preliminary production tests. One project, completed in 1958 at a cost of #2221, did not pay off and offers little promise of doing so. It was a study of paint soiling. We tried to learn what makes dirt cling to paint. If any ingredient will repel dirt, and If any ingredient will ease the removal of deposited dirt. ?*> leads with commercial potent! ell ties resulted from the study. 0007-PTL-0010I8 -7- Hulticolor lacquer aroused the Interest of our sales personnel during 1957 and early 1956* hut no reports or comments have been received at the laboratory level in recent months* The Industrial Sales Department issued a sales bulletin (Ho* 22) describing Tex-Hhe (a multicolor lacquer made for us by American Lacquer Solvents Company)* but to the best of my knowledge* no orders have ever been received* $14.03 were spent on laboratory evaluation and study of competing materials* Ho technical effort has been directed toward formulating multicolor lacquer* Fire retardant paint s Ibo attracted a lot of attention In 1958* largely as a result of the Chioago school fire* 14.06 were spent on Stick and Wick Tests of our trade sales Items end of competing paints* Ho technical work has ever been done on the formulation of a fire retardant paint of the intumesoent type* INDUSTRIAL SALES DEVELOPMENTS Production of Industrial finishes at Buffalo declined 21% In 1958, as compared with 1957* but the demand for laboratory services on industrial finishes declined only 2*5# (on a man-hour basis). The table* which follows on the next page, lists our largest industrial accounts and indicates the laboratory charges that were made against these accounts in 1956* Also listed are certain other accounts* for which substantial amounts of laboratory work were done* In 1956, we spent an average of 1*2 cents out of each sales dollar for direct laboratory work to maintain or develop our 25 largest industrial accounts* Assuming that proportionate research and manufacturing services were added* we would then have spent 3*4 cents out of each sales dollar for*laboratory work* Figures published from time to time In trade papers indicate that our competitors spend from 4-*0 to 7*0 cents out of their Industrial sales dollars for laboratory work; the average of available figures Is 5*5 cents. These figures suggest that we may have been a bit frugal in cultivating existing industrial customers, even though we did spend considerable money for this purpose in 1958* 0007-PTL-001019 i -8- Account_______________ American Can Co* Carborundum Co* (including Minising Paper) IBM (including Crosley, Marathon, Suffolk, General Bronze) Brooklyn Metal Decorating Co* Dunlop Tire & Rubber Co* Eboo Talon American Sanitary Partition Co* Western Eleotrlo Co* (including Anetsberger, Bell) Twin Coach Co* Eastman Kodak Co* Hard Mfg* Co* Metpar Steel Products Co* Reznor Corp. Union Fork & Hoe Pratt & Whitney Trico Products Corp* Continental Can Co* (Hazel-Atlas Biv.) Merkel Electric Products Co* Gilbert-Bennett Titan American Standard Fein's Tin Can Co* F* N. Burt Co* Heartz-Mason Ozalid National Cash Register Co* Standard Can Co* Royal-MoBee Fedders-Quigan RIsdon Mfg. Co* General Felt Co* Grussnan Aircraft Taylor Instrument General Precision Laboratories Remington Rand Raybestos-Manhattan Aldan Rubber Sales - 1958 (In 1000a) $390 182 104 Laboratory Charges - 1958 $1146 1469 2899 94 55 47 47 46 37 ' 36 35 35 32 27 23 23 22 21 21 20 19 18 18 . 14 12 11 less than 10 less than 10 less than 10 10 less than 10 less than 10 less than 10 less than 10 less than 10 less than 10 less than 10 less than 10 330 213 653 1925 840 234 530 1721 1273 252 660 118 331 165 545 325 938 33 179 110 525 535 535 467 459 434 422 394 393 372 372 355 320 0007-PTL-001020 Wrinkle finish production declined 34$* to 57,300 gallons in 1958* Two accounts--IBM and Eastman Kodak--were responsible for most of the decrease* At IBM, the loss of business reflected that company's replacement of our wrinkle finish with Armitage vinyl texture finish* In spite of this loss, IBM continues to be our largest wrinkle finish customer; its 1958 purchases amounted to 30,000 gallons. More money has been spent in trying to reproduce the Armitage vinyl texture finish to IBM satisfaction than on any other one industrial project, past or present. In the past six years, $25,000 have gone into this project, but the tempo of spending declined in 1958. Last year's work cost $2899. Ko sample of vinyl texture finish ever supplied by us has won IBM approval, but a subcontractor, Abbott-Marks, successfully used 500 gallons.of our finish, before the company's contract expired. The finish was accepted by IBM Inspectors. Abbott-Marks bought from us because of their inability to obtain satisfactory Armitage material. More than technical qualifications alone, therefore, seem to be Involved In the over-all problem. The vinyl texture finish developed for IBM has been approved by General Precision Laboratories for use on airoraft ground control units (similar to radar installations). If this company does the business it expects to, some of our research expense on the vinyl texture finish will be salvaged. Another P&L military development in the vinyl field was a black paint for use on rocket fuel containers now being manufactured by Pratt & Whitney. The containers are buried underground and pre sumably supply fuel to the rockets just prior to launching. Vinyl paint offered maximum resistance to soil corrosion and to the fuel. Stip-Tone, the new textured multicolor finish developed by Mr. Hoffman and Mrs. Mateslok in 1957* has met with mixed oustomer interest. Only 1000 gallons have so far been sold, but the finish has been the means by which several new accounts have been attracted to Pratt & Lambert-Inc. These accounts inolude Wllmot-Castle Co., a manufacturer of surgical lamps, Smith-Corona Co., and Connorsville Casket Co. Our Stip-Tone patent application has received a atook rejection by the Patent Office. An appeal will be filed shortly by our patent attorney. Development work on Stip-Tone now totals $1998. Our industry is concerned whenever other materials replace paint, but we have a case history that provides an interesting sidelight on one suoh replacement. Some years ago. Talon adopted coloranodized aluminum for its fastener ohalns to eliminate their painting. The continuous process that converts anodized metal into the finished chain includes a cutting operation (to form the "teeth") which leaves raw metal edges and an objectionable bright streak down the middle of the fastener. To overcome this. Talon now applies a thin coat of dye lacquer. Several hundred gallons of our lacquer 0007-PTL-001021 -10- will be used each month In thla manner. Talon was one of a very few industrial accounts that bought more P&L finishes in 1956 than in 1957. In 1956* our U* E. metal decorating business declined 2356# to 243,000 gallons} our Canadian business deolined l&, to 26,000 gallons. American Can Co. took two thirds of our 1956 U. S. volume in this field; it purchased $1% fewer gallons in 1958 than in 1957. Part of this drop-off was caused by design changes in cans fabricated for Schaeffer Brewery. Our second largest metal decorating customer, Brooklyn Metal Decorating Co., increased its purchases slightly in 1956, as did also Continental Can Co. (Haxel-Atlas Div). Brooklyn Metal Decorating Company's increase was due to the purchase of 2800 gallons of a new interior coating for PVA emulsion paint cans. Over the past four years, research work on metal decorating finishes (exclusive of work on specific sales problems) has cost $396(j ,. We are once more Involved in a lawsuit as a result of coatings sold to Brooklyn Metal Decorating Co. The suit concerns Sanitary Gold Lacquer, M514&J4-# used Inside cans that were ultimately filled with a whipped topping by Baker's Whip Top Products Co. Carborundum Co. purchased the same volume (36,000 gallons) in 1958 as it did in 1957* Of this volume, 6750 gallons was an emulsion paint that went to Munising Paper Co. for use on paper made especially for the Carborundum Co. Fourteen experimental adhesives were developed for Carborundum Co. In 1958 at a cost of $2469. For the first time, we were able to offer s paper belt adhesive with better sanding efficiency than glue. Hosearoh was concluded on the development of an air drying clear finish for aluminum at a cost of $691. While this wprk was under taken as an industrial projeot, the end-product is now being sold as an unlisted trade sales finish for prefabricated aluminum storm sash and doors. Spoxy resins have found their primary outlet in industrial finishes. Ve have spent $2752 exploring uses for epoxy finishes, but our commercial production of such finishes has been and continues to b e minute. COMPLAINTS Fewer oomplaints were registered in 1958 than in 1957# but the ratio of justified to total complaints remained unchanged. The statistics follows Year 1958 1957 1953 191$ 1938 Total No. Complaints 392 228 239 Per cent Justified 36 36 35 38 2 00000077--:PTL-001022 11- The origin of complaints (by sales organisation) in 1958 and the amount and type of settlement follow; Division Canadian Central Eastern Industrial Western Per cent Total Complaints MBMJESIRBflBaMMMHanfiSSEBKSbaMM 3 20 15 21 41 100* 8 15 23 26 28 100* 1958 Settlements CashMeroh&n Total" # 34 310 273 881 3357 #4855 $ 365 620 691 59 3035 #2750 # 399 930 964 940 jim #7605 (2) (1) Based on estimated average value of #3*93 per gal. (figure supplied by Mr. Wilkinson) (2) 1957 settlements cost #9110 It cost #7600 in laboratory time to investigate 1958 complaints. The total cost of 1958 complaints in terms of cash, merchandise* and laboratory time was #15*200. This figure excludes time spent by salesmen in investigating complaints* preparing Inspection Reports* and in negotiating settlements. Justified complaints fell into the following major categories in 1958: 1 Cause of Complaint No. Justified Per cent Justified Viscosity change* gelation* skinning* lumping* seeding Color change in package or after use Streaking* flashing* spotting Faulty color match Drying Settling Gloss Faulty texture of wrinkle finish All other 49 23 15 9 8 5 5 4 22 140 35 ' 17 11 6 6 4 4 3 As in previous years* package changes of one kind or another acoount for about half of all justified complaints. Viscosity change causes the most trouble. Half of the justified complaints on package color change Involved Oil Stain. Flashing complaints were confined almost entirely to House Paint. Settling complaints were half as numerous as in 1957* Mislabeling complaints dropped markedly; only two were registered in 1958. Six justified complaints were caused by faulty tube colorants manufactured by Rockoote. 0007-PTL-001023 12 Fewer than 10$ of the justified complaints could have been prevented by closer quality control, or greater manufacturing care, v/hile all complaints on package stability are theoretically preventable, they result from the use of fast drying and inherently sensitive vehicles, without which we could not make modem paint. Industrial items caused 29$ of all justified complaints. Trade sales "paint" items caused only 16$ of the justified complaints. Trade sales items other than "paint" caused the remaining 55$ of the justified complaints. PERSOHHEL Separations _ 1958 1957 1953 Dissatisfied with pay or opportunities Resigned to enter military service Resigned for other reasons (health, pregnanoy, further schooling, etc.) Discharged Died or retired Transferred to other departments Total Avg. number of employees Separation Rate 5 i 7 3 1 2 19 66 27$ 6 1 4 3 Ml _1 15 66 23$ 4 1 6 3 2 mm 16 61 26$ reparations Increased somewhat over the previous year. As in years, most separations Involved people with less than a year's experience. The death of X. Kalloki ended seven years employment as a finisher in the Enamel Control Laboratory. He was a conscientious and dependable workman. LABORATORY EXPENSE Laboratory operations ooat 2.6$ more in 1956 than they did in 1957. The Increase was due entirely to wages and salariesj expenses remained the same as in 1957* Detailed comparisons between these two years, as well as earlier years, follow: ... MSft... Research $137*300 Tales Problems (Lab. Req.) 74*600 Manufacturing Services 178*000 $389,900 __ 13S1__ $128,300 78,500 m>jpo $380,100 -jasi- $ 69,000 87,000 144,000 $300,000 ... $ 60,800 60,800 87.800 $209,400 The figures illustrate how the growing complexity of our products has affected operations at the technical level. During the past ten 0007-PTL-001024 ii -13years, total laboratory coats have increased 86, but the amounts spent on research have increased 12356* on laboratory requisitions 25%t and on manufacturing services 102. A thousand dollar researoh project was a rarity ten years ago; today, major problems commonly cost $3000 to $0000. Bvery problem is a researoh problem today; there are practically no simple problems any more* There are fewer demands for specials (Laboratory Requisition work)* Nearly every new product now has to be patiently nursed through the factory. This trend is most evident In the trade sales field* For each hour that was spent in 1958 In developing one new architectural product, i;. hours were spent on research and 1*5 hours were spent on manufacturing services. The corresponding figures for each new industrial product were one hour for development, another hour for research, and 0*7 hour for manufacturing services* f / 0007-PTL-001025 SUiMMARY New Products Developed Sales Problems Reported by laboratory Research Problems Completed New Raw Materials Investigated Raw Material Shipments Tested Batches Tested - Buffalo Fort Erie Service Cells Technical Department Bulletins Issued Faint Manufacturing Bulletins Issued Label Bulletins Issued 19S8 1,296 1.243 53 580 2,538 16,463 3.221 105 39' 132 128 1997 1,211 1.272 59 488 2,599 16,188 2,870 130 48 54 75 0007-PTL-001026 February 24, 1959