Document 3QJVObgXR7zBzydjROXVkMVG3

Supplement to the American Paint urn St. Louis, May 16, 1927 THE COURSE of Paint and Varnish Production 1914-1926 Inclusive By George H. Priest, Jr., of the Editorial Staff American Paint Journal Company Based Upon and Including the Statistics Gathered in the Quinquennial, the Biennial, and the Semi-Annual Censuses of the Bureau of the Census, Depart ment of Commerce Reprinted From AMERICAN PAINT JOURNAL May 2 and May 9,1927 Copyright--All Rights Reserved AMERICAN PAINT JOURNAL COMPANY Publishers of American Paint Journal American Paint and'Oil Dealer American Painter and Decorator 3713 WASHINGTON AVE,, ST. LOUIS, MO. 0007 SWP 000032210 Foreword To secure a proper introduction to and understanding of the matter in the following pages, the reader's attention is called to the editorial in the American Paint Journal of May 2, 1927, which announced the forthcoming publication of Mr. Priest's article and outlined its back ground, as follows: Paint and Varnish Production bureau, was compiled from reports by Declined in 1926 426 concerns, which in 1921 produced THE Journal has ample evidence 89 per cent of the paste paints ground that the paint and varnish indus in oil, 95 per cent of the ready-mixed try, as a whole, has a full and livelypaints, and 90 per cent of the var appreciation of the value of accurate nishes, japans, and lacquers--as shown statistics, collected at regular inter in the biennial census for 1921. On vals and published promptly. the other hand, the Survey of Current The semi-annual census of the in dustry appears to he a modest pro Business, published by the Depart ment of Commerce, inaugurated in : ; gram when it is considered that many other industries, which are utilizing the services of the Department of Commerce to the fullest extent, are enjoying the benefit of monthly, and in some cases weekly reports of their production, sales, stocks, etc. Yet the January, 1923, its monthly index of manufacturing production, based upon the 1919 production of a wide range of commodities comprising about 40 per cent of the value of all goods manufactured in the United States in 1919. . value of the semi-annual paint and Of the 1926 statistics published in varnish reports has been impaired today's Journal, it may be said that very greatly hy the increasing delay their most noteworthy features are in their completion and issuance. Thus that the industry's total production in the statistics for the last half of 1926 was slightly below that of 1925, 1926, which appear in this issue of the and also that apparently the produc Journal, are released four months tion during the last half of 1926 was after the close of the period cov greater than during the first half, ered by the report. The only reason which unusual circumstance perhaps why these figures were not made avail may be attributed to the generally able two or even three months earlier late spring rather than to unusual ac lies in the fact that the Department tivity during the last half year. This of Commerce has not received the conclusion is supported by the fact 1 whole-hearted co-operation of the en- that production in two of the three tire industry. major groups, paste paints and the Judge Gary has said that anyman ready mixed and semi-paste paints, ' who wants to keep the facts of his was less in the last half of 1926 than business to himself still has the right in the same period of 1925, though the to do so and he may protect that right production of varnishes, japans and by keeping his business so small that lacquers showed an increase of more whatever he may do will be of no pub- than 20 per cent, about three-quarters lie consequence. This is true at least of which was due to the increased of this voluntary semi-annual paint production of pyroxylin lacquers. and varnish census, which is con It has been the common practice in ducted at the special request of the recent years to estimate the total pro industry; for no one is under any duction of the industry on a net . compulsion to participate. * * * weight basis by converting gallons to } It will be recalled that the first of pounds on the basis of 14 pounds per :{ these semi-annual censuses, upon gallon for ready-mixed and semi-paste i which the Bureau of the Census bases paints and 7.5 pounds per gallon for j the index numbers published on page varnishes, japans and lacquers. Using II, covered the production of the in- this method, it appears that the total |J dustry in 1922, and, according to the CConctaded on page 10) --2-- \ 0007 SWP 000032211 Reprinted from May 9t 1927 issue &n bh q w Rw Jo o ml The Course of Paint and Varnish Production Since 1914 By George H. Priest, Jr., of the Editorial Staff American Paint Journal Company The recent report of the Depart ment of Commerce on paint and varnish production in 1925, as shown by the biennial census, which was published in the American Paint Journal on February 21, 1927: (not the semi-annual report for last half of 1926, in the Journal of May 2), af fords an opportunity for the intelli gent .study of the industry's growth since 1914, Although 1925 statistics, based on voluntary returns from 555 firms in the special semi-annual census, were published a year ago, it must be re membered that the biennial census is conducted with congressional author ity and is more complete and authori tative than these voluntary semi-an nual reports, valuable though they might be in their current informa tion if the manufacturers reported promptly, and accurately. Value of the industry's products, as reported by 923 firms in this latest biennial census, taken in 1926 to cover the 1925 production, was $470, 736,624, or 16 per cent greater than in 1923 ($404,134,231); 72 per cent greater than in 1921 ($274,310,314); 38 per cent greater than in 1919, ($340,346,803), and 222 per cent greater than in 1914 ($145,623,691)! However, with the general increase in prices from 1914 to 1919, and with the subsequent fluctuations, any comparisons based on value are of little use in revealing actual trends and conditions. In this study, there fore, all comparisons will be made upon the quantity basis, wherever possible. The products of the industry, as classified by the Bureau of the Cen sus, may be divided into three gen eral groups, pigments, paints, and varnishes. As pigments are used principally as raw materials in the manufacture of the finished products of the industry a considerable ele ment of duplication is introduced if these three groups are totaled with respect to either quantity or value. It is the production of the finished products that furnishes the real cri terion of the industry's position and progress, and this differentiation will be observed in this discussion. For purposes of comparison a reas onably accurate figure for the total quantity of finished paint and var nish products can be obtained by converting gallons to pounds on the basis of 7A pounds per gallon for varnishes, japans and lacquers, other than enamels, and 14 pounds per gal lon for ready mixed paints and enamels, and adding the resulting figures to those already available for paste paints ground in oil. This is the method that has been in generul use by those calculating and compar ing the industry's total production in recent years, though the inclusion of water paints and kalsomines would increase the total about 5 per cent. On this basis it appears (as shown in Table B, on pages 4 and 5) that the total production in 1925, exclu sive of "other paints" which were reported as such for the first time in that year, was 2,093,515,066 pounds, or 65 per cent more than in 1914 (1,263,185,748 pounds), 30 per cent more than in 1919 (1,602,796,628 pounds); 41 per cent more than in --3-- 0007 SWP 000032212 Table B--U. S. Paint and Varnish Product 1914-1925 Inclusive t o t a l p r o d u c t io n o f p a in t s in o il , v a r n is h e s , j a p a n s a n d l a c q u e r s o n n e t Calculated by American paint journal on Basis of 7.5 Pounds per Gallon for Varnishes, Japans and Lacqu and 14 Pounds per Gallon for Ready Mixed Paints and Enamels; Using Detailed Production Figures of U Stated Below. Paints in Oil-- In Paste Form..................................................................... Mixed for use.......................................... ............................ Varnishes, Japans and Lacquers-- Other than Enamels........................................................... Enamels ................................................................................. Total ......................................................................................... 1914 420,912,061 570,437,852 272,735,805 <n 1,268,185,748 1919 398,269,118 835,055,648 1921* 428,156,109 672,954,562 42 99 369,471,862 (1> 1,602,736,628 290,548,567 50 89,281.260 18 1.481,040.488 2,11 d e t a il e d r e p o r t o f PRODUCTION OF THE PAINT AND VARNISH INDUST As Reported In the Quinquennial Censuses of 1914 and 1919 and In the Biennial Censuses of 192 PAINTS AND VARNISHES 1914 1919 1921* Paints in Oil-- In Paste Form', ground In Oil...................................... White Lead .............................. ...................................... Zine Oxide ......................................................................... Other .............................................................................. Mixed for use......................................................................... Water Paints and Kalsomine-- Dry or in Paste................................................................... Mixed for use.......................... ............................................ Other paints-- In Paste Form .................. '.......... .................................. Mixed for use......................................................................... Varnishes, Japans and Lacquers-- Total . -.................................................................. *................ Oleoreslnous Varnishey ............................................... Spirit Varnishes, not Turpentine............................ Pamar and similar Turpentine and Benzine Varnishes ....................................................................... 420,012,061 281,417.600 9,551.800 129,042,700 40,743,663 398,209,118 237,358,072 14,342,051 140,568,395 59,646,832 423.156,109 329,608,229 7,227,587 91,260,293 48,008,183 425 372 7 145 71 61,904,260 297,170 106.797.920 359.139 87,744,675 122 51,330 (3) (3) ' <3> (3) (3) (3) 36,364,774 17.801,440 2,964,170 49,262,915 28,116,160 2,974,US 45.124,184 22,172,146 3,084,507 80 40 5 3,297,370 6,356,387 4,293.923 3 0007 SWP 000032213 Pyroxylin Products ...................... ,,,,.................................(gallons) Pyroxylin Lacquers and Enamels .............................. Pyroxylin Thinners and Solutions.............................. Drying Japans and Driers................................................... Baking Japans .............................. .......................................... Enamels, Oil and Varnish Base...................................... Other Products: Asphaltum, Color Varnishes, Var nish Stains, Removers, etc................................................ (value) 852,570 (3) (3) 6.560,400 4,883,800 (4) $4,148,617 500,061 (3) (35 5,940,969 5,375.220 (4) $36,030,678 1,409,280 (3) (3) 4,315,329 3,464,625 0,334,375 $2,975,249 3 7 6 13 $4 PIGMENTS Total--For Sale .......................................................................... (pounds) Total Production ........................................................................... White Lead, dry...................................................................... Lead Oxides ............................................................................... Lithopone .......... .......................,,................................................ Zinc Oxide ................................................................................. Iron Oxides, Ocher, Sienna, Umber, etc...................... Chrome Yellow, Orange, Green........................................ Chrome Yellow .................... ................................................ Chrome Orange or Green.................................................. Prussian Bine .................................. ........................................ Other Colors ............................................................................. Other Mineral Colors .................................. .................... Ultramarine ........................................................................... Vermilion ........................ ............... ........................................ Other Fine Colors................................................................. Other Dry Colors, including Barytes.......................... Pulp Colors ................ ............................................................ Coal Tar Color Lakes......................................................... 1914 459,051,698 670,369,960 279,269,800 61,333,300 48.972,000 (6) 92,897,000 34.771,700 6 747,300 8 024 400 L33MOO 171,884,760 <S> 2,698,600 322 760 4,215,900 142,537,000 22,110,500 (10) 1919 1,039,688.238 1.223,246,810 262,959,465 165,106,671 154,622,275 279,321.235 202,181,787 0,494,800 944.649 153,615,928 38,263.989 (0) 327,454 6,631,210 78,258,974 430,084,301 (10) 1921* 743,506,130 964,764,883 334,948,764 130,314,627 06,434,572 117,127,315 85,128,388 13,429,231 5 460 788 7 QfiR 498 1,668.004 170,213,082 51,837,136 (9) 250,865 5,020,223 108,307,108 9,523,753 1.265,892 1,30 1,48 30 22 21 32 12 2 1 1 26 14 9 1 Data for establishments with products under $5,000 in value not included. Production of such establishme only 0.3 per cent of the total value. (1) Not available; included below with "other products," reported by value only. ' (2) "Other paints'" first reported in 1925 totaling 232,742,640 pounds not included; if previously reported w parative total for 1926 would be 2,373,257,706 pounds. (3) First reported separately in 1925. (4) Included, with "other products." (5) Includes estimate (7) for "other colors." (6) Not available; probably included with "other dry colors." (7) Estimate based on value, $15,609,750, as compared with $12,613,741 in 1923. (8) Included with "iron oxides." (9) included with "other dry colors." i!0) ItuJ&ded with "other fine colors." 0007 SWP 000032214 1921 (1,481,040,488 pounds), and about 1 per cent less than in 1923 (2,114,191,809 pounds). These totals have been reduced to index numbers, with 1919 as the base, and appear in Table A, with similar index numbers for the individual items entering into the total, as well as for pigments- Table A, Table A---Index numbers {on 1910 base as 100) of production of the Paint and Varnish industry for 1914-1925; all cal culations based on figures from United States quinquennial and biennial cen suses. See Table B. Finished Products 1914 1919 1921 1923 1925 Total Poundage, Oil Paints and Varnishes, Japans & r.aoquerst 79 100 92 132 131 Paints in Oil In Paste Form, Total ........ 105 100 107 107 103 White Lead.. 118 100 139 115 130 Zinc Oxide,.. 67 100 50 55 49 Other ............ 88 100 62 99 65 Mixed for Use. 68 100 81 119 115 Water Paints and KaUomine Dry or in Paste 58 100 82 115 104 Mixed for use.. S3 100 14 3 20 Varnishes, Japans and Lacquers Total .......... ..... 74 100 92 163 169 Oieoresinous Varnishes ... 63 100 79 143 136 Spirit Varnishes, not turpentine 100 100 104 188 239 Daraar and simi' lar Varnishes 52 100 68 61 64 Pyroxylin Products ..,. 171 100 282 651 1477 Drying Japans and Driers.. 110 100 73 123 97 Baking Japans. 91 iob 65 120 113 Enamels ...... * * 100 210 31 Pigments Total--For Sate.. 44 100 72 126 132 Total--Produc- tion ................ 55 100 78 120 129 White Lead, dry ................. 106 100 127 114 127 Dead Oxides .. 37 100 85 135 153 Lithopon .... 32 100 62 136 160 Zinc Oxide ... *# 100 42 115 115 Iron Oxides, Ocher, Sienna, Umber, etc... 46 100 42 63 33 Chrome Yellow, Orange, Green .......... .. 156 100 142 278 302 Prussian Blue.. 131 100 176 332 482 Other Colors.., 112 100 115 173 211 tlf "other paints" first reported sep arately in; 1925, are included, index number for 1925 becomes 148. Not reported separately until 1921, Not reported separately until 1919, It should he noted that the "other paints" mentioned as having been reported for the first time in 1925 amounted to 22,814,230 pounds of "paste" and 18,566,315 gallons of "mixed for use." Just, what this class of "other paints" embraces is problematical, although it probably includes roofing paints, plastics, and other products which cannot be pro perly classified as oil or water paints. Officials of the Bureau of the Census say they are unable to state where the items included in this classifica tion were reported previously, if at all, but it is evident that if appreciable quantities of these "other paints" have been reported as oil paints in previous years and it were possible to make proper deductions, the relative show ing for 1925 would be improved ac cordingly. Or, assuming that all of. these "other paints," aggregating 282, 742,640 pounds, were included with oil paints prior to 1925, the comparative total for 1925 would be 2,378,257,706 pounds, or about 88 per cent more than in 1914, about 48 per cent more than in 1919, about 60 per cent more than in 1921, and about 12 per cent more than in 1923. Some of the Gains, and Losses, As it is, analysis of the figures furnished by the Bureau of the Cen sus indicates a general decrease in the production of oil paints in 1925 as compared with 1923, with the ex ception of white lead in oil, which however, in spite of a 14 per cent in crease over 1923, remained 6 per cent less than in 1921. The 1925 produc tion of ready mixed oil paints was three per cent less than in 1923, but 43 per cent more than in 1921, about 15 per cent more than in 1919 and 68 per cent more than in 1914, In spite of a 5 per cent decrease in the production of oieoresinous var nishes as compared with 1923, the 1925' volume was 73 per cent more than in 1921, while 1925 productibn of the varnish group as a whole, in cluding pyroxylin products, was 4 per cent larger than in 1923, about 84 per cent more than in 1921, about 69 per cent more than in 1919, and 129 per cent more than in 1914. The production of pigments in 6* - - v. -'S 0007 SWP 000032215 I i t 1925, exclusive of those consumed by their manufacturers in the fabrica tion of other products, was probably about 1,375,000,000 pounds, including an estimated quantity of unenumer ated pigments for which detailed quantity figures are not yet available, this estimate being based on the value reported for those pigments and with the assumption that the average price was the same as in 1923. This quantity represents an increase of 5 per cent over 1923, about 85 per cent over 1921, about 32 per cent over 1919, and about 200 per cent over 1914. The growth of this pigments branch of the industry, which was particularly pronounced from 1914 to 1919, has been influ enced greatly by the development of other industries: lead and zinc ox ides, for instance, which together constitute more than 40 per cent of the total, are used to a greater ex tent in the manufacture of storage batteries and in the compounding of rubber than in the making of paint and varnish products. The 1914 fig ures for zinc oxide are not separately available but are probably included in the total with the unenumerated pigments. The Story of the Pigments. Reference to Tables A and B Indi cates that the 1925 production of dry white lead, although recovering ground lost in 1923, showed no in crease over 1921 and was but 20 per cent greater than in 1914; while dry zinc oxide in 1925 remained on a par with 1923 production which was about 175 per cent more than in 1921, though but 15 per cent more than in 1919. Iron oxides, ocher, umber, sienna, etc., were produced in 1925 in quantities considerably less than in any other of the years covered by the Census during this period. All of the other pigments, however, regis tered appreciable gains. As already stated, the pigments, al though reported as products of the paint and varnish industry, are used largely in other industries; conse quently pigment production data are of little value in a consideration of the production of paints and var nishes, though to a certain extent they may indicate changes in manu facturing practice when considered in connection with statistics of paint and varnish production. For instance, the total production of dry white lead iri 1925 was about 20 per cent more than in 1914. This increase was partly absorbed in the production of white lead in oil, which was about 10 per cent greater than in 1914, while it may be assumed that most of the remainder entered into the manufacture of ready mixed paints. The 1925 production of ready mixed paints, however, was al most 70 per cent greater than in 1914, so that, in spite of the large quantities of zinc oxide and lilhopone consumed by other industries, it seems evident that they are being used more largely in the manufacture of ready mixed paints than ever be fore. One of the most interesting de velopments of recent years has been the introduction of nitrocellulose lacquers for industrial and house hold consumption on a scale that was unthought of in 1914. It will be noted by reference to Table B that the increased production of these pyroxylin products in 1925 over 1923 was practically equivalent to the decrease in oleoresinous varnishes, drying japans and Iacquer3, and bak ing japans, and there is undoubtedly some basis for the opinion current in some quarters that the pyroxylin products are making inroads upon the older lines, although, as the Journal has pointed out before, the increased use of these pyroxylin varnishes or lacquers should bene fit the entire industry by awakening a large number of new buyers to paint and varnish consciousness. Some Discrepancies in the Reports of the Manufacturers. In this connection it may be well to ponder the fact that the total quantity of pyroxylin products man ufactured by the paint and varnish industry in 1925, as reported in the voluntary semi-annual census to which only 555 concerns made re turns, was 11,104,000 gallons, or more than 50 per cent greater than --7-- 0007 SWP 000032216 the 7,387,506 gallons shown later, in the biennial census, with its returns from 923 firms for the same year. The semi-annual census showed that 85 of the 555 firms filing returns re ported the manufacture of pyroxylin products, and, whilu jt is possible, it does not seem probable that none of the 368 additional firms reporting in the biennial census were making lac quers in 1925. This discrepancy in the two sets of figures is not confined to pyroxylin products, for the total 1925 volume of varnishes, japans and lacquers, other than pyroxylin, as reported in the semi-annual census, was 70,913, 400 gallons while only 61,312,730 gal lons were reported in the biennial census for the same year. The latter figure has been obtained by deduct ing pyroxylin products and enamels from the total shown in Table B; enamels are not included in this group in the semi-annual census hut are reported with ready mixed and semi-paste paints. Also, the produc tion of zinc oxide in oil was reported as 13,631,300 pounds in the semi-an nual census for 1925 and as only 6,975,414 pounds in the biennial cen sus for the same year. These important discrepancies are noted without any reflection on the Department of Commerce, which, in compliance with the special request of the industry, is seeking to render the trade a real service in collecting and disseminating the data furnished in these voluntary semi-annual re ports. It is obvious, however, that both sets of figures cannot be cor rect, and as it is to be assumed that the biennial census, prescribed and conducted under the specific require ments of the law, is reasonably ac curate, it seems apparent that some members of the industry have been imposing upon the Department of Commerce and upon the industry it self by making inaccurate semi-an nual reports. "Indicates the Biennial Figures Are Correct." LeVeme Beales, Chief Statistician for Manufactures, Bureau of the Census, when asked for an explana tion of these apparent discrepancies by the Washington representative of the Journal, commented as follows: "In most cases the manufacturers of varnishes, japans, and lacquers re port, at the semi-annual censuses, their total output of these products, which includes those made and con sumed in further manufacturing processes. The biennial report shows only the quantities produced for sale. Certain manufacturers report zinc oxide and white lead separately at the semi-annual censuses, but report at the biennial censuses only combin ation or graded whites (included with "other paste paints" in the biennial reports -- Ed,). This indicates that the biennial figures are correct and that the semi-annual figures are in correct." It is quite evident from this state ment that an element of duplication has been introduced into the semi annual statistics which does not ap pear in the biennial reports. In the case of pyroxylin products, however, according to Mr. Beales, certain im portant manufacturers, classified for census purposes in the "Chemicals, not elsewhere classified" industry, report their pyroxylin products as so lutions, the data for which are in cluded in the "Pyroxylin plastics and solutions" report and do not appear in the biennial paint and varnish re port. Inasmuch as certain firms in the paint and varnish industry re port the manufacture of "pyroxylin thinners and solutions" in the bien nial census, if this class can proper ly be considered as finished products of the industry it appears probable that in this instance the semi-annual reports give a more accurate picture of the development of pyroxylin fin ishes than the biennial reports. Study the Detailed Figures. Probably no better measure of the industry's progress exists, however, than that afforded by the two pages of detailed figures in Table B (pages 4 and 5). Attention already has been drawn to the method by which the total poundage of finished prod ucts is estimated and the way in which the totals may have been af fected by the large group of "other paints" first reported in 1925, It --8-- r 0007 SWP 000032217 should be noted that the totals for 1914 and 1919 include no estimate for enamels, as they were first re ported separately in 1921, this sep aration being chiefly responsible for the decrease of thirteen million dol lars in the value of "other products" in 1921 as compared with 1919. Their inclusion in 1919 would have the ef fect of lowering the index numbers for succeeding years' shown in Table A. On the other hand, all pyroxylin varnishes or lacquers have been cal culated at 7.5 pounds per gallon, as separate figures are not available for pigmented lacquers, which, for this purpose, might better be grouped with enamels at 14 pounds per gal lon. There exists today a well accepted conception of the increasing compe tition between industries striving for the consumer's dollar, as distin guished from the competition be tween the individuals within an in dustry. How has the paint and var nish industry fared in this so-called "new competition"? The Paint and Varnish Industry in "The New Competition." In the Survey of Current Business, published monthly by the Depart ment of Commerce, there appears a monthly index of manufacturing pro duction, based on 1919 as 100, which includes sixty-four commodities in eleven groups. This index is based upon the quantity of production, weighted arithmetically with respect to the importance of the commodity as indicated by the "value added by manufacture" as shown in the 1919 Census of Manufactures. At the re quest of the Journal, the Survey of Current Business has furnished the index numbers of the eleven groups and the combined total for the years in which the biennial census has been conducted since 1919. These in dex numbers appear in Table C, and the Journal has calculated similar in dex numbers for the paint and var nish industry, based on the govern ment's figures for quantity and value of production which have been pre sented in this article anfl the ac companying tables; also the index numbers for those two great indus tries, automotive and building con struction whose processes not only consume vast annual volumes of paint and varnish products on new work, bu't--and of far greater impor tance--they create, increase and pyramid that volume of regularly re pain table surfaces that absorb by far the larger part of the industry's annual production. These index num bers for the automotive and build ing construction industries are based upon both actual quantity and value as published on pages 46 and 66 of the February, issue of the Survey of Current Business. ; Table C. TabJe C.~Index numbers on produc tion of the Paint and Varnish industry and other industries since 1919. Baaed on Department of Commerce figures, with 1919 as 100. 1919 1921 1923 1925 Paint and Varnish (value) ...................... 100 SI 119 138 Paint and Varnish (pounds)* ................... 100 92 132 131 Automotive (value) 109 73 152 160 Automotive (number vehicles) .. 100 35 208 220 Buildingr Construction (valueft .................... too 92 135 198 Building: Construction (floor space)*........... 100 09 105 140 "Survey of Current Business" index fig ures based on quanti ties, weighted arith metically -- 04 man. ufac- lured cornimodities. 100 79 110 126 Foodstuffs ................. 100 93 110 106 Textiles ...................... 100 93 112 104 Iron and Steel ........ 100 56 129 124 Lumber ...................... 100 88 136 150 Sole Leather, Boots and Shoes ............. 100 79 97 86 Paper and Printing, 10Q 89 10S 111 Chemicals and Oils. 100 104 140 179 Stone and Clay Products ................. 100 90 124 138 Petals--nonferrous. 100 82 156 180 Tobacco ..................... 100 95 107 115 Miscellaneous .......... 100 65 114 133 *If "other paints" first reported separately in 1925. are included, index num ber for 1925 becomes 148. tContracts awarded in 36 states, com piled by F. w. Dodge Corporation. Examination of the index numbers in Table C discloses the fact that the progress of the paint and varnish in dustry since 1919, while above the av erage of that of industry as a whole, which has made notable gains. --9-- J 0007 SWP 000032218 especially in view of the slump in _ 1921, has been surpassed by various other industries, including especially the two, the automotive and the build ing construction industries, whose in fluence upon the immediate, continu ing and increasing consumption of paint and varnish products is gener ally considered predominant. According to the Survey of Current Business, manufacturing in general showed an increase in 1926 over 1925, the combined index for 64 commodi ties increasing from 126 in 1925 to 128 in 1926. Building construction was greater in value, although about five per cent less in floor space. Automobile production was greater in both value and in the number of ve hicles. Eight of the eleven groups en tering into the Survey of Current Busi ness index of manufacturing produc tion showed increases, lumber, leath er, and non-ferrous metals being the only ones to decline. Paint and var nish production during 1926, however, if judged by the results of the volun tary semi-annual census published in last week's Journal, was about two per cent less than in 1925. Surely, all these facts must com mand the serious thought of every paint and varnish manufacturer. The opportunities were never greater; more than thirty-five billion dollars worth of building construction, or more than three times the total value ($11,486,439,543) of all farm buildings reported in the 1920 census, has been added to the nation's standing pioperty since 1919; while the registration of motor vehicles has increased from about 6,000,000 to about 22,000,000. It seems evident that the activity of these two industries has contributed largely to the prosperity of the paint and varnish industry, but the fact of greatest significance to the industry is that but a small proportion of these new buildings and automobiles repre sent replacements and that on the whole they constitute an enormous ad dition to the repaintable surfaces ex isting in 1919. 1 Foreword, Concluded, From Page 2 production in 1926 was slightly less than in 1925, as shown below. For purposes of comparison the produc tion is also shown for the years 1922 1924, with index numbers based on 1922 production; all these calculations being made from the semi-annual cen sus figures appearing on page 7. Year Total Index Production Number (Pounds) (1922=100) 1922 ................... 1923 ................... 1924 ................... 1925 ................... 1926 ................... 1,779,106,500 2,118,637,500 2,251,822,000 2,476,338,500 2,425,690D00 100 119 126 139 136 As has been stated, all the above figures are based upon the voluntary semi-annual census reports, which are necessarily incomplete, being compiled from returns from concerns varying in number from 426 in 1922 to 581 in 1926, while the biennial reports were compiled from returns of 804 firms in 1921, from 826 firms in 1923, and from 923 firms in 1925. The Journal has frequently com mented on the fact that there are dis crepancies between the two sets of fig ures, viz., the two separate censuses, for the same years, which cannot be accounted for by the difference in the number of firms reporting; for in some instances a greater production is shown by the semi-annual reports than by the biennial report for the same year- As the biennial reports are pre scribed and conducted by law it is to be assumed that they are more com plete and more authoritative than the voluntary semi-annual reports, and as this whole matter is of such vital im portance to the industry, the Journal will publish in its next issue a com prehensive and detailed review of paint and varnish production during the twelve-year period 1914-1925, based upon these official censuses-- the quinquennial censuses of i914 and 1919 and the biennial censuses of 1921, 1923, and 1925. --10-- 0007 SWP 00003221 Reprintedfrom May 2, 1927 issue Amma n Ru n t Jo iml U. S. Statistics of Paint and Varnish Production and Sales, Last Half 1926 Washington, D. C., May 2.--The De partment of Commerce announces that, according to data collected at the latest semi-annual canvass of paint and varnish manufacturers, the production during the six months' period from July 1 to December 31, 1926, was as follows: 212,536,900 pounds of paste paints, comprising 128.930.900 pounds of pure white lead in oil, 14,535,600 pounds of combina tion or graded whites, 4,362,500 pounds of zinc oxide in oil, and 64, 707,900 pounds of other paste paints; 45,623,000 gallons of ready-mixed and semi-paste paints, including enamels; 36.242.900 gallons of varnishes, japans and lacquers, other than pyroxylin; 12,843,600 gallons of pyroxylin (nitro cellulose) varnishes or lacquers; and allied products comprising paint and varnish removers, 413,100 gallons; stains (not varnish stains) 2,159,800 gallons; liquid fillers, 376,900 gallons; paste fillers, 7,515,900 pounds; and putty, 30,837,400 pounds. The statistics for paints and var nishes for the second half of 1926 as compared with the first half of that year show increases of 1.7 per cent and one-half of 1 per cent, respect ively, for paste paints and readymixed and semi-paste paints, includ ing enamels, a decrease of 4,8 per cent for varnishes, japans, and lacquers, other than pyroxylin, and an increase of 26.7 per cent for pyroxylin var nishes or lacquers. The statistics for the second half of 1926 are based on returns from 581 establishments, of which 76 re ported the manufacture of pure white lead in oil; 157, combination or graded whites; 137, zinc oxide in oil; 325, other paste paints; 435, ready-mixed and semi-paste paints; 372, varnishes, japans and lacquers, other than py roxylin; and 138, pyroxylin varnishes or lacquers. No data are included for thirty-one establishments which reported for the (Concluded on page 15.) Table 1.--Paint and Varnish Industry--Production and Index Numbers, by Classes of Products, for Half-Year Periods, 1922 to 1926. Production Index Nos. Base, 1922 Period Paste paints 1,000 pounds 1926--year ...................... 421,560 2nd half........ .......... 212.537 1st half,........ .......... 209,023 1925--year .......... 2nd half........ .......... 224,228 1st half..,,.. ..........241,057 1924--year .......... .......... 487.611 2nd half.......... .......... 223,867 1st half......... ..........253,744 1923--year ........... ..........439,175 2nd half,........ ........... 192,021 1st half.......... . 192&--year .......... ........... 436,295 2nd half.................... 227,703 1st half......................208,592 Ready-mixed and Varnishes semi-paste japans and paints lacquers 1.000 gats. 1,000 gals. Paste paints 91,025 97,304 45.423 49,086 45.402 48,218 90,709 82,037 47.260 40,622 52,449 , 41,395 88,274 70,450 43,152 34,301 45,122 36,149 82,070 70,731 38,351 32,849 43,719 37,882 66.07t 55.709 33,440 28,877 32,631 26.832 97 93 100 107 08 116 112 103 122 101 84 i1o1o8 100 100 --11-- Ready- Varnishes mixed Japans and paints lacquers 138 175 136 170 139 180 151 147 141 141 161 154 134 126 129 119 m 135 124 127 115 114 134 141 100 100 100 100 100 100 0007 SWP 000032220 Table 3. -- Paint and Varnish Industry -- Production and Sales of Products: 1926, First and Second Halves, and 1925, Sec Paints Paste paints-- Number of Total Establish- Production mentsi Pounds 1926* July-December .................. January-June .................... 1925 July-December ..,............ White lead in oil, pure-- 212.536,900 209.022.SOO 224.228.100 1926, July-December .................. January-June .................... 1925, July-December .................. Combination or graded whites--- 76 79 102 128,930,900 129.343,800 133,841,700 19-26* July-December .................. Januaxy-June .................. 1926, July-December .................. Zinc oxide in oil-- 157 159 127 14,635,600 11,634,300 6,221.600 1926, July-December .................. January-June .................... 1925, July-December .................. 137 131 163 4.362,500 3,502.500 6,334,100 Other paste paints-- 1926, July-December ................ 64,707.900 Colors in oil .............................. 268 13,460,900 Colors in japan ........................ 129 2.616,500 Other -....................................... 1926, January-June ..................... 223 48,630,500 64,542,200 Colors in oil.............................. . 234 12,399,500 Colors in japan............................ 119 2,809,800 Other ............................................. 224 49,932,900 1926, July-Decemher .................. 326 79,830,700 produc tion----- Amount % of Pounds Total 190,461,800 184,143,600 194.499.500 128,796,000 127,102.600 130,459,300 89.6 88.1 86.7 99.9 98.3 98.2 8,312,900 8,119,000 3,659,000 57.2 69.8 68.2 3,821,200 1,793,100 4,373,500 49,531,700 9,625,200 2,076,400 37.831,100 47,128,900 8,747,500 2.317,800 36,063.600 66,107,700 87.6 51.2 69.0 76.5 71.5 79.3 77.8 73,0 70.5 S2.5 73.1 70.3 Establishments Reporting Sa ------------------------ -------Sales------ Trad Sales Sales Sales Total Industrial- All Ot Pounds Pounds Pou 160,664,300 180,620,000 173,110,200 23.30S.200 129.41 21,103,200 148.S4 28,040,300 135,92 113,416,800 133,900,500 323,101,500 6,216.300 104,93 5,209,100 121,95 7,843,100 109,81 8,389.900 7,-828,000 3,429,400 1.964,600 1,191,100 1.226,700 5,32 5,78 1,79 3,349,900 2,032,700 4,057,000 36,508,700 9,122,700 1.874,800 24,511,200 36,858,800 8,694,400 2,278.100 25,886,300 42,622.300 343,100 348,700 330,900 14,784,200 1,461,000 718,800 12,604,400 14,354,300 1,714,800 795.900 11,843,600 18,639,600 2,13 1,4 3,41 17,0 6.17 1,03 9,83 19,67 5,96 1,32 12,38 20,89 0007 SWP o o pi o o CO ro fO V Ready-mixed and semipaste paints. including1 enamels-- I926r July-December .................. Undercoating and primers... Wall paints and mill whites. Enamels, oil and varnish base Other ............................................ 1926, January-June ...................... Undercoating and primers... Wall paints and mill whites. Enamels, uil and varnish base Oth er .............................................. 1925, July-December .................... Varnishes, japans, and lacquers, other than nitrocellulose-- 1926, July-December .................... Oleoresinons varnishes and varnish stains ........ *............. [ . Shellac varnishes ...................... Other varnishes ......................... I Drying- Japans and dryers... Baking japans .......................... 1926, January-June ...................... Oleoresinous varnishes and varnish stains ...................... Shellac varnishes .................... Other varnishes ........................ Drying japans and dryers... Baking Japans .......................... 1925, July-December .................... Nitrocellulose products-- 1926, July-December .................. Clear lacquers ............................ Lacquer enamels ....................... Thinners for nitrocellulose lacquers ..................................... Other ........ ..................................... (Table 3 Continued on Page 14.) 245 331 320 412 210 307 269 377 450 305 ISO 159 225 106 63 118 142 191 94 297 117 113 106 46 Gallons 45,623,0003,673,400 7,116,200 7,929,200 26,704.200 45,402,100 2,744,000 7,393,100 8,104,600 27,160,400 47,260,300 Gallons 36,990,500 3,449,800 5.787,000 6,488,700 21,265,000 37,314,300 2,325,000 6.149,300 6,648,600 22,191,400 36,354,000 81.1 89.1 81.3 81.8 79.6 82.2 84,7 83.2 82.0 81.7 76.9 Gallons 36,683,700 3,410,400 5,740,600 6,399,900 21,132,800 36.878,900 2,299,800 6,166,300 6,465,900 21,946,900 34,744,900 Gallons 14,132,300 2,178,200 1.508,000 2,928,700 7,517,400 11,861,100 1,324,100 1,409,300 3,081,400 6.046.300 11,487,200 Gallons 18,556,100 972,600 3,672,200 3,171,800 10,739,500 18,886,000 859,000 3,939,000 2,764,400 11,323,600 19,602,800 36,242,900 29,365,000 81.0 21,659,800 2,547,200 6.048,600 2,797,300 3.1S9.500 38.081,400 23,739,400 1,705,800 6,830,700 3,152,000 3,593,500 34,399,000 16,694,800 2,299,500 4,977,500 2,342,600 3,050,000 30,423,000 18,012,600 1,614,500 4,598,900 2,776,000 3,421,000 ' 24,962,200 77.1 90.3 82.3 83.7 95.6 79.9 75.9 91.4 78.9 83.1 95.2 72.6 20,303,800 15,012,900 14,366,200 2,274,900 4,669,200 2,213,700 2,979, S00 27,335,100 16,603,500 1,587,900 4,265,700 2,519,600 3,358,400 20,969,000 7,230,700 1,165,200 3,163,500 1,203,200 2.250,300 14,547,000 7,284,100 558,500 2,489.500 1,369,000 2,845,900 12,682.100 9,413,100 5,662,800 818,500 1,388,500 838,500 704,800 9,653,000 6,163.400 682,600 1,598,900 853,100 355,000 6.856,000 12,843,600 3,244,200 4,376,800 4,327,100 895,000 12,059,200 2,763,900 4.264,500 93.9 84.9 97.4 4,185,700 96.7 855,100 95.G 11,247.500 2,546,500 3,897,900 3,809,700 993,400 7,565,300 1,730,500 2,400,200 2,553,000 881,600 1,861,700 277,700 910,500 564,300 109,200 0007 SWP 000032222 Table 3, Gont'd -- Paint and Varnish Production and Sales, b of Products .* 1926, First and Second Halves, and 1925, Seco (Nitrocellulose Products Continued.) Number of Total Establish- Production mentSi Gallons Establishments Reporting Sale --- -------- --------------Sales------------ --Production----- Trade Sales Sales Sales a Amount % of Total Industrial- All Othe Gallons Total Gallons Gallons Gallo 1926, January-June ...................... Clear lacquers ............................ Lacquer enamels ...................... Thlnnjers for nitrocellulose lacquers ..................................... Other .............................................. 1925, July-December .................... Allied Products Paint and varnish removers-- 1926, July-December .................... January-June .................... Stains (not varnish stains)-- 1926, July-Dccember .................... January-June .................... Liquid fillers-- 1926, July-December .................... January-June .................. Paste fillers-- 1926, July-December .................... January-June ...................... Plltty-- 1926, .Tuly-December .................... January-June ...................... 32 86 80 32 SB 126 102 226 188 173 162 232 203 163 143 10,136,800 2,612,COO 3,628,800 3,37*8,200 717,800 6,223,200 413,100 361,200 2,159,800 1,489,700 376,900 422,200 Pounds 7,515,900 6.565,400 30,837,400 23,862,400 9,639,300 2,329,200 3,375,600 95.1 92.7 95/7 3,262,600 <572,400 5,836,700 96.0 93.7 93.8 8,842,300 2,075,000 3,176,000 3.054,000 536,400 6,634,900 5,654,500 1,247,400 1,801,700 2,155,900 449,500 4,628,800 1,846. 440 874 445 86 671 376,300 91.1 320,100 68.6 393,900 471,500 1,979,100 867,700 333,400 372,800 Pounds 6,802,000 5,906,400 91.6 69.6 88.5 88/3 90.5 90.0 1,954,300 828,300 331.100 306,500 Pounds 6,593,800 5,616,900 22,823,600 74.0 22,730,400 19.543,800 81.9 19,609,000 60.SOO 74,100 369,900 276,800 102,000 199,000 Pounds 4,626.000 3,970,500 5,261,000 4,933,200 294 379 110 450 169 163 Pou 1,469 1,486 9.382 8,393 0007 SWP 000032223 f , Total number reporting: paints and varnishes: Second half, 1926--68-1; first half, 1926---549; second half, 19 4 Sales to manufacturing1 establishments and builders. Including shipbuilders, for use on the product manu to railroads, both steam and electric. (Continued from page 11.) first half of 1926 but not for the last half. These establishments reported for the first half of 1926 six-tenths of 1 per cent of the total quantity of paste paints; 2 per cent of the readymixed and semi-paste paints, includ ing enamels, 1-3 per cent of the var nishes, japans, or iacquers, other than pyroxylin, and three-tenths of 1 per cent of the pyroxylin varnishes or lacquers. (For tables issued as part of these statistics see page 11 for Table 1; be low for Table 2, and pages 12, 13 and 14 for Table 3.--Editor.) Table 2.--Paint and Varnish Industry--Number of Establishments Report ing Manufacture of Specified Products, by Geographic Divisions: 1926 first and Second Halves> and 1925, Second Half. ,-------------------------Geographic Division----------------------- **40>' cqoj c<2 Pa T3 >* Ke C-va 1 1? Cl TM h ?C o s <r. 5P<! ETC 5 <3 O ? Total number of establishments-- 1926--2nd half.................................... 531 35 IRS 187 53 32 23 12 5 1st half..................................... 549 30 176 186 52 30 21 10 1925--2nd half.................................... 555 30 130 180 54 31 19 11 4 4 Number reporting manufacture of-- White lead in oil-- 1926--2nd half, pure........................ 76 2 24 24 a 4 4 4 2 1st half, pure........................ 79 2 24 29 5 4 3 5 1 1925, 2nd half, pure........................ 102 5 34 34 X 9 3 2 1 1926---2nd half, combination or graded. .................................. 157 10 40 39 14 15 S 6 2 1st half, combination or graded ................................... 159 8 43 39 14 15 10 3 2 1925--2nd half, combination or graded ................................. 127 6 34 30 14 16 4 4 2 Zinc oxide in oil-- 1926--2nd half.................................... 127 5' 38 36 17 12 6 6 i 1st half.................................... m. 7 36 36 16 8 3 4 2 1926--2nd half..................................... 163 11 33 41 1"i 11 5 7 3 Other paste paints-- 1926--2nd half........................................ 325 21 92 91 33 23 15 9 5 1st half .................................... 324 12 95 101 32 21 13 8 4 1925--2nd half.................................... 326 19 97 99 34 21 11 6 3 Ready-mixed paints-- 1926--2nd half..................................... 435 23 130 131 45 31 19 13 1st half.................................... 443 25 137 135 16 2-S 16 10 1925--2nd half.................................... 450 25 14U 13S 17 2S 16 10 5 4 4 Varnishes, japans and lacquers-- Other than pyroxylin-- 1926--2nd half........................................ 372 23 118 120 34 17 13 9 3 1st half..................................... 344 17 122 117 28 15 9 4. 2 1325--2nd half......................................... 297 14 104 100 24 14 8 4 2 Pyroxylin (nitrocellulose)-- 1926--2nd half........................................ 136 1st half.................. ................. 111 5 40 56 11 5 3S 46 7 1 2 fi 5 5 1 1 1 1925--2nd half.................................... 55 3 an 40 4 t 5 o 46 41 46 7 6 $ 23 25 17 16 T9 25 36 3S 36 38 42 42 35 30 27 10 10 4 States and numbers of establishments represented, second half 1926: 'TSIasa, 25; Conn., 7: R. 1., 2: Me., 1. a*mN.., Y.. 84: Pa., 73: Ohio, 64; 73; N. Jlf Mich., 40 20; Ind., 14; Wis.. 7. 22; Minn., 12; Iowa, Nebr. , 4 each; Kans., 1. #Md,, 13; Ga., 5; Va. . 5; Fla. 3; W. Va.(i 2; N. C ., 2; Del., s. c. , 1 each. *Ky , 15; Term., 6; Ala., 2. 7Tex,, 6; La., 5 : Okla,, 1. C'clo.,, 4; Utah, 1. 'Calif, . 37; Ore. , 5; Wash., 4. --15-- 0007 SWP 000032224 In the Service of the Industry American Paint Journal Company . , ' i ; ( The Editorial Staff ALLEN W. CLARK, J. LEYDEN WHITE, F. N. VANDERWALKER, CUMMINGS C. CLARK, GEORGE H. PRIEST, Jr. FORREST R, TRAFFORD (New York), L. M. LAMM (Washington) } | ^ | The Business and Service Departments CHARLES-ALLEN CLARK. Businas Manager OTTO C. LARSON. H. T. Me CLURE, H. C. BILLINGSLEY, L. V. STORR, A. W. WRIGHT (New York), J. T. HEED (Chicago) The Publications (All are members of the A. B. C. and the A. B. P.) AMERICAN PAINT AND OIL DEALER, Monthly, for the Dealers AMERICAN PAINTER AND DECORATOR, Monthly, for the Contractors AMERICAN PAINT JOURNAL,, Weekly, for the Manufacturers and Distributors ; -j j j : j -! j j j .? '! ' ia..... . J 0007 SWP 000032225