Document jykRzdgxYdeeJR2Vb5zMVp4QO

Major Developments During 197S ?-z sa>es :o s!eei :r|ouSi,y remained level. feu tc ;i hoopers manuac'-unnS 5aies =aw 5,eei Suicul was -jo oy 3%. naustry was at 37% of capacity :au'-cry moustry sutcut -ose sugnuy. Higher saies of couplings, `ounory -esms. refractory systems countered olanneo oecime m furnace :pKe. 'ower voume in mineral orocessmg eouiomem. inausiry capital soenpmg c o noi nse. Ccnsirucfon volume was jnc.nangeo. Outlays for hignways. streets were up by 5%. cectmeo m real terms. NonresiCennal construcfion spenomg was strong in (mai hall: contract awards rose by '0%. Sales were increases) by roaa materials expansions, nigner volumes for aggregates, bituminous ano ready-mix concrete, hign. way and street construction services. mousing starts exceeded 1977 level. Repair marxet continued sirong. Monresidennai market picked up sharply. Sales oenefneo from expansions m sand and gravel, ready-mix concrete, higher volumes m rooting mate rials. sealants, treated and laminated wood products, air handling products. Koppers did not match moderate unit sales gain m chemical industry be cause of production problems. Company polyester resin volume was nearly triple industry's 13% growth. Price improvements in certain chemical lines netped offset unit declines. Pamt and coating industry hao moderate gam. Tire production did not change significantly. Rail shipments were 5% higher: railroad income was nun oy poor weather, coal stnke. Crosstie demand was high. Heavy-duty truck output rose Oy 70%: auto sales were strong, leading to higher sales lor piston rings, seals, adhesives, sealants, antirust products. Canadian spruce lumoer sales rose by 15% on strong prices: volume was reduced siigntiy by logging prootems. Good domestic construction market accounted tor higner sales ol creosote, specialty preservative chemicals, hardwood lumber. Electric oower outout rose by about 3%: utility caoital spending was 14% higher. Construction of underground pipelines, sewer, and water supply fa cilities snowed good gams. Moderate recovery contmueo tor utility poles. Sales of pipeline coatings, water and sewage treatment equipment rose. Aluminum production rose Oy 6%. industry operating rate was high. Binder pitch, industrial coke sales, mining industry output were up by 5%. Copper consumption, prices increased. Capital spending by nonferrous metal pro ducers. mining companies was up. Production of wood pulp, paper was marginally higher, industry capital spending was not increased. Increased sales ol pulp refining systems did not make up for lower sales in environmental systems, specially chemicals. Domestic container machinery sales rose; sale of foreign machinery opera tions in 1978 reduced total volume. Nonelectrical machinery sales increased by 14%; strength was in construc tion equipment, pumps and compressors, special and general industrial machinery. Demand tor export was high. Domestic sales ot piston rings and seals, couplings were up; overseas shipments fell from high 1977 levels. Output of gram mill products rose by nearly 5%: growing conditions for gram were favorable. Construction of prepared feed facilities is averaging 4% annual growth. Capital spending in food and grain industry expanded by 15%. aided by sharp rise in farm incomes. Saies ot Koppers food, feed processing equipment increased by 15%: gams in certain other lines were small. Beyond 1978 'iurrerc-js i5C.-'a:? :soua' V;,i Cc ~ :icy -5377 :cr:s:riwc'.*c'* -sis .vis? rises sc-**? 5 n v-ios icci-ancss Sloe* ^ocrs are S<SC*.eC X ""-.jr'y c.rr: ZZr.V.r>je =-C*-uC n ;S'rr #^acr,ir'<5*y T^rry ~e''"C 5 'V/Cfire *Cr `Ourcry Cemano -n cuoiic sector accea.-s favcrac e -vm smau -eat ga-ns :cr '9'9 m ccnsirucf on r.artenar.ce of -..-gn-.vays streets. sr.-dses Budge; estramts may s'c-v soencirc a'.e m year ,'cv/arc :-ero n c.-ivate sector Should continue: arge rise n norresiaert'a! consirucfcn contract awarcs soei's strength rcus-mai. :`f'ce oundirg constructor rstgrt .'ate Ol rr.uiMarritiy swening constructor. $nouQ scmewrat cilSt Groo ;n smgie-iamily noising acuv:ty foreseen lor '979 <&C8iiion. attention mar. *ei snotifl remain ^rm. Nonresicentiai activity also accuse ce 300c. over-3:i Irene will run counter to nousmg oecime Oemana for organic cnemicais 'S exoectea to cutcertorm econcmy s growth inaustry s excess cacacuy. weak once cosmon secu-o mooerate m 1979. Plastics consumotion will advance. Out at lower rate man -n 19 73 Gains 'or ooiyester resins are exoecteo to -emam rtign Ti.-e ouicut s expectec to remain favcraoie. Rate increases, imoroveo traific. government funcmg programs snouio oenefit railroaos' ability to fund continued nig.n level cf rcaacec maintenance. Crossne supply bottlenecks snouid te removed Auto moustry ouiiook >s ciouded by labor contract negotiations: mooerate decline m cutout is ex pected. Heavy-duty truck volume snouic remain r.ign U S. demand for soruce. hardwood lumoer is on high piateau tnai cegan in 1976. Prices are exoecteo to remain firm Multitamny. r.cnresicennai consiruction markets snouid offset smgie-tamily housing weakness Continued mooerate growtn -s exoecteo for electric power use. Funne- caoitai expansions will be iimiteo somewnat cy expected lower rate of oemarc. nigher mierest costs. Utility proiect backlogs remain hign. Momemum -s exoectea to continue in construction of pipelines. water and sewage facilities. Aluminum capacity expansion is uncer way. Further oemana growir. is expeeled: U.S. is net importer ot aluminum. Excess worta stockpiles of coo per. which have limited expansion plans, are being worked off. Small in crease in mining production is foreseen: caoital soending is excected to rise further, particularly in overseas nations. Production of wooa pulp, paper snouid approximate economy's growth uti lization rates for pacer, paperboard capacity are near 95% level: industry caoital soending is expected to rise in 1979. Uoward trend m corrugated container demand is expected to taper with general economy m 1979 With noneiectricai -machinery industry ooeratmg near capacity, significant in vestment spending is projected. Machinery sales are expected to grow slightly slower than t978 rate. Announced caoital investment plans lor u S industry show gam of 11%. Growtn ol demand for prepared feed is expected to remain stacie: excan. sion of gram mill ouiout will likely slow because of Dncmg problems Funner increases in growlh of farm incomes, caoital spending are not expected n coming year.