Recent Outstanding Developments in the Non-metallic Mineral Industries

THE most important non-metallic mineral industries from a tonnage standpoint are those that are allied with the construction industries and are engaged in handling sand and gravel, crushed stone, building stone, cement, lime and gypsum. The greatest problem facing a number of these industries at this time is over-production. They have experienced un- usual, and in some instances phenomenal, growth during recent years, stinlulated by extensive highway and building construction, but in some localities expansion of producing plants has far outstripped industrial needs. The cement industry is operating at about two- thirds capacity. Over-production tends toward price- cutting and unprofitable and interrupted operation, involving maintenance expenses for idle plants and disorganization of working forces. This condition has encouraged active efforts toward reducing production costs by the introduction of labor-saving equipment. Also, there is a tendency toward the location of manufacturing plants, wherever possible, near the centers of consumption rather than at points of production of raw materials. In order to reduce overhead expense, or for other reasons, many consolidations of companies into larger units have taken place. An economic study of conditions in these industries is highly desirable. The U. S. Bureau of Mines has taken one step forward in this direction in the issuance of Economic Paper 7, entitled "Economics of New Sand and Gravel Developments." Briefly, this report emphasizes the importance of making a thorough study of all the economic factors involved before undertaking new .enterprises.