INTERINDUSTRY PURCHASES AND SALES OF THE P U R C H A S E S M M $ P e r c e n t

L a b o r a n d C a p i t a l 4 . 1 7 7 . 7 2 9 . 9 8 C o n s u m p t i o n g

xjrwrf- τ-> i. G o v e r n m e n t I -,-,-> Λ c r * I KdM$ P e r c e n t I 7 7 2 . 0 5 . 5 4 I ι „ — — — « — S e r v i c e s j I

W B M B I B f f l ^ A g r i c u l t u r e 9 5 5 . 0 6 . 8 5 ν j I I

j J S i ^ ^ S ^ f l ^ ^ ^ ^ ^ ^ f ^ ^ ^ F o o d and K i n d r e d P r o d u c t s — 7 0 1 . 9 5 . 0 4 v \ I J J

E f l ^ t t M f f M H j f f f T r a n s p o r t a t i o n 3 8 5 . 9 2 . 7 7 \ \ \ I I I

• B I M " l H ^ f l | B I | ^ P a p e r a n d A l l i e d P r o d u c t s 3 8 1 . 2 2 . 7 4 \ \ S \

H l l l l f f f l l M i n i n g 2 0 6 . 0 1 . 4 8 \ . \ Z v \

E B B N o n f e r r o u s M e t a l s 1 5 0 . 0 1 . 0 8 \ Ζ \ \ γ \ I

• B B M e t a l P r o d u c t s 1 3 5 . 9 0 . 9 8 \ , / \ \ γ ^ \

J | | G l a s s 7 5 . 1 0 . 54 Ν . Ν . V V V O O v S a l e s W i t h i n t

§ B M a c h i n e r y 6 9 . 6 0 . 50 ^ X A N ^ m J M M $

§ B I r o n a n d S t e e l 5 8 . 2 0 . 4 2 ^ ^ ^ ^ ^ ^ ^ V ^ f l — — 1

g a L u m b e r a n d W o o d 4 9 . 9 0 . 36 "^ -^^ .^^*^^*^*^^ Ν > ^0^^ I I BB , ^^*^***'***Zr*s>*^ I G r o s s P u r c h a s e s of I WÊÊ S t o n e , S a n d . C l a y , a n d A b r a s i v e s 4 6 . 0 0 . 3 3 —— ^*"* -̂-*^ I ,-,, , . . . . . , I ρ β 7 ^ — _ _ ^ • C h e m i c a l s a n d A l l i e d J β P r i n t i n g a n d P u b l i s h i n g 4 2 . 9 0 . 3 1 — • _ - — — * " I P r o d u c t s Γ BB M i s c e l l a n e o u s N / l a n u f a c t u r i n g 4 2 . Ο 0 . 30 —' ^^^^S^s* I M M $ |

I R u b b e r P r o d u c t s 3 8 . 6 0. 28 ^ ^ ^ ^'''^s'xsSskX

β Construction 26. 1 0. 19 ̂ ^ ν ^ Χ / Ζ ^ Γ I

I Plastic Products 24.7 0. 18 S^χ/////

Β - e q u i p m e n t - P r o f e s s i o n a l a n d S c i e n t i f i c 1 6 . Ο 0. 11 ^ χ s / / / /

I T e x t i l e M i l l P r o d u c t s 6 . 7 0.05 / / / / /

I L e a t h e r a n d L e a t h e r P r o d u c t s 4 . 4 0 . 0 3 / / / /

I M o t o r V e h i c l e s 3 . 5 0 . 0 3 / / /

I E l e c t r i c a l G o o d s 3 . 3 0 . 0 2 / /

1 T r a n s p o r t a t i o n E q u i p m e n t 2 . 8 CL 02 * /

JBaraBBi^ MfflFPItffl R e m a i n i n g / j

T o t a l P u r c h a s e s f r o m A b o v e I n d u s t r i e s 5, 1 3 8 . 2 3 6 . 87

N o t e s : ( 1 ) All p e r c e n t a g e f i g u r e s a r e p e r c e n t a g e s o f g r o s s p u r c h a s e s o r g r o s s s a l e s . S o u r c e : 1 9 4 7 I N T E R I N D U S T R Y R E L A T I O N S S T U D Y , B u r e a u of L a b o r S t a t i s t i c s .

Where Do Chemicals Go? Located in middle of raw materials-finished goods

chain, chemical industry can use input-output graphs to chart production and sales

3 3 7 6 C H E M I C A L A N D E N G I N E E R I N G N E W S

lEAASCAIS A N D ALLIED PRODUCTS INDUSTRIES

J UST HOW FUNDAMENTAL is the chemi-cal industry to the American economy? Take a look at these figures (and those above): 27.6% of the chemical indus­try's output is used to make other chemicals; 8% goes to the food and kindred products industry; over 5% is used by textile industry; nearly 5% goes each to construction, agricultural, and rubber products industries.

These figures and others establish the position in the United States economy of 16 chemical and alhed products and process industries. These data appear in an analysis of the chemical industry's cost and marketing struc­ture prepared by Stanford Research Institute (SRI) . They appear as the latest installment in SRl's "Chemi­cal Economics Handbook." Basic ma­

terial for SRI's study was obtained from so-called input-output tables prepared by the U. S. Bureau of Labor Statistics ( BLS ). BLS tables, in turn, were pre­pared over a five-year period (1948-52) using purchase and sales transac­tion data obtained from the Census Bureau in its 1947 census of manu­factures and from other industry sta­tistics.

V O L U M E 3 3. N O . 33 · · A U G U S T 15, 1 9 5 5 3 3 7 7

S A L E S P e r c e n t MM$

the Indus t ry

P e r c e n t I 2 7 . 6 1 I

Gaross S a l e s of Chemica l s and Allied

ï^rodiacts

1 3 , 9 3 5 . 3

8 .56

Λ.04 A 4 . 57

^ 4 . 5 6

f A.bZ

/ ' • " •

y-n

. 1 . 2 2

, 1 . 1 8

χ 1 . 0 0

^ 0 . 9 2 ^

, . 0 . 7 4

• - 0 . 6 9

*-0 .67

»-0 .58

*"0.55

^ 0 . 5 2

* 0 . 5 1

^ 0 . 5 0

0 .45

0 .37

^ 0 . 3 3

, 0 .26

i 0 .22

Λ).21 Λ>.20 A). 18 A). 12

8.36

5 3 . 4 2

w

Fina l Demand P e r c e n t MM$

18 .97 2 , 6 4 3 . 9

1, 192, 5

7 0 1 . 7

636 . 8

6 3 5 . 8

6 3 0 . 3

288 . 1

217 . 7

210 . 1

173. 2

169.4-

165. 1

139 .4

127 .6

102. 6

96 . 8

9 3 . 9

8 0 . 2

7 6 . 7

7 2 . 3

7 1 . 1

6 9 . 4

6 3 . 2

52. 1

4 6 . 4

3 6 . 2

3 1 . 2

2 9 . 4

2 8 . 4

2 4 . 8

16 .8

1, 1 6 4 . 8

7 , 4 4 4 . 0

Food and K i n d r e d P r o d u c t s

Text i le Mill P r o d u c t s E ™ 1 ^ ! ! ^ ^

Cons t ruc t i on ΜΒΒΕΜΒΗ^ΜΗΙΒΜΗίΜΜΜΙΙΜΙ

A g r i c u l t u r e ^^fflmBPPBffif|gffffl

Rubber P r o d u c t s QBITOlfllflffllll̂ ^

Energy H^OHHUHI M i s c e l l a n e o u s Manufactur ing | | n H ^ ^ B

E l e c t r i c a l Goods BfflBBŒHB

Motor Vehicles §S§H§B|Ë

P e r s o n a l S e r v i c e s ra^^^H

P a p e r and Allied P r o d u c t s BffWfffH

Appare l H H

Lea the r and L e a t h e r Goods BHSM

Meta l P r o d u c t s g g |

P r in t ing and Publ i sh ing JMÊM

P l a s t i c P r o d u c t s j § l

T r a n s p o r t a t i o n ^ »

I ron and Steel [fjSp

Nonfe r rous Metals ^ g

Mach ine ry g§

Stone, Sand, Clay and A b r a s i v e s H

F u r n i t u r e and F i x t u r e s S

E q u i p m e n t - P r o f e s s i o n a l and Scientif ic Β

Glass g

L u m b e r and Wood i I

Mining |

T r a n s p o r t a t i o n Equipment |

P lumbing and Hea t ing Equipment |

T o b a c c o Manufacturing j E q u i p m e n t - A g r i c u l t u r e , C o n s t r u c t i o n , and Mining

- R e m a i n i n g I n d u s t r i e s

- T o t a l Sa les to Above Indus t r i e s

INDUSTRY

1 Food and Kindred Products Industry—Purchases from

1 M e a t packing and whole -1 sale poultry 1 Processed dairy products

1 Canning, preserving, a n d I freezing 1 Grain mi l l products

1 Bakery products

Miscel laneous food j products

Sugar

Alcohol ic beverages

1 T o t a l food a n d kindred j product s

ical

s C

hem

ο

Inor

gan

0 . 0 1 . 3 0 . 0 1 . 7 0 . 1 1 . 0 0 . 2 4 . 5 0 . 0 0 . 9 1 . 6

1 2 . 8 0 0 2 . 5 0 . 0 0 . 5 1 .9

2 5 . 2

als

hem

ic

Ο

Org

anic

0 . 0 0 . 2 4 . 5 0 . 3 0 . 9 7 . 3 1 . 3 0 . 4 0 . 2 0 . 2 5 . 1

1 4 . 6 3 7 . 6

0 . 0 2 7 . 6 1 6 . 5 7 7 . 2 3 9 . 5

«5

ater

ial

S

Pla

stic

1

0 . 0 0 . 0 0 . 0 0 . 0 0 . 2 0 . 0 0 . 3 0 . 0 0 . 0

1 4 . 5 1 . 6

1 0 . 4 0 . 0 0 . 0 0 . 0 0 . 0 2 . 1

2 4 . 9

and Sales -to the Products Industries (1947)

W

Rub

b

JU

Synt

het

0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 3 2 . 2 0 . 0 0 . 0 0 . 0 0 . 0 0 . 3 2 . 2

(Millions of dollars)

Fibe

r:

JU

Synt

het

0 . 0 1 7 . 7

0 . 0 0 . 0 0 . 2 0 . 0 0 . 2 0 . 0 0 0 0 . 0 5 . 4 0 . 7 0 . 0 0 . 0 0 . 0 1 . 5 5 . 8

1 9 . 9

wor

ks .

Pi

rei

s an

d

ο

Exp

losi

f

0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 0 0 . 5 0 . 0 0 . 0 0 . 0 0 0 0 . 0 0 . 5 0 . 0

M

ici n

e i M

ed

c

Dru

gs à

5 . 8 0 . 2 3 . 0 0 . 0 0 . 1 0 . 0 1 . 9

3 3 . 3 0 . 0 0 . 0 3 . 1 5 . 5 4 . 4 0 . 0 0 . 0 0 . 0

1 8 . 3 3 9 . 0

and

u

cts

ceri

n,

Pro

d

>»Ό

1.4 0 . 0 0 1 0 . 0 0 . 9 0 . 0 1 .0 0 . 0 0 . 2 0 . 0 1 .9 3 . 4 0 . 0 0 . 0 0 . 0 4 . 5 5 . 5 7 . 9

£

All

iée

"a

Pai

nt

ai

0 . 0 1 . 0 1 7 0 . 5 0 . 3 0 . 5 0 . 4 0 . 5 0 . 1 0 . 0 0 . 9 0 . 5 0 . 0 0 . 0 0 . 0 0 . 0 3 . 4 3 . 0

mic

als

Che

W

ood

•α

Gum

an

0 0 0 . 0 0 . 0 0 . 0 0 1 0 . 0 0 . 1 0 . 3 0 0 0 . 0 0 . 3 0 . 5 0 . 1 0 . 0 0 . 0 0 . 0 0 . 6 0 . 8

Î2

Fer

tili

ze

0 . 0 o.o 0 . 0 0 . 0 0 1 0 . 0 0 . 1 0 . 0 0 . 0 0 . 0 0 . 1 0 . 0 0 . 0 0 . 0 0 0 0 . 0 0 . 3 0 . 0

Oil

s

V

3 i) w ν >

* 0 . t f 19. Q O.O o.o 0 . 2

54. S 29.6 38. S O.O

19.1 178. ô 718.7

O.O O.O 0 O o.o

208. Q 850 .7

ils

Ο

Ani

mal

30O.3 5 0 . 0

O.O O.O

1 0 . 5 O.O 0 . 8 9 . 7 0 . 1 O.O

1 8 . 8 1 8 . 4 O.O o.o o.o o.o

3 3 0 . 5 7 8 . 1

Chemicals

.istr

ies

Indi

m

i cal

-S

Mis

c. C

2ii.fi 16 .5

2 6 1 7 . 8

1.6 3 . 5 3 . 0 3 .1 0 . 2 5 . 2

12 . 6 5 3 . 2

0 . 0 1.8 0 . 0 0 . 2

4 0 . 6 1 0 1 . 3

*o

chas

es

•ils

h.ô

Tot

al P

i C

hem

1 0 6 . 8

2 0 . 3

6 6 . 8

9 0 . 3

3 9 . 9

8 4 0 . 9

4 . 3

2 3 . 2

1 1 9 2 . 5

and

ical

s 'h

em

ο

CJ

Tot

al S

i

3 3 4 . 7

1 1 . 9

1 5 . 2

3 8 . 9

0 . 8

2 3 0 . 7

4 2 . 1

2 7 . 6

7 0 1 . 9

Allied |

>» 1

dust

nf

In

M 1

Tot

al S

i

1 1 , 1 0 6 . 1 1

3,646.7 I

2 , 7 2 5 3 1

5,344.1 ] 3,352.1 I

6,033 2 1

1,180 4 I

2,724 7 1

36,712.6 1

SRI's tables and charts demonstrate visually the dependence of other indus­tries upon the various chemical indus­tries, and conversely, dependence of the chemical industry upon other in­dustries. The original BLS study en­compassed about 450 sectors. To facilitate handling, these were con­densed by BLS to 200 sectors.

BLS' input-output tables covering these 200 sectors were condensed again by SRI into 32 major industry groups. Within the chemical group there are 14 separate chemical sectors and two allied industries—petroleum products and coke and products. Bar graphs and charts for each of these 16 sectors plot 1947 dollar volume of production and the sales to, and purchases from, each industry. This includes those within the chemical group, those out­side the chemical group, and also those to ultimate consumers. These rela­tionships of an industry's purchases to its output are labeled technical or in­put coefficients. They are the essence of the input-output system of analysis.

These relationships, though based on the year 1947, are still a useful tool in determining the position of the chemical industries today. Use of pro­duction indexes, and adjustments for price changes, technological develop­ments, and consumer preferences, are useful in updating the tables.

What Is Input-Output? The basic concept of input-output is simple and has long been in use in industry under

other names. This concept was de­veloped by Wassily Leontief of Har­vard. An input-output chart merely states, usually in dollar terms, that a given amount of a product requires so much of other materials. A ton of steel, for example, requires so much iron and coal; a ton of aluminum so much electrical energy and so much alumina, which in turn requires so much bauxite.

If all these relationships are put to­gether for the entire economy under a meaningful industrial classification sys­tem, and balanced in terms of each in­dustry's output and each industry's re­quirements, this is an input-output sys­tem

There are two major uses for input-output or interindustry relationships. One is as a data collection and organ­ization system. The second is as an analytical method.

Among the many applications of in­put-output, a unique contribution is the ability to trace throughout industry the chain of requirements of a given change in the demand of final con­sumers.

It is through this tracing that the interrelationships of all industries be­come evident. The type of relation­ship that runs throughout the economy may be illustrated in a specific ex­ample: The amount of synthetic rub­ber produced depends in great part on the number of tires and other rubber-using items in production. The de­

mand for tires depends on the number of tire-using vehicles manufactured. The number of such vehicles produced is directly related to demand for them by individuals, businesses, govern­ments, foreign buyers, and others.

Looking at the purchase side, the synthetic rubber plant purchases in­dustrial chemicals, the industrial chemi­cals plant uses grains, the farmer uses many items to raise the grains, includ­ing a host of agricultural chemicals, and trucks and farm vehicles which use rubber tires.

Similar interconnections throughout the economy can be traced, beginning with almost any industry. Structural relationships which together form the transactions network of our immense economy are often the direct result of technological ties or business customs which may tend to fix the input rela­tionships within fairly stable limits. It is the technical relationships which pro­vide a basis for anticipating the effects of a change in one area of the economy upon other sectors.

A comprehensive input-output table tying all these relationships in quantita­tive fashion is the first step in tracing the diverse ties among all industry sectors. The 200-sector tables of BLS for the year 1947 are the most compre­hensive published tables of this sort presently available.

Uses of Input-Output. Input-output is a method of presentation of technical relationships between industries, It is

3 3 7 8 C H E M I C A L A N D E N G I N E E R I N G N E W S

also a method of predicting future re­quirements based on the assumption that these relationships remain fairly stable over a reasonable period of time. Input-output provides a method of analyzing national economic aggre­gates. This assures relative consistency of industrial details within these broad aggegates.

This analytical technique has proved useful in many fields, especially in mo­bilization planning and general eco­nomic forecasting. It has also shown important practical applications in re­gional economic analysis and in both specific and general market analysis.

It is in market analysis where the greatest potential lies for the chemical industry. With proper applications of indexes of production and price changes to reflect the current scene and with similar adjustment of current or ex­pected technical relationships, the 1947 data can be used to give reasonably accurate projections of broad trends in an industry's purchase and sales pat­terns, and to trace these trends, both forward and backward, through indus­tries which buy from or sell to chemi­cal industries.

In any type of analysis using input-output techniques, whether it be for the national economy or for a specific industry, care must be taken to con­duct it as part of a general framework, in which all the analyst's special knowl­edge and tools are used concurrently and coordinately. In this sense the chemical economist uses all techniques at his disposal in trying to estimate the market for his product.

By making him consider in consist­ent and balanced fashion all the indus­tries which have relationship to his problem, the input-output technique provides the analyst with a framework which prevents him from going far astray.

Chemical Industry Applications. Input-output tables show production volume, distribution of output (dollar sales and customer industries), and distribution of inputs ( dollar purchases and supplying industries) for each in­dustry. The charts can be used di­rectly, therefore, to show the position of an individual industry in relation to the size and components of its market.

The chemical industry, being es­sentially an intermediate producer, is interested in tracing final consumer demand, such as requirements of households arid governments, back through the various stages of produc­tion to requirements for raw and semi­finished chemicals. This method of identifying initial sources of consumer demand for ultimate chemical require­ments is the essence of utilization of

input-output tables for market analysis. A good example is the food and

kindred products industry. It pro­duced $36.7 billion worth of goods in 1947. The vast majority of these goods reached the household consumer directly without further processing. The food industry is One of the largest direct purchasers of chemicals. The $1.2 billion worth of chemical pur­chases ( 1947 ) amounted to about 3.25% of the combined food industry's total output.

If it is assumed that increased popu­lation, increased per capita income, foreign requirements, and other factors will cause the demand for food to rise a certain amount, the demand for chemical products rises immediately by about 3.25% of that amount. Most of increased direct demand for chemi­cal products goes directly to the vege­table and animal oil subsectors. Fur­ther, most of the increased demand for these oils comes directly from meat packing and miscellaneous food prod­ucts, especially for production of con­

sumer food products like shortening, salad oils, and spreads.

With additional input-output tables for the food industries and industries related to them, it is possible to trace requirements for other chemical prod­ucts, and to identify them specifically.

The ability to sum the total of all requirements, direct and indirect alike, upon the chemical industry and its subsectors of an increase in demand for a product like food is the contribution of the input-output method.

Tables with this article give only the direct requirements. Indirect re­quirements can be estimated by means of additional tables which can be de­rived mathematically from the first. BLS has made many of these addi­tional tables. In the case of the food industry, for. example, indirect pur­chases are estimated to be greater than the direct purchases.

A broad panoramic view of the rela­tionship of the chemical industry to other industries and to the total econ­omy are also provided by SRI's data.

Input-Output's History

Will there be mass unemployment and other disruptions in the American economy if the European war should end suddenly? This was a question in the minds of Congress early in 1941. At that time the U. S. had not entered World War II, and there were indications that a peace might be negotiated in Europe.

Congress called on the U. S. Bureau of Labor Statistics for advice in this matter. It allocated funds to make studies of the question of postwar un­employment and postwar readjustments.

BLS officials, who felt that input-output studies might provide a basis for answering such questions, contracted with Wassily Leontief of Harvard, a pioneer in this field, to conduct such a study. Using 1939 Census Bureau data and other statistical information, the table was completed by 1944.

Based on these data, postwar readjustment studies were issued. These studies indicated, contrary to popular belief, that there were no essential reasons for a major recession or decline in the economy after the war. A study for steel, for example, indicated that rather than a surplus of steel capacity, as many expected, there might be a shortage in 1947. BLS esti­mates proved to be correct.

By 1947 the 1939 data were becoming obsolete. However, in 1947 the Census Bureau made its first census of manufactures since before the war. These data and other statistics were considered to be a good basis for pre­paring new input-output tables. In 1948 the government's mobilization planning agency, National Security Resources Board felt that an up to date input-output study would be of great aid in long-range planning and gave BLS financial support to initiate the studies.

As 1947 Census Bureau data became available in 1949, the study got roll­ing. In 1950 the Air Force took over financial support of the project. It was fairly well completed by 1952. The BLS study was headed by W. Duane Evans, a chemical engineer by training and an economist and statistician by profession. He was assisted by Marvin Hoffenberg, Sidney Jaffe, Jack Alter-man, Philip Ritz, and Sam Schurr, and a staff of about 75.

Funds for continuing input-output studies were cut off in 1953 as an econ­omy measure. Although censuses of manufactures, business, and minerals are being made for 1954 and one for agriculture is being conducted now, there are no plans to prepare new input-output tables. To construct such tables, according to some estimates, would take about 18 months and would cost in the neighborhood of $500,000.

V O L U M E 33 , N O . 33 * · A U G U S T i S, Î 9 5 S 3 3 7 9

JNDUSTRY

INDUSTRY.

INTERINDUSTRY PURCHASES AND SALES Ol PURCHASES

I n o r g a n i c C h e m i c a l s

P e t r o l e u m P r o d u c t s

R a i l r o a d s

S u g a r

M i s c e l l a n e o u s C h e m i c a l I n d u s t r i e s

D r u g s a n d M e d i c i n e s

A l c o h o l i c B e v e r a g e s

F o o d G r a i n s a n d F e e d C r o p s

P r i m a r y L e a d

E l e c t r i c L i g h t and P o w e r —

P a i n t s a n d A l l i e d P r o d u c t s

C o a l M i n i n g

"Wood C o n t a i n e r s a n d C o o p e r a g e

P u l p M i l l s

T i n C a n s a n d O t h e r T i n W a r e

N a t u r a l , M a n u f a c t u r e d , a n d M i x e d Gas

R e m a i n i n g 63 I n d u s t r i e s

T o t a l P u r c h a s e s f r o m A b o v e I n d u s t r i e s 6 9 1 . 1 4 1 . 3 3

L a b o r a n d C a p i t a l C o n s u m p t i o n

M M $ P e r c e n t

6 0 3 . 6 3 6 . 0 9

G o v e r r i m e zxt S e r v i c e s

N o t e s : ( Π Al l p e r c e n t a g e s a r e p e r c e n t a g e s of g r o s s p u r c h a s e s o r g r o s s s a l e s . S o u r c e : 1947 I N T E R I N D U S T R Y R E L A T I O N S S T U D Y , B u r e a u of L a b o r S t a t i s t i c s

1 1 3 . I 6 . 7 6

S a l e s W i t h i n

M M $ 2 6 4 . 2

G r o s s P u r c h a s e s of O r g a n i c C h e m i c a l s

I n d u s t r y

M M $ 1 . 6 7 2 . 3

The tables, excerpted from the study, show by industrial groupings the major purchases and sales of the chemical industry in 1947.

Close to 7% of the combined indus­try's total purchases were from agricul­ture, and about 5% from rood and kindred products. Almost 4% of total costs represent purchases of energy. Products of mining, somewhat surpris­ingly, account for only 1.5% of the inputs to chemicals.

Cost of labor, depreciation, interest, profits, and similar charges run to about 30% of the industry's output. Cost of government services, most of which were taxes, run to 5.5%. Much of the remaining input not shown re­fers to such noncommodity items as advertising, trade margins in purchased goods, rentals, and the like.

The chemical industry is the chemi­cal industry's best customer, with some 27.6% of all its products being con­

sumed within the industry. Only 19% of the industry's output is consumed by final purchasers such as households and governments and much of this is concentrated in drugs and medicines, soap and related products, and mis­cellaneous chemicals. The food and kindred products industry purchased about 8.5% of the output of die chemi­cal industry. The next largest pur­chasers are textile mills, construction, agriculture, and rubber products. The

3 3 8 0 C H E M I C A L A N D E N G I N E E R I N G N E W S

M M $ P e r c e n t

1 0 7 . 0 6 . 40 >

4 7 . 1 2 . 82 >

4 0 . 9 2 . 4 4 ,

3 7 . 6 2 . 25 -

3 7 . 3 2 . 23 -

3 0 . 2 1. 80 ·

2 9 . 5 1 . 7 6 •

27 .6 1 . 65 ·

2 5 . 3 1 . 5 1 •

2 2 . 5 1 .35 ·

2 0 . 4 1 .22 •

• 1 8 . 7 1 .12

1 8 . 6 1 . 1 1 ·

• 1 7 . 2 1 .03 •

• 1 7 . 0 1 . 0 2

• 1 6 . 3 0 . 9 7

• 1 0 . 4 0 . 6 2

9.7 0 .58

• 1 5 7 . Β 9 . 4 3 -

.INDUSTRY

HE ORGANIC CHEMICALS INDUSTRY

the Industry

P e r c e n t 15. 80

G r o s s Sales of Organ ic Chemicals

Industry

MM$ 1,672.3

F ina l Demand P e r c e n t MM$

12.48 2 0 8 . 7

i>Ml_£LO

P e r c e n t M M $

71.72 1,199.4

P l a s t i c M a t e r i a l s

M i s c e l l a n e o u s C h e m i c a l I n d u s t r i e s

P a i n t s and Allied P r o d u c t s

P e t r o l e u m P r o d u c t s

— Inorganic C h e m i c a l s

Spinning, "Weaving, and Dyeing

Synthet ic F i b e r s

Drugs and Medic ines

Synthetic R u b b e r !

Soap, G lyce r in , and Related P r o d u c t s J

T i r e s and Inner Tubes

Misce l l aneous Rubber P r o d u c t s

Alcohol ic B e v e r a g e s I

Who le sa l e T r a d e

Optical and Pho tog raph ic Equ ipmen t

Misce l l aneous Food P r o d u c t s

Mi sce l l aneous Manufactured P r o d u c t s

Nonprofit Ins t i tu t ions

L e a t h e r Tann ing

Motor Veh ic l e s

Remaining 62 I n d u s t r i e s

To t a l Sales to Above I n d u s t r i e s

combined energy industries purchased some 2% of the total chemical out­put.

Because only 19% of the chemical industry's output goes to purchasers of finished goods, requirements of these purchasers for other products, which themselves use chemicals, are the im­portant determining factors of what the chemical industry must produce to meet changes in demand in the con­suming sectors.

Study Outlook Bleak. Economists and statisticians agree that the 1947 input-output relationships are a poor alternative to current data of a similar nature. This is particularly true in a dynamic, growing economy such as that of the United States in which tech­nology is advancing at an accelerated pace in industry and in which technical relationships between industries are changing every day as new products, new techniques, and new methods are

incorporated into the production sys­tem. The chemical industry, which has long been in the forefront in adapt­ing science and technology to indus­trial production, is well aware of the changes taking place in a highly com­petitive world.

It is obvious that it would be better to have a new and current study of interindustry relationships than to try

(Continued on page 3447)

V O L U M E 3 3, NO. 33 · · A U G U S T 15, 1 9 5 5 3 3 8 1

12.12 202.6

6.88 115.0

6.63 110.9

6.36 106.3

5.08 85.0

5.05 84.5

4,81 80.4

4.13 69.1

2.98 49.9

2.24 37.4

1.46 24.4

1.04 17.4

0.99 16.5

0.97 16.2

0.88 14.7

0.87 14.6

0.84 14. 1

0.60 10.0

0.57 9.5

0.54 9 .0

6.69 111.9

INDUSTRY (Continued from page 3381 )

to update data which are almost a decade old.

At this moment the U. S. Govern­ment is in a good position to reinstitute input-output studies. Just as the 1947 study drew heavily on the 1947 census of manufactures, and other government surveys and data, a study for the year 1954 could be undertaken because of the availability of primary source data. The Bureau of the Census is conduct­ing a census of manufactures and also a census of business and a census of minerals covering the year 1954. Pre­liminary reports will be available be­fore t he end of the year. Shortly there­after there will also be data for the 1955 census of agriculture.

The 1947 study was two and a half years in preparation and cost on the order of $750,000. With t h e know-how gained from the 1947 study and with the improved statistical informa­tion now available, persons who worked on the earlier study believe that preparation of input-output tables based on 1954 data could b e available in about 18 months, at an estimated cost in the neighborhood of $500,000.

The Federal Government, which supported the initial study, first through the National Security Resources Board and later through the Air Force, cut off funds for these studies in 1953. BLS has no funds to make up new input-output tables. Census Bureau spokesmen advise C&EN that they have no responsibilities for input-output studies, although they have the data from which such tables could be made.

Even though the Government has given u p support of input-output stud­ies, other nations are now using them. Some economists believe that a partial study could b e made by a nongovern­mental agency. However, the scope of a complete input-output study is so large and the ramifications so exten­sive, that most economists feel that only the Federal Government could conduct it adequately.

EQUIPMENT (Continued from page 3426)

matic control of the purity of the effluent. Ε 12

• Line of l ight-weight centrifugal pumps, by Rice Pump & Machine, have been developed from aluminum alloy. Capacities range from 5500 to 18,000 g.p.h. Ε 13

INDEX TO ADVERTISERS

Aluminum Co. of America 3425 American Cyanamid Co 3404-3405 American Platinum Works 3392 Antara Chemicals, A Sales Div. of

General Aniline & Film Corp.. . . 3419 Arizona Chemical Company ( Inc. ) . . 3433 Atlantic Refining Co 3409

Baker Chemical Co., J. Τ 3407 Bell Telephone Laboratories, Inc.. . . 3394

Carbide & Carbon Chemicals Co., A Div. of Union Carbide & Carbon Corp 3385:3431:4th Cover

Central Scientific Co 3410 Chicago Bridge & Iron Co 3389 Columbia-Southern Chemical Corp.. 3427 Commercial Solvents C o r p . . . . . . . . . 3370 Cooper Alloy Corp 3361

Davison Chemical Company, Division of W. R. Grace & Co 3367

Diamond Alkali Co 3428 Dow Chemical Co 3421 Dow Corning Corp 3388 du Pont de Nemours & Co. ( Inc. ) ,

E. 1 3375:3386

Eastman Chemical Products, Inc.. . . 3401 Eastman Kodak Company 3420 El Dorado Oil Works 3424 Enjay Co. Inc 3397 Ethyl Corp 3364

Ficklen III, Joseph Β 3448 Fisher Scientific Co 3414 Fritzsche Brothers, Inc 3396

General Chemical Div., Allied Chem. & Dye Corp 3rd Cover

General Electric Company, X-Ray Dept 3399

Goodyear Tire & Rubber Co 3362

Hardinge Co. Inc 3448 Hercules Powder Co. Inc 3429 Hewlett-Packard Co 3422 Hughes Beseardh & Development

Corp 3366

Koppers Co. I n c 3368

Laboratory Eçpiipment Corp 3417 Liquid Carbonic Corp 3408

Mathieson Chemicals, Olin Mathieson Chemical Corp 2nd Cover

Metal Hydrides Inc 3402 Mettler Instrument Corp 3403 Michigan Chemical Corp 3416 Minneapolis-Honeywell Regulator Co. 3387

National Aniline Div., Allied Chem. & Dye Corp 3423

Neville Chemical Co 3426

Oldbury Electro-Chemical Co 3431 Olin Mathieson Chemical Corp., In­

dustrial Chemicals Div 2nd Cover Oronite Chemical Co 3411

Pennsylvania Industrial Chemical Corp 3391

Pittsburgh Lectrodryer Corp 3415

Rohm & Haas Co 3393

Sherwood Refining Co. Inc 3448 Sindar Corp 3426 Snell, Inc., Foster D 3417

Union Carbide & Carbon Corp., Car­bide & Carbon Chemicals Div.

3385:3431:4th Cover United Aircraft Corp 3398 U. S. Stoneware Co 3412

Virginia-Carolina Chemical Corp.. . . 3435 Virginia Smelting Co 3413

West Virginia Pulp & Paper Co., Polychemicals Div 3436

Westinghouse Electric Corp 3369

DIRECTORY

Chemicals Exchange... . 3437

Chemirad Corp. City Chemical Corp. Cleveland Mixer Co. Κ & Κ Laboratories Orlando Research, Inc. Pierce Chemical Co. Research Specialties Co. Shattuck Chemical Co., S. W. Xechnic Inc.

Equipment Mart 3437-3438 A. C. Tank Company Cannon Instrument Co. Taylor & Co., W. A. TJehling Instrument Co. Ultra-violet Products, Inc. 'Wilmington Plastics Co.

Technical Services 3438 Applied Science Laboratories, Inc. Bjorksten Research Laboratories Food Research Laboratories, Inc. Kendall, David N. LaWall & Harrisson Schwarzkopf Microanalytical Laboratories Truland Chemical & Engineering Co. Inc. Wisconsin Alumni Research Foundation

RJBINHOLD PUBLISHING CORPORATION Advertising Management for the American Chemical Society Publications

Merald Lue, Advertising Sales Manager, American Chemical Society Publications 430 Park Ave. ,New York 22 , Ν . Υ

ADVERTISING SALES REPRESENTATIVES H. Victor Drumm, Advertising Sales Manager

New York 22—MUrrayhill 8-8600; District Managers—A. Stuart Powell, Jr., G. S. Mullin, Robert J, Halliday, Thomas F. Casey

Cleveland 14—NBC Bids., 815 Superior Ave·» Ν. Ε., PRospect 1-5583; District Manager— Wm. T. Bisson

Chicago 2—111 West Washington Street, Randolph 6-8497; District Managers—H. Scott Leonard, Frederick C. Dorr

San Francisco 5—McDonald-Thompsoo, 625 Market Street, YUkon 6-0647; Roy M. McDonald Los Angeles J—McDonald-Thompson, 3727 West Sixth Street, Dunkirk 7-5391; Ε. Τ. Thomp­

son Seattle 4—McDonald-Thompson, National Bldg., 1008 Western Ave., Elliott 3767; Harry

Abney Houston 6—McDonald-Thompson, 3217 Montrose Blvd., LYnchburg 6711; Frank N. Vickrey Denver 2—McDonald-Thompson, Colorado National Bank Building, KEystone 4-46691 Robert

H. Heidersbach Dallas 6—McDonald-Thompson, 5526 Dyer St., FOrest 8-5510; Ed J. Whetzel

V O L U M E 3 3. NO. 33 · · A U G U S T 15. 1955 3447