Oldal 2 [2]
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It is obvious that such a diversification of production is very
healthy indeed,
As far as farm equipment is concerned, Allis Chalmers is the
third largest producer after International Harvester Co and Deere
& Co. This is certainly a cyclical industry, ay paren largely on
the fortune of farmers. In the last years farm income has staedgly
increased, coupled with higher than everage crops. This factor was
the reason for the rapid mechanization of the U.S. agriculture.In
the past ten years, the agricultural trectors have doubled,corn
pickers trebled and combines have increased four times.
For the future, on the other hand, one can sefely assume that
under normel conditions and with the pledged support of the Govern¬
ment for farm prices - which runs to $ 2 Billions this year - the
purchasing power of farmers will hardly fall off substantially.This
will encourage a further mechanization of theler operations,
For many years to come producers of road building equipment
should habe little worries, In the United States substantial pro¬
grams by both the federal and state authorities ere under way for
road building and improvement. Roughly $ 60 Bilifens would be needed
from now until the end of the decade to maintain and improve ade¬
quately the U.%. highwaysystem. Other parts of the world, especially
underdeveloped countries are planing ambitious road constructions.
This branch of Allis Chaimers should do well.
Other heavy or light machineriee are subject to the general
economic situation, except equipment «end supplies for power genera¬
tion and transmission.
Thers is today a considerable demand of electricity for various
industries. Home consumption, with the increase of television,eilec¬
tric haeting and other appiiances should go up substantially. In tha
production therefore, Allis Chalmers has another ready market.
The new line, of course, and which sbaiád provide considerable
expansion, is the electronic field. It should be mentioned here the
far reaching studies made by Allis Ghalimers towards the development
of atomic energy for propulsion and power productione
No wonder that in the last five years sales of the Company have
increased from $ 94 Millions to $ 457 Millions. 1952 will certainly
top this last figure. Backlog of unfilled orders are amounting to
over a year of full production.
From the aboce mentioned record there is little doubt that Allis
Chaimers management can be soensidered as outstending. Its main achia
ment was to transform the company from an glű fegsh a
Mechinery production into a vast variety of promt she devétébíténts
60.