ATTACHMENT 7 PRODUCTIVITY IN THE FRUIT AND VEGETABLE CANNING INDUSTRY: INDUSTRY STATEMENTS 1. "The canning industry has a remarkable productivity record. Since the end of World War II the annual rate of increase has averaged about 8 percent. This is almost three times the rate of growth achieved by American industry as a whole. Through efficient management the production of canned fruits and vegetables per man-hour has doubled in the last 15 years, making more canned foods available at low retail prices. Consumers have been quick to see the advantages of this situation and have increased their consumption of canned foods continuously over the years * * *. The 1961 pack of canned vegetables required only half as much labor per case as the average pack 12 years ago. This means that the increase in productivity was roughly 8 percent a year." (William A. Free, Sr., 1963 president, National Canners Association. Address at the 60th Annual Convention of the Tri-State Packers Association, in Baltimore, Md., Dec. 3, 1963. In the Canning Trade, Jan. 13, 1964, p. 46, 47.) 2. "Between 1948 and 1961 in the United States, the average increase in productivity was 3 percent per year, expressed in terms of production per manhour. The increase in productivity in the canning industry, however, has been about 8 percent per year. (Milan D. Smith, executive vice president, National Canners Association. Address at the 30th Annual Convention of the Ontario Food Processors Association, Dec. 10, 1963. In the Canning Trade, Jan. 13, 1964, p. 22.) 3. "Output per man-hour in factories processing fruits and vegetables rose faster than the average for all farm foods." ("Output Per Man-Hour in Factories Processing Farm Food Products." U.S. Department of Agriculture, Agricultural Marketing Service. Technical Bulletin No. 1243. May 1961, p. 10.) ATTACHMENT 8 Output per production worker man-hour, canned and preserved food (except meat), total nonfarm industries, and all manufacturing, 1947-62 Source: U.S. Department of Labor, Bureau of Labor Statistics, 1963 Supplement to Monthly Labor Review. ATTACHMENT 9 Percent change in output per man-hour of production workers, for selected Source: "Manpower Report of the President," transmitted to the Congress, March 1963, p. 71. ATTACHMENT 10 Production, man-hours, production per man-hour and unit labor cost in factories processing farm foods, United States, 1947-63' 1 Excludes processing of fluid milk, cream, and eggs. 2 Measures physical output of manufacturing establishments processing domestically produced farm food products; includes food byproducts. Based on all employees and average hours worked, as defined in census of manufactures. Total payroll divided by production (col. 1). Revised sampling plan in annual survey of manufactures beginning in 1953 somewhat affects comparability with earlier years. Comparison of employment data reported in annual surveys and by the Bureau of Labor Statistics suggests that average annual rate of growth in output per man-hour from 1947 to 1959 was not significantly affected by the revision. Preliminary. Compiled from census of manufactures, annual surveys of manufactures, and data published by U.S. Department of Agriculture. Employment, hours, and earnings data published by U.S. Department of Labor also used for several years." Source: Output per man-hour and labor costs in food processing, Marketing Economics Division, Economic Research Service, U.S. Department of Agriculture. (ERS-4 p. 28.) 34-421-64-pt. 1—21 ATTACHMENT 11 Canned and preserved food, except meats: Labor requirements per unit, 1947-60 [Indexes, 1957-59-100] Source: U.S. Department of Labor, Bureau of Labor Statistics. Indexes of output per man-hour for selected industries, 1939 and 1947-61. (October 1962) p. 17. ATTACHMENT 12 Production worker average hourly earnings, canned (except seafoods) and all manufacturing, and cents-per-hour difference, 1951–62 Canning and preserving: Average hourly earnings compared to output per man Source: U.S. Department of Labor, Bureau of Labor Statistics. Indexes of output per man-hour for elected industries, 1939 and 1947-61. (October 1962); employment and earnings (annual supplement issue), tember 1963; 1961-62 output per man-hour figures are estimated from Federal Reserve Board production "ureau of Labor Statistics man-hour data. Source: 1. "* Output per Man-Hour and Labor Costs in Food ATTACHMENT 15 LABOR COSTS IN FOOD PROCESSING * the Giannini (Foundation, University of California) study I mentioned shows that the actual cost of labor in a case of canned vegetables is now from 8 to 10 percent lower than it was 15 years ago." (William A. Free, Sr., 1963 president, National Canners Association. Address at the 60th annual convention of the Tri-State Packers Association, Baltimore, Md., Dec. 3, 1963. In the Canning Trade, Jan. 13, 1964, p. 47.) 2. "Expressed in another manner, in 1961 the labor costs to produce a case of canned vegetables were only 92 percent of the cost of labor to produce that same case of vegetables in 1948." (Milan D. Smith, executive vice president, National Canners Association. Address at the 30th annual convention of the Ontario Food Processors Association, Dec. 10, 1963. In the Canning Trade, Jan. 13, 1964, p. 22.) 3. "Labor costs differ considerably among various groups covered in this analysis (food products), but, as in the case of food processors in general, the proportion of the sales dollar going to labor is lower than the average for industrial enterprises." (Standard & Poor's Industry Surveys-Food Products-Basic Analysis. Dec. 12, 1963 (sec. 2), p. F-25.) 4. "The average employee in the Nation's leading industrial companies accounts for $16,600 in assets and $20,800 in sales according to the American Management Association *** "The greatest disparity is found in the food and kindred products industry, where 71 companies average more than twice as much sales ($28,800) than assets ($12,600) per worker. Unlike most other processing or fabricating industries, food manufacturers' cost of labor is less a factor than the cost of raw materials. The food industry requires less labor per unit to produce its high volume of output, but it sustains a relatively higher raw materials expense." (Business Week, Aug. 1, 1959 (p. 56).) 5. "The cost of the inplant functions of canning, from preparation through retorting, represents about one-fourth of the total cost to pack and sell canned vegetables." (Dr. Howard L. Stier, National Canners Association, Washington D.C. "How To Allocate Production Costs in Uniform Accounting Plan," In Canner/Packer, April 1960, p. 23.) 6. "Explains a company (Campbell Soup Co.) spokesman: "Today's cannery costs 40-50 percent more per square foot than a plant built 10 years ago, but its net production cost per unit of output is lower.'" (Barron's, Mar. 4, 1963, p. 5.) * 7. "Wages and salaries in the past 5 years increased 16.5 percent for food companies * * In the same period, wages and salaries for all manufacturing were up 24.6 percent." (Goodbody & Co., New York, N.Y. "The Food Industry." Monthly letter, October 1963, p. 10.) Canning, preserving, and freezing: Number of companies and establishments, 1958, 1954, and 19471 1 For some industries data for 1958 are not strictly comparable with those for 1954 and 1947. Because of a change in industry definitions, some industries include plants with types of activities not included in the earlier years and some do not include plants previously included. The tabulation below shows 1958 data for establishments classified according to the industrial classification system used for the 1954 census; data are shown only for those industries for which changes in industry definitions caused significant differences: Number of establishments Industries: Canned fruits and vegetables.. Frozen fruits and vegetables.. 1,652 705 303 2 Includes plants manufacturing pickled fruits and vegetables, vegetable sauces and seasonings, and salad dressings. Includes baby foods, soups (except sea food soups), "nature foods," health foods, and other canned specialties. Source: Compiled from Census of Manufactures, 1958, 1954, and 1947. ATTACHMENT 17 Number of establishments in canned and frozen fruits and vegetables industries, by size of work force, 1958, 1954, and 1547 |