The industrial benefits of the Army's expansion program are reaching down into every American community. Protests from Midwestern towns to the contrary notwithstanding, these communities, too, are reaping their share of the work and contributing their proportion of the raw materials. An order to an industrial concern in Hartford or Seattle seldom means that the work will be done in that particular city. On the contrary, it is more than likely that only a fraction will be done locally. Nor does it mean that management will derive the greatest gains. Statistics from typical organizations in the aviation industry tend to prove that labor, raw materials, and engineering costs take up the largest part of the aviation dollar.
Aviation magazine has reached these conclusions after a study of two typical organizations in the aviation industry the large Boeing Aircraft Company in Seattle, which on August 30 received a War Department contract tor 277 of its famous heavy bombing airplanes, the Flying Fortress, costing $70,449,955.20; and the Beech Aircraft Corporation, of Wichita, Kansas, which was given an award on August 28, 1940, for 150 training airplanes and 20 transport airplanes at a cost of $4,847,217.25.
The charts in this study clearly indicate that the size of the corporation merely affects the extent of the job done in places other than the parent home of the company. The distribution is practically the same.
Let us consider several features connected with the construction of the Boeing Flying Fortress. The geographical sources of raw materials used in its construction extend from Seattle to practically every state in the Union. The list of subcontractors and their addresses illustrates the same trend, for it indicates that plants everywhere are being mobilized to meet America's military needs in the industrial field.
The chart showing the distribution by manufacture of money received for aircraft during 1939 by the Beech Aircraft Corporation is especially instructive. It shows that the plant had a gross income of $1,300,000, yet the stockholders received nothing. The power plant builders got 20 percent, labor 16½ percent, engineering 10 percent, raw material 7 percent everyone profited but those who made the capital investment. Is there better evidence than these facts to indicate that manufacturers are not gouging the public and are not piling up excessive profits?
The national distribution of funds received in buying finished and raw material on the $619,000 spent by the Beech Aircraft Corporation in 1939, shows that 14 states in addition to Kansas contributed toward completing the Beechcraft model.
The chart showing the division of labor and wages paid during the year is also instructive in pointing out the different types of employment called for in aircraft production. This Beechcraft job called for aircraft assembling mechanics, engine mechanic, sheet metal workers, machinists, tool and die makers, painters, upholsterers, maintenance men, woodworkers, welders, and others. The mere mention of the trades also emphasizes the quality of skilled work demanded of aviation workers.
These charts so eloquently tell their own story that it appears needless to add anything further than to express the belief that a similar breakdown not only in the aircraft industry but in all those allied to the national defense expansion program, would indicate a similar trend.
National defense is indeed a national effort, both from an armament and from an industrial standpoint.
Ohio Received 10% of this Total for furnishing the following:
Rubber Fuel & Oil Hose
Bulbs & Lamps
Vacuum & Fuel Pumps
Connecticut Received 27% of this total for furnishing finished products and raw materials as follow:
Landing Gear Motors
Exhaust Stacks and Elbows
Gas Tank Caps
Kansas Received 9.8% of this total for furnishing the following finished and raw materials:
Taxes paid to state
Cataloy Bronze Castings
First Aid Straps
Cowl Pin Springs
Missouri Received 2% of this total for furnishing the following finished and raw materials:
Thread and Rib Cord
Shock and Landing Gear Springs
Steel, Bar, Rod & Strip
Fuel & Oil Gaskets
Illinois received 2% of this total for furnishing the following finished and raw materials:
First Aid Kits
Brass Safety Wire
Bolts, Nuts & Washers
Fuses and Holders
Indiana received 0.5% of this total for furnishing the following finished products:
Rubberized Hair Pads
Sprockets & Gears
Wisconsin received 0.5% of this total for furnishing finished and raw materials:
Landing Gear Motors
Electric Fuel Gauges
Massachusetts received 0.5% of this total for furnishing the following finished and raw materials:
Gears & Worms
New Jersey received 12% of this total for furnishing the following finished products:
Tab Control Parts
First Aid Kits
New York received 8% of this total for furnishing the following finished or raw materials:
Flitex Cloth & Tape
Grommets & Fasteners
Flexible Aluminum Tube
Michigan received 2% of this total for furnishing the following finished and raw materials:
Paint & Dope
Door & Window Handles
Pennsylvania received 24% of this total for furnishing finished or raw materials :
Engines & Accessories
Bolts & Nuts
Minnesota Oklahoma Texas received 0.2% for furnishing the following:
Bronze Bar & Castings
California received 0.3*% of this total for furnishing the following:
Castings Rubber Moulding
Oregon received 2% of this total for furnishing:
Grade A Spruce
|Sheet Metal Workers Received||$194,000|
|Machinist, Tool & Die Makers Received||71,000|
|Plant Maintenance Men Received||13,600|
|Employees Under Production Planning & Control|
|Employees Under Plant Administration Received||12,600|
|Employees Under Executive Sales & Administration|
|Members of the Engineering Department Received||84,000|
|Engine Mechanics Received||14,400|
|Aircraft Assembly Mechanics Received||69,000|
|Buildings Interest Depreciation||1½%|
|Gas, Water & Electricity||1%|
|Finished Products Purchased Other Than Motors, |
Props & Instruments
|Administration & Sales||8%|
|Tools, Dies & Developments||3%|
|Shop Equipment (jigs, Tools & Dies||141,000|
|Car Trucks & Tractor||3,000|
|Depreciation on Office and Shop Equipment, Tools, |
Jigs & Dies
|Maintenance and Depreciation on Buildings||21,700|
|Selling & Administration Overhead||120,000|
|Heat, Gas, Water and Electricity||13,000|
|Paid to labor||25|
|Paid for engines||18.5|
|Charged to factory burden||18.25|
|Charged to commercial overhead||14.8|
|Used to purchase finished parts||9.6|
|Spent for engine accessories||4.25|
|Paid to purchase raw materials||4.2|
|Paid for instruments||2.8|
|Paid for absorbing engineering and development costs |
of experimental ships
|Represents manufacturing profits||0.|
Material received from the various states is as follows:
Washington: silver, copper, lead, zinc, lumber, paper.
Oregon: lumber, leather, silver, copper, lead.
California: fish oil, mercury, petroleum, borax, lumber.
Nevada: silver, copper, lead, zinc, mercury, manganese, tungsten, gypsum.
Idaho: lead, silver, zinc, copper, wool, lumber.
Montana: leather, copper, silver, wool, zinc, manganese, instrument jewels.
Wyoming: lead, gypsum, petroleum, lumber.
Utah: copper, silver, zinc, asphalt.
Arizona: silver, copper, molybdenum, vanadium, garnet jewels.
New Mexico: copper, lead, zinc, leather, fiber.
Colorado: lead, copper, wool, silver.
North Dakota: clay, leather, fiber, insulation.
South Dakota: silver, tungsten.
Nebraska: leather, fiber, casein, starch.
Kansas: flax, petroleum, zinc, casein, lampblack.
Oklahoma: zinc, lead, petroleum, leather.
Minnesota: iron, paper, linseed oil, electrical parts, paints.
Iowa: lead, zinc, starch, oil, steel parts.
Missouri: lead, silver, zinc, fiber, leather.
Arkansas: bauxite, abrasives, petroleum, cotton, antimony.
Louisiana: sulphur, acids, fiber, paper, paraffin, lumber.
Mississippi: cotton, leather, turpentine, rosin, pitch.
Alabama: steel, silver, copper, lead, tin, graphite, bauxite, cotton, turpentine, rosin.
Georgia: iron, bauxite, manganese, talc, cotton, turpentine, rosin.
Florida: cotton, peanut oil, sponges, turpentine.
South Carolina: cotton, fabric, twine.
Tennessee: cotton, silver, copper, rayon, plastics.
North Carolina: cotton, talc, mica, turpentine, tar, rosin.
Kentucky: asphalt, alcohols, porcelains.
Indiana: glass ignition equipment, motor parts.
Illinois: iron, steel, copper, instruments, insulators.
Wisconsin: paper, leather, electrical machinery.
Michigan: steel, copper, gypsum, brass, motor parts, hardware.
Ohio: rubber tires, tools, hardware, accessory parts.
West Virginia: glass, carbon black, steel, porcelain, chemicals.
Virginia: fabrics, chemicals, paper.
Delaware: steel products, paper, explosives, artificial leather, plastics.
Pennsylvania: steel, glass, silk, paper, leather, fabric, tool parts.
New Jersey: iron, zinc, textiles, chemicals, paints, plastics, accessories.
New York: aluminum, zinc, glass, paper, wire, cable, plastics.
Connecticut: instruments, engines cables, machines, guns.
Rhode Island: instruments, fabric, rubber, electrical accessories.
Massachusetts: fabric, leather, silk, rayon, paper, electrical goods, machine parts.
Vermont: slate, talc, fabrics.
New Hampshire: mica, leather, fabrics, paper, rubber products.
Maine: slate, lumber, leather, woolens, fabric, muslin.
This article was originally published in the October, 1940, issue of Aviation magazine, vol 39, no 10, pp 32-33, 104, 106.
The PDF of this article [ PDF, 4.7 MiB ] includes two maps showing sources of raw materials and locations of subcontractors for the Flying Fortress and a diagram showing the cost breakdown of a new twin-engined craft for the Army, from Beech.