Inefficiency, Growth Cause Manpower Gap NICB survey shows various causes for world-wide shortage of qualified managers in business

Most blending plants are used to produce a large number of pesticide dusts. Because a small amount of each produot tends to remain in vari­ous parts of the system, this material must be removed to prevent cross con­tamination. In most cases, redesign of equipment is involved.

For example, the most commonly used mixer is a ribbon blender. Mix­ers with sweeping action of the blades are best suited for partial cleanout of the equipment. Removable side cov­ers for easy access to the interior of the mixer would also permit thorough cleanout.

Spray nozzles should be designed to distribute liquid materials on the car­rier without a build-up of deposits on the equipment. Other materials-han­dling equipment such as elevators, bag fillers, and hoppers are also available with built-in cleanout features.

In some cases, equipment can be eliminated from the processing scheme. For example, packaged in­gredients may be raised to a processing level by a fork lift rather than by a bucket elevator. Because bucket ele­vators are difficult to clean thoroughly, a possible source of cross contamina­tion can thus be eliminated.

Schedule. Scheduling of produc­tion plays an important part in reduc­ing cross contamination. The com­mittee suggests that production of dusts for forage crops should precede production of products containing chlorinated hydrocarbons. They can also be produced after products that contain no chlorinated hydrocarbons. Production scheduling should also fol­low a pattern such that organic phos­phate dusts with short residual life are not contaminated with organic phos­phate dusts having long residual life. High-toxicity products should be care­fully excluded from a process which contains low-toxicity products.

In liquid-pesticide plants, equip­ment and lines should be designed to eliminate dead spots where material can accumulate. Drain cocks should be included in low spots of lines.

Thorough flushing of the system with the solvent used to dissolve the pesticide should be used in cleanout procedures. This solvent can then be stored for subsequent processing of this pesticide. The number of times a given system should be flushed will de­pend on the concentration of the pes­ticide last processed, the completeness of design of the system for thorough cleanout, and size of equipment.

The world-wide shortage of qualified managers and technicians in business is a well-established fact, but this com­mon problem seems to stem from dif­ferent causes in various localities. In the National Industrial Conference Board's survey (made public last week) of 60 Free World countries, 155 busi­ness leaders point to a variety of causes for the short supply of qualified talent in their ranks.

The problems faced in the U.S. gen­erally typify those encountered by the rest of the industrialized nations. The causes of the shortage, as listed by a U.S. executive, include:

•Rapid industrial expansion and technological advance.

• Inefficient use of available talent. • Rapid increase in global opera­

tions.

These causes are found in all of the industrial nations; but several have their own special problems. A chair­man of a West German company feels that the lack of qualified people for management positions there stems mainly from the enormous casualties suffered during World War II. The war interfered with the normal education and vocational training through army service and captivity— especially to those born between 1920 and 1927.

A president of a Japanese firm sees his country's social framework as a major cause of management shortages. "Emphasis of seniority and uniformity in advancement and concentration of authority in a small group of top ex­ecutives" limit individual initiative and hinder advancement of junior man­agerial talent, he says. And Canadian executives report a shortage of engi­neers and scientists because of the "brain drain" across the border into the U.S.

Most countries are experiencing per­sonnel problems in the expansion of international trade. Britain and Bel­gium, though, are having trouble be­cause of their long background in in­ternational trade According to a British world trader, salesmanship is the most defective area of foreign trade This stems from the days of the industrial revolution when these coun­

tries had it too easy in the sale of their products, he says. Now, in the face of increased competition, their back­ground in market research, marketing, and sales promotion is not strong enough to provide enough people skilled in foreign selling operations.

New Nations. Developing countries have a whole host of different prob­lems. Their lack of sufficient qualified manpower will make their advance­ment up the industrial ladder even more difficult. There is only a small base in industry where potential man­agers have a chance to gain experience. There is insufficient educational op­portunities, and the schools that exist teach little in the way of business ad­ministration.

In these countries, most of the busi­nesses are either family-owned or for­eign-owned. In neither case has there been much chance for the develop­ment of managers. These countries, too, suffer from the loss of talent by those who go abroad to study and don't return.

Another problem is the appearance of regional markets—much as the Cen­tral American Common Market (C&EN, Feb. 8, page 21) -which pro­duce a further drain on the already thin corps of managers and technical people. Finally, business is not a prestige profession in the developing countries. Most of the small number of university graduates are inclined to choose another profession—medicine, law, or politics, for instance.

These problems are recognized nearly everywhere. What these coun­tries are doing about it is the same as what is being done, and has been done, in the U.S. While governments are increasing the capacity of univer­sities and technical schools, businesses are working with school faculties to improve the curriculums and methods of school instruction to meet their needs. Business is also assisting edu­cational institutions and young people seeking a higher education. Most companies are setting up special man­agement programs and institutes. Fi­nally, business is trying to attract the best minds by offering higher incomes, bonuses, profit-sharing plans, and part-ownership incentives.

J U L Y 5, 1965 C & E N 19

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20 C & E N J U L Y 5, 1965

Argentine Drug Makers Get Another Reprieve The pressure is off, temporarily, for the Argentine pharmaceutical indus­try, 27% of which is made up of U.S. firms. The Argentine Ministry of So­cial Welfare and Public Health has again extended the deadline for drug makers to file sworn declarations of production costs and expenditures. According to Decree 3042, the Argen­tine government plans to fix drug prices using a formula based on pro­duction costs.

This is the second extension of the filing date. It was set first for May 26 but extended later to June 28. Now it has been postponed indefinitely. The postponement resulted from an appeal by Argentine drug makers for time to study similar laws in other countries, which could be used as a basis to modify Decree 3042.

The primary target of resistance is the decree's definition of production cost, which includes only the costs of raw materials, packaging, and labor. The industry feels that other costs-research and development, for in­stance—should also be included. But all other costs must be declared as a percentage of the production cost—for example, capital depreciation, 2%; ex­penses for administration, 12%; re­search and development, 1 % ; advertis­ing, 19%; patent fees, 3 % ; financing, 5%; and equipment replacement, 0.5%. After these data are tallied, the manufacturer can add 1 1 % of the pro­duction cost (as defined by the de­cree) as margin of profit. Wholesal­ers can add 13% to the manufacturer's selling price as a margin of profit; re­tailers can add 25% to the wholesale price.

The general feeling among U.S. pharmaceutical manufacturers is that the decree threatens the survival of Argentina's pharmaceutical industry, since the manufacturer's selling price would be reduced by about 40%. An increase in percentages won't solve the problem; the industry feels that costs included under production costs must be modified.

Reaction. The decree has also brought reaction from some Congress­men. Senators Hugh Scott (R.-Pa.), Birch Bayh (D.-Ind.), and Everett Dirksen (R.-Ill.) and Representatives William St. Onge (D.-Conn.) and Alvin O'Konski (R.-Wis.) have all suggested that members of Congress watch closely what is going on in the

Argentine pharmaceutical industry and the ultimate effect on 20,000 workers employed by the industry.

A spokesman at the Argentine Em­bassy in Washington, D.C., points out that the decree is not aimed at Ameri­can enterprise, but that it is part of a government program to lower the cost of living. He says the Argentine gov­ernment has reduced its budget by 20% and has improved its tax laws, which will bring in 30 to 35% more taxes this year than in 1964. The Argentine government feels that these measures will eventually reduce taxes. The Argentine spokesman also says that his government is studying price reductions in other consumer goods in­dustries, such as the automotive, bak­ing, and garment industries.

More Acrylate Capacity Planned in Japan, U.K. Acrylic acid ester capacity in Japan (and in the U.K.—see below) seems headed for a sharp rise, according to plans revealed by several companies there. Toya Gosei Chemical Industry Co. is now the only producer, with a 44 million pound-a-year plant based on the modified Reppe acetylene route. But next month, Mitsubishi Petrochemical Co. will start up a 14 million pound-a-year unit using a French (Ugine) process based on ac-rylonitrile.

Meanwhile, Mitsubishi Rayon Co.. may build a plant using Union Car­bide's acrolein-based process; planned capacity is 13 million pounds a year. Nippon Kayaku Co., now working with a pilot plant, has plans for an 11 million pound-a-year facility that will use the Sohio route starting with acrolein.

Some Japanese companies are de­veloping their own methods for pro­ducing the acrylic acid ester. For in­stance, Toyo Koatsu Industries, Inc., has its process in the pilot plant stage. The company refuses to disclose any further details. Japan Catalytic Chemical Industry Co. is also readying its own process—a one-step route in­volving catalytic air oxidation of pro­pylene to acrylic acid, followed by es-terification. An advantage of the process, Japan Catalytic says, is that it uses low-cost propylene (about 2.5 cents a pound) instead of acetylene (about 7.5 cents a pound). The proc­ess is still in the pilot plant stage.

Judging from one firm's estimate,

B-75

however, it's going to take consider­able development to expand the mar­ket for the ester in Japan. Japanese consumption of acrylic acid ester last year was only about 20 million pounds and demand this year may rise to be­tween 26 and 29 million pounds. The main use of the ester is in acrylic fibers and paints.

U.K. Plant. In Britain, Border Chemicals (jointly owned by British Petroleum, Distillers Co., and Imperial Chemical Industries) will build a plant at Wilton, Yorkshire, for making acrylic acid and a variety of acrylic es­ters. The $8.4 million unit, due for start-up early in 1967, will have a de­signed over-all annual capacity of 33.6 million pounds.

The plant will use a process based on direct oxidation of propylene. Both Distillers and ICI have been separately working on the process and both com­panies have taken out patents on the development. Now the two compa­nies are licensing Border Chemicals to use the combined know-how. Ini­tially, the methyl, ethyl, η-butyl, and 2-ethylhexyl esters will be made.

Earlier this year, Lennig Chemicals, a wholly owned subsidiary of Rohm & Haas, brought a plant on stream at Jarrow, Durham, for making acrylates using a Rohm & Haas process. Annual capacity is "in excess" of 22.4 million pounds. Lennig doesn't sell acrylic acid.

Border Chemicals is currently com­pleting its 89.6 million pound-a-year acrylonitrile plant at Grangemouth, Scotland. That plant will use a single-stage propylene-ammonia oxidation process that Distillers developed in conjunction with Ugine of France (C&EN, June 21, page 66) .

Aerospace Firms Tops In Hiring This Year The king among employers, offering the most money to the most college graduates this year, is the aerospace industry. Chemical and drug compa­nies are offering the second highest number of jobs and the third highest pay. This is the way College Place­ment Council (Bethlehem, Pa.) ranks employers after a survey of 111 col­leges and universities.

The council divides employers into 16 groups. Male candidates for bach­elor's degrees are placed into 14 groups according to curriculum. The aerospace industry offered almost

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BRIEFS

Cumberland Chemical Expands PVC Pilot Plant A workman inspects the upper reactor section of Cumberland Chemical Corp.'s recently expanded polyvinyl chloride pilot plant at Calvert City, Ky. Work at the enlarged pilot facility will concentrate on development of new products and research on new types of polymers. The subsidiary of Air Reduction Co. already has a 115 million pound-a-year PVC plant at Calvert City.

4500 jobs at an average salary of $640 a month; chemical and drug companies offered 2500 jobs at about $630 a month. The petroleum indus­try is third in total job offers with 2200.

Two groups of college graduates re­ceived far and away the highest num­ber of job offers—electrical engineers (5400) and mechanical engineers (4600). Chemical engineers are in fifth place (2100), behind business-general (2700) and accounting (2200). Chemistry majors are next to last with only 380 offers of work.

The highest paid groups of gradu­ates are aeronautical engineers ($645 a month) and chemical engineers ($642). Here, chemistry majors placed ninth at $605 a month.

Chemistry majors find more clover in graduate school pastures. Male Ph.D. candidates in chemistry re­ceived 500 job offers, compared with 62 for physics majors and 48 for math­ematics majors. The smaller groups are better paid, however: physicists, $1140 a month; mathematicians, $1090; chemists, $970.

Chemical engineers pull ahead in

graduate school, too. They were of­fered 340 jobs while electrical and mechanical engineers the (undergrad­uate giants) obtained only about 90 each. Again the pay scale varies in­versely: electrical engineers, $1170 a month; mechanical, $1120; and chemical, $1060.

When grouped according to techni­cal or nontechnical curriculum, male bachelor's degree candidates with a technical curriculum received more job offers (17,000) than those with a nontechnical curriculum (7000). Technically trained candidates also drew offers with a higher average sal­ary: $635 a month, compared with $532 for the nontechnically trained.

However, nontechnically trained graduates who go on to study busi­ness administration, industrial man­agement, or commerce lead the field of male master's degree candidates in number of job offers received ( 3000 ) . Their closest rivals were the techni­cally trained candidates for the same degree. They received 1100 offers, averaging $750 a month, $80 a month more than their nontechnical class­mates.

Elco Corp. has formed a chemical sub­sidiary, Elco Chemicals, Inc., to make and sell thiourea and derivative or-ganosulfur intermediates. The new company will have its headquarters at parent company facilities in Cleveland, Ohio, and will operate production fa­cilities being built in Cincinnati.

DeSoto Chemical Coatings, Inc., has bought Royal, Inc., of Chattanooga, Tenn., for about $6 million. Royal's sales in 1964 were about $12 million, most of which were from lighting fix­tures and fireplace accessories. The Des Plaines, 111., firm makes paints, wall coverings, specialty building products, and detergents.

Hoffmann—La Roche has reorganized to form a new division, the Roche Chemical division. The Nutley, N.J., company makes pharmaceuticals, chemicals, vitamins, and aromatics.

Raytheon plans to acquire Macalaster Scientific Corp., Watertown, Mass., through an exchange of stock. Mac­alaster develops and makes educational laboratory apparatus and science teaching aids. Its sales will amount to about $3 million this year.

NEW FACILITIES

Squibb division of Olin Mathieson has started construction of a biological re­search building in New Brunswick, N.J. The new facility will become part of Squibb's 100-acre research and production complex already there.

Frontier Chemical Co. has expanded its anhydrous ammonia plant at Wichita, Kan. The plant now has 50% more capacity than it had when it was com­pleted in 1963.

Sunray DX Oil Co. will open a plastics compounding and coloring plant in Chicago next month. The 20 mil­lion pound-a-year facility will make colored polystyrene, polyethylene, and polypropylene resins. The plant will be operated by Sunray Plastics Co., a newly formed subsidiary of Sunray DX.

22 C & E N J U L Y 5, 1965

Weyerhaeuser Co. will select a mid-western site this month for a $3 mil­lion particleboard plant. The com­pany operates particleboard plants at Coos Bay, Ore., and Areata, Calif., and is building another at Springfield, Ore. Particleboard is panel made from whole-wood flakes coated with resins and bonded under heat and pressure.

Refractories division of H. K. Porter Co. has purchased a site near Fulton, Mo., where it will build a refractories plant. Replacing a St. Louis facility, it will make fireclay and high alumina refractories. Production is scheduled for summer 1966.

Controls division of Victor Equipment Co. has new and expanded administra­tive, engineering, and production fa­cilities at Sacramento, Calif., which double its production capacity. Victor makes regulators to control fluids un­der pressure.

J. T. Baker Chemical Co. plans to build a $450,000 office building in Lopatcong Township, N.J. It will be completed next April. Baker Chemi­cal is a subsidiary of Richardson-Mer-rell, Inc.

MARKETS

Reilly Tar & Chemical Corp. has re­duced the prices of its 2-vinylpyridine, 4-vinylpyridine, and 3-cyanopyridine. The price of both vinylpyridines in tank-car quantities is 95 cents a pound,

f.o.b. Indianapolis, reduced from $1.15. Tank-car or tank-truck lots of 3-cyanopyridine sell for 90 cents a pound, down from about $1.13.

FINANCIAL

Air Products & Chemicals, Inc., had revenues of $28 million during the first quarter, up 3% from last year. Net income rose 13% to $1.7 million. The Allen town, Pa., company will complete new air separation plants in Belgium and Germany next year.

Hooker Chemical Corp. recorded net sales worth $62 million for the quarter ended May 31, up 10% from the same quarter's sales in 1964. Net income, $6.2 million, was up 16%.

Dayco Corp., Dayton, Ohio, claims net sales of $44 million for the six months ended April 30, a 12% in­crease over that period last year. Earnings before taxes amounted to $2.8 million, a 22% increase.

Eagle-Picher Co., Cincinnati, Ohio, showed a net profit of $2.7 million for the half year ended May 31, an in­crease of 34% over the first half of last year. Net sales for the two peri­ods were $80 million (1965) and million (1964).

Fluor Corp. earned $1.8 million dur­ing the six months ended April 30 on sales of more than $68 million.

These represent increases of 290% in earnings and 48% in sales over this period last year.

Pioneer Plastics' first quarter (ended April 30) sales were $4.3 million this year, 10% more than for the same period last year. The Sanford, Me., corporation's net income, however, fell 25% to $138,000 because of start-up costs of a new plant in Au­burn, Me.

INTERNATIONAL

Columbian Carbon (Canada), Ltd., will increase the capacity of its carbon black plant at Hamilton, Ont., to 90 million pounds a year. The $2 million expansion will take two years. The company is wholly owned by Colum­bian Carbon Co., New York City.

American Smelting & Refining will sell a 5 1 % interest in its Mexican subsidi­ary to a group of Mexican industrial­ists. To be named ASARCO Mexi-cana, S.A., the Mexican company will own and operate mines, smelters, and refineries making gold, silver, lead, zinc, copper, coal, and coke.

Farbenfabriken Bayer, Leverkusen, West Germany, has completed a large-scale unit for making Perbunan C at its Dormagen plant, bringing the com­pany's capacity to 24,000 metric tons a year. Perbunan C (polychloro-prene) is a weather- and fire-resistant rubber for industrial use.

C&EN PROGRESS REPORT

EXPANSION IN THE CHEMICAL INDUSTRY

Here are companies making news last month, adding to the chemical process industries by

PLANNING . . . Company and Site

American Cyanamid Co. Bradley, Fla.

Celanese Corp. of America Bay City, Tex. Bishop, Tex.

Chemetron Corp. Dallas, Tex.

Plant or Unit

Phosphate rock

Hexamethylenediamine and adipic acid

Methanol

Oxygen, nitrogen, and argon

Remarks

New mine will be opened in 1967. Con­struction will start next year

Expansion will double capacity by mid-1968

New 40 million gallon-a-year unit is due on stream in mid-1966

New low-pressure air separation unit will increase plant's capacity from 120 to 220 tons a day

JULY 5, 1965 C&EN 23