sh m he i pi or or «d ES 1e Jf 18 1} 8S 1t Sf { WN eo gs XXX.—TENDENCIES IN THE RUBBER INDUSTRY. 189. The expansion in the production of rubber and in its use during the present century has been such as frequently to belie both pessimistic and optimistic forecasts. The rubber industry depends, as to 80 per cent. of its output, on tyres, which find their market in the motor and cycle industry. The prosperity or reverse of the motor industry therefore dominates the whole of the rubber manufacturing industry, for not only have variations in the fortunes of the motor industry a direct effect on the demand for rubber, but they cause obvious indirect repercussions upon the remaining rubber industries by their effect on the price of the raw product. The demand for rubber in the motor industry may also be affected by changes in the manufacture of tyres. The chance always exists of the discovery of some process which will render possible the manufacture of a tyre of equally long life and containing less rubber. Apart from that possibility, the rate of absorption of rubber is at present set by the pace at which motor transport is adopted throughout the world, and in this the degree to which different countries are approaching ‘‘ saturation point ™ for motor cars is an important factor. 140. The production of rubber in the East has, however, developed more rapidly than the demand for rubber in the motor industry. There has therefore been an increasing margin demand- ing an outlet for other purposes. In 1928 some 140,000 tons of crude rubber were used in industry in the world for purposes other than the manufacture of tyres. This quantity exceeded by 40 per cent. the total world production of rubber in 1913—only 15 years earlier. In spite of this remarkable fact, the rate of absorption of rubber into industries other than tyres has not kept pace with the increase of supply and has therefore, from the point of view of producers, appeared disappointingly slow. The Rubber Growers’ Association have, from time to time, striven to find new ases, as for instance in flooring and roadways, which, if adopted, would absorb large quantities of rubber. 141. There is no doubt that the use of rubber will extend. Extension I'ts qualities for absorbing shocks, for reducing vibration, for insula- of the use tion, for resisting surface abrasion, will result in its wider use in of rubber. connection with running machinery, electricity, lining for ball mills, conveyors, and the lining of containers in chemical works: During the rapid growth of the last 30 years wide fluctuations in the prices both of the raw material and of the finished products have occurred. Centralised schemes for. controlling production of rubber have been organised, but have successively broken down, yet there can be no doubt that greater stability in price and greater regularity in offerings would be in the interest both of the producer and of the user. The latest scheme, put forward in November, 1929, by the Rubber Growers’ Association aimed at reducing the The motor industry. Need for new uses for rubber.