i
Dependence
on other
industries.
Dominant
position of
the United
States.
in each garment is small. In electrical cables and wires the cost
of the rubber used for insulation forms but a small part of the
final cost.
To consolidate the trade statistics for all these greatly differing
industries as if they were all equally important branches of a
rubber manufacturing industry would clearly be of ho value. We
therefore, later in this report, deal separately with those sections—
tyres, mechanical rubber goods, rubber footwear and rubber soles
and heels—for which separate figures are available in the trade
returns of the more important manufacturing countries and then
bring together in a separate section the information we have been
ble to collect regarding the other miscellaneous uses of rubber.
We have omitted any detailed treatment of the trade in wires
and cables, in which articles rubber forms only a small fraction of
the final cost.
9. A brief consideration of the uses of rubber enumerated in
paragraph 7 brings out another characteristic of the industry—its
dependence on other industries. Certain of the articles mentioned
‘here, frequently many of less importance such as rubber balls,
erasers, fountain pens, hot-water bottles, are in demand by the
public independently of the fluctuating conditions in other indus-
tries, but for many of the main uses to which rubber is put, as for
instance in belting, in valves, in electrical installations, in tele-
phones, in wireless and even in tyres, the progress of the rubber
manufacturing industry largely depends on the progress of other
industries, such as the development of the telephone service or the
enterprise of the motor car trade. The rate of development of
the rubber manufacturing industry in any country is thus dependent
fo a great extent on the rate of development of other industries
over which it.can exercise no control. In tyres, for example, a
contract for first equipment of a car has an added importance to
the tyre manufacturer from the advertisement it gives him when
the car is sold. Thus tyre manufacturers in countries in which
ihe motor car industry is rapidly extending have an advantage over
hose in which progress is not so rapid.
10. The tyre industry of the United States possesses an almost
»verwhelming advantage on account of the size of the home market
for motor vehicles. During 1926, 1927 and 1928 more than 78 per
cent. of the motor vehicles registered in the world were in the
United States, while the American share in the world production
of motor vehicles, has been during the same period 85% per cent.
in 1926, 81 per cent. in 1927 and 83} per cent. in 1928. In motor
vehicles the United States also has a large share in the world
sxport trade. That share, including assémblies in foreign
countries, was 69 per cent. in 1926, 80% per cent. in 1927 and
34 per cent. in 1928. The tyre industry largely follows the motor
vehicle trade and the United States thus has also a dominating