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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.