NOW, Volume 10, Number 3, June 1, 1945 Page: 5
This periodical is part of the collection entitled: LeTourneau University Archives and was provided to The Portal to Texas History by the LeTourneau University Margaret Estes Library.
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In consequence, the outlook is that
even before the end of the Japanese
phase the military may reduce its de-
mands for our equipment as much as
50%. I don't say that this is certain.
I do say it is not improbable.
B UT A 24.7% reduction in war con-
tracts, or a 50% reduction, does
not mean a like curtailment in the
volume of LeTourneau business. Let's
take a quick glance back. In '39 our
sales in all markets totaled $7,731,-
325; in '40, $10,740,845. Although in
both those years a fair proportion of
sales represented war business-sales
through export dealers to Allied arm-
ies, and Lend-Lease-, they might be
considered normal years, for their in-
creases in sales volume over preceding
years were not far out of line with the
pattern of growth LeTourneau sales
had followed since '30.
This year in the first four months
domestic and export sales, as dis-
tinguished from government sales,
have totaled $2,679,366, or the equiv-
alent of an annual volume of $8,038,-
098. So today our sales volume
through dealers and distributors is
equal to our sales through dealers and
distributors in '39.
But that, to our notion, is not a sat-
isfactory volume of civilian business
for the post-war period. Our sights
are set much higher, for our markets
are ever broadening and we have a
much broader line of products to sell.
In '39 we were just beginning to mar-
ket the Tournapull; our main volume
of business was in tractor-powered
equipment-auxiliary equipment. To-
day, while continuing to supply the
demand for LeTourneau tractor-
drawn equipment, we are emphasizing
the economy of the rubber-riding
prime mover. We sell not only the
equipment, but the prime mover that
powers it. And that prime mover has
a tremendously broader field than has
equipment alone, or, for that matter,
than has the crawler tractor. The
Tournapull in brief is both on-the-
road and off-the-road hauling equip-
ment.
Last year, our volume of civilian
business had little effect on our total
volume - the military took all we
could produce and allowed only a
small margin for essential civilian
equipment and parts requirements.
This year, sales through our regular
distribution channels will determine
to some extent the total amount of
business we do. Last year sales totaled
$42,209,624. This year we may have
a $35,000,000 volume. It hardly will
be larger; it may be smaller. In thefirst four months it was 20.7% ahead turers to employ the available ma-
of '44. terials and manpower.OW, our expectation of a decline
in the volume of business this year
and in '46, should the Japanese war
continue long, is not because of any
lack of demand for our products. Just
as there is a pent-up demand for auto-
mobiles, refrigerators, radios, homes,
farm improvements, railroad rolling
stock, airplanes, and a million other
things, so there is need for thousands
of miles of new highway, highway
relocations, airfields, and other earth-
work projects. New York State alone
has $100,000,000 ready to spend on
highways. Railroad relocations and
extensions and improvements will re-
quire a huge amount of the type of
equipment we make. Mines, quarries,
woods, all afford big markets for our
equipment. Other industrial markets
are promising.
But right now there are several fac-
tors that slow the swing-over from
full-capacity military production to
top-capacity civilian output. War
needs, of course, still come first. Al-
though the military may require less
of the products we manufacture, they
may need much of the steel, rubber,
bearings, etc., which we consumed, for
other war materiel. Consequently,
while WPB may permit us to utilize
surplus capacity above war require-
ments to produce civilian goods, we
may not be able to get the materials
and purchased parts we need for such
production. The tightest commodity
at present is rubber.
War Production Order L-192, which
restricted production and sale of
equipment to a volume, to a variety,
and to customers approved by WPB,
has been relaxed on all our equipment
to the extent that we can fill civilian
orders without specific WPB releases.
But there remains the restraint that
the military has first call on 75% of
our production. And there is still with
us the problem of finding critical
materials and components.
Again, WPB thinks consumer goods
should come first, have first call on
the available raw materials - that
automobiles, refrigerators, radios,other
household and personal commodities
are even more essential than new
scrapers, dozers, Tournapulls. New
automobiles take rubber, and so do
the old ones that have been riding or
sitting on the same tires for four or
five years. At present, the states and
the federal government are delaying
the road building programs to avoid
drawing men from war industries and
to permit consumer goods manufac-HILE the design and production
of war goods has been our first
consideration, we have not altogether
neglected the development of new
machines for the post-war markets.
The war itself has given us two im-
portant additions to our line: 1, The
Tiltdozer, which is superseding the
Angledozer and Bulldozer on the bat-
tlefronts and also will replace them
on the construction fronts. 2, The D
Tournapull with 2.3 yard Carryall
scraper and Tiltdozer. It also powers
a 5-ton Tournatruck and 4,000-lb.
Crane. When I was in England last
year Jack Olding said he could take
2,000 of the D Tournapulls the first
year after the war.
The war has also developed our
Tournacrane line and has given us
more confidence in this outstanding
product that we pushed too little in
the past. R. G. LeTourneau and his
crew of engineers are busy on Tour-
napull and Carryall improvements
that we are confident will maintain
LeTourneau leadership. And they are
adding some new machines.
Pending release of these new ma-
chines and improvements, we have
and are selling today through our dis-
tributors and dealers a wide, high-
quality line that still leads the field in
economy of operation-that is, that
moves materials at the lowest cost of
any equipment on the market today.
At the head of that list is the Super C
Tournapull with LP Carryall. Next
comes the D Tournapull. Then there
is a complete line of tractor-drawn
Carryalls from 4 to 18 heaped yards
capacity, Tiltdozers for D4, D6, D7
and D8 tractors, Angledozers, Bull-
dozers, Tournapull and tractor-drawn
Cranes, Sheep's Foot Rollers. We will
soon have some K30 Rooters to offer.
To summarize the outlook as I see
it:-The long future is most promis-
ing. I have no hesitancy in predicting
a volume within a few years that will
far exceed that of our largest war
year, provided we maintain in this
broadened field the leadership we
have enjoyed in earthmoving. The
immediate future has its uncertain-
ties. Our volume of sales in '45 and
'46, and consequently our volume of
work in the several plants, the size of
our inventories, the dollar value of our
purchases, will depend on four major
factors: the Japanese war, the release
of materials, the release of pent-up
demand for construction, our ability
to market.
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R.G. LeTourneau, Inc. NOW, Volume 10, Number 3, June 1, 1945, periodical, June 1, 1945; Peoria, Illinois. (https://texashistory.unt.edu/ark:/67531/metapth1526451/m1/5/?q=%22~1%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting LeTourneau University Margaret Estes Library.