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Show T Industries Feel Impact Of Tight Money, Inflation By DON C. WOODWARD and ARNOLD IRVINE Desei'et News Business Writers Ltahs economy will probably rate passing marks for its performance during 1969. It wasnt bad but there have been better. A year-en- d survey of the state's leading Industries shows that the problems of tight money and inflation left their impact in Utah just as they did in the nation. Some industries were affected more than others construction, for example, which scored only insignificant gains. For 1970. the outlook again hinges greatly on what is done to halt inflation on the national leveL However, the state's businessmen remain optimistic. They ftc a strong base exists for significant growth in the future but not many of them were eager to go out on a limb with their predictions. 'Fair Advances' In Employment the Utah Chapter, Associated General Contractors of America. also said that there are Utahs employment totals made fair advances during the year, ending up about 8.300 jobs higher than 1908, said Curtis . Harding, of the Utah Deof Employment Separtment curity. encouraging signs in the 1970. Harding Concerning sa;d he expected a mediocre year, with some growth in all industries except the which federal government, would probably continue its gradual downtrend. and manufacturing In the state more tiian held their own in 1999. particularly In the output of goods and raw materials, he said. ' But constructions gain was insignificant, with little hope lor much change in 1970. Trade industries, including both wholesale and retail segment, were up 5.4- - percent Other industries showing strergth were Utahs financial institutions, with a growth of 6 percent, and its service industries, showing a 4.3 percent growth. , Harding said the effect of the administration's measures should slow industrial expansion during 1970 and will probably show up in a higher unemspecially fii ployment rate the wwer age groups. ! But in spite of uncertainties facing the state's economy, its should carry it buoyance through 1970 without difficulty. he added. Mining A 'Better Year In Real Estate Despite scarce money and high interest anu discount rates. 1969 was a better rear for Realtors than 19G8. according to B. A. Weight, executive vice president of the Salt Lake Board of Realtors. Only in February cid this years real estate sales lag behind those of the previous year. ' Weight said that fie expected the tight money and high interest situation to continue but said he did not believe there would be a large decline in real estate sales. He predicted higher rents, scarcity of rental units and a , possible slight land -. value- increae in Home sales this year have held up well with many of them being made under contract or w ith the buyer assuming the existing mortgage. There hare been some FHA and VA loans and a few mortgages under various government subsidized programs. Improvement In Heavy Construction Heavy construction in Utah has been better in 1969 than it was in 19. Horace Gunn, manage of heavy construction 1970 picture. that the State Department has a S38 million the first six for program months of the year; a new St. Mark's Hospital is to be built; the new LDS Church office building has been started and construction w ill continue into 1970; the Church also is planning other buildings throughout the state; a new field He noted Highway announced to be built at Brigham Young University and several small office buildand facings, warehouses tories are being planned. house is On the minus side, the cut- back in federal and state govas much ernment building as 73 per cent on federal projwill hurt the construcects tion industry, Gunn said. Higher Output In Petroleum Utah's 1969 petroleum production may be slightly higher than the 23,502.693 barrels produced in 1968, according to Max D. Eliasoti, vice presi- dent of the Rocky Mountain Oil and Gas Association. There has been activity in the state both in drilling and exploration, he noted, despite the fact that Alaska and offshore areas have taken a large portion of the available exploration dollars during the past year. Concern about the cut in the depletion allowance and possible liberalization of oil import quotas also has had a dampening influence on the industry in Utah as well as in the rest of the country, he said. Dean Hadfield, chairman of the Utah Petroleum Council pointed to gains in motor fuel sales this year in the state of and the announcement plans to expand the American Oil Refinery. Utah refineries will have a combined capacity of some 125.000 barrels a day when the new facilities are completed. Builders Express Cautious Optimism Cautious optimism is evident in the forecast of a 10 to 20 per cent increase in home-buildi- for 1970 made by Arthur C. King, executive officer of the Home Builders AsSalt of Greater sociation Lake. The industry suffered during the past year because of the rising costs of land, material and labor plus the problem of mortage financing. Housing starts did not keep pace with the demand for new homes, he said. This has stimulated Hie remodeling business, however, a well as the construction Z rvrv c w UT' j v? ' if' - ' ,vf Crr S vr r - As NEW YORK (CPI) survevs. most in predicted this was one of the poorest Christmas shopping seaons in memory. Total sales barely rose enough over last year to equal price inflation and fell sharply cities. that below in many Snowfall Wednesday Tuesday and in much of tie Midwest and Northeast slowed the final shopping rush to some extent. Chicago. St. Louis. Philadelphia. Washington, New York, Pittsburgh, Boston, Cincinnati and Milwaukee all had snqw and freezing rain to put stamper hM, ' , N - .- - ir- ZM 4 , is &&& ai The Dow-Jon- - Ss stock es of apartment buildings. The FHA 235 Program designed to help low income families buy homes accounted for well over 600 new homes in Utah during the year. This figure should rise to at least 2.000 in 1970. with over 30 builders pianni g to partici- pate. homes of the more conventional style and the mobile home increased in importance during the year, but Utah builders still are custom-bui- lt the expecting house to be important in the lt Factory-bui- fJK ?$ 'iitffl will production to lag behind demand except in the bracket, King predicted. continue low-co- st ruptive affects on Utah badness, he said especially construction. In Housing, commercial and r.dustrial building are feeling the affects of tight money, and in addition, the uncertainty surrounding the sti e's municipal bonding laws is keeping funds out of construction. the market demand. he said. An improved marketing pattern has brought the best prices for live animals since the early 1950s, he noted, adding that the operation of the Farm Bureau's livestock auction at Halina, has aided the southern Utah producers. A strengthened market and improved procedures also have paid off for poultry producers and the dairy industry which has long suffered from overproduction. We see some very unhealthy commodities, such as wheat, but they are mainly those supported by federal programs with accompanying low prices; while generally the unrestricted commodities are the strongest, having the best short term future, ilton said. Ham- Utah banks throughout 1969 have shown virtually no growth in deposits and have had to reduce their investments in order to accommodate a part of the increased demand for loans. he said. More Business In Transportation 'More Of Same' Tight money, high interest rates, uncertain tax reforms, the Vietnam War and a new administration all ii?d an impact on Utah's bankers in 1969, said Ronald S. Hanson, president of the Utah Bankers Association. And in projecting the outlook for 1979. he said, "we would probably be safe in predicting more of the same. The major questions which still need to be resolved are ones involving national, and not state policies. They are, (1) when will there be an easing of credit policies to permit an increase in loans? and (2) when and to what extent will tiie nation's fiscal policies permH an easing in its money policies? Credit demands have had and will continue to have dis J out that businessmen rate the state high in such factors as labor supply, educational standards, business regulatory laws, living conditions, cultural opportunities, attitudes of public officials, labor and strike record ai.d relations. .11 infor- computers pertinent mation on cars passing through freight yards. The truck lines have also made strides in the u--e of computers in keeping equipment records and in billing procedures. Airlines serving Ut$h were given auditional routes. Western Air Lines were giren authority to fly to Hawaii. Fron- tier given additional strengthening of its routes including authority to fly to Dallas, Tex., Texas International was authorized to sene Salt Lake City, and a decision is expected early next year on Salt Lake Citys application for additional trunk line sen-icwas ! Utah Tourism: Lots Of Attention Mot said, approaching Utah gained a wealth of national atiention this year, tion Club of Sait To facilitate faster and betthe railroads introduced several innovations including insulated, damage fiee cars; unit trains to haul coal from Carbon County to California: automatic car scanners to feed to m Utah's growth pattern will be steady and upward, despite the current tight money policies, said O. C. Madsen, first vice president of the Utah Manufacturers Association. Madsen, who will become UMA's president at the first f't the year, said the state's business climate, resources and availability ot good industrial sites are also in its favor. However, he cited several areas the UMA's community inventory study showed to be in need of improvement. These include zoning laws, which are improving but re still inadequate, and the financial problems in the cities. t "The tax structure in the state must continue to be broadly based if we are to w in in the competition for new or expanded industry. he said. V j i t -- , . i UW. ' ' 5 'Best In History' For Minerals m & I 'I - fe 1 ' Finai statistics will show to have been the best in Utah's history as far as dollar value of mineral production is comfrr.ed. pi edict ed Paul S. Rattle, manager of the Utah v - "- -- 1969 I are meiciwfits 1970 with a cer-ai- n caution and They expec t tight money to continue, expenses to increase and a continuation degree pessiml-- of m. in rising prices. Johnson felt there will be more agressixe sales promotions and campaigns to lure them back into a buying mood and as the yeat progresses, it will strergthen and eventually set another record in sales increases. vigorously, said Lee Jorgensen. Utah Travel Council di- rector. The areas include (1) intensified regional cooperative programs in advertising and promotion. 2) additional travel writer and travel agent tours, (3 a new brochure outlining 24 motor tours of the state, (4 establishing travel information centers, and (5' further development of service industries seminars. He said, possibly the most important item next year win be an expansion of service industry training aimed at educating employes and owners of motels, hotels, service and restaurants stations, resort area. The seminars will be held around the state. High Rates For Home Mortgages Home buyers will continue to pay high interest rates on mortgage loans during 1970, pi edict the officers of Utah's insured savings and loan associations. In a survey conducted by the Utah Savings arid Loan League, the majority of associations indicated that rates would remain about the same JJ Mining Association. The total should excels of a half dollars he said. 3 in 1969 indication construction crease over 1969. will Office! in- in St. George and Price predict housing starts will be up as much a 20 to 30 per cent in their highest production since 1913. ith a continuing strong demand, and good price, the, is. rate high production expected to continue into 1970.! Iron, lead and zinc produc-- ; ton stayed on a plateau during the past year but an iu crease is expected next year W Home buveis al-- o face higher home construction costs m tiie year, with riague members predicting a rise of up to 10 per cent. Nevertheless, there are indications that single family home billion With no serious strikes to hamper production, the copper industry produced an estimated 290.000-plu- s tons, the but there i an they max have The association peaked. about 50 per cent of the home consti uction in L'tah. as be in area. - Rattle said. Uranium in 1969 due to dam-- ! age to the Atlas Minerals processing plant at Moab. but with the mill again ip opera-- ! d output-decline- iion, crea. production should in- - Progress was made during One officer summed it up The pent-uby saving: demand is starting to be manifest, and the consumer is beginning to weigh inflationary costs against interest costs and is beginning to conclude that if higher interest costs are here to stay, a delay in purchasing a home may be a more costly approach in the long run. p 19 on tiie construction of tl.ej Great Salt Lake Minerals and Chemicals Carp, plant west ot Ogden, and National Lead'! Magaesium Project moved ahead in its planning for a plant at the south end o? Great Salt Lake, Brush Beryllium Co. completed its mill near Delta and began processing ore from its mine. I EARN IMPORTANT ADDITIONAL INCOME Utah Retailers Had Good Year A! KEEP YOUR PRESENT JOB WHILE WE e. Growth Pattern - Iiwv Saturday, December 27, 1969 During the coming year, at least five areas of travel promotion will be attacked more ter freight service, - mga II, y 1969 for airlines, lake. Mi Utah's retailers had a genalthough erally good year toward the end of it they started running into some buying resistance in some lines, s Jd S. C. Johnson, president of the Utah Retailers TRAIN YOU AT OUR EXPENSE! , Association. On top of It, tiie Sunday opening issue complicated the picture in December in the Salt Lake area, he said. This, combined with slightly higher freight rates, strikes at some sources of supplies and weather that ranged from foggy to unseasonably warm had an affect on some of the late night openings, he said. must rot overlook the fact that several thousand square feet of additional selling were opened up in the Salt Lake market this past year, he added. We Consume. s are concerned with increasing price. They are also cautious about a turndown in the economy and are. therefore, showing some buying reistance in certain lines. Johnson added. As for the new year, he OF AMERICA, a national financial company whose subsidiaries provide important financial services, is seeking new representatives for Salt Lake City office. our UNITY CAPITAL CORPORATION publicly-owne-d fast-growi- the epporturit for you to enter this highly-paiand respected profession and earn an income os large os you want to make it. WE OFFER d remarkable stock option programs ond bonuses, incentive programs planned for you by experts (we tour London end the Continent in 1970). WE OFFER the opportunity to work your own hours, backed by an enthusiastic team of professionals. WE OFFER WE OFFER a complete training program ai company expense. and unlimited opportunities for rapid advancement to managerial and executive responsibility at talent door. 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Will Be Upwards '70 Bank Outlook, 2r WNM X A.: fS . pointed empioyer-oommunii- business dunng railroads and truck lines operating in Utah, was reported by D. P. Heiner, president of the Transporta- dome improvements in the lot of the fanner and rancher were seen in 1969 by Elmo W. Hamilton, president of the Utah Farm Bureau and a diversified fanner in Riverton. "The brightest performer for the year was the livestock industry with producers finally getting production into a more reasonable balance w ith :c; - .! ji:. - Madsen Increased Improved Year For Agriculture - l averages, superimposed over the Salt Lake City skyline, are symbolic of the impact that national events had on Utah's economy. area. 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