in order to increase productivity, lower costs, and improve product quality. The principal modifications consisted of increased automation in the cutting and handling of cut sheet glass but other phases of the production process were also improved.

U.S. productive capacity as of June 1968 was about 5 percent greater than that at the end of 1966, principally because of the addition of a new production facility on the West Coast.

U.S. Production, Shipments, and Inventories

U.S. production in 1967 was lower than in any year since 1961 and U.S. shipments were lower than in any year since 1958. U.S. production and shipments of sheet glass were lower in 1967 than in 1966 by 7 and 10 percent, respectively (tables 6 and 3). Preliminary data indicate that both production and shipments in January-June 1968 were about 9 percent greater than those in the comparable period of 1967.

U.S. producers' shipments of window glass were about 3 percent lower in 1967 than in 1966, even though U.S. consumption of such glass was slightly higher in 1967. In 1967, however, window glass constituted 68 percent of total U.S. shipments of sheet glass, as compared with 63 percent in 1966. Preliminary data for the first half of 1968 indicate that U.S. shipments of window glass were 7 percent higher than those in the first half of 1967.

U.S. shipments of thin sheet and heavy sheet glass were lower by 24 and 22 percent, respectively, in 1967 than in 1966; they were about 14 percent larger in the first half of 1968 than in the corresponding period of 1967.

The U.S. producers' share of the market for all sheet glass decreased from 75 percent in 1966 to 73 percent in 1967, whereas their share of the market for window glass decreased from 78 percent to 73 percent. For all sheet glass this development reflected a decline of 10 percent in U.S. producers' shipments and a decline of less than 1 percent in imports; for window glass there was a 3 percent decrease in U.S. producers' shipments and a 12 percent increase in imports. U.S. producers' share of the total sheet glass market and the window glass market was smaller by 9 and 10 percent, respectively, in the first half of 1968 than in the corresponding period of 1967.

1/

Inventories of all sheet glass at the end of 1967 were about 9 percent below those at the end of 1966 and were equivalent to about 10 percent of U.S. production in 1967 (table 6). Inventories were 3 percent lower at the end of June 1968 than at the end of June 1967.

Employment

Establishments engaged in the production of sheet glass employed an average of 9,783 workers in 1967, of which 7,989 were production

and related workers (table 7). Man-hours on sheet glass accounted for

Includes only inventories of glass inspected for defects and cut to the size in which it is intended to be sold; does not include inventories of glass intended to be recut before shipment.

approximately three-fourths of the total man-hours worked by all production and related workers in the establishments.

The number of workers and the man-hours worked on sheet glass, as well as those on other products, declined from 1965 to 1966, and decreased further in 1967. Man-hours on sheet glass were 3 percent lower in 1967 than in 1966; the decline in man-hours was not as great as the decline (7 percent) in production.

U.S. Exports

U.S. exports of sheet glass (mostly window glass) totaled 10.7 million pounds in 1967, when they were 1.7 million pounds greater than in 1966 (table 3). In 1967, exports were equal to slightly less than 1 percent of shipments by the U.S. producers. Exports in the first half of 1968 were 23 percent below those for the comparable period in 1967.

U.S. Imports

U.S. imports of sheet glass in 1967 were less than 1 percent below those in 1966; a 12 percent increase in imports of window glass was accompanied by a sharp decline (58 percent) in imports of thin sheet glass (table 9). A 1 percent decline in imports dutiable at most-favored-nation (MFN) tariff rates was accompanied by a 10 percent increase in imports dutiable at full rates (applicable to countries designated as Communist). The share of the U.S. market for window glass and for all sheet glass supplied by imports increased by 22 and 8 percent, respectively, in 1967.

Preliminary data indicate that imports in January-June 1968 were 52 percent greater than those in the comparable period of 1967 (table 8).

In 1967 imports of window glass,

In January-June 1968, imports supplied 31 percent of the U.S. window glass
market and 33 percent of the total U.S. sheet glass market compared with
23 and 26 percent, respectively, for the corresponding period in 1967.
1/
which constituted more than half
of sheet-glass imports, were 10 percent greater than in 1966 (table 10),
notwithstanding that U.S. consumption in that year increased by only
1 percent. In 1967 imports of window glass at MFN rates of duty (85
percent of window glass imports in that year) were greater by 7 percent
than in 1966, while those at the full rates were 31 percent greater.
1/

Imports of window glass in the first 6 months of 1968 increased sharply over those of the corresponding period in 1967 (table 10); such imports at MFN rates were 56 percent higher than in the comparable period of 1967; those at full rates were 10 percent higher.

The principal suppliers of both imported sheet glass and window glass in 1967 were Belgium, West Germany, Japan, the United Kingdom, and the Republic of China (formerly Taiwan) (table 8).

The Republic of China, which has supplied about 2.4 percent of the U.S. annual imports of sheet glass in recent years, increased its share to 7 percent in 1967 and to 8 percent in the first 6 months of 1968. In 1967, imports of all sheet glass were 132 percent greater than in 1966; 1/ imports of window glass were 71 percent above those in 1966. In the first half of 1968, imports of all sheet glass and window glass

1/

1/ Glass dutiable at modified escape-action rates.

were

120 and 70 percent, respectively, greater than those of the corresponding period of 1967. Most of the sheet glass imported from the Republic of China consists of heavy sheet glass and window glass.

Prices

In July 1967 the domestic producers announced a price increase of 7-1/2 percent on window glass and thin sheet glass packed in 50-foot and 100-foot boxes. Sales agents of the principal foreign suppliers subsequently announced comparable increases.

On November 30, 1967, the leading U.S. producers of sheet glass announced a 6 percent price increase on thin, window, and heavy sheet glass to become effective on December 4, 1967. Similar increases were later announced by most domestic producers and the agents of the principal foreign suppliers. On December 18, 1967, however, the principal U.S. producer withdrew the 6 percent price increase until March 1, 1968; most of the other U.S. producers followed suit. The response by the agents of foreign producers varied, but by May 1, 1968 the prices of both domestic and imported sheet glass had been increased by 6 percent. Table 11 shows delivered prices of representative sizes of domestic and West European sheet glass to direct-factory buyers in New York on selected dates during the period 1960-68.

Subsequently, the leading U.S. producer announced, effective June 11, 1968, a 15 percent discount applicable to window glass and other clear sheet glass shipped from its new California plant to destinations in that State and in Oregon and Washington.