Delays in Capital Investment

Keel laying at Todd Houston, long before the yard itself was completed, drastically increased production costs. Compare this photograph with pictures of completed yards.
 
 
 


Todd-Houston was not unique. Defending slow progress at South Portland, T.R. Allen (VP in charge of production) wrote in a letter to J. Schmetlzer:
 
Construction work is being executed on a 24 hour basis. Two night shifts consist of relatively few men. There are severeal reasons for this small labor [illegible]. Firstly, we are are working on four ships at present, keel for the fourth hull having been laid today. We have but three cranes servicing these four ways, which means that the crane service is heavily taxed. Until more cranes are available, we cannot lay keels on the other two ways. Secondly, delays in deliveries of certain plates are causing further delay in increasing our manload. We are at present erecting all available material as soon as possible. Additional men at this time would be of no use in that there is not sufficient work to keep them busy. Thirdly, we are preassembling our material in sections as much as is possible. However, due to the fact that much oif our preassembly area is either unserviced by cranes or is unavailable due to incompleted facilities, we are limited to a great extent in performing this work. Were such space available, it would be possible to greatly increase our man hours of productive labor.
T.R. Allen to Schmetlzer, Jan 7, 1942. 
Original in Records of the Historian's Office Box 17, Records of the USMC [RG178], National Archives.



Estimates of Increases in Capital over Time

The following graphs plot an index of the amount of authorized capital at each of six yards. For comparison, cumulative deliveries of Liberty ships and labor productivity are also plotted. Actual installed capital lagged the authorizations by several months. The graphs show how the amount of capital at each yard rose substantially between 1941 and 1943. The same is true for cumulative output and productivity. Hence, a study that does not have the capital data will attribute all of the rise in labor productivity to experience (as measured by cumulative output) when in fact worker productivity also rose as a result of capital investment.
    The source for these data was found damaged in the National Archives and sheets for the remaining yards are missing. Detailed capital authorizations by date are available for (number of Liberty ships delivered in parethenses): Bethlehem-Fairfield (384), Calship (336), Delta (188), North Carolina (126), Oregon (330) and Todd-Houston (208). These six yards account for a little over 50 percent of all Liberty ship production.

Capital Investment, labor productivity, and cumulative output at six yards.