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Insurance Co. Piano Survey Discloses
Increased Costs; Says 8 Million Play Piano
It isn't often outsiders look in on the
piano industry, but evidently the re-
turn to popularity of piano playing
prompted the following survey which
was made by the Family Economics
Bureau of the Northwestern life In-
surance Co., Minneapolis, Minn., in
which it is stated:
"After a five-year wait for a new
piano, the American family will pay
30 to 60 per cent more than prewar
prices for a 1946 model, which the odds
are 10 to 1 will be a spinet. As labor
and material costs have risen even
more than this, piano makers and deal-
ers will get along with smaller margins
than before.
"Sixty per cent of the cost of a
piano represents wages, without in-
cluding labor costs on parts made by
speciality manufacturers,
such as
strings, and the metal "plates" on
which the piano wires are strung.
Hourly wage rates in the piano indus-
try have advanced 30 to 50 per cent,
while production per hour has de-
clined 30 per cent according to the in-
dustry's own estimates. One typical
large manufacturer reports approxi-
mately the same total payroll as in
1941, though producing only 40 per cent
as many pianos.
"Lumber costs are up over 70 per
cent, with much trouble experienced in
getting the proper grades, while other
materials and parts such as plates are
still in short supply.
"Higher piano prices are expected to
have little immediate affect in dis-
couraging demand; dealers estimate at
least ten customers for every piano to
be available this year. The industry
produced approximately 160,000 pianos
in 1941, of which 80 per cent were
spinets. With current shortages of
materials and labor, probably not more
than half as many pianos will be
turned out in 1946, with over 90 per
cent spinets; production of grands will
be slow in getting under way. Back-
up orders are sufficient to absorb
capacity production for at least the
next five years, industry representa-
tives estimate. In prewar years, vol-
ume of piano sales varied in direct pro-
portion to the national income level; a
recent study by the insurance com-
pany's economists estimates that 46 per
cent of U. S. families will enjoy in-
comes of $2,500 or more in 1946, which
is twice as many as enjoyed compar-
able purchasing power in prewar years.
"Dependent on used piano trade dur-
ing the war years, piano dealers suf-
12
fered considerably from competition by
curbstone traders who went into homes
with higher offers for second hand
pianos than legitimate dealers could
match, and then resold at over-ceiling
prices.
"Radio competition which killed the
player-piano business in the late 'twen-
ties, followed by the depression of the
'thirties, cut the roster of piano man-
ufacturers from over 100 down to
30. Of these survivors, most are as-
semblers, buying the various parts from
supply companies. Some makers, how-
ever, produce their pianos almost com-
pletely, including most of the com-
ponent parts.
"Some eleven million persons are
studying music in the United States;
of these, seven million are children;
eight million play the piano, it is esti-
mated by the Music Foundation of
America. These eight million presum-
ably play acceptably; how many ad-
ditional persons merely commit assault
and battery on the piano would make
another sizable but now neglected sta-
tistic."
Henry Steinway Named
Factories Manager
Upon completing his apprenticeship,
Henry Steinway was appointed Assist-
ant Factories Manager, where he was
primarily concerned with labor rela-
tions and, later on, with the expediting
of Steinway's war efforts. Until his
induction, he guided the building of
thousands of parts for the CG-4A
Gliders, which played such important
roles wherever Airborne troops were
used.
Mr. Steinway's appointment is fur-
ther evidence of the almost century-old
Steinway tradition of having members
of the family actively guide the destiny
of the House of Steinway & Sons.
Henry Z. Steinway, second son of
President Theodore E. Steinway, Stein-
way & Sons, New York, was appointed
Factories' Manager at the April meet-
Piano Travelers Ass n
To Omit Jamboree
The National Piano Travelers Asso-
ciation, after much deliberation on the
part of its Executive Committee, has
decided that it will not hold its annual
jamboree during the Convention this
year. The concensus of the member-
ship was found to be that the travel-
ing men will be busier than usual with
their dealers, who it is felt will come
to this year's convention bent more on
HENRY ZEIGLER STEINWAY
solving business problems than for
ing of the Steinway Board of Directors. entertainment.
With this appointment,
"Hank"
The annual meeting of the associa-
Steinway, as he is familiarly known,* tion will be held, however, tentatively
resumes a career that was interupted scheduled for Wednesday morning,
by his induction into the Army, where July 17th, sometime between the hours
he served in the Intelligence Section of 9 a.m. and 12 noon. It is on that
for three years. Mr. Steinway began morning that exhibits are to be closed.
his active participation with Steinway
& Sons in 1937, when he entered the
New Store
Steinway factories as an apprentice,
Virgil M. Watkins, Dallas, Texas, is
just as three generations of Steinways
had done before him. Step by step, entering the music business. For sev-
working side by side with Steinway eral years he has been Director of
craftsmen, he learned how to build the Music in the Adamson High School.
piano known as the "Instrument of the His address is 702 S. Storey St., Dal-
las 8, Texas.
Immortals."
THE MUSIC TRADE REVIEW, MAY, 1946