Automatic Age

14
A u t o m a t ic A g e
December , 1930
The first fact to recognize in the story of 1930 is that the automatic
trade has been able to make definite progress at a time when all in­
dustries were severely limited by a general business depression. It
has been indeed a time of testing, and yet in our position of being
able to observe the trade as a whole we are impressed with the fact
that there have been so few failures during the year. Some of the
old stalwarts have quietly mentioned that they were feeling a severe
strain, but the trade ought to be proud that they have weathered the
storm almost to a man. Then the year has been marked by an un­
usual increase of manufacturers catering to the trade. Our list of
these firms has practically doubled within 1930. Such an increase
naturally raises the question as to whether the trade is not being over­
done, as it was in England during the past few years. Upon close in­
quiry one sees that many of the firms entering the automatic field in
England were newly organized companies, whereas, much of the in­
crease in this country has been due to established manufacturers in
other fields entering the automatic field gradually. In many cases
they are prepared to discontinue if the venture proves unprofitable.
In this connection the year 1930 has witnessed the decline of .some
others of the remaining highly financed concerns in th,e automatic
trade that were launched in the balmier days of 1928 and 1929. So
that the trade still remains largely made up of small and medium sized
business enterprises. It will tax the reasoning powers of the trade
historian to tell us whether we do not need at least a few giants, which
might be able to provide some outstanding leadership for the trade.
The historian might lead us also in the inquiry as to why high financ­
ing seems to be such a bad omen in the coin machine industry.
With such a rapid increase in the number of manufacturers in the
industry, we would naturally expect to find the trade getting top
heavy in certain lines. The first half of the year did produce such
a large number of firms in the coin operated musical branch of the
trade that competition became rather keen. But the close of the year
shows fewer new concerns coming into this field, and those already in
having settled down to conservative programs of sales and expansion.
The competition of course has been keenest in the amusement machine
field, but this field provides such vast opportunities for variety that
competition should never reach the cutthroat stage. The year closes
with the trade riding on the tide of popular enthusiasm for the indoor
golf games, etc., by a rather rapid introduction of many coin oper­
ated devices of this kind. Latest reports indicate that there is a
rapid decline in the indoor golf course profits, and some are asking
if the winter will not practically be the finish of the movement. What­
ever may be the fortunes of the miniature golf courses proper, the
coin operated games of all kinds are going to be a wonderful help
to the indoor courses, and so the automatic trade will profit from
these new locations. Operators of indoor golf courses are anxiously
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