Electronics : a manufacturing opportunity in Georgia

ELECTRONICS A MANUFACTURING OPPORTUNITY IN GEORGIA

Project B-209

Prepared for The Georgia Department of Commerce
Jack Minter, Director 100 State Capitol Atlanta, Georgia

by Roy B. Cooper
I
Revised by George W. Morris, Jr.

Industrial Development Division Engineering Experiment Station GEORGIA INSTITUTE OF TECHNOLOGY
January 1963

Table of Contents

Foreword

i

Surmnary

ii

INTRODUCTION

1

THE NEED FOR NEW PLANTS

2

Components

2

Consumer Products

4

Industrial and Commercial Products

6

Military Products

9

LOCATION FACTORS

12

Components

12

Consumer Products

12

Commercial and Industrial Products

14

Military Products

16

GEORGIA AS A LOCATION

17

Manpower Resources

17

Production Labor Savings

20

Proximity to Missile Production and

Test Facilities

22

Transportation Facilities

22

Electronics Research in Atlanta

25

Tables:

1. Manufacturers' Sales of Electronic Components

3

2. Factory Sales of Electronic Consumer Products

5

3. Sales of Industrial and Commercial Electronic Products

6

4. Ratio of Production Employees to Other Employees in

Selected Segments of the Electronics Industry

15

5. Graduates by Degree, Georgia Institute of Technology

19

6. Comparison of Production Labor Costs

21

7. Typical Airline Time Between Atlanta and Selected Points

24

Locations of Major Military, NASA and AEC Installations

and Airframe Manufacturers in the Southeast

23

Foreword This is the first major revision of any of the approximately 40 special product and industry studies completed by the Industrial Development Division during the past six and one half years. The rapid changes which have taken place, not only in the scientific and technological aspects of the industry but also in important location factors such as air transportation have made revision essential. Revisions of other reports are in process or planned, particularly where there have been significant changes in the market situation. Other revisions will be prepared on the basis of indicated interest by industrial firms as well as on the basis of the other factors noted above. Companies interested in Georgia locations are invited to request data they may require to adapt any of the studies under discussion to their individual location needs.
Kenneth C. Wagner, Chief Industrial Development Division GEORGIA INSTITUTE OF TECHNOLOGY
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Sunnnary
Georgia as a site for new electronics plants offers manufacturers the following advantages:
1. High value added per dollar of wages paid (Table 6, page 21). 2. The availability of trained engineers and technicians. 3. A supply of semi-skilled and unskilled production workers. 4. Proximity to a large number of aerospace installations. 5. A transportation network which will allow close liaison between manu-
facturer and customer and which will provide more than adequate facilities to transport the finished goods to the national market. 6. Educational facilities which will provide a continuous supply of electronics engineers and technicians. 7. Independent research capabilities.
Because of increasing demand, new plants will be needed in the near future in all fields of the electronics industry. Additional production facilities will be most urgently needed to manufacture the growth items indicated in the following fields:
1. Components: Power and special purpose tubes, semiconductor devices, resistors, connectors and relays.
2. Consumer Products: High fidelity components and miscellaneous items (electronic ovens, garage door openers, toys, etc.).
3. Industrial and Commercial Products: Communication equipment, data processing equipment, testing and measuring instruments, industrial controls, and medical equipment.
4. Military Products: Communication equipment; navigation, guidance and control equipment, and miscellaneous equipment (reconnaissance and surveillance, countermeasure, check-out, detection, tracking, data reduction, etc.).
The following factors are the most significant in locating new plants in the indicated fields of the electronics industry:
1. The availability of an adequate supply of low-cost production labor (components, consumer products).
2. Availability of trained electronics engineers and technicians or the ability to attract these people from other regions (commercial and industrial products, military products).
3. Availability of an adequate transportation network to transport the finished goods to the national market (commercial and industrial products, consumer products).
4. Proximity to military and defense installations to allow close liaison between the producer and the customer (military products).
-ii-

INTRODUCTION
For purposes of analysis the electronics industry has been divided into four categories of manufacture -- components, consumer products, industrial and commercial products, and military products.
The first section of this study presents an analysis of the market growth of the various segments of the electronics industry and particularly pinpoints those areas where the expansion has been concentrated and is expected to be concentrated through 1965. Since little, if any, electronics manufacture is oriented toward regional markets, those products which promise the greatest national market growth for the future are the ones for which new plants will most likely be constructed. Therefore, an attempt has been made in the first section to analyze the need for new plants caused by the expansion of the national market.
The second section identifies the principal location considerations involved in the selection of an area in which a new plant is to be constructed.
The last section of the report indicates to a manufacturer contemplating a new plant the advantages of locating the facility in Georgia. These advantages indicate the extent to which Georgia measures up to the location criteria established in the previous section.
Even though the report is oriented primarily toward existing electronics manufacturing firms, opportunities nevertheless exist for new firms in the industry. However, the opportunities for new firms to manufacture standard components or mass-produced consumer products such as television receivers are very remote because of the high capital investment required and because of the keen competition they would encounter from the large established firms in the industry.
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THE NEED FOR NEW PLANTS

Components

The U. S. market for electronic components from 1954 through 1959 is shown in Table 1. Of all electronic components the following have experienced the greatest market growth over the six-year period:

Component

Growth in Sales, 1954-1959

Power and Special Purpose Tubes Semiconductors Connectors Relays Resistors

67% 148% 190% 100% 81%

The market for receiving tubes has not been growing, primarily because of the development of semiconductors. Since electronic equipment manufacturers have begun to use semiconductors instead of tubes on original equipment, it is very likely that the market for receiving tubes will experience a steady decline. Also, the market for television picture tubes has been relatively steady and is not expected to increase substantially in the near future. However, manufacturers' sales of power and special purpose tubes (SIC 3673) increased substantially from 1954 through 1959, as indicated in the above tabulation. Microwave tubes accounted for 48% of 1959 sales of power tubes, while high vacuum tubes accounted for 25% of the total. Sales of power tubes are expected to reach $396 million in 1965.

As indicated in the above tabulation, sales of semiconductors (transistors, diodes and rectifiers) increased immensely from 1954 through 1959. The greatest increase was in the sale of transistors. The market for these products is expected to diminish only slightly in the near future. Sales in 1965 are expected to exceed $600 million.

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Table 1
MANUFACTURERS I SALES OF ELECTRONIC COMPONENTS, 1954-1959 (Millions of Dollars)

Tubes Receiving TV Picture Power and Special Purpose
Total

1954
300 240
150 690

1955
380 235
150 765

1956
390 240
160 790

1957

1958

400

355

230

215

185

215

815

785

Semiconductor Devices

Transistors
Diodes and Rectifiers
Total

10

15

40

70

110

15

25

50

85

100

25

40

90

155

210

Capacitors Connectors Relays Resistors Transformers Other GRAND TOTAL

200 50 85 130 150
-66-0
1,990

220 55 110 150 140 690 2,170

210 65
110 170 135
-67-0
2,240

215 80 155
190 135 675 2,420

190 115 135 175 120
-61-0
2,340

1959
375 240
250 865
230
165 395 235 145 170 235 145
-78-0
2,970

Source: U. S. Department of Commerce, Business and Defense Services Administration

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The market for connectors, relays and resistors has increased significantly since 1954. Sales of connectors increased from $50 million in 1954 to $145 million in 1959 (190%), while relays increased from $85 million to $170 million (100%), and resistors increased from $130 million to $235 million (81%) during the same period. These three products combined accounted for 18.5% of all component sales in 1959. Sales of connectors, relays and other components are expected to reach $1,309 million in 1965, while resistor sales should reach $324 million in the same year.

On the other hand, the market for capacitors, transformers and reactors has shown practically no growth from 1954 through 1959. Transformer sales actually showed a slight decline from 1954 through 1959. These products combined accounted for 12.8% of total component sales in 1959.

The following tabulation compares the anticipated growth in sales for 1965 over 1959 with the yearly shipments of an average size plant for selected components:

Power and Special Purpose Tubes

Semiconductor Devices

Resistors

Connectors )

Relays

)

Others

)

Anticipated

Yearly

Sales Growth

Shipments of an

1959-1965

Average Size Plant

(Millions of Dollars)

146.0

5.4

205.0+

5.6

89.0

2.1

214.0

.9

Obviously, there is a need for additional production facilities in the above categories of products between 1959 and 1965.
Consumer Products

The U. S. market for electronic consumer products from 1956 through 1960 is shown in Table 2.

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Table 2
FACTORY SALES OF ELECTRONIC CONSUMER PRODUCTS, 1956-1960 (Millions of Dollars)

Product

1956

1957

1958

1959

1960

Television Sets Radios Phonographs Phonograph Records High Fidelity Components Miscellaneous TOTAL

930 290 146 155
27 __R_ 1,600

831 350 248 180
34 57 1,700

686 320 263 198
36
- -97-
1,600

886 328 373 220
38 155 2,000

~25
34S 395 250 40 245 2,100

The demand for television sets and radios has remained relatively stable over the five-year period, and a sharp increase in sales is not anticipated in the immediate future. Technological improvements which would lower the price of color television sets could cause an increase in demand for this product, but this condition is not likely to come about shortly.
The market for high fidelity components has increased steadily from 1956 through 1960. However, the trend of phonograph manufacturers to incorporate the units in new sets may curtail the growth of this group of products.
The consumer products which have shown the largest market growth in dollar value from 1956 through 1960 are phonographs (170%), high fidelity components (48%), and miscellaneous products such as electronic ovens, garage door openers, toys and hearing aids (370%). Unit sales of phonographs, however, have been fairly stable, and the 170% increase in value over the five-year period is attributable to increased costs of producing the more complex phonographs.
The consumer products for which new plants will need to be established because of market expansion in the near future are high fidelity components and the miscellaneous items.
The following tabulation compares the anticipated growth in sales for 1965 over 1960 with the yearly shipments of an average size plant for
"growth" consumer products:
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Anticipated

Yearly

Sales Growth Shipments of an

1960-1965 Average Size Plant

(Millions of Dollars)

High Fidelity Components

16.0

1.5

Miscellaneous Consumer Products

100.0+

5.0 (est.)

Industrial and Commercial Products

The market for industrial and commercial electronic items is shown in Table 3.

Table 3

SALES OF INDUSTRIAL AND COMMERCIAL ELECTRONIC PRODUCTS, 1954-1965 (Millions of Dollars)

Equipment Communication

(Projected) 1954 1955 1956 1957 1958 1959 1960 1965

Land Mobile Radio )

Broadcast Equipment ) Microwave Communica- )

90

95 120 150 155 175 190

330

tion Equipment

)

Aviation/Marine Communication and Navigation Equipment Commercial Sound Equipment
Total Communication
Data Process~. ng-1/
Testing and Measuring Industrial Controls Medical Other
GRAND TOTAL

100 130 140 175 200 370
- - 110 135 ~ ...liQ_ 160 200
250 270 330 415 435 500 550 900
50 70 125 265 290 350 400 800 110 145 170 210 220 250 290 500 80 90 115 150 160 180 210 400 80 90 110 140 145 170 190 350
- - 80 85 100 120 130 150 160 250
650 750 950 1,300 1,380 1,600 1,800 3,200

Source: A Study of Small Business in the Electronics Industry, Stanford Research Institute, 1962.

1/ The sales figures used here are not in agreement with those in
earlier Industrial Development Division reports because of a difference in definition of data processing equipment.

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Manufacturers' sales of land mobile radios, broadcast equipment and microwave communication equipment increased 110% from 1954 through 1960. The market for land mobile radios and microwave equipment has experienced the most growth during the period and is expected to grow substantially in the immediate future. Current (1962) sales of land mobile radios are estimated at $100 million and are expected to increase at least 10% per year through 1965. Sales of microwave equipment have doubled in the last five years to a current level of approximately $50 million and are expected to grow substantially in the future. Sales of broadcast equipment have been relatively stable and are not expected to grow significantly in the future because of the stability of the using industry.
Factory sales of aviation/marine communication and navigation equipment increased 100% from 1956 through 1960. Navigation equipment accounts for approximately 70% of the total at the present time, with the major customer being the Federal Aeronautics Administration. Sales of both aviation/marine communication and navigation equipment should increase substantially in the future because of the anticipated increase in the number of boats and commercial aircraft that will be in operation. Sales in 1965 are estimated at $370 million for this category of products (an 85% increase over 1960).
Manufacturers' sales of commercial sound equipment increased 45% from 1956 to a 1960 level of $160 million. The rate of growth of this category of products has been the slowest of all communication equipment primarily because of the slow rate of technological improvements in the field. The products include public address equipment, intercommunication, paging, and music distribution systems, theatre sound equipment and coin-operated phonographs. The 1965 sales are estimated at $200 million (a 25% increase over 1960).
Manufacturers' sales of electronic computers and data processing equipment have increased over 700% from 1954 to a 1960 level of $400 million. The projected need for new plants for this type of equipment is covered in detail in a separate report by the Industrial Development Division.!/
l l Morris, G. W., Jr., Calculators and Computers, A Manufacturing
Qpportunity in Atlanta, Industrial Development Division, Engineering Experiment Station, Georgia Institute of Technology, August, 1962.
-7-

Factory sales of electronic testing and measuring equipment have increas-
ed 164% from 1954 to a 1960 total of $290 million. Projected sales for 1965 are $500 million (a 72% increase over 1960). A detailed analysis of this category of products is published in a separate report by the Industrial Development DL. V.LS.Lon.1- /

Sales of industrial controls have increased 162% from 1954 to a 1960 level of $210 million. They are expected to increase another 90% to $400 million by 1965. The products include manufacturing process control equipment used in the chemical, petroleum and other industries. Also included in the group are machine tool controls, vehicle traffic controls, electric motor controls and others. The rate of sales growth of both process controls and other industrial controls is expected to be approximately the same.

Sales of medical electronic equipment have increased approximately 137% from 1954 to a 1960 level of $190 million and are expected to increase another 84% by 1965 to $350 million. X-ray apparatus is the major sales item in this category. Other products include electrocardiographs, encephalographs, diathermic apparatus and anesthesia equipment.

The market for other industrial and commercial electronic equipment increased 100% from 1954 to a 1960 total of $160 million and is expected to increase another 56% by 1965 to a total of $250 million. One of the major subgroups in this category is nuclear electronic equipment including the following products with estimated sales:

Radiation Detection and Monitoring Devices
Instrumentation for Reactor Control
Measuring Devices Containing Radioactive Isotopes

1957 Sales 1958 Sales (Millions of Dollars)

17.5 10.0

24.2 15.3

6.0

4.9

The other major subgroup of products include laboratory instruments such as refractometers, calorimeters, spectrometers, chromatographs, leak detectors,

l l Eisenhauer, W. C., Electronic Testing and Measuring Instruments, A
Manufacturing Opportunity in Atlanta, Industrial Development Division,
Engineering Experiment Station, Georgia Institute of Technology, September, 1962.

-8-

vacuum gauges and vibration measuring equipment. Present annual sales are estimated at $40 million. The growth rate for this group of products should be very high because of the emphasis placed on research and development in the using industries.

Electronic heating equipment is another subgroup of the category with annual sales now estimated at approximately $25 million.

A concept of the need for additional production facilities by 1965 in the industrial and commercial electronics field can be gained by a comparison of the projected growth in value of sales between 1960 and 1965 with the average value of shipments per manufacturin~stablishment for each product group. The following tabulation presents this comparison:

Communication Equipment Land Mobile Radio and Microwave
Aviation/Marine Communication and Navigation Equipment
Commercial Sound Equipment
Data Processing Equipment
Testing and Measuring Instruments Industrial Controls Medical Equipment Other

Anticipated

Yearly Shipments

Increase in 1965 of an Average

Sales over 1960

Size Plant

(Millions of Dollars)

140

8.5

170

8.9

40

8.5

400

Not available

210

1.4

190

1.9

160

.8

90

Not available

It is apparent that there will be a need for new manufacturing facilities in each of the above categories of products.

Military Products

Electronic equipment produced primarily for military purposes may be classified by its functions as (1) communication, (2) navigation, guidance or control, or (3) miscellaneous items. Stanford University estimates the 1961 and 1965 market for each of these categories as follows:l/

ll A Study of Small Business in the Electronics Industry, Stanford
Research Institute, 1962.

-9-

Manufacturers' Sales

Fiscal Year

1961

1965

(Billions of Dollars)

Increase

Communication

1.5

2.0

33%

Navigation, Guidance, Control

2.1

3.2

53%

Miscellaneous

.6

.9

50%

TOTAL

4.2

6.1

45%

Communication equipment includes airborne equipment in manned aircraft and missiles, simple ground-based equipment, complex early-warning systems and shipboard communication equipment. The navigation, guidance and control category includes both airborne and ground-based equipment for use with manned aircraft, missiles and ships. The miscellaneous category includes reconnaissance and surveillance equipment, countermeasures, check-out, detection, tracking, data reduction equipment and other equipment.

The above estimates were derived from the following Department of
Defense figures on expenditures for electronic equipment (by DOD classifica-
tl..On) :1- /

Manufacturers' Sales

1961

1965

(Billions of Dollars)

Aircraft Missiles and Astronautics Electronics and Communications Ships TOTAL

1.3

1.1

1.7

3.4

1.1

1.4

- - 1-

.2

4.2

6.1

It is apparent that the markets for communication, navigation, guidance and control, and miscellaneous military electronic equipment are expected to expand significantly from 1961 to 1965. However, the greatest expansion is expected for navigation, guidance and control equipment (53%) and the miscellaneous equipment category (50%). The above tabulation also indicates that the portion of military expenditures for missiles and astronautics electronics equipment will increase from 40% to 56% of total military expenditures for electronic equipment from 1961 to 1965, whereas the portion of

1/ These totals include expenditures by The National Aeronautics and Space-Administration.

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expenditures for aircraft electronic equipment will decrease from 31% to 18% of the total over the same period,

The following tabulation provides a concept as to the magnitude of the projected need for additional facilities to produce military electronic equipment by 1965:

Communication Equipment (SIC 36621)
Navigation, Guidance, Control (SIC 36624 and 36625)
Miscellaneous Military Equipment

Anticipated

Yearly Shipments

Sales Growth

of an Average

1961-1965

Size Plant

(Millions of Dollars)

500

8

1,100

14

300

6 (Est.)l/

It would be inaccurate, of course, to imply from the above figures that there will be a need by 1965 for 50 new average size plants to produce miscellaneous military electronic equipment or 62 more plants to produce military communications equipment. However, the figures do indicate a significant need for more production facilities in all three categories of equipment by 1965 because of the large expansion of their markets.

!/ Estimated from 1958 Census of Manufactures, SIC 36626, Electronic
Military, Industrial and Commercial Equipment, not elsewhere classified.
-ll-

LOCATION FACTORS

Components

For most electronic component manufacturers the most important consideration in locating a new plant is the availability of an adequate supply of low cost production labor. Production labor costs amount to a significant portion of the value of manufacturers' shipments as indicated below:l/

Percent of Value Added by Manufacture

Production Labor

Other Labor

Electron Tubes (SIC 3671)
TV Picture Tubes (SIC 3672)
Power and Special Purpose Tubes (SIC 3673)
Electronic Components, n.e.c. (SIC 3679)

38.7 40.9 39.3
40.2

13.6 15.6 22.3 21.5

Since production labor costs are large, a producer can significantly lower his production costs in a new plant by locating the new facility in a geographic region which offers relatively low production wage rates, high productivity, and an adequate supply of the type labor required.

Although most component manufacturers have tended to locate near original equipment manufacturers (customers for their products), there are no compelling reasons why they should do so. Freight costs on shipments of components are a negligible percentage of their value. In the case of certain specialty (non-standard) components, however, location near the user will allow the desirable closer liaison between producer and user.

Consumer Products

Generally, consumer products are not manufactured for a regional market. Even though freight costs for shipments of the high volume items, such as television sets, radios and phonographs, add a significant amount to the cost of the products, the manufacture strictly for a regional market is not

ll Unless otherwise noted, data for all calculations in this section
Were taken from 1958 Census of Manufactures.

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economical because the local market is usually not large enough to consume the products of a single plant. Average shipments of television sets per plant in 1958 were $47.0 million, while average shipments of radios, phonographs, and radio-phonographs per plant were $8.5 million.

Because of the keen price competition that now exists in the industry and the importance of production labor costs as a percentage of the value added by manufacture, one of the prime location factors to be considered in constructing new plants is the availability of an adequate supply of low cost production labor. The following tabulation indicates the importance of production labor costs in the manufacture of various items in the consumer products industry.

Percent of Value Added by Manufacture

Production Labor Other Labor

Household radios, phonographs and radio-phonographs (SIC 36511)

35.9

15.8

Household television receivers, including television combinations (SIC 36512)

29.1

14.5

Recorders, audio amplifiers, tuners and other audio equipment (SIC 36513)

38.0

21.0

The average number of workers per plant for each consumer product

category in 1958 was as follows:

Number of Workers

Production

Other

Household radio, phonographs and radio-phonographs (SIC 36511)
Household television receivers, including television combinations (SIC 36512)

309

79

1,220

339

Recorders, audio amplifiers, tuners

and other audio equipment (SIC 36513)

83

26

From the above figures it is apparent that production labor costs are a significant portion of total manufacturing costs. Also, it can be seen that a sizable labor force is required for the manufacture of radios, phonographs and television sets. The latter requirement is not as great for the high fidelity components (recorders, audio amplifiers, etc.) because they are

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produced on a much smaller scale. Other factors to be considered in locating a consumer products plant
are the size of the market immediately surrounding the plant and the transportation facilities available to ship the products to the national market. Commercial and Industrial Products
Most producers of commercial and industrial electronic equipment have tended to locate in or adjacent to large metropolitan areas. Plants in Baltimore, Chicago, Cleveland, Dallas, Los Angeles, Milwaukee and New York account for a substantial portion of the total employment in these industries. Undoubtedly, the primary attraction of the large metropolitan areas is the availability of trained electronics engineers and technicians or the ability of the area to attract these people from other regions.
The requirements for trained technical personnel are still of paramount importance in the selection of a site for a new plant. An indication of the higher percentage of employment of "other" employees (including engineers) for this segment of the electronics industry is given by the comparison in Table 4 of commercial and industrial electronics employees with employees in other segments of the electronics industry.
A questionnaire survey of the entire electronics industry by Stanford Research Institute indicates that 14% of all workers in the industry are engaged in engineering work, whereas 44% are in production.l/ Undoubtedly the percentage of employment of engineers in the industrial and commercial products segment of the industry is much greater than 14%.
The factors affecting the ability of an area to attract engineers and technicians are the attractiveness of the area as a place to live and the available educational facilities.
Another location factor is the availability of an adequate transportation network to transport the finished goods to the national market.
Production wage costs are not generally considered a prime plant location factor for this segment of the electronics industry, because variations
ll A Study of Small Business in the Electronics Industry, Stanford
Research Institute, 1962.
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Table 4
RATIO OF PRODUCTION EMPLOYEES TO OTHER EMPLOYEES IN SELECTED SEGMENTS OF THE ELECTRONICS INDUSTRY

Components
Electron Tubes Receiving
Cathode Ray Picture Tubes
Electron Tubes Transmitting
Other Components

Employees

- - - Production Other

(%)

(%)

74.0 72.4
63.8 65.1

26.0 27.6
36.2 34.9

Wages and Salaries

Production (%)

Other (%)

83.7 81.3
71.9 77.8

16.3
18.7
28.1 22.2

Radio and TV Receiving Sets 67.2

32.8

78.3

21.7

Commercial and Industrial Communication Equipment
Data Processing Equipment
Testing and Measuring
Industrial Controls
Medical Equipment

50.8
56.8 57.8 56.3 46.6

49.2
43.2 ... 42.2 43.7 53.4

60.3
62.5 67.6 63.8 57.3

39.7
37.5 32.4 36.2 42.7

Source: Data for calculations taken from 1958 Census of Manufactures.

in cost can usually be passed on to the customer. However, they do account

for a considerable portion of total manufacturing costs as indicated below:

Percent of Value Added by Manufacture

Production Labor Other Labor

Communication Equipment (SIC 3662)

29.1

28.2

Data Processing

Not Available

Testing and Measuring Equipment (SIC 3611)

35.1

25.7

Industrial Controls

29.0

22.5

Medical

24.5

28.0

-15-

Because production wage costs are a significant portion of total manufacturing costs, they are considered at least a secondary location factor.

Military Products

The principal factors to be considered in locating a new plant to produce military electronic equipment are (1) proximity to the using or installation facility to allow close liaison between the producer and the customer, and (2) the availability of trained electronics engineers and technicians in the area (or the ability of the area to attract these trained personnel).

Most military electronic equipment is custom made to the customer's specifications. In many instances, particularly in the production of electronic systems for use in missiles, the products will undergo many changes in design before the first system is turned out. This means that there must be a very close liaison between the producer and the customer so that the finished products will be within the allowable functional tolerances specified by the customer. Also, the need for very high reliability of military electronic products, especially those to be used in missiles, greatly increases the need for close liaison.

Because of the relative shortage of trained electronics engineers and technicians, the location of a new plant either in an area where they are in abundance or in an area which can attract them in quantity is very important. This factor is probably just as important to this segment of the electronics industry as it is to the commercial and industrial products segment. The tabulation on page 15 indicates the importance of this factor for commercial and industrial producers.

Although labor costs are not a prime consideration in plant location

decisions for military electronics, they do represent a sizable portion of

the value added by manufacture as indicated below:

Percent of Value Added by Manufacture Production Labor Other Labor

Communication Equipment (SIC 36621)

29.1

28.2

Navigation, Guidance, Control (SIC 36624 and 36625)

32.1

25.3

Miscellaneous Military Electronics

20.0

34.5

Production wage costs would, therefore, be considered a secondary loca-

tion factor.

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GEORGIA AS A LOCATION
The principal assets which Georgia has to offer potential manufacturing plants in the electronics industry are:
1. the availability of trained electronics engineers and technicians,
2. a supply of semi-skilled and unskilled production workers,
3. low production wage rates, 4. a transportation network which will allow
close liaison between manufacturer and customer and which will provide more than adequate facilities to transport the finished goods to the national market, 5. educational facilities which will provide a continuous supply of electronics engineers and technicians, and 6. independent research capabilities.
Manpower Resources
Mechanization of farming has released large numbers of workers so that labor surpluses exist in 122 of the state's 159 counties.l/ In addition to workers available in the immediate area of a plant, data indicate that a potential labor supply may exist up to a radius of 60 miles or more from the plant. The experience of plants such as Lockheed-Georgia Company and Southern States Equipment Company has proven the adaptability and trainability of these workers for production jobs. In particular, the large number of women workers engaged in textile mills (Georgia's largest manufacturing industry) should be of interest to electronics producers since a great portion of electronics production is performed by women. The high degree of manual and finger dexterity required in textile manufacturing workers is also required in electronics production workers.
Southern Technical Institute, a unit of Georgia Tech's Engineering Extension Division, assures a continuing supply of trained electronics technicians.
ll Fulmer, John L., Population Estimates in Georgia Counties for 1956-
1l57, with Analysis of Reasons for Changes from 1950, Special Report No. 33, Engineering Experiment Station, Georgia Institute of Technology, December, 1957.
-17-

Southern Tech now graduates 60 to 70 electrical and electronics technicians yearly. The breakdown of degrees awarded by this institution in 1962 was as follows:

Course

Number of Degrees

Building Construction Technology

42

Civil Technology

49

Electrical Technology (including electronics)

62

Gas Fuel Technology

17

Heating and Air Conditioning Technology

21

Industrial Technology

38

Mechanical Technology

36

Textile Technology

8

The Georgia Institute of Technology in Atlanta provides an excellent source for a continuous supply of electronics engineers, physicists and mathematicians. Table 5 indicates the graduates by degree from 1955 through 1961. In addition to current graduates, a 1957 survey by the Industrial Development Division of 237 electrical engineering graduatesl/ indicated that almost 70% were interested in relocating in Atlanta or the surrounding area if suitable jobs became available.

Further evidence of the existence of a sizable supply of electronics engineers in the state (particularly in Atlanta) is given by the experience of one of the largest manufacturers of electronic equipment in the country in recently locating a major facility in the Atlanta area. One of the vice presidents of the firm stated that the company had received far more applications for the Atlanta facility than it had required or expected, Noteworthy is the fact that many of these applications were requests from within the company for transfers to Atlanta.

1/ The year of graduation of these engineers varied from 1946 through
1957.-
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Table 5
GRADUATES BY DEGREE, GEORGIA INSTITUTE OF TECHNOLOGY, 1956-1961

Bachelor of Science in Applied Mathematics
Bachelor of Architecture Bachelor of Aeronautical Engineering Bachelor of Ceramic Engineering Bachelor of Chemical Engineering Bachelor of Science in Chemistry Bachelor of Civil Engineering Bachelor of Electrical Engineering Bachelor of Science Bachelor of Industrial Engineering Bachelor of Science in Industrial Management Bachelor of Mechanical Engineering Bachelor of Science in Physics Bachelor of Textile Engineering Bachelor of Science in Textiles Master of Science Doctor of Philosophy

1956 1957 1958

4 11

7

16 18 20

26 46 56

7 19 14

46 55 59

4

4 13

73 42 68

116 102 104

43 44 56

123 178 211

186 216 263

100 142 142

12 24 25

3

9

4

34 37 34

107 97 110

7

9

4

1959 1960 1961

7 16 18

24 15 19

58 42 55

22

9 14

55 61 25

15

6 11

70 79 61

102 127 125

27 25 18

162 157 132

297 286 299

153 97 111

22 30 23

8

6

6

39 22 17

111 135 140

12 12 20

-19-

Production Labor Savings

As indicated in a previous section, production labor costs are primary location considerations both for firms manufacturing electronic components and for those producing consumer products. The ratio of value added by manufacture to dollar of production wages paid for the major producing areas is compared with the Georgia ratio below:

Value Added Per Dollar of Production Wages

Components (SIC 367)

Consumer Products (SIC 365)

Wisconsin Illinois New Jersey Ohio Pennsylvania New York California GEORGIA

$2.11 2.45 2.56 2.57 2.59 2.61 2.64 3.08

$3.09 2.71
3.27

For component and consumer product manufacturers the labor costs of average size plants in various locations are indicated in Table 6.
Table 6 indicates that production labor savings of a Georgia producer of electron receiving tubes range from 4.2% of sales (compared to a California plant) to 11.8% (compared to a plant in Wisconsin). For a producer of cathode ray picture tubes the savings would range from 2.4% to 6.7% of sales, and for electron power tubes producers and producers of other electronic components the savings ranges would be 3.5% to 9.8% and 3.1% to 9.2%, respectively. These savings in production labor costs are significant when compared to the net profit before taxes figure for the electronics industry -- approximately 8.5% of sales.

ll Since there are presently no Georgia firms in SIC 365, it was necessary
to estimate the Georgia rate for this industry. The Georgia rate for SIC 361, Electrical Distribution Products, was used for SIC 365. This should be a very conservative estimate since a comparison of rates for the two industries in ~jor producing areas revealed that the rate for SIC 361 is well below SIC 365 in each area.
-20-

Table 6
COMPARISON OF PRODUCTION LABOR COSTS FOR AVERAGE SIZE PLANTS MANUFACTURING COMPONENTS AND CONSUMER PRODUCTS IN VARIOUS LOCATIONS (Millions of Dollars)

Wisconsin

Electron Tubes-Receiving
Shipments *
Material Cost
Value Added by Manufacture Value Added per Dollar Wages Production Wages
Savings of Georgia Plant
(as % of sales) over: Cathode Ray Tubes
Shipments '' Material Cost Value Added by Manufacture Value Added per Dollar Wages Production Wages Savings of Georgia Plant (as % of sales) over: Electron Tubes-Power
Shipments *
Material Cost Value Added by.Manufacture Value Added per Dollar Wages Production Wages
Savings of Georgia Plant (as % of sales) over: Electronic Components, n. e. c.
Shipments '' Material Cost
Value Added by Manufacture Value Added per Dollar Wages
Production Wages Savings of Georgia Plant
(as % of sales) over: ladio, TV Receiving Sets
Shipments *
Material Cost Value Added by Manufacture Value Added per Dollar Wages Product ion Wages Savings of Georgia Plant (as % of sales) over:

$4.5 _____,_2. $3.52 $2.11 $1.67
11.8%
$2. l 1.20
$ .90 $2.11 $ .43
6.7%
$5,4
~
$3.57 $2.11 $1,69
9.8%
$ .98 ~ $ .62 $2.11 $ .29
9.2%

Illinois
$4.5 _____,_2. $3.52 $2.45 $1,44
6,7%
$2.1 1.20
$ .90 $2.45 $ .37
3.8%
$5.4 1.83 $3.57
$2.45 $1.46
5,6%
$ .98 ~ $ .62 $2.45 $ .25
5.1%
$6.6 ....1..,22, $2.65 $3.09 $ .86
1.7%

New Jersey
$4.5 _____,_2. $3.52 $2.45 $1.44
6. 7%
$2.1 l. 20
$ 90 $2.45 $ .37
3.8%
$5.4 1.83 $3.57
$2.45 $1.46
5.6%
$ .98 ~ $ ,62 $2.45 $ 25
5.1%
$6.6 3.95
$2.65 $2.71 $ .98
3.5%

Pennsylvania

$4.5 _____,_2. $3.52 $2.57 $1.37
5.1%
$2.1 ....L1Q $ .90 $2.57 $ .35
2.9%
$5.4 1.83 $3.57
$2.57 $1.39
4.3%
$ .98 ~ $ ,62 $2.57 $ .24
4.1%

$4.5 _____,_2. $3.52 $2.59 $1.36
4.9%
$2.1 1.20
$ 90 $2.59 $ .35
2.9%
$5.4 1.83
$3.57 $2.59 $1.38
4.1%
$ .98 ~ $ .62 $2.59 $ .24
4.1%

New York
$4.5 _____,_2. $3.52 $2.61 $1.35
4.7%
$2.1 ....L1Q $ 90 $2.61 $ .34
2.4%
$5.4 __1,_1 $3.57 $2.61 $1.37
3.9%
$ .98 ~ $ ,62 $2.61 $ .23
2.1%
$6.6 ....1..,22, $2.65 $3.27 $ .81
.9%

California
$4.5 _____,_2. $3.52 $2.64 $1.33
4.2%
$2.1 1.20
$ .90 $2.64 $ .34
2.4%
$5.4 1.83
$3.57 $2.64 $1.35
3.5%
$ .98 ~ $ .62 $2.64 $ .23
3.1%

t Average Size Plant

$4.5 _____,_2. $3.52 $3.08 $1.14
$2.1 ....L1Q $ 90 $3.08 $ .29
$5.4 __1,_1 $3.57 $3.08 $1.16
$ 98 ~ $ 62 $3.08 $ .20
$6.6
...1..:.22.
$2.65 $3.54 $ 75

-21-

Table 6 also indicates that producers of radio, television and phonograph sets could expect savings in production labor cost ranging from .9% to 3.5% of sales by producing the items in Georgia. Although the savings for these producers are smaller than for producers of components, they would represent a significant increase in net profits.
Potential savings in production labor costs were not computed for producers of commercial, industrial and military electronic products, since production labor costs are not considered a prime location factor for these industries. However, savings are available to these producers also. They would be an additional benefit of producing in Georgia. Proximity to Missile Production and Test Facilities
Georgia is located in the center of the missile production and test facilities in the Southeast. (See Map 1.) This geographical advantage is important to producers of missile products because it provides a manufacturer in Georgia the opportunity for close liaison between the production and using facility. The short airline travel time between Atlanta and Cape Canaveral, Florida, and between Atlanta and Huntsville, Alabama, is a distinct advantage to a producer located near the Atlanta area. As pointed out earlier, close liaison between the producing and using facility is a prime location factor for producers of military electronic products. Table 7 indicates typical airline flight time between Atlanta and major cities in the U. S. Transportation Facilities
Since most electronic products are distributed nationally, transportation facilities are an important consideration in plant location decisions. Although most electronic products are not bulky enough to cause handling problems, it is necessary to have a good transportation network to ship the products to the national market.
Atlanta is the distribution center of the Southeast, and the transportation network which radiates from Atlanta, unsurpassed anywhere in the South, ~ould give a Georgia producer easy access to markets, materials and components. In addition, company officials would have excellent service to any City in the U. S. for necessary business trips.
-22-

MAP 1 LOCATIONS OF MAJOR MILITARY, NASA, AND AEC INSTALLATIONS AND
AIRFRAME MANUFACTURERS IN THE SOUTHEAST

USAF ARNOLD ENGINEERING DEVELOPMENT CENTER AEC-UNION CARBIDE
AVCO MANUFACTURING CO.

LANGLEY RESEARCH CENTER (NASA) AEC-UNION CARBIDE
DOUGLAS AIRCRAFT CORP.

I

____

.Paducah

KENT UCK Y

,L_.J.

.-, -

I

Nashville

)

VIRGINIA
0 Greensboro

)

TENNESSEE

J

ORoleigh



/

.-""

OAshville

N0 RT H

.JoJ--Mem-phi-s --~---
MARSHALL S

-



fl
-r

,.I nC-hat-tanoo-go

-



7



_,,.-----~ .

Ch

or

C
1 otte

A

R

0

L I

N A

(NA~~CE --e ~ CENTER

F';IGHT

Huntsvil\e

o Greenville \... - -,,

M~SSILE~ ARMY ORDNANCE

COMMAND (REDSTO,NE

Godsdeno

~-"\. torietto~

',

\ , Columbioo S 0 U T H



- - e HAYES AIRCRAFT CORP

s

\ Atlonto 0

I

.

rrmrngham \

Augus\ta,~--c-A-R--0 .L.I.NLA_

I! M1 S S. i

A L A B A MA
Montgomery 0

\ GE 0 RGI A

\~Columbus

""'

,f

Savannah o

AEC-DUPONT
U.S. NAVY (POLARIS SUBMARINES)

i

\

i

{

j MobileC:"------\

)

'------.----"'-"\r

Panama City OTallahossee

J 0 Jacksonville

LOCKHEED NUCLEAR LABS. LOCKHEED-GEORGIA CORP.

STATIC MISSILE TEST FACILITY (NASA)

U.S. NAVY MINE DEFENSE LABORATORY
Tompo

MICHOUD SATURN BOOSTER PLANT (NASA)

USAF PROVING GROUND (EGLIN AFB)

NASA LAUNCH OPERATIONS DIRECTORATE
USAF AIR MISSILE TEST CENTER
MARTIN-ORLANDO CORP.

-23-

Table 7 TYPICAL AIRLINE TIME BETWEEN ATLANTA AND SELECTED POINTS

Washington, D. c.
New York, New York Chicago, Illinois St. Louis, Missouri Denver, Colorado Seattle, Washington San Francisco, California Los Angeles, California Dallas, Texas Miami, Florida Orlando, Florida Huntsville, Alabama Pittsburgh, Pennsylvania Cleveland, Ohio

1 hour 36 minutes 1 hour 44 minutes 1 hour 35 minutes 2 hours 17 minutes 4 hours 7 minutes 6 hours 55 minutes 6 hours 35 minutes 4 hours 17 minutes 1 hour 45 minutes 1 hour 27 minutes 1 hour 4 minutes
49 minutes 1 hour 37 minutes 1 hour 45 minutes

I
I
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-24-

Georgia has 32 rail carriers, including 15 Class 1 railroads. It has approximately 100 motor freight carriers and six air freight carriers. In addition, ports at Savannah and Brunswick provide facilities for export trade.

Electronics Research in Atlanta

The Georgia Tech Engineering Experiment Station performs $4 million worth of research annually -- almost a million dollars of that total in electronics. Several private companies, an aircraft plant and a major medical research complex in Atlanta also conduct research programs relative to electric and electronic measuring devices.

The research staff of 650 employees at the Engineering Experiment Station is built around 300 experienced scientists and engineers. Two thirds of these devote full time to research, and the remaining 100 divide their time between teaching and research. They are supported by qualified technical assistants, machinists and technicians, all under centralized administrative direction. Facilities are available for research in most phases of science and engineering. The services of these personnel and facilities are available on a consultation or contract basis through the Georgia Tech Research Institute.

Research in electrical engineering at Georgia Tech includes such diverse

areas as network theory, automatic controls, electromagnetic theory, communi-

cation circuits and instrumentation. Facilities and qualified personnel are

available in most of the other important areas of electrical machinery and systems, particularly electronics.

I

~

Major electronics research capabilities are in the areas of radar,

microwaves and communications. Facilities include two field sites for propagation links, HF and VHF antenna ground plane and vehicular laboratories, a microwave test range, and well-equipped frequency control, electronic,

I

microwave and interference measurements laboratories. Programs in radar, encompassing the fields of information theory, ultra-

I

narrow-beam antennas and millimicrosecond pulse techniques, have produced

designs for several new types of radar systems. Some of these systems have been completely developed and evaluated under field conditions by Georgia

I

Tech personnel.
J

-25-

Microwave research efforts have included work with devices for high resolution radar and radiometer systems and research directed toward increasing the sensitivity of microwave spectrometers. Some of the major subareas have been the fields of shaped-beam antennas, geodesic lenses, ring switches, millimeter wave techniques and ferrite devices.

In the area of communications, advanced techniques for both FM and AM modulation and detection have been developed. They include suppressedcarrier systems which are insensitive to the Doppler Effect and can consequently provide power-conserving voice communications for high-velocity aircraft. Extensive research activities in frequency control have resulted in improved techniques for fabrication and utilization of quartz crystals and have produced crystal controlled oscillations with frequencies up to 600 megacycles.

Representative of work on RF interference is a comprehensive research program to develop electronic computer techniques for assigning frequencies and equipments to army field communication systems on a non-mutual interference basis. This program includes studies to determine the interference susceptibility and emanation characteristics of transmitting and receiving equipment, as well as methods for computing optimum allocations of this equipment and its frequencies within an arbitrary communications system.

Following the pattern set at Massachusetts Institute of Technology,

Stanford University, California Institute of Technology and many other

campuses, new research-based companies have been established by former per-

sonnel of the Georgia Tech Engineering Experiment Station. Most are based

upon instrumentation technology. The foremost example of this is Scientific-

Atlanta. This company, created in 1952, now has about 225 employees and

over $3 million annually in sales. It claims to be the leading specialist in the antenna instrumentation field, furnishing well over half the instru-

I

ments used in this activity. It also develops other new products, such as a B-H meter for testing magnetic tape, which is now used by most major tape

I

manufacturers.
Emory University spends approximately $2.5 million per year on research, Primarily in the medical field. This effort is closely meshed with that of the Communicable Disease Center, which has an estimated research budget of

I
I

$6 million per year. The Center is consolidating its national operations in

I

-26-

I

Atlanta and is building extensive research facilities adjacent to the Emory campus. The relatively new field of medical electronics is an important element of the research being done in the CDC-Emory complex. The Special Problems Branch of Georgia Tech's Engineering Experiment Station also works in medical electronics. For example, the Branch has designed and built analogue computing devices for continuous processing and data reduction of blood pressure, heart rate and electro-encephalographic signals.

Private companies performing in related fields include RMS Engineering, Inc. (formed by Engineering Experiment Station personnel), which specializes in the development of precision radio receivers; Lockheed-Georgia Company at Marietta, which is concerned with aircraft instrumentation and airframe testing equipment; Radiation Technology, Inc., which produces transistorized instruments for the measurement of radiation; and Aeroscience Electronics, Inc., which specializes in telemetry systems.

Perhaps most important, the recently announced location of a major

electronics facility in DeKalb County by Litton Industries, not far from the

new plant built by Scientific-Atlanta and a plant announced by Theta

Electronics of Georgia, Inc., gives promise of a new technology-oriented cen-

ter in this area.

I

!

i

I

I
I I
I
-27-

f
I
~
I
I


Vol. 14, No. 11, August, 1966

Bill Carpenter, Editor

Official Publication
Jackson Electric Membership Corporation 117 Athens Street Jefferson, Georgia
s. Wn.LIAM WELCH
General MaruJger

BOARD OF DIRECTORS
w. H. BOOTH

Jackson Director

President

0. L. CATO

v. J. BOOKER

Hall Director

Barrow Director

Vice-President

Sec.-Treas.

E. BAXToN Coox Clarke Director
w. c. ALEXANDER
Banks Director
c. LOWELL MANLEY
Madison Director

A. T. SHARPToN Gwinnett Director
HAYWOOD O'KELLEY
Lumpkin Director
H. L. HARMAN Jackson Director

T. D. STOREY Staff Assistant
C. ELMO WALLER, Office MaruJger
J. FLOY BULLOCK
Engineering Services
L. W. SHIRLEY Electric Operations
E. E. THURMOND, JR. Member Education & Public Relations
EVELYN HARRIS
Home Service Advisor
jERRY DoVER Farm Electrification Advisor
EuGENE R. CoLLINS Gainesville District Manager
CLAIRE Mn.TON
Home Service Advisor
Published monthly by the Member Education and Public Relations Deparbnent of Jackson Electric Membership Corporation and mailed to all members and consumers of this rural electric cooperative. Ideas and suggestions welcomed from readers. Subscription rate: 50 cents per year. Second class mail privileges authorized at Jefferson, Georgia, 30549.
COVER-The cover of this Issue explores the strange and fascinating world of the boney bee. Although tbe chief value of boney bees in the national economy is to perform tbeir essential function of pollinating fruit and seed crops, tbey are kept by beekeepers so that they may produce a crop of boney for sale. The Georgia Mountain Beekeepers' Association is seeking to promote interest in this Important industry. Page 6 of this Issue contains a story about the boney business.
Is tbis your billing number? C5'7-2425

Comments From Your Manager
It's time to move ahead! With the establishment of the Feder Bank for Rural Electric System s, we will b e able w move ahead wi the continuing job of supplying rural America with an adequa supply of low-cost electricity.
Ther e are those who would have you b elieve that th e Ru r Electrification Program wi sh es to continu e complete self-reliance 0 th e F ede ral Government for its finan cin g; that the F ed eral Ba Plan now b ein g studied in Congress is a m eans of continuing self-reliance; that the formin g of thi F ederal Bank is a tep near to " Socialism " and a complete takeover of the utility business. Th accu sations are completely in er ror, baseless, and a misr epresentati of facts.
The fact is that this much n eeded and n ecessary l e gisl ation i plan design ed to achieve financial indep enden ce in an orderly, tematic manner . Obviously, this cannot b e wrought over night.
Th er e are electric cooperatives throughout our nation in varyi financial po itions. Ther e are some that have grown and achie, gr eater equity of m ember ownership. Th ere are others that h ave I than one m ember per mile of line. To the e the availability of lo intere t loan fund s m eans th e diffe ren ce in survival or dissolveme and for the ir member , continued electricity or " back to darkne. I have seen these areas p ersonally and b elieve m e, no private pow company wants any part of this type bu iness.
There are many electric cooperatives that fall between the " te r off" and the "ver y poor" classes. Thus, it b ecomes obvious that well thou ght-out, financing plan must b e developed .
This type plan was developed with the assistance of some of b est financial consultants in the nation . This in turn led to the P
posed l egislation now b efore Congre s. True, th e l egislation eaiJ t
finan cial h elp in the b eginnin g. It does, however, provide for co . plete repay m ent of the government funds and eventual own~r and control b y th e rural electr ic syst em which will also invest 10 bank. This kind of plan has already proven its merit with the B of Cooperatives and the F ederal Land Bank.
Growth governs the electri c industry. And to grow, our pro n eeds capital in greater quantities than ever b efore. So, it actu boils down to two major "rights". W e feel it is "right" for u to toward financial ind ependence. W e feel it is " right" that we h sufficient capital to grow and provide our m embers with adequ low-cost electricity.
Support th e establishment of a F ederal Bank for Rural Elrt Cooperatives. It is urgent that you voi ce support for this plan W rite your Congressman and Senators urging th em to vote . or This is a sound plan- a proven approach- a much n eeded P1f{'t le gislation.
It's time to move ahead!
Is this your billing number? VI

Mr. and Mrs. David L. Souther, Rt. 7, Gainesville, are shown in front of their twelve-yearold home which is being remodeled and converted to flam eless electric heat. "While we were adding 825 sq. ft. to our house and bricking it, we decided to do a complete remodeling iob and install electric heat," said Mr. Sottther.

Remodeling? Go Total Electric

By JERRY DOVER F arm Electrification Advisor

Many J ackson EMC consumers are presently r eeling their homes. Perhaps your remodeling dreams till in the planning stages.
Whether you are planning to r emodel for expanbeautification, or convenience, you certainly want changeover to be modern and to r emain modern many, many years. As you have noti ced in yorn comity, in new sub-division , or wherever n ew house being b uilt . . . there are more and more totalric homes. Why? B ecause people have discovered are continuing to discover how economical electric
really is.
With flam eless electric living, appliances are cool-

er, afer, and more carefree. And although summertime seem to be no time to consider h eat, your plans should include electric h eat, the mo t modern heating method available.
You will be pleasantly surprised to see the low cost of electric heat. Individual temperature control for each room gives yo ur home the variety needed for warmer baths and nurseries with not-so-warm b edrooms and living areas.
Contact your nearest Jack on EMC office today and ask for any of the electric heating specialists. They will b e glad to answer any questions you may have on your home conver ion and go over your plans with you.

What Is A Rural Electric Cooperative?

o our consumers who have been JEMC line for a long time, this
seem like an elementary quesHowever, we have many new ers who need to understand ab ou t the business they own.
YOU OWN
actual operation, a rural eleceooperative conducts its business aame way as any other private
rise. Its difference lies in the that it is owned by the people
es. You and more than 21,740 r-consumers in eight North Georgia counties own J ackson
YOU CONTROL
son EMC is controlled through m of one member, one vote.
year at Annual Meeting, memb er-owners elect directors, ine how their business is func-

tioning, and take an active part in charting the Cooperative's course for the coming operating year.
NON- PROFIT OPERATION
J ackson EMC is a non-profit organization, and it was planned that way. Money left over at the end of the year, after paying all expenses, including the cost of wholesale power, goes b ack to consumers in the form of margin refunds.
These refunds are made when authorized b y the B oard of Directors and when in the interest of sound business principles. Jackson EMC rates are among the lowest in the nation; however, JEMC consumers have also received '$1,527,765.01 in margin refunds.
Participate actively in your mem ber-owned private enterprise by at tending your Annual Meeting on September 17.

Your billin g number? LS0-0100

} EMCO NEws August, 1966 e 3

Changes
Bring Constantly
Improving
Service
To You
By C. ELMO WALLER Office Manager
The bills, shown at the right, illustrate the change which has been made in the spacing on the back side of your electric service bill. The spacing has been rearranged to accommodate the new map numbers which will identify each account.
This month we will b egin anoth.er p eriod of change. You have probably noticed that the pacing on the hack side of your electric service hill has b een rearranged to carry a larger hilling number.
Due to the rapid growth that your cooperative is exp eriencing, it is becoming more difficut to assi gn new hilling numbers without changing several accounts. The hilling number s are assigned in numerical sequence with sufficient numbers in b etween to take care of what is thought of as normal growth. When all the numbers are used in .a particular section, the numbers have to h e rearranged to allow for a new service and to keep the numbers in sequence for meter reading. This has hecome increasingly_difficult in recent months and years.
Mr. Ed Strausser of Stausser and Associates began mapping the entire JEMC system at the first of the year.

H e is currently going hack over the area and new map numbers by using a grid ystem to each account. H e is now working in the vicinity of 1, Lawrenceville.
As soon as Mr. Strausser completes one section, will convert to the n ew mapping numbers and b egin ing them to replace our present billing number Every precaution is b eing taken to insur e as smooth transition as possible.
As in any bi g change where more than 20,000 counts are involved, the b est planning will not some difficulty. The objective of Jackson EMC is ways give the he t service at the lowest cost The n ew mapping system will h e one more way to prove our service to you.

Collins Named Gainesville District Manager

Eugen e R. Collins has b een appointed Gainesville District Manager for Jackson EMC. Collins, formerly of Rio Grande City, Texas, a sumed his duties on July 18.
Reared on a farm in Texas, Mr. Collins began his career in rural electrification in 1949 at the Media Electric Cooperative in Texas. ,During the Korean War he served with the 836th Signal Relay Company.
With the exception of two years of employment with South Texas Electric Cooperative, he has worked with Media Electric Co-op. During the past two years h e served as area supervisor . in Media Electric Cooper a-
Is this your billing number? Nll-0325
'f
.. -----

EUGENE R. COLLINS Gainesville District Manager

tive's Rio Grande City area. A supervisor , Collins was for insuring that the consumers served b y the area's miles of line received electric service.
In a Collins anxious to get and b ecome a part of the ity."
A member of the Baptist Collins is a self-taught musician enjoys outdoor s p o r t s, hunting and fi hing. The have three children, and will in Gainesville.
Is this your billing number?

Mr. Howard Sells
Gainesville

Mrs. Lois Richers

Dr. W. Ben Nalley

In Electric & Home Living Program" Scheduled August 3

Ladies from the Gainesville Jackson EMC service will gather at the Gainesville District Auditorium August 3 for the summer "Best in Electrical and e Living" program. There's magic in the theme of meeting which is co-sponsored by the Hall County
Economics Clubs and Jackson EMC. The prowill begin promptly at 9:45 a.m.
Lois Richers, Field Home Economist for the Dairy Association of Chicago, will give some and interesting ideas on how to put life into your meals with her demonstration entitled "SumMagic with Nutritious Menus". A covered dish lunch will be served at 12 noon. ladies are invited to participate by bringing a covdish.

Numerous prizes will b e drawn throughout the day with a cash award of $5.00 going to the club with the largest attendance.
Dr. W. Ben Nalley, a prominent Gainesville physician, will bring an informative presentation, "Dieting, Nutrition, and You," which will b e of particular interest.
Mr. Harold Sells, Sales R epresentative for the Martin Senour Paint Company of Atlanta, will conclude the afternoon program by showing you how to antique furniture- the easy way.
Harmony Hall Home Economics Club will be in charge of the August 3 meeting, with members of the Brookton Home Economics Club caring for the childreo. All Home Economics Club m embers, JEMC memberconsumers and friends are invited to attend.

IF@@) D)

DATE NUT SUNDAE SAUCE

chopped pitted dates dark corn syrup cup firmly packed light brown sugar

1/ 4 cup water 1/4 teaspoon salt 1/ 4 cup chopped pecans 1/ 2 teaspoon vanilla

of these sauces make a tasty sundae, but they're delicious in an ice cream parfait. Your favorite flavors cream layered in a tall glass with sauce or fruit add
this deluxe dessert.

In a saucepan combine dates, syrup, brown sugar, water
and salt; bring to a boil. Cook over medium heat, stirring constantly, about 2 minutes or until dates are soft. Remove from heat; stir in pecans and vanilla. Cool. Makes about 1-1/ 2 cups.

CHOCOLATE PEANUT BUTTER SUNDAE SAUCE 1 package (6 oz.) semi-sweet 1/ 4 cup light corn syrup

chocolate pieces 1/ 4 cup peanut butter,
creamy or crunchy

5 tablespoons half and half or light cream
Vanilla ice cream

In double boiler over hot water melt chocolate. Add peanut butter and stir until blended. Remove from heat and add corn syrup and half and half or light cream. Serve warm over vanilla ice cream. Makes 4 to 6 sundaes. This sauce may be stored in the refrigerator, but should be heated before using. If it becomes too thick, add a small amount of half and half or light cream to thin it down.

ORIENTAL SAUCE FOR ICE CREAM

2 cups sugar

1-1/ 2 tablespoons grated

1 cup water

lemon rind

1-1/ 2 tablespoons grated

1/ 4 cup lemon juice

orange rind

1/ 3 cup finely chopped

1/4 cup orange juice

candied ginger

1/ 2 cup slivered blanched

almonds

In small heavy saucepan stir to
orange juice and rind and lemon juic sugar is dissolved. Add ginger and thick consistency. Remove from he moods. Cool and serve over vanilla

.::.. . .- - - . . . . . . . _

Your billing number? Wl6-3535

]EMCO NEWS

T. /. Merritt and grandson, Terry, Rt. 3, Gainesville, are shown above as they check the beehives for honey. Mr. Merritt has a total of 179 beehives in Hall, Jackson, Forsyth, Lumpkin, Towns, and Rabun Counties.
Where Has All The Honey Cione?
Northeast Georgia beekeepers like
T. J. Merritt are scratching their
h eads and wondering where all of this year's crop of honey has gone. "Usually we would have already gathered the second crop of honey by this time, but this year I haven't gathered the fir t bit of honey," says Mr. Merritt.
Merritt has been in the commercial honey business for 25 years and has worked with bees all of his life. H e blames this year's honey crop failure on "climatic conditions." "Actually there are four main factors around which a honey crop revolves, but this year it seem s to b e the weather," Merritt says.
A b eekeeper's profit is influenced greatly by the yield of honey which h e receives from each hive. This year promises to be a lean one for the beekeeper, but years of experience have conditioned them to accept failure philo ophically.
B eekeeping in Northeast Georgia is on the incr ease thanks to the combined efforts of the Georgia Mountain B eek eepe rs' Association and the Cooperative Exten sion Service.
The beehive is a kingdom within itself. This highly efficient honey factory is the cooperative product of the drones, workers, and queen bee.

Is this your billing number? MSS-0347

Is this your billing number?

W..hat to Do ...
HEN YOUR POWER IS OFF
Monday-Friday, 8 a.m.-5 p.m. (Except Bolldays)
When out of service call your nearby Jackson EMC Office: Jefferson headquarters (367-5281), Lawrenceville district office (9634904>, Gainesville district office (536-2416 or 536-2415>; or Neese district office <Athens 546-7592).
Jefferson
If no answer at the Jefferson Offlee August 1-7, call Thomas Harris, 367-8763; August 8-14, call Cecil Venable, 367-8238; August 1521, call Calvin Carey, 367-8388; August 22-ZI, call Robert Edwards, 367-5674; August 29-September 4, call J. 0 . Nabors, 367-8337.
If Jefferson number listed for does not answer, call Robert 367-5354; or Lewis Shirley,
Lawrenceville
no answer at the Lawrenceoffice, call Henry Pinion, i3-~1294: J. B. Jones, 963-7652; . .anltlin Nichols, 963-3133; or RayDavis, 963-2255.
Gainesville

Neese
no answer at the Neese Office, A. D. Wilkes, Ila, 789-3432; Thomason, 789-3441; Kenneth
Thomason, 789-3554; BUb' B. IIIN!:rt&on. 789-3460; Dwight Car-
George Jamieson,

MEMBERSHIP CORPORATION

June, 1965 20,373
9,470,776 482
$173,052.40 $8.81 1,221
3,018.55 Added 185

June, 1966 21,740
11,604,435 552
$201,620.83 $10.11 1,126
3,126.66 206

offices are open MooFriday from 8:00 a.m. to 5 legal holidays.

From Your President's Desk

Attend Your Annual Meeting September 17

Once again, a Annual Meeting time rolls around , l et m e insist that you make your plans to attend on September 17 if it is at all possible. I know that all of us have many demands for every hour of our time, o you m ay a k why should I attend? The e are some of the reasons :
(l) Fir t of all, it is your business. You own your proportionate share of Jack on EMC, so you n eed to know what is goin g on and how it is b eing run.
{2 ) Th e more you know about your organization, the directors, the management, the employees, the facilities, then the more you will appreciate the ser vice b eing r ender ed. A b etter informed m ember -consumer is a more effective m ember-consumer.
(3 ) You ge t to listen to reports, ask questions, participate in discu ssion, and b e t of all, fellowship with your fellow members and friends. You will get to eat a good lunch and mayb e h ear some outstanding national speaker.

There ate many good r easons why you should attend your Annual Mee ting. So come on- join in for this day.
W e have just celebrated a most important day in the history of our nation- July 4th, Independence Day. Many millions of people in too many nations of the world do not have the same freedom of opportunity that we enjoy b ecause we are a free people. On occasions such as our Annual Meeting, we can come together; we can discu s openly any problem or any situation ; we can express ourselves freely; we can arrive at conclusions in a democratic way.
So long as we continue to have this freedom, we will be a strong and fine nation. If we lose this freedom, it will h e by default and because we have failed to use it properly. This is why I think it is important for you to be a participating part of your cooperative by being willing to learn about its activities and to support its fine principles.

(4 ) You r presence and the presence of other m embers like yourself has a way of telling the public that we are a good organization, and we are proud of it.

WILLIAM H. BooTH
President, Board of Directors

Your billing number? J43-2100

}EMCO NEws August, 1966 7

Fills Unexpired Term

E. Baxton Cook Appointed Director for Clarke County

E. Bax ton Cook, Route 1, Athen s, was appointed to the Board of Directors of your Cooperative at a r ecent meeting of your Official Board.
Mr. Cook wa appointed director for Clarke County to fill the unexpired term of E. R. Hodgson, who resign ed due to declining h ealth. Mr. Hodgson has served as Clarke County Director since 1941.
The bylaws of your Cooperative provide that the Board of Directors appoint a successor when a vacancy occurs. Directors are el ected at the annual m ember s' m eeting to serve stagger ed three-year terms.
A part-owner of Athens Marble and Granite Company, Mr. Cook has b een a m ember-consume r of Jackson EMC since 1953. After graduation from R eynolds High School, he entered Georgia Institute of Technology where h e graduated with a Bach elor of Science Degree in Commerce.
Mr. Cook is a Deacon and Sunday School Superintendent of the First Baptist Church in Athens. H e is also a member of the Georgia Farm Bureau ; and a m ember and past president of the Alabama, Georgia, Florida division of National Monument Builders of North America.
He is married to the former Lena W ells and has 2 sons and three grandchildren. The Cooks live in their " total-electric" home on "Nowhere Road" .

E. BAXTON COOK Clarke County Director

News Briefs

E. R. HODGSON SERVED WELL
'
E. R. Hodgson 'r ecently r esigned as Clarke County director due to declining h ealth. Mr. Hodgson has served your Cooperative effectively and tirelessly since 1941.

Walter Harrison, executive manager of Georgia EMC, told the Minutemen about the necessity and operation of the F ederal Bank for Rural Electric Systems.
IMPORTANT ANNUAL MEETING

Born in 1871, Mr. Hodgson is a r etired Clarke County businessman.

INFORMATION IN SEPTEMBER JEMCO NEWS

MINUTEMEN HEAR
WALTER HARRISON
A record number of Jack on EMC Minutem en from eight Northeast Georgia counties gathered at the n ew J efferson h eadquarter s auditorium on July 14 for an important dinner m eeting.

The September issu e of the J emco News will include important information about your Annual Meeting which will b e h eld on Septemb er 17. A reservation coupon for the barbecu e lunch will also b e contained in the issu e. Be looking for this important issu e of the J em co News.

____ ..._

LAST NAME APPEARS FIRST BI LLING NUMB ER

ACQU I S I T I ONS D
U OF GA L I BRAR I E ATHENS GA

It Pays To Read
~~

Recognizing their billing numberl
in the July Jemco News were: J oe 11
Tolbert, Rt. 1, Nicholson; Edwarc Hartley, Rt. 1, Oakwood; C. P. Car Ian, Rt. 3, Commerce; Astor Puckett Box 330, Buford; Donald W. Roper Rt. 7, Gainesville; H. C. Parks, Rt. 1 Murrayville; Z. T. Logan, Rt. 4, Com
merce.

Failing to recognize their billin numbers in the July Jemco NeW) were: R. L. Kyker, Rt. 2, Jefferson
Joe E. White, Rt. 1, Baldwin; B Brooks, Rt. 1, Lawrenceville.

To locate your billing number, loo

on the label of the Jemco News, thel

look through the pages of this issuE

If your billing number appears pages other than on the address

ilnath~!

let us know you saw it, and we

send you a check for $1.00.

Your letter must reach our J eff son Office by August 15, 1966.

Is this your billing number? N65-0ZZ