IHCA and the Geelong factory .. cont. ...
The Geelong factory was a huge investment for International Harvester, and put them up in the big league, along with Ford, GMH and Chrysler for the scale of manufacturing investment in Australia, prior to WW2.
The Geelong factory was not only a comprehensive manufacturing facility, it was also designed to be seriously expanded. The factory was complete as any major manufacturing facility needed to be.
The new and large foundry consisted of both a grey iron and malleable iron foundries; there was a forging shop, a wood shop, a pattern shop, a machine shop, and a sheet metalwork section.
A large and specialised building was located adjacent to the new wharf for the handling, storage and assembly of tractors and trucks that were imported in crates in knocked-down form.
The construction and equipping of the factory was done to utilise as much Australian content as possible.
IH senior executives were surprised to find that many items of machine shop equipment could be supplied by Australian manufacturers.
In only a few cases involving high-tech, latest-technology machines, was it deemed necessary to import them from the U.S., Canada or the U.K.
The major difference between IHCA and the other large manufacturers in Australia at the opening of the Geelong factory, was that IHCA was very largely, an agricultural-implement manufacturer .. and the construction and design of the Geelong factory represented that.
The large-scale production of agricultural implements was the factorys main aim .. with tractors, trucks, and other vehicles, being a secondary product line.
However, IH executives saw that the secondary products lines would increase substantially in coming years, and planned accordingly.
The Australian release of the "new" model "D" International trucks, in August 1937, which led to an upsurge in International truck and ute sales, was an indicator to the future.
Despite the promising increase in sales of the new International utes and trucks, International still ran a distant fourth in the vehicle sales stake in 1941.
At that date, GM/GMH occupied 1st place, at nearly 40% of vehicle sales, Ford, 2nd place at 20%, Chrysler about 15%, and International about 10%. The remaining 15% was spread amongst a large number of brands.
IHCA and WW2 ...
The factory was only in full production for a few short months, when an event that would affect the world, Australia, and IH, in ways never foreseen, was announced.
On Sept 3, 1939, PM Robert G. Menzies made a major, pre-advised announcement, to many hundreds of thousands of Australians, gathered around their "wireless" sets.
His lengthy announcement simply stated in its opening lines: "It is my melancholy duty to inform you officially, that in consequence of the persistence by Germany in her invasion of Poland, Great Britain has declared War upon her. Accordingly, Australia is now also at War".
This simple two-sentence statement, set in train events that were to reshape the world, reshape Australia, and affect the lives of every single Australian, no matter whether they were military or civilian.
The last few months of 1939 and the first 6 months of 1940 did not initially appear to alter things very much for manufacturing.
Orders for military equipment increased, and they were initially, mostly trucks and cars. These orders were soon given priority over civilian orders, by the institution of Govt regulations for military priority.
Shipping then started to tighten up. Shipping space was becoming tight, as the military orders increased.
Losses of equipment on the water started to become a feature of manufacturing, as merchant shipping that was carrying obvious military equipment, started to be sunk.
Shipping in the Atlantic, and in the oceans between Australia and Britain, were the first to be affected.
American shipping was initially largely unaffected .. but later on, in mid-1941, American shipping in the Atlantic did start to become targeted, provoking outrage from the Americans.
The factors that affected manufacturing in Australia the most, were two main things .. the decision of the Govt to manufacture armaments and munitions on a large scale .. and the introduction of petrol rationing.
In June 1940, the Managing Director of BHP, Essington Lewis, was appointed by the P.M., Mr. R.G. Menzies, as Director-General of Munitions.
Essington Lewis was given virtually unlimited power to commandeer, re-organise, and re-adjust anything he saw fit, to institute the large-scale manufacture of armaments, weapons and munitions in Australia.
This was unheard-of in Australia's history .. that one civilian could be given unlimited power to re-organise the nation, as he saw fit.
However, these were desperate times, and desperate decisions needed to be made, quickly.
Essington Lewis, fortunately, was no power-hungry incompetent. He was a superb administrator and organiser, and within days, had gathered all the leading industrialists in Australia to advise them of the Govts requirements, and his plans.
He received unparalleled support from the senior executives of every manufacturing facility in Australia.
Included in this group were Govt Railways workshops, who possessed a very substantial manufacturing capacity, and who were to play a big part in War production.
Essington Lewis' aims were simple. The Managing Director of every manufacturing facility in Australia had to report back to him, as to how much of their manufacturing facilities could be turned over to manufacturing armaments, weapons and munitions, without affecting other, priority military production.
IHC of Australia was one of the many Australian manufacturers who stepped up to the plate. Manufacturing of agricultural equipment virtually ceased.
Big areas of the Geelong plant were re-organised and turned over to the production of armaments, weapons, munitions, and 1000 other parts and components needed in war machines.
The workforce trebled to over 1200 employees by the end of 1941, and a large percentage of those new employees were women.