Industrial Minerals (2325a5f8-5a86-4325-93e4-71290df2606a)

In introducing last year's Industrial Minerals Review, Stan Lefond accurately predicted that the 1974- 75 period would be quite difficult and frustrating. Although 1974 demand and prices for most industrial minerals were exceptionally strong, operating costs also rose rapidly-while shortages of supplies and equipment, symptomatic of an overheated economy, occurred from coast to coast. Thus, at the end of 1974 recessionary forces were accelerating-and the minerals industry will soon be facing falling demand as a consequence of sharp declines in auto production, housing, appliances, and other consumer goods. Moreover, when sales weaken, the high-volume, low-prices industrial minerals will incur sharply increased unit costs. To maintain adequate profit margins under these conditions will require cautious and perceptive management.