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Is America's Steel Industry in the Tank?

Discussion in 'Uncategorized Threads' started by JBrooks, May 30, 2008.

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  1. JBrooks

    JBrooks TS Member

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    I bet many of you reading the title automatically said "yes". This is because all you here in the media is that America's manufacturing sector has all been "shipped to China", etc. This theme is pounded on repeatedly by the Democrats. Well, darn it, just more libreral media lies evidently.

    "U.S. steel industry shipments of 106 million tons in 2007 exceeded the industry’s 1970 shipments by 16 percent. Output per worker has soared: in the 1970s producing a ton of steel required 12 man-hours; today it requires 1.2 man-hours. Several billion dollars of new green-field investments are being made by foreign and domestic producers in U.S. production capacity, which is a sure sign that those who know the industry best have faith in America’s manufacturing future."

    AND

    "Reports of the death of U.S. manufacturing have been greatly exaggerated. Since the depth of the manufacturing recession in 2002, the sector as a whole has experienced robust and sustained output, revenue, and profit growth. The year 2006 was a record year for output, revenues, profits, profit rates, and return on investment in the manufacturing sector. And despite all the stories about the erosion of U.S. manufacturing primacy, the United States remains the world's most prolific manufacturer--producing two and a half times more output than those vaunted Chinese factories in 2006.

    Yet, the rhetoric on Capitol Hill and on the presidential campaign trail about a declining manufacturing sector is reaching a fevered pitch. Policymakers point repeatedly to the loss of 3 million manufacturing jobs as evidence of impending doom, even though those acute losses occurred between 2000 and 2003, and job decline in manufacturing has leveled off to historic averages."

    AND

    "Nor was 2006 an aberration. Since the nadir of the manufacturing recession in 2002, all of those indicators have been trending upward. Earlier this month, the Federal Reserve released its monthly report on industrial production, which found that U.S. manufacturing output has continued to rise throughout 2007.

    Contrary to the inferences one would be expected to draw from the dishonest political discourse, U.S. factories remain the world's most prolific, accounting for more than 20 percent of the world's added manufacturing value. By comparison, Chinese plants account for about 8 percent. Thus, for every dollar of product made in China, U.S. factories produce $2.50 of output.

    And not only is manufacturing thriving. It is thriving in large measure because of international trade. Manufacturing exports and imports hit records in 2006.

    Over the past few years, the world economy has been growing at a faster clip than the U.S. economy. Domestic producers have availed themselves of the benefits of that growth through higher foreign sales revenues and declining unit costs of production -- the result of the longer production runs afforded by growing foreign demand."


    Perhaps the problem is that manufacturing efficiencies have increased and there are not as many union workers to vote for union endorsed Democrats?

    Don't some just hate the truth?
     
  2. letts

    letts TS Member

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    Must be why the iron mines in Michigan are going full blast at the present time inspite of what some people call a recession,


    Letts
     
  3. timb99

    timb99 Well-Known Member

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    Actually, I heard on NPR this week a story about how well the steel industry in the USA is doing lately.
     
  4. oleolliedawg

    oleolliedawg Banned User Banned TS Supporters

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    I worked 31.5 years for Beth. Steel. It's not doing well lately!!
     
  5. SARGE75X

    SARGE75X Member

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    I worked 30 years at Inland now Mittal in E Chgo,In. They are running full tilt but its not an American mill anymore, it sits on our soil but its owned by Laksami Mittal in England or Germany I dont remember. They had 3 fatalaties before the end of March. The last one was a friend of mine with 34 years in and got killed with 4 days left before retirement. The only true US mill left is US Steel. Workers here are making money but the profit still goes overseas
     
  6. dbcook

    dbcook TS Member

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    mr.brooks all you had to do was watch mad money on cnbc this is old news. most of the steel stocks have been getting recommended for quite some time. as well as coal but if you want to start a thread about new news,i suggest scott mcclelland would be a good heading. as you say,don,t some just hate the truth? shoot well. dwain
     
  7. JBrooks

    JBrooks TS Member

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    LOL, you mean the Scott who decided to work for Presidents Washington, Lincoln and Hamilton instead of GWB? The only person who ever "saw a conversation"? The NBC whoreboy? That Scott? How many meetings of substance do you think includes a press secretary? Have another glass of Koolaid?
     
  8. crusha

    crusha TS Member

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    Hey JBrooks,

    Your post contained material in quotes...care to supply attribution for it?
     
  9. JBrooks

    JBrooks TS Member

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    Sorry buzz, here you go. Check the embeede links.
     
  10. SARGE75X

    SARGE75X Member

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    Heres another interesting fact, the mills are so shorthanded there is a guy, an Electrician that the crews call "everyday Ray". He works 16 hours everyday, comes in on his days off and works 16 hours. Takes no days off except when he is required to take his vacation, then he complains about how much money he is losing. He worked everyday last year and the roll continues even today.
     
  11. halfmile

    halfmile Well-Known Member

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    In 1997 a major influx of imported steel caused a precipitous drop in production. Institution of tariffs on imported steel restored health to the industry, and U.S. production surged over 30 million tons.

    Blaming Unions for problems produced elsewhere is common trash talk.

    Brooks, your remark is snide, valueless, and without substance.

    HM
     
  12. BILL GRILL

    BILL GRILL Well-Known Member

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    I do believe that if you check the demand for steel world wide is driving the steel industry. Also a good percentage of what we produce is being exported. Same thing goes for the scrap industry.
     
  13. halfmile

    halfmile Well-Known Member

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    All metals are nuts now. Here in Green Bay you had to pay 50 bucks to get a junk car picked up just a couple years ago.

    Now they will give you 150-200 and haul it too.

    HM
     
  14. mike moncilovich

    mike moncilovich TS Member

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    Funny, I started working for Beth Steel there was 17,000 or 18,000 employees here in Johnstown. Now there is less than a hundred, who take imported steel,mostly from Brazil and semi-finish it. They are owned now by some holding group(?). Also there are many wharehousers who import millions of tons that then are shipped with in the USA. The key to CATO article is SHIPPED, NOT PRODUCED TONS. Yes there has been some improvements to production methods,but the down sizing and capacity to produce is low. It takes fewer people to semifinish steel and to load and unload at wharehouses. The steel industry had over a million union and non-union employees in the 70s'and now about 75 to 100,000. To most Americans jobs are important...Mike
     
  15. JBrooks

    JBrooks TS Member

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    Mike, this is from www.worldsteel.org:

    "In 2007, the top three steel producing countries remained China (489.0 mmt), Japan (120.2 mmt), and the US (97.2 mmt)."

    Cato says 106 mmt. I don't know why the difference. Russia was at 4th at 72 mmt and the next two were in the 50s. As Cato said, more steel is being produced by 1/10 of the workforce


    for 2008

    "In North America, the MAT growth rate for April 2008 was 3.4%, continuing its upward trend. US production was an estimated 8.3 mmt (an increase of 1.1% from April 2007), Mexico 1.6 mmt (up 10.5% from April 2007) and Canada 1.4 mmt (up 3.7% from April 2007)."

    These figures are for crude steel production. I would guess the reality is that manufacturing jobs have been disappearing as much to automation as being moved overseas causing those unions to lose membership unlike construction unions like the IBEW whose work can't be automated, huh Pat? :)
     
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