They said it would never happen – that the steel industry was over and done with, finished, kaput. Guess they didn’t count on Donald Trump, because steel is making a comeback in America. And that means the folks from Pittsburgh to Ohio to Indiana can stop singing the blues, stop the ridiculous re-training programs that never succeeded, and get back to work.
It’s not over yet. We are nowhere near getting all those steel mills fired up again, but we are at the beginning, the start-up phase, of getting the steel industry back on its feet. And it’s about damn time.
U.S. Steel Ready to Rock
Pittsburgh based U.S. Steel Corporation has announced a $2B revitalization program that will breathe new life into an industry that has all but been decimated by an unfair trade policy that began in the last decades of the 20th century and lingered well into the 21st. To say that it has devastated parts of America is an understatement.
As part of this revival, U.S. Steel recently announced a $750M investment in its Gary, Indiana, plant which employs almost four thousand people. They are expanding and installing new equipment to make their operation more efficient and technologically up to date. Indeed, it’s time to take plants like those in Gary and get them ready to rock and roll.
This steel renaissance appears to be reaching other companies as well. BlueScope Steel LLC put the word out that they will be investing $700M to expand their steel mill in Ohio. In fact, all tides are rising across the once-choppy seas for the beleaguered steel industry.
According to RealCLearMarkets, approximately 150,000 Americans earn “a living full-time in the steel industry.” An analysis by the Coalition for a Prosperous America confirms that 11,100 manufacturing jobs have been created recently in the steel and aluminum industries.
Why does this matter? The Pittsburgh Post-Gazette editorial board recognized the significance of this when they wrote, “… steelmaking is a backbone and bedrock industry for our economy, and for any nation that wants to be, or remain, a world power in the 21st century. It is a matter of national security as well as economic strength.” It remains a mystery as to why this was lost on the political class for so long.
Why Now?
Could this resurgence perchance have anything to do with President Trump’s tariffs on imported steel? Considering that China currently rules and reigns the steel market, it would seem so. Their cheap steel had all but put the American industry out to pasture.
Indeed, there is an escalating global battle underway as the president tries to even the trade imbalance that had gotten entirely lop-sided and forced companies like U.S. Steel and BlueScope to all but shut down. Trump’s tough actions and talk have forced China to the bargaining table, and officials on both sides say trade talks will get underway this autumn.
Of course, the European Union isn’t all too happy about the president’s trade maneuvers, but that’s their problem. It’s likely they know they are up against an immovable force and that Mr. Trump does have a track record of getting things done. Even if the EU and China only move a little bit, it will have an enormous impact on industries like steel and aluminum.
So, fire up those blast furnaces folks, blow the plant whistles from Homestead, Pennsylvania to Gary, Indiana, and get the U.S. steel industry off the mat and into the ring, because stoking our mills to capacity is one sure fire way to make America great – again.
