Steel in the News
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Posted by Tasha Weiss on March 21, 2012 at 4:20 PM.
America’s steel industry is leading manufacturing out of the recession, according to a new report by Timothy J. Considine, professor of energy economics, University of Wyoming.
Considine’s analysis, “Economic Impacts of the American Steel Industry,” finds the industry supported more than one million jobs in the U.S. economy in 2011 and is playing a significant role in leading manufacturing’s post-recession resurgence, primarily because it is highly interrelated with many other sectors of the economy.
The report reveals that each job in the U.S. steel industry supports seven jobs in the country’s economy, reflecting the industry’s ripple effect on employment. In 2011, the American steel industry directly employed 150,700 people and, given the multiplier effect, supported more than 1,022,000 jobs, as well as contributed $101 billion in gross domestic product and $246 billion in gross economic output.
Considine points out that the significant economic impact of the industry is based on the fact that steel is the most prevalent material in the economy, and the steel industry purchases a wide variety of inputs from other industries that create a favorable ripple effect. “This is one reason why so many countries around the world welcome investments that establish steel mills, because they stimulate industrial supply chains,” he said.
Considine’s analysis was commissioned by the American Iron and Steel Institute (AISI) to provide an updated look at the American steel industry’s overall impact on the U.S. economy.