The US steel industry has gradually become versatile and central to the country’s general growth. It has proven to be vital for national security and economic competitiveness. Yet, you might not understand its role in growing the economy. The following are insights into what steel production brings to the table.
Increased Revenue
Steel production has been the backbone of the US economy for many years. This industry rakes in approximately $520 billion annually. This amount will likely increase, thanks to advanced technologies that have made production seamless.
In addition, statistics in 2017 show that the industry created employment for over two million Americans. These jobs paid about $131 billion in wages and benefits, ensuring that most households have an income.
What’s more, multiple sectors of the economy rely on steel to produce their items. Investing in a broad steel production industry helps ensure that all the other sectors of the economy flourish in the long run.
Car Manufacturing and Auto Parts
The US automobile industry is thriving thanks to a reliable steel production industry. Steel is used to make various car parts, making it a central component of the efficient car manufacturing process.
On average, each car utilizes about 900 kilos of steel. It will be used to make the chassis and body, including door panels, roof, and door beams. Mufflers and exhaust pipes will also rely on steel. Various auto parts will also require more steel production in the long run.
Yet, technological advancements have allowed car manufacturers to alter the type of material used. This move ensures that the vehicles are safe, reliable, and stylish.
Technological Advancements and the Manufacturing Industry
Steel production is associated with increased production efficiency. Steel helps produce various pieces of technology, from computers and mobile phones to home appliances and entertainment. If there is not enough steel, these items cannot be manufactured.
For instance, the manufacturing industry can not thrive without steel. Steel must be adequately refined and structured to guarantee efficiency, a role the steel production industry plays. A slight decline in steel production or downtime in the manufacturing industry can lead to huge losses. According to Machine Metrics, an hour of downtime in the manufacturing sector equates to a $260,000 loss.
Comfort and Luxury
Sufficient steel production contributes to enhanced comfort and premium quality of life in the long run. This metal is used to make systems that ensure your life is much more comfortable. From HVAC to furnaces, to your bathtub and the pipes, to the framing of your house and car, steel is everywhere.
Home systems within the homestead, including heaters, furnaces, and electrical components, require stainless steel. 72 million metric tons of steel were produced in 2020. Electric arc furnaces accounted for over 70% of this value, making them the most significant.
Further, stainless steel is ductile enough to be woven and used in all sorts of applications. Stainless steel offers excellent thermal and radiation resistance. According to Marlin Wire, stainless steel can withstand up to 540 degrees Celsius or 1004 degrees Fahrenheit. For this reason, steel production has facilitated the survival of the electrical and textile industries.
National Security
Stainless steel production is a vital component of US national security. It provides an avenue for sufficient production of metals to manufacture arsenals, from guns and bombs to ammunition and fighter jets. Defense departments incorporate steel into weapon systems and military platforms, ensuring seamless operations. Stainless steel is used for critical national security infrastructure.
Steel production is critical for the U.S. economy. While it is no longer the backbone of the U.S. economy, its role remains steadfast. The information above illustrates how the entire economy relies on the steel production business.