United States Steel Corporation was one of the first American companies to lead the way for the growth of American industries. Many companies went through a cut back on production. They took a profit loss through the tariffs implemented by the Trump administration. While business slowed down, these major industries took the time to refurbish their factories and buildings.
Almost one year ago, on Christmas Eve, U.S. Steel took a devastating blow to their company when the 120-year-old sprinkler system fell through the roof. It only took a few minutes before 100 yards of the complex were covered in flames. The owners and investors of the industries will use the time wisely to ensure these buildings and plants are fixed to safer standards.
When the Trump administration implemented the new tariffs, it was known beforehand, the first phase would be a rocky road in the beginning. Investors and business owners are now noticing a steady climb in production for the near future, and they want to be ready for when the industries are booming again. This is the perfect time to start reconstructing all of their outdated plants for safety purposes. They do not want another incident like the U.S. Steel plant to happen again.
Investors will also begin investing in building new mills. The steel industry took a nosedive for the last ten years. Steel minimills have taken the place of the major industries, so now the reinvestment will be geared toward that which will bring in big money. They have furnished America with millions of tons of steel, and the overhead cost is down. This is leaving the minimills with more significant profits than the major plants which grew the American industry to what we know today.
Yes, the steel prices are down at this time, leaving little margin for profit. Questions are arising on whether or not the effort should be chased. Investors are saying, “yes.” In October, Chief Executive of U.S. Steel, David Burritt, has put forth strategies in the renovation process.
A spokesman stated, “We are investing in our core assets to continue to ensure that we are aligned with our core values of safety and environmental performance, while positively contributing to the communities where we operate.” This period also will allow the steel industry to make a comeback as the industries will be working on improving its competitiveness.
U.S. Steel will be merging with the minimill Big River Steel LLC. They purchased a two-year stake at 49.9 percent and will buy out the share within a four-year time frame. Mr. Burritt stated, “For us to build this, it would take many years, and we have a need for speed.”
So how serious is Mr. Burritt and U.S. Steel? The company will be investing around $2 billion for new equipment and repairs. Even with the rocky road with the tariffs at the beginning, it is the Trump administration we have to thank for keeping U.S. Steel alive.
The 25 percent tariff allows the steel prices to rise to their highest level in over a decade. Mr. Burritt saw and understood what the tariffs would bring to the industry and was an outspoken advocate. The only reason the steel industry posted a loss was that the quality is not there anymore. Then again, what is?
Everything was made stronger in the old days. Mr. Burritt wants to take this time to reinvest to bring back the quality and put the trust back into “Made in America” again. Everything before this time was purchased from China.
It was even noted by the companies who purchased supplies from China, the quality was never there. They gave an example of a heat resistant brick that came from a supplier in China. The bricks were cheaper, but they did not last in quality.
Equipment used to melt down the metal even failed and needed to be relined. All were purchased from China. When everything was “Made in America,” people knew the quality was there.
Employees are accepting and welcoming the new changes and upgrades, and they also see the rise in the industry coming. A former manager at one of the mills stated, “It looked good on the chart on the wall.”
Every employee could only work with what they had from the company. A worker can only do so much. The quantity may always be available, but if the quality is not there, the workers will not have a job either. Americans realize this.