Monthly Archive for March, 2012
Page 2 of 8
A just-released report by Timothy J. Considine, professor of energy economics, University of Wyoming, reveals that the American steel industry 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.
In his analysis titled, “Economic Impacts of the American Steel Industry,” Dr. Considine notes that, “Every one job in the U.S. steel industry supports seven jobs in the U.S. economy, reflecting its ripple effect on employment.” For 2011, the report states, the American steel industry directly employed 150,700 and given the multiplier effect, supported more than 1,022,009 jobs.
In his report, Dr. 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 states.
These indirect impacts support jobs in industries supplying the steel industry with inputs of energy, materials and services, examples of which are identified in the report. A third and final set of economic impacts arise from the stimulus that additional labor and capital income provides for households to spend on goods and services, the report explains.
“These so-called induced impacts together with the direct and indirect impacts constitute the total economic impact of the industry,” the report states. “Thus, for every dollar increase in sales for iron and steel mills and ferroalloy industries, total output in the U.S. economy increases by $2.66.”
Based on the estimated 2011 direct steel sector employment of 150,700, the Considine report states that the steel sector supported 1,022,099 jobs in the U.S. economy, contributed over $101 billion in value added and $246 billion in gross output. Based on tax multipliers utilized in the analysis, during 2011 the steel sector generated nearly $23 billion in local, state and federal taxes.
Dr. 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. In his study, Dr. Considine employed the IMPLAN system developed by MIG, Inc., one of the most widely used and highly regarded systems for economic impact analysis.
The report describes the industry’s purchases of a highly diverse range of products and services, thus supporting hundreds of thousands of jobs along the supply chain. For example, in 2010 the steel industry purchased more than $20 billion of materials produced in other industries, $8 billion of machinery, $4.4 billion from wholesale and retail trade sectors and more than $4 billion of transportation services. It also generated $12.4 billion in labor income.
Click here to read the full report.
Click here to read the Key Findings.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 25 member companies, including integrated and electric furnace steelmakers, and 124 associate and affiliate members who are suppliers to or customers of the steel industry. AISI’s member companies represent over three quarters of both U.S. and North American steel capacity. For more news about steel and its applications, view AISI’s Web site at www.steel.org.
Leading bipartisan Members of Congress joined hundreds of members of the transportation construction industry and its suppliers in Washington D.C. Tuesday to support the passage of a multi-year, fully funded transportation bill. The second annual RALLY for ROADS brings attention to the impact transportation and highway investment has on our nation’s economy.
“America’s infrastructure is vital to economic growth and job creation,” said Kerri Leininger, a RALLY for ROADS spokesperson and the Senior Vice President of Government and Political Affairs for the National Ready Mixed Concrete Association. “America’s transportation needs are too great, and its impact on the nation’s economic health and well-being are too substantial to delay passage of a surface transportation bill any longer.”
RALLY for ROADS is a bipartisan rally sponsored by 15 national transportation construction associations. Ten members of congress participated in the event including Chairman for the House Transportation and Infrastructure Committee, Rep. John Mica (R-FL) and Democratic Chief Deputy Whip, Sen. Barbara Boxer (D-CA). Representatives from all facets of the road construction, manufacturing, services, retail, agriculture and natural resources industries will join together to support the rally.
“Deficiencies in America’s surface transportation systems have cost households and businesses billions of dollars,” said Leininger. “Our livelihoods depend on America’s roads. The support for RALLY for ROADS from congressional and industry members highlights the importance of getting our nation’s infrastructure back on track.”
“RALLY for ROADS” is sponsored by the American Concrete Pavement Association (ACPA), Associated Equipment Distributors (AED), Association of Equipment Manufacturers (AEM), Associated General Contractors of America (AGC), American Highway Users Alliance (AHUA), American Road and Transportation Builders Association (ARTBA), American Society of Civil Engineers (ASCE), American Traffic Safety Services Association (ATSSA), Concrete Reinforcing Steel Institute (CRSI), National Ready Mixed Concrete Association (NRMCA), National Stone, Sand and Gravel Association (NSSGA), Portland Cement Association (PCA), International Safety Equipment Association (ISEA) the US Chamber of Commerce, and National Association of Manufacturers (NAM)
Members of the American Subcontractors Association elected Walter Bazan Jr., Bazan Painting Company, St. Louis, Mo., as 2012-13 ASA president, ASA Secretary Jack Austhof reported on March 2 during ASA’s annual meeting at the ASA Business Forum and Convention 2012 in San Antonio, Texas. Bazan will take office as ASA president on July 1, 2012, succeeding 2011-12 ASA President Kerrick Whisenant, Cornerstone Detention Products Inc., Tanner, Ala.
ASA members elected as their other 2012-13 ASA officers Mike Jones, M.L. Jones Acoustics Inc., Tulsa, Okla., as 2012-13 ASA vice president; Jack Austhof, Sobie Inc., Dutton, Mich., as 2012-13 ASA treasurer; and M. Brian Johnson, Soil Consultants Inc., Charleston, S.C., as 2012-13 ASA secretary.
ASA members also elected five national directors for three-year terms beginning on July 1, 2012: Jeff Banker, Banker Insulation Inc., Chandler, Ariz.; Letitia Haley-Barker, Haley-Greer Inc., Dallas, Texas; Scott Holbrook, Crawford & Bangs, Covina, Calif.; Mike Holland, Marek Brothers Systems Inc., Houston, Texas; and John Lloyd, Lloyd’s Construction Services, Savage, Minn.
Founded in 1966, ASA amplifies the voice of, and leads, trade contractors to improve the business environment for the construction industry and to serve as a steward for the community. ASA’s vision is to be the united voice dedicated to improving the business environment in the construction industry. The ideals and beliefs of ASA are ethical and equitable business practices, quality construction, a safe and healthy work environment, and integrity and membership diversity.