Steel Manufacturing Industry
Steel Manufacturing Industry
Nature of the Steel Manufacturing Industry
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Steel is one of the basic building blocks of the modern world. Automobiles, appliances, bridges, oil pipelines, and buildings, all are made of steel. While Racks manufacturing has existed for centuries, the process for making steel continues to evolve.
Goods and services. Establishments in this industry produce steel by melting iron ore, scrap metal, and other additives in furnaces. The molten metal output is then solidified into semifinished shapes before it is rolled, drawn, cast, and extruded to make sheet, rod, bar, tubing, beams, and wire. Other establishments in the industry make finished steel products directly from purchased steel.
The least costly method of making steel uses scrap metal as its base. Steel scrap from many sources—such as old bridges, household appliances, and automobiles—and other additives are placed in an electric arc furnace, where the intense heat produced by carbon electrodes and chemical reactions melts the scrap, converting it into molten steel. Establishments that use this method of producing steel are called electric arc furnace (EAF) mills, or minimills. While EAFs are sometimes small, some are large enough to produce 400 tons of steel at a time. The growth of EAFs has been driven by the technology's smaller initial capital investment and lower operating costs.
The growth of EAFs comes partly at the expense of integrated mills. Integrated mills reduce iron ore to molten pig iron in blast furnaces. The iron is then sent to an oxygen furnace, where it is combined with scrap to make molten steel. The steel produced by integrated mills generally is considered to be of higher quality than steel from EAFs. The higher quality production process is more complicated and consumes more energy, making it more costly.
Industry organization. The steel industry consists of EAFs and integrated mills that produce iron and steel from scrap or iron ore. Most of these mills also have finishing mills on site that convert iron and steel into both finished and unfinished products. Some of the goods produced in finishing mills are steel wire, pipe, bars, rods, and sheets. In these finishing mills, products also may be coated with chemicals, paints, or other metals that give the steel desired characteristics for various industries and consumers.
While wire, steel reinforcing bars, and pipes are considered finished products, rolled steel is unfinished, meaning it is normally shipped to companies, such as automotive plants, that stamp, shape, and machine the rolled steel into car parts. Finished products also are manufactured by other companies in this industry that make pipe and tubing, plate, strip, rod, bar, and wire from purchased steel. Competition from all these mills has resulted in increasing specialization of steel production, as various mills attempt to capture different niches in the market.
Recent developments. Steel manufacturing is an intensely competitive global industry. By continually improving its manufacturing processes and consolidating businesses, the U.S. steel industry has increased productivity sufficiently to remain competitive in the global market for steel. Investment in modern equipment and worker training transformed the industry. Over the past 25-30 years, steel producers have, in some cases, reduced the number of work-hours required to produce a ton of steel by 90 percent.
As countries around the world attempt to reduce emissions and produce cleaner energy, the need for structural steel will increase. Steel will be needed for support towers as well as reinforcing rebar toward the construction of new power generation facilities. In addition, the transmission infrastructure needed to transport electricity also will result in greater demand for steel. The expansion of clean energy production is expected to result in demand for many types of steel products.
Work Environment for the Steel Manufacturing Industry
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Hours. The expense of plant and machinery and significant production startup costs force most mills to operate around the clock, 7 days a week. Nonsupervisory production workers averaged 43.8 hours per week in 2008 in iron and steel mills and 41.3 hours in steel product manufacturing; only 2 percent of workers are employed part time. Workers usually work varying shifts, switching between working days one week and nights the next. Some mills operate two 12-hour shifts, while others operate three 8-hour shifts. Overtime work during peak production periods is common.
Work environment. Steel mills evoke images of strenuous, hot, and potentially dangerous work. While many dangerous and difficult jobs remain in the steel industry, modern equipment and facilities have helped to change this. The most strenuous tasks were among the first to be automated. For example, computer-controlled machinery helps to monitor and move iron and steel through the production processes, reducing the need for heavy labor. Many key tasks are now performed by machines that are controlled by workers sitting in air-conditioned pulpits supervising the production process through windows and by monitoring banks of computer screens.
Nevertheless, large machinery and molten metal can be hazardous unless safety procedures are observed. Hardhats, safety shoes, protective glasses, earplugs, and protective clothing are required in most production areas.
Employment in the Steel Manufacturing Industry
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The steel industry provided about 159,000 wage and salary jobs in 2008. Employment in the steel industry is broken into two major sectors: iron and steel mills and ferroalloy production, which employed 98,900 workers; and steel products from purchased steel, which employed 60,100 workers. The steel industry traditionally has been located in the eastern and midwestern regions of the country, where iron ore, coal, or one of the other natural resources required for steel are found. Even today, about 42 percent of steelworkers are employed in Pennsylvania, Ohio, and Indiana. The growth of EAFs has allowed steelmaking to spread to virtually all parts of the country, although many firms find lower cost rural areas the most attractive. Although most steel mills are small, about 88 percent of the jobs in 2008 were in establishments employing at least 100 workers.
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