Struggles in the United States Steel Industry :: Business Essays

Struggles in the United States stain Industry In the quondam(prenominal) decade the United States has encountered many challenges to its trade name industry. The brand name industry has changed tremendously since the early 1900s when the United States dominated the steel market. According to figures on a Global Steel communication channel web commit, in 1900, the United States produced 37% of the worlds steel. Now Asia produces 40% of the worlds steel and China is the world leader in steel production. The United States decline in steel production has compel the United States to import 24% more steel in 1999 than 1998. (GSB 1) there be many rationalnesss why United States steel industries are struggling. one main reason is the recent increase of steel production in poorer foreign countries. These countries have weak economies and are able to produce steel cheaper than the United States by paying atomicer wages and using cheaper, less(prenominal) safe ways of prod ucing steel. (GSB 1) An article headed by Global Steel Business writes these economic stricken countries pay an average of four dollars less an bit than the United States. (GSB 2) It also writes, the methods used by such countries are abnormally dangerous. (GSB 2) These changes have increased the United States imports from 98-99 from lacquer 147.8%, South Korea 93.3% and Russia 53.3%. Another reason the United States is struggling is due to steel dumping. Dumping is the process when a company takes part in pricing items below their production toll to drive competitors out of an import market (SD1). Many countries, including Japan, have been accuse of steel dumping by the United States. Countries such as Japan are able to do legally dump steel on the United States do to their foreign government subsidies (SD1). According to an internet site dealing with steel dumping, The U.S. Commerce Department ruled that Japan change steel as much as 60% below somewhat market value ( SD1). The United States steel companies cant compete with these foreign steel prices and are constantly undersold. A third reason United States Steel companies are struggling is the problem within the companys management. Unlike a degree centigrade ago when large companies ruled the market, now most steel companies are smaller. A recent article in The Economist magazine explains that these small companies often dont have the managerial skills to compete in the highly modify steel market (The Economist 83).