America's steel industry is leading manufacturing out of the recession, according to a recent report.
In his analysis Economic Impacts of the American Steel Industry, Dr. Timothy J. Considine, professor of energy economics, University of Wyoming, notes that "Every one job in the US steel industry supports seven jobs in the US economy, reflecting its ripple effect on employment."
For 2011, the report states, the American steel industry directly employed 150,700 people, and the multiplier effect means it supported more than 1,022,009 jobs.
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 says.
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.
