Study Shows Robust Economic Impact of American Iron and Steel IndustryMay 23, 2018
WASHINGTON, DC – A just-released study shows that the American iron and steel industry supports nearly two million jobs and contributes more than $520 billion to the economy, when considering the direct, indirect (supplier) and related impacts.
The study, conducted by the prominent research firm of John Dunham & Associates (JDA) and commissioned by the American Iron and Steel Institute (AISI), also shows that the iron and steel industry generated an estimated $56 billion in federal, state and local taxes and that industry-supported workers earned more than $130 billion in wages and benefits.
“The American iron and steel industry is a dynamic part of the U.S. economy. This comprehensive analysis provides detailed geographic breakdowns, including at the congressional district level, and is the most accurate snapshot of the full breadth of the economic impact of today’s American iron and steel industry,” said Thomas J. Gibson, president and CEO of AISI. “The results illustrate why strong, pro-manufacturing policies are needed to ensure the sustainability of an industry with such an impactful employment base and robust economic footprint.”
Gibson said that the new study more accurately represents the breadth of the American iron and steel industry by including facilities active in iron ore mining, coke production, ferrous scrap processing, steel mill services, ferrous metal foundry production, steel processing and distribution, and other steel product manufacturing, in addition to iron and steel mills, as was the case in previous studies released more than five years ago. He added that AISI is launching an interactive tool on its website to share detailed data.
Highlights and breakdown of additional steel industry economic contributions include:
- 387,000 direct iron and steel industry jobs (iron and steelmaking, steel mill and other steel products, processing, ferrous metals foundries, distribution, materials and mill services)
- 716,000 supplier jobs
- 878,000 induced (re-spending) jobs
- $207 billion in economic output directly from iron and steel production
- $173 billion in economic output from suppliers to the iron and steel industry
- $56 billion generated in federal, state and local taxes
JDA conducted this research using econometric models first developed by the U.S. Forest Service, and now maintained by the IMPLAN Group. Data is drawn from Infogroup, a leading provider of business and consumer data, as well as from industry sources and government publications.
Contact: Lisa Harrison
202.452.7115 / firstname.lastname@example.org
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 21 member companies, including integrated and electric furnace steelmakers, and approximately 120 associate members who are suppliers to or customers of the steel industry. For more news about steel and its applications, view AISI’s website at www.steel.org. Follow AISI on Facebook or Twitter (@AISISteel).
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