Monday, April 22, 2013

Understanding Steel Economies

English: Steel wire rope of the the German col...
Steel wire rope
Steel is often seen as a dying industry in the United States. What was once the center of the world for steel production, many countries like China and India are taking over a large percentage of the production. With internal natural resources at their disposal, and new facilities to manufacture steel in large quantities, they have been giving the United States a run for their money in recent years. Here's a few reasons why the steel industry is very much alive and well in the United States today.

National Infrastructure

The real estate markets have been heavily down over the last few years, which has had a negative impact on the global steel industry, however there are many signs that this trend is turning. The national government has acknowledged that many of the US infrastructures, like roads and bridges, are in serious need of renovations and need supplies of materials, including steel, to be carried out.

Specialized Steel Suppliers

Chinese and India steel is being made in large quantities, however there is still great concern of the quality of the products that come out of the nations, which have much more relaxed laws and fewer quality checks than steel from the United States and other North American and European countries. Other steel distributors like Capital Steel & Wire, which manufactures steel wire and steel bar products, make very specific steel products that are needed in smaller quantities and at more precise requirements. These high quality and higher margin steel products have been in high demand in the United States from all ranges of industries, and these companies have been working hard to meet those demands.

Efficient Manufacturing

Many steel suppliers and distributors in the United States are making technology advancements on many of their manufacturing processes, making steel of higher quality at lower costs. This is great news for an industry that has seen diminishing returns lately, and shows signs that US steel can hold its ground with any other market in the world.