But U.S. manufacturing output has not been shrinking; it has actually been growing. In 2004 it reached a record high according to a research report by the American Institute for Economic Research this February. It also stated, “on its own, the U.S. manufacturing sector would constitute the seventh-largest economy in the world, nearly matching China’s entire economy”. As far as the future, we’re very optimistic. We’re confident that our customers are transitioning to a healthier mix of high-value-added, innovative manufactured products that will be needed in both domestic and global markets. We plan to be here to service their needs for quality steel warehouse stock for years to come.
About the Author: Tom Brown is president of Cincinnati Steel Products Company, an independent, privately-owned steel processing center serving the Midwest. The company, founded in 1931, is celebrating its 75th year of service to manufacturers
The loss of a job can be devastating to the individual and his or her family. No area of the country has felt it more than here in the Midwest, where manufacturing has been the backbone of our economy for more than a century. The declining number of manufacturing jobs is really part of a longer-term trend, not just a recent phenomenon. In 1950 manufacturing employment represented about 35% of private-sector jobs. By the year 2004 it had fallen to 12%. Yet, the U.S. is still the world’s biggest producer of manufactured goods. Of course, a key reason has been the constant improvements in productivity. One hour of work in 2000, produced four times as much manufacturing output as it did in 1950. The real culprit has been a mismatch between productivity and domestic demand for the past five years. We’ve had to rely on strong consumer spending, especially on homes and cars to carry the economy back to health. And going forward, we’ll see that the global economic picture will have a much bigger impact on U.S.-manufactured goods. In the steel processing business, our job is to work with manufacturers and help to keep them competitive. We are subject, as they are, to the ups and downs of the national and global economy. For instance, within the last 24 months we’ve seen our prices for steel rise and fall dramatically as China sucked up much of the world’s capacity to satisfy its enormous infrastructure building needs. Then, as Chinese mills came on line, they became a net exporter of steel products and prices at home, while still high, have settled down somewhat. ""It seems the common thought and discussion in the media right now is that all the manufacturing jobs in America have gone or are going offshore. It’s true that manufacturing employment is down about 10%, or about 1.6 million manufacturing jobs since the last recession began in November 2001. Economic recoveries such as we’re in right now usually restore those lost jobs. That doesn’t appear to be happening this time.
So even the "steel guy" seems to note a few bumps in the road.