Steel company hanging on

[Molerj]

Well, we all just took another cut in pay to try to keep our ailing steel company alive.
Mgmt. & Union both took a 15% cut in October & now another 12 3/4%. This along with
money from W.VA & Ohio & a few others totaling 27 million should keep us in operation
until the end of March. Don't know what will happen then. Depends on Bush's decision & a
few other things. Wheeling Pittsburgh Steel, approx. 4100 employees.

 

[RAllen]

Molerj

Good luck. Glad to know everyone, management and labor sharing in the "pain".

Why do think steel prices have cratered? Imports?

There are quite a few folks in this country who wish to drive all smokestack industries off shore. In the long term, if it happens, it will doom this country.

Rick

 

[TerryinMD]

molerj,

Sorry to hear the bad news. Portent of things to come.... /w3tcompact/icons/shocked.gif

I am just getting ready to post something about our company. /w3tcompact/icons/mad.gif

Terry

 

[Molerj]

Yes, I believe that illegal imports are hurting the steel industry. The International Trade Commission has ruled that the steel industry has been seriously harmed by foreign imports & recommended President Bush impose significant tariffs on steel imports. He, with advice from Secretary of Commerce Donald Evans & the US trade Representative Robert Zoellick are to rule in March as to what steps are to be taken. According to the Dept. of Labor, 21,000 steelworkers have lost their jobs since January 2001. We have one of the lowest cost per ton in the steel industry & still cannot compete with the illegal foreign imports. In many cases these foreign companies are selling steel in this country for less than they can produce it. They are being subsidized by their gov't. We just want a level playing field.

 

[cowboydoc]

We have two major players within 10 miles of where I live. One, IPSCO is my neighbor at the one place. There has been the same talk here and alot of local press on it. There are literally miles of railcars sitting with recycled steel waiting to to the plant but they are so slow that the cars just keep piling up.

 

[RPM]

<font color=blue>I believe that illegal imports are hurting the steel industry</font color=blue>

You're right about that. The biggest scam I have heard of was reported in the Wall Street Journal last year. Basically, high grade steel is being ordered through middle-men who are behind the scam. They import it through Mexico (or other country) and have the paperwork altered to show it as a lower grade of steel (less restrictions, lower tariffs). For example, a common scam is to import high grade alloy steel rod and label it as 're-bar' grade mild steel. They then have the paperwork fixed back to the original when it comes into the US.

The problem for this scam is in enforcement. There is no easy way to do a metallurgical analysis and determine the alloy components of steel at the border. The way that people know it is happening is first from the crazy low prices - and second from the ridiculous amount of re-bar and other low grade steel being imported.

I'm really sorry to hear about what's happening with your company. Sounds like it would be better for the government to invest a few million dollars in enforcement and testing equipment than lose millions in tax revenue from companies closing or turning down production. Of course, politics never seems to make sense like that.

Patrick

 

[TerryinMD]

Another issue that I believe a lot of government and company officials overlook is the fact that if we lose our manufacturing capability and a world war occurs (God forbid!), how long would it take for us to get our manufacturing back up to speed. In other words, our economic security.

All one ever hears anymore is the global economy and corporate efficiencies (ie, bottom line). Are we selling ourselves short?

Terry

 

[cowboydoc]

You bet we are Terry!! If we ever got into another world war and not these little skirmishes I question as to whether we would be able to keep up with a full production schedule. Our current mfg. base isn't half what is was in WWII. There was a special on this on one of those cable channels that I watched awhile back that went over this exact scenario. Basically we are betting that there won't be that kind of a situation.

 

[TerryinMD]

Cowboydoc,

The reason I said what I did was that I grew up in Pittsburgh and have seen nearly all it's steel making capabilty disappear. Along with that, all of the supporting businesses have fallen to the wayside also. We have tons of service based businesses, but little in heavy manufacturing. Kinda scary...

Terry

 

[RPM]

Terry,

<font color=blue>Another issue that I believe a lot of government and company officials overlook is the fact that if we lose our manufacturing capability and a world war occurs (God forbid!), how long would it take for us to get our manufacturing back up to speed. In other words, our economic security.</font color=blue>

That's a careful strategic decision. Unless the opposing force was so completely different from us in culture and ideals then I'm sure money would talk, war would be averted and we'd be fine.

However, we have two potential power-blocs that could rise within the next few decades that fit that bill. All we need is a bit of a decline in the US military and some connivance between the two blocs and we're in trouble on a number of fronts. Those two blocs? The middle-east and China. We rely on one for oil - and the other increasingly for our manufacturing.

Maybe not a worry for us - but I'm sure it's on the agenda for our kids.

Patrick