Study Spotlights Huge Economic Impact of U.S. Iron and Steel Industry

SEATTLE (Scrap Monster): The report of a recently conducted research by John Dunham & Associates highlights the huge economic impact of American steel industry. The study commissioned by the American Iron and Steel Institute (AISI) reveals that the U.S. iron and steel industry is a major job-creator, supporting nearly 2 million jobs. In addition, it is also a major contributor to the U.S. economy, accounting for almost $520 billion in economic output. Also, the industry generated $56 billion in federal, state and local taxes.

The production and processing of materials such as iron ore, ferrous scrap, coke etc, and the related mill services directly account for nearly 76,000 jobs. Iron and steel making and the manufacturing of steel mill products are responsible for nearly 141,000 jobs. When considering the 170,000 jobs related to ferrous metal foundry production, steel processing and distribution, and other steel product manufacturing, the industry supports nearly 387,000 direct jobs. In addition, the American Iron and Steel Industry support 716,000 supplier jobs and 878,000 induced jobs.

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The above 387,000 direct jobs account for payment of nearly $34 billion dollars in wages and benefits, producing an economic impact of more than $200 billion. The 716,000 supplier jobs pay approximately $53 billion in wages and compensations, generating $173 billion in economic impact. The induced jobs are estimated to pay $45 billion in wages and benefits, the study found. The induced impact of the industry is around $143 billion. The industry makes significant contribution to the public finances of the nation, through revenues amounting to $56 billion being paid to federal, state and local governments.

The research study was based on econometric models, initially developed by the U.S. Forest Service and now maintained by the IMPLAN Group.