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The Restructuring of the US Steel Industry: Changes in the Location of Production and Employment

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  • B Ó hUallacháin

    (Department of Geography, Arizona State University, Tempe, AZ 85287, USA)

Abstract

Recent reorganization of the US iron and steel industry provides a useful setting for an analysis of the relationship between industrial location and institutional forms. Regression analysis shows that institutional shifts in the organization of production dominated geographical shifts in employment and product value as integrated maxi-mills sought to raise productivity. The reorganization of production includes mill abandonment, increased subcontracting by maxi-mills in the initial stages of production, horizontal penetration by mini-mills in the sheet-steel market, and the growing integration of steel finishing and automobile assembly as firms that belong to Japanese corporate groups expand their operations in the USA. Maxi-mills are concentrating investment and production in the Midwest states as their joint ventures with Japanese steel firms specialize in the mass production of galvanized sheets for the automobile industry. Locational shifts also include the national spread of scrap-processing mini-mills and the rapid decline of raw-steel production in Pittsburgh as maxi-mills close furnaces and mills producing construction-grade bars and rods.

Suggested Citation

  • B Ó hUallacháin, 1993. "The Restructuring of the US Steel Industry: Changes in the Location of Production and Employment," Environment and Planning A, , vol. 25(9), pages 1339-1359, September.
    • Handle: RePEc:sae:envira:v:25:y:1993:i:9:p:1339-1359
    DOI: 10.1068/a251339
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    References listed on IDEAS

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    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Karlson, Stephen H, 1983. "Modeling Location and Production: An Application to U.S. Fully-Integrated Steel Plants," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 41-50, February.
    3. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
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