I am Tiffany Stinson and the intent of this blog is to inform readers about disruptive innovation and the effect it plays in the steel industry and my career.  My objective is to gather resources and information about disruptive innovation and share it through blog posts. Below is a background of my career and a detailed analysis of the steel industry.

MY CAREER

I am employed by United States Steel Fairfield Works location.  I was hired on through the Management Associate program which is a 12-24 month training program that provides new graduates with relevant work experience while strengthening leadership capabilities for advanced roles within the corporation.  I am responsible for supervising all operations and production activities.  These responsibilities include:
 

• Coordinating material movement and equipment operation and maintenance.
• Scheduling, paying crews, completing production report.
• Ensure a safe working environment
• Most importantly, produce quality coils

Currently, I am training in the following areas:

• Corporate Standards: Safety, compliance, policies, procedures, interpersonal skills.
• Technical Skills: Understanding the business and the steelmaking process.
• Organizational Overview: Company history, structure, and future

STEEL INDUSTRY ANALYSIS

The history of the modern steel industry began in the late 1850s, and since then it has been the most influential factor in America's growth as a world economic power.  Before the 1860’s, steel was an expensive product, made in small quantities, and used mostly for knives, swords, and armour.  The introduction of cheap steel was due to the Bessemer process and the open hearth process which were two major technological advances.  The Bessemer process is a method for making steel by blasting compressed air through molten iron to burn out excess carbon and impurities.  By 1870, this process was widely used.   The Bessemer process is a process change that completely changed steel making by decreasing cost and increasing quality.  This process was just the beginning of advancements in the steel industry.

After the 1890's, the Bessemer process was gradually replaced by open-hearth steelmaking.  By the middle of the 20^th century, the Bessemer process was no longer in use.  The open-hearth process charges a slab in a furnace on a swallow hearth and heated directly by burning gas.  Mainly, a substantial amount of scrap could be included in the charge.

These processes led to more innovations in the industry.  Technological advancements were now steadily on the rise at this time.  Finally, automated systems that controlled steel mills made its way into the industry.  These systems operated the entire mill with the push of a few buttons.  These automated systems resulted in a large cut in man hours and labor.  For example, United States Steel Fairfield Works went from an average of 20,000 employees to about 1,800 employees.  An average job that once required twenty employees now only required two.  Today, the American steel production has grown from 380,000 tons to 60 million tons annually, making the U.S. by far the dominant world leader.  Innovation and technology has completely transformed the American steel industry into a world leader of quality, performance, and sustainability.

Iron and steel are used widely in the construction of roads, railways, other infrastructure, appliances, and buildings.  Most large modern structures, such as stadiums and skyscrapers, bridges, and airports, are supported by a steel skeleton.  Even those with a concrete structure employ steel for reinforcing.  In addition, it sees widespread use in major appliances and cars.  Despite growth in usage of aluminum, it is still the main material for car bodies.  Steel is used in a variety of other construction materials, such as bolts, nails, and screws.

Other common applications include shipbuidling, pipeline transport, mining, offshore construction, aerospace, washing machines, heavy equipment such as bulldozers, officer furniture, steel wool, tools, and armour in the form of personal vests or vehicle armour.  Steel is the frequent metal of choice for many sculptures.



 

Steel is the most prevalent material in the U.S. economy.  The steel industry is highly interrelated with other economic sectors.  As a result, its economic contributions are multiplied many times over through its purchases of products and services from other economic sectors, its indirect support of hundreds of thousands of jobs along the supply chain, and its generation of billions of dollars in local, state, and federal tax revenues.  In fact, for every $1 increase in sales for iron and steel mills, total output in the U.S. economy increases by $2.66.
 

Multiplier effect:  For every $1 increase in sales for iron and steel mills, total output in the U.S. economy increases by $2.66

• Employer: The steel industry is a job creator, directly or indirectly supporting more than one million U.S. jobs.
• Taxpayer: The steel industry is a leading generator of tax revenues for all levels of government.
• Customer: The American steel industry purchases a diverse range of products and services from many other sectors of the economy.

EMPLOYER –

The steel industry in 2011 directly employed over 150,700 steel workers, supported another 391,213 workers indirectly through the supply chain, and induced spending by households that supported another 480,096 jobs in other sectors of the economy.  In total, the steel industry supported more than one million jobs in the U.S. economy.  Each job in America’s steel industry supports seven jobs in the U.S. economy.

TAXPAYER –

The American steel industry in 2011 generated $22.9 billion in tax revenues at the local, state, and federal levels.  These include tax revenue streams related to Social Security, proprietor income, indirect business taxes, household income, and corporate profits.  Every $1 million of gross output in the steel sector generates $152,154 of federal tax revenues and $101,046 of state and local tax revenues.

CUSTOMER –

In 2010, the steel industry purchased more than $20 billion of materials produced in other industries, &8 billion of services, $5 billion of eergy products, $4.5 billion of machinery, $4.4 billion from wholesale and retail trade sectors, and more than $4 billion of transportation services.  It also generated $12.4 billion in labor income.  The steel industry’s purchases are obviously highly diverse.  The “services” category, for example, includes money spent for management services, sercurities and investment services, and legal, architectural and specialized desgin services.