Washington, D.C., September 9, 2024 — The Alliance for Innovation and Infrastructure (Aii) today released a new report titled “America’s Backbone: The importance of steel and its evolving demand,” examining the crucial role of steel in the U.S. economy, ongoing challenges, and the implications of emerging demands and technological advancements. With the Biden-Harris Administration poised to block Japan’s Nippon Steel Corporation from its expected acquisition of U.S. Steel, this report highlights ways market demand and conflicting policy priorities may create tension with achieving infrastructure goals in the short and long term.
Steel remains foundational to modern infrastructure and industry, underpinning essential services and products across every facet of life—from transportation and construction to energy and household goods. Aii’s latest report provides an overview into how steel’s omnipresence is integral to our economic health and national security.
Key Findings from the Report:
- Steel’s Ubiquity and Economic Impact: Steel supports critical infrastructure including buildings, transportation, and energy systems. It upholds virtually every structure to facilitate products and services relied upon by every American. The report underscores the steel industry’s role as the backbone of modern life and highlights the necessity of strategic investments to maintain and expand its capabilities.
- Challenges Facing the Industry: For decades, the domestic steel industry has experienced a significant decline, with employment dropping from 187,300 jobs to just 83,600 in 2023. The way steel is used has changed and research and development are needed to meet new types of demand. Despite these challenges, increased demand for steel—driven by energy infrastructure and technological advancements—presents both opportunities and challenges.
- Innovation Needed: Given steel’s integral role in supporting energy infrastructure, transportation, and construction, the report stresses the importance of innovation and technological advancement in the domestic steel market. With policy goals pushing the economy toward steel-intensive goals like renewables and electrification, decisionmakers must ensure the steel market is healthy, has sufficient invest in research and development, and is prepared to build our future infrastructure.
Aii’s Executive Director Benjamin Dierker, stated: “Steel is an essential component of our economy and infrastructure, yet current market dynamics are confronting government action in ways that may create tension. If policymakers want steel-heavy investments to meet renewable and sustainability goals, they should not block investments in the steel industry that will be essential for meeting those very goals.”