Planet Money How Big Steel in the U.S. fell
18 snips
Mar 20, 2024 The podcast explores the dramatic rise and fall of the American steel industry, once a symbol of economic power. It highlights labor strikes, increasing wages, and fierce foreign competition as key factors in its decline. The story of Nucor's mini mills shows how innovation can disrupt traditional methods, emphasizing the significance of adapting to change. It also discusses how incentivizing labor practices transformed productivity, marking a pivotal shift in steel production. Ultimately, it reveals crucial lessons about resilience and the potential of underdogs in a changing market.
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Busse's Early Encounter with Steel
- Keith Busse witnessed Bethlehem Steel's Burns Harbor mill construction in the 1960s.
- He was awestruck by the massive facility but didn't envision working there.
Big Steel's Downfall
- Big Steel's downfall stemmed from labor disputes, foreign competition, and resistance to new technologies.
- These factors made them vulnerable to disruption.
Mini Mills Emerge
- Mini mills offered a disruptive approach using electric arc furnaces and scrap metal.
- Big Steel underestimated them, focusing on larger, more profitable products.
