Capital Spending on the Rise for Ohio Steelmakers
05/27/2004 -
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Capital Spending
on the Rise
for Ohio Steelmakers
May 27, 2004 — Leading indicators for Ohio steel producers in 2004's first quarter showed strong increases in capital spending, shipping and production.
As Ohio steelmakers continued to pursue productivity and quality improvements, capital investment spending grew to $36.7 million, up 64.6% from the same period last year. Ohio's steel production also rose during the first quarter, to 3.6 million tons, a 13.3% increase from a year ago. Shipments rose 13.1% over the same period, reaching 3.8 million tons.
Ohio Steel Council gains in production and shipments over the past 12 months are primarily attributed to the addition of International Steel Group, Inc. (ISG), which joined the council in 2003. However, the inclusion of ISG's data was not a major factor in the sharp increase in production and shipments occurring in 2004's first quarter.
"Global demand for steel is expected to increase 6.2% this year," said Patrick Tatom, President and CEO of WCI Steel, and a member of the Ohio Steel Council. "This trend is reflected in the increases that we've seen in Ohio in the first quarter."
Ohio steel employment fell 7.4% compared to the first quarter of 2003, to 15,142 in 2004's first quarter. Meanwhile, first quarter payroll dipped 2.7% to $225 million compared to the same time period a year ago.
The Ohio Steel Data Report, compiled by Youngstown State University's Center for Urban Studies, covers statistics from Ohio facilities of the Council's steel-producing members. The data is forwarded to the Ohio Steel Council in aggregate so the contribution of any single company cannot be determined.
The Ohio Steel Council is a public-private partnership designed to strengthen ties among the steel industry, the state of Ohio and its citizens. The Council's member organizations are AK Steel Corp., International Steel Group, Inc., Ohio Department of Development, Ohio House of Representatives, Ohio Senate, The Ohio State University, Pro-Tec Coating Co., Republic Engineered Products Inc., Stark State College of Technology, The Timken Co., United Steelworkers of America, USS Lorain Pipe Mills, V&M STAR, WCI Steel, Inc., and Wheeling-Pittsburgh Steel Corp.
