Steel Gains Market Share with Partnership Strategies
05/10/2007 - The North American steel industry and its strategic partners are advancing steel’s competitive edge in today’s marketplace with continued investment in advanced technologies and advanced design solutions.
The North American steel industry and its strategic partners are advancing steel’s competitive edge in today’s marketplace with their investment in advanced technologies and the development of advanced design solutions.
Through nearly $25 million in (collective) annual investments, steel is redefining its position as a material of choice in the automotive, construction and container markets. Results include a 44.6% increase in the use of advanced high-strength steels for automotive design, and a 47% increase in the use of cold-formed steel framing for commercial construction.
The industry’s marketplace impact is documented in the AISI Market Development Progress Report 2006-2007, just released at AISI’s General Meeting in Henderson, Nev. With the theme “Advancing Steel’s Competitive Edge,” the report shows how the industry’s investment in strengthening traditional markets and developing new-growth markets is providing customers with steel-intensive, cost-effective solutions.
“We’re not content to just stay competitive with other materials,” said Jim Kutka, Senior Vice President—Commercial for United States Steel Corp. and Chairman of AISI’s Market Development Committee. “At the core of our Market Development strategy is a commitment to moving ahead of the competition and becoming the material of choice when our automotive, construction and container customers need solutions to their business challenges. This strategy has been successful. Today, advanced high-strength steels are the fastest-growing material in the automotive industry. The use of durable, high-quality galvanized steels in the residential and commercial framing and roofing markets is increasing. And the container market is benefiting as well, as more consumers learn about the benefits of canned food for nutritious, convenient mealtime solutions.”
David C. Jeanes, AISI’s Senior Vice President for Market Development, said that partnerships with key customers are the foundation for AISI’s Market Development Strategic Plan. “Through a collaborative effort, the steel companies and more than 45 of our customer partners are making a significant investment in growing demand for steel. This investment has allowed us to advance the development of downstream manufacturing technology and production so essential to steel’s market success.”
The Progress Report includes a “Report Card” summary for each of the markets that documents market changes, the influence of new design practices, and increased steel demand. Some highlights include:
- Steel comprises 62% of the mass of today’s average light vehicle.
- High-strength steels now make up an average of 415 pounds per vehicle, representing a 44.6% increase in the past 10 years.
- The use of cold-formed steel framing for commercial construction has increased 47% since 1998, from 1.7 million tons to 2.5 million tons in 2006.
- Residential steel framing now claims 72% market share in Hawaii, 8% in California and 7% in Florida. The residential steel framing market has the potential for 3.25 million tons of new steel growth annually.
- Metal roofing market share has grown dramatically, from 3% in 1995 to 8% in 2005, representing a change in steel demand from 375,000 tons to 790,000 tons. Through the Metal Roofing Alliance’s Find-A-Contractor Program, more than 25,000 highly qualified leads were generated for metal roofing contractors.
- Tinplate consumption rose approximately 8% in 2006.
- With input from the Canned Food Alliance, the U.S. Department of Agriculture (USDA) is making significant changes to include canned food in the W.I.C. (Women, Infants and Children) food assistance program packages and in the Specialty Crop Block Grant.
- The overall steel recycling rate in 2005 was 75.7% in the U.S., with total tons of steel recycled at slightly over 76 million—more than all other materials combined.
AISI’s Market Development mission is to grow the competitive use of steel through a market-driven strategy that promotes cost-effective, steel-based solutions. The program focuses on the automotive, construction and container markets. The AISI companies directly investing in AISI’s Market Development program are:
· AK Steel Corp.
· Dofasco Inc.
· Ipsco Inc.
· Mittal Steel USA
· Nucor Corp.
· Severstal North America Inc.
· The Timken Co.
· United States Steel Corp.
· USS-Posco Industries
