More Good Economic News

The following is a Press Release from U.S. Steel:

U. S. STEEL ANNOUNCES STATE-OF-THE-ART STEELMAKING TECHNOLOGY INVESTMENT AT MON VALLEY WORKS

PITTSBURGH May 2, 2019–United States Steel Corporation (NYSE: X) announced today it will invest more than $1 billion to construct a new sustainable endless casting and rolling facility at its Edgar Thomson Plant in Braddock, Pa.,and a cogeneration facility at its Clairton Plant in Clairton, Pa., both part of the company’s Mon Valley Works. The cutting-edge endless casting and rolling technology combines thin slab casting and hot rolled band production into one continuous process and will make Mon Valley Works the first facility of this type in the United States, and one of only a handful in the world.

“This is a truly transformational investment for U.S.Steel.We are combining our integrated steelmaking process with industry-leading endless casting and rolling to reinvest in steelmaking and secure the future for a new generation of steelworkers in Western Pennsylvania and the Mon Valley,” said David B. Burritt, President and Chief Executive Officer of U.S.Steel. “U.S.Steel’s investment in leading technology and advanced manufacturing aligns with our vision to be the industry leader in delivering high-quality, value-added products and innovative solutions that address our customers’ most challenging steel needs for the future. We believe that adding sustainable steel technology to our footprint will create long-term value for our employees, our region, our customers and our investors.

The installation of endless casting and rolling technology will give U.S.Steela world-class asset that will improve the quality and attributes of its downstream products for customers in appliance, construction and industrial markets. With this investment, Mon Valley Works will become the principal source of substrate for the production of the company’s industry-leading XG3™ Advanced High Strength Steel (AHSS) that assists automotive customers in meeting fuel efficiency standards. This project, in addition to producing sustainable AHSS, will improve environmental performance, energy conservation and reduce our carbon footprint associated with Mon Valley Works. First coil production is expected in 2022,contingent upon permitting and construction.

With this investment, U.S.Steel continues its more than a century-long commitment to innovative steelmaking in Pennsylvania. The technology will allow for optimization of the Mon Valley Works and other U.S.Steel facilities without increasing the company’s overall steelmaking capacity. The new endless casting and rolling facility will replace the existing traditional slab caster and hot strip mill facilities at the Mon Valley Works. Current and future employees will enhance their skills with more advanced manufacturing to operate and maintain the new facility through training programs developed in partnership with local universities.

As part of the project,U.S.Steel will also include construction of a new cogeneration facility, equipped with state-of-the-art emissions control systems at its Clairton Plant,to convert a portion of the coke oven gas generated at its Clairton Plant into electricity to power the steelmaking and finishing facilities throughout U.S.Steel’s Mon Valley operations.

Once completed, the new advanced steelmaking technology and state-of-the-art cogeneration facilities will incorporate the best available control technologies. Based upon current design and engineering data that is accompanying our air permit applications, we expect that the project will result in significant improvements in emissions compared to the existing facilities to be replaced, including reductions in emissions of Particulate Matter (PM) of approximately 60%, PM10 and PM2.5 of approximately 35%,sulfur dioxide of approximately 50%,and nitrogen oxides of approximately 80%. The project exemplifies our continued commitment to conserve resources and improve air quality in the Mon Valley.

Additional details on the investment, including an investor presentation,can be found at http://www.ussteel.com/MonValleyInvestment.

President Trump’s economic policies are working for everyone.

Reopen The Plant

The Conservative Treehouse posted an article today about the closing of the General Motors plant in Lordstown, Ohio. The article points out that with the auto industry expanding its manufacturing in the United States, it makes no sense to close down an automobile manufacturing plant.

The article states:

…In just the past few months, specifically as an outcome of the USMCA, six auto companies have decided to massively expand U.S. operations and spend over $20 billion on auto-manufacturing investments in the U.S.

It makes no sense for an existing auto plant to sit idle.  Come to terms with the UAW; make a good deal that helps membership and incentivizes ownership; sell the facility to a new group expanding U.S. investment; retool, and get people back to work.

The article lists the investments being made in the United States by other auto manufacturers:

  • Toyota –  $13 Billion Investment: Production capacity increases and building expansions at Toyota’s unit plants in Huntsville, Alabama; Buffalo, West Virginia; Troy, Missouri and Jackson, Tennessee. [SEE HERE]
  • Fiat Chrysler – $4.5 billion for a new assembly plant in Detroit and boosting production at five existing factories. Hiring 6,500 workers.  [SEE HERE]
  • Ford Motor Co – New expansion for 500 workers and investment of additional $1 billion in its Chicago assembly operations to help keep up with booming demand for sport and crossover-utility vehicles. [SEE HERE]
  • Volkswagen – New investment of $800 million by Volkswagen and the creation of 1,000 jobs in Hamilton County, Tennessee. [SEE HERE]
  • BMW – Reacting to changes (75% rule of origin) in the new USMCA, BMW announced exploration for a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said. [SEE HERE]

Evidently the problem is the inability of General Motors to reach an agreement between GM CEO Mary Barra, and the UAW leadership. If General Motors intends to be a major part of the automobile market in the future, they need to work out a deal with the UAW and put people back to work.

 

Laws Have Consequences

Yesterday The Conservative Treehouse reported that Toyota has announced the following:

  • By 2021, Toyota will now invest nearly $13 Billion in its U.S. operations with plans to add nearly 600 new jobs at American manufacturing plants
  • Hybrid versions of the popular RAV4 and Lexus ES to be produced in Kentucky for the first time
  • Production capacity increases and building expansions at Toyota’s unit plants in Huntsville, Alabama, Buffalo, West Virginia, Troy, Missouri and Jackson, Tennessee

The article states that this is a direct outcome of the NAFTA replacement USMCA trade deal; and the new 75% rule of origin within the Auto sector.

The article explains:

The guiding decision here relates specifically to the construct of the USMCA (NAFTA replacement).   Toyota was previously focused on multi-billion-dollar investments in Canada as they exploited the NAFTA loophole and procured component parts from Asia for North American assembly and shipment into the U.S. Market.  However, when they renegotiated NAFTA and created the USMCA President Trump and USTR Lighthizer closed closed the loophole.

The new USMCA agreement requires that 75% of automobile parts must be made in North America; and 45% must come from plants with minimum labor costs ($16/hr); or face tariffs to access the U.S. market with the finished good.  As a result Toyota has to either pay a tariff to continue importing Asian component parts, or move the higher-wage component manufacturing directly into the U.S.

Obviously, Toyota chose the latter.

The article explains that Toyota is not the first automobile company to respond to USMCA:

Keep in mind Toyota is not the first Auto manufacturer to respond with increased U.S. investment. Prior to the USMCA German auto-maker BMW began building a $2 billion assembly plant in Mexico. Under the old NAFTA plan most of BMW’s core parts were coming from the EU (steel/aluminum casting components, engines, transmissions etc.) and/or Asia (electronics, upholstery etc).

However, under the USMCA the Mexico BMW assembly plant has to source 75% of the total component parts from the U.S, Canada and Mexico; with 45% of those parts from facilities paying $16/hr.

The result was BMW needing to quickly modify their supply chain, build auto parts in the U.S. and Mexico, or they would end up paying a tariff on the assembled final product.

Like Toyota, BMW made the financial decision to open a new engine and transmission manufacturing plant in South Carolina…. exactly as Trump and Lighthizer planned.

And don’t forget Fiat Chrysler made a similar announcement in February: “The automaker says it will hire 6,500 workers and invest $4.5 billion by adding a new assembly plant in Detroit and boosting production at five existing factories.”

Like him or not, President Trump is a businessman who is doing things that are helping the American economy and the average worker.

The Power Of The Media Illustrated

This is the current polling from RealClearPolitics:

This is some recent economic news reported by The Washington Times on January 9:

Given the dazzling December economic data, it’s no wonder the press gave it short shrift. According to the U.S. Bureau of Labor Statistics, the economy added a whopping 312,000 jobs, far more than the expected 176,000. After revisions, job gains have averaged an impressive 254,000 per month over the past three months. Job growth in 2018 (an average of 220,000 per month) passed that of both 2016 (195,000) and 2017 (182,000). Payrolls increased by 2.6 million in 2018, the highest since 2015.

The sunny jobs picture encouraged 419,000 new workers to enter the workforce and sent the labor force participation rate up to 63.1 percent. Unemployment rates among blacks, Latinos and women are at or near historic lows.

Job growth has also meant significant wage growth. Wages are up a stunning 3.2 percent from last year and .4 percent from November. December was the third straight month that the yearlong growth in nominal average hourly earnings was above 3 percent in nearly a decade; the last time we saw that trend was April 2009. Wages are also being given an assist by inflation being kept in check.

The article at The Washington Times concludes:

His (President Trump’s) astounding economic track record is their worst nightmare. It puts the lie to the nonsense Mr. Obama, the Democrats and the media have been shoveling for years: That anemic economic growth, high unemployment, the collapse of manufacturing and grotesque trade imbalances were the “new normal.”

It also pointedly demonstrates that the statist vision — radical wealth redistribution, socialized medicine, green energy chimeras, social justice enforcement, limits on free speech, private property and gun ownership, and the rule of the leftist mob — creates only tyranny, poverty, injustice and servitude. (Note the deflection: These are things the left claims to want to eradicate.)

Mr. Trump and his economic thunderbolt are exposing the left and its policies as irredeemably bankrupt, economically and morally. And that is perhaps the biggest reason why they must try to destroy him.

A lot of this economic news has not been reported. However, people do notice when there are more jobs available and there is more money in their paycheck. President Trump’s approval numbers are finally in positive numbers. The economy is booming. What would be the basis for most Americans believing America is headed in the wrong direction? Might it be the constant negative reporting from the media? Can you imaging what President Trump’s approval rating would be if the media were actually balanced? Just remember–the people vote. The media represents only a small percentage of votes.

No One Should Be Surprised By This

Breitbart is reporting today on some of the things the Democrats plan to do now that they have taken over the House of Representatives.

The article reports:

Rep. Brad Sherman (D-CA) plans to introduce articles of impeachment against President Donald Trump on Thursday — the first day that Democrats control the majority in the U.S. House of Representatives.

…Newly-elected Rep. Rashida Tlaib (D-MI) also endorsed impeaching Trump on her first day in office, according to The Nation, which described Tlaib as calling for “immediate steps” to remove the president from the White House.

“Each passing day brings more pain for the people most directly hurt by this president, and these are days we simply cannot get back. The time for impeachment proceedings is now,” Rep. Tlaib declared.

Representative Sherman wants to impeach President Trump for obstructing justice by firing former FBI Director James B. Comey, among other wrongdoing.

The article states:

“There is no reason it shouldn’t be before the Congress,” Sherman said. “Every day, Donald Trump shows that leaving the White House would be good for our country.”

I don’t know what these people are looking at, but the middle class has come roaring back since President Trump took office. The unemployment numbers are down, there are more jobs than people looking for work, people have more spending money in their pockets, manufacturing is coming back to America, better trade deals have been negotiated, America’s carbon dioxide emissions are down, and North and South Korea are talking to each other. Which one of these accomplishments do you think the American people are willing to impeach President Trump for?

The Economic Recovery Is Still Struggling

Market Watch is reporting today that New York area manufacturing conditions fell rapidly in August.

The article reports:

The Empire State general business conditions index nose-dived to a reading of negative 14.9, from positive 3.9 in July, marking the worst level since April 2009, the New York Fed said. The index, on a scale where any positive number indicates improving conditions, was far worse than the positive 4.5 forecast in a MarketWatch-compiled economist poll.

The article includes the following chart:

NewYorkStateManufacturingConditions

The only good news in this is that the decline may cause the Federal Reserve to delay interest increases for a while.

Another Industry Suffering From Overregulation

The Washington Examiner posted an article today on the government-caused drug shortages America is experiencing. Yes, you read that right.

The article reports that prescription drug shortages tripled from 2005 to 2010 and reached record levels in 2011 as manufacturers ceased operations or ran into production problems.

The article reports:

Last year, nearly half of hospitals reported experiencing a drug shortage on a daily basis, according to a survey of 820 hospitals by the American Hospital Association. About 82 percent of hospitals said they delayed treatment because of a shortage, and 35 percent of hospitals said patients experienced “adverse outcomes.” The survey did not categorize those outcomes, a spokeswoman said.

So what is going on? The Federal Food and Drug Administration (FDA) has increased its enforcement efforts. The article explains:

…the FDA’s “zero tolerance” regime is forcing manufacturers to abide by rules that are rigid, inflexible and unforgiving. For example, a drug manufacturer must get approval for how much of a drug it plans to produce, as well as the timeframe. If a shortage develops (because, say, the FDA shuts down a competitor’s plant), a drug manufacturer cannot increase its output of that drug without another round of approvals. Nor can it alter its timetable production (producing a shortage drug earlier than planned) without FDA approval.

We elected this government. We are responsible. The only way to fix this is to unelect everyone who has worked toward bigger government and more regulation and elect people who want smaller government and less regulation. It’s up to us.

 

Enhanced by Zemanta