The Steel Industry – The Backbone of InnovationThe Steel Industry – The Backbone of Innovation

As a major driving force behind industrialization throughout the world the steel industry has been the backbone of innovation for centuries. It is a key element for a country’s economic development and plays an important role in the growth of the economy of the developed world. It is also a critical component for manufacturing and is responsible for the creation of thousands of jobs through firms that focus on financial, advertising, personnel, legal and transportation services among others.

The rise of the steel industry  was a vital part of the Industrial Revolution, and the health of the industry continues to play an important role in the progress of industrialized nations and developing countries alike. Governments often view steel production as a symbol of pride and industrial esteem, and have long provided monetary or legislative support to their domestic companies.

In the past, technological advancements throughout the 20th century lowered production costs and increased international demand. After the end of World War II, countries like Japan and Europe needed new steel to rebuild their cities and didn’t have the production capacity that America did. The increase in international steel production weakened the relative influence of the American steel industry.

Demystifying the Steel Industry: From Production to Global Impact

In addition, many modern steel companies are state owned as a result of industrialization strategy in late industrializing countries, including Steel Authority of India (SAIL) in India, Siderurgia Brasileira in Brazil and POSCO in South Korea. Governments often subsidize and promote these companies to maintain price controls, which restrains inflation in other sectors of the economy.

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