InformationWeek. com News, analysis and research for business technology professionals, plus peertopeer knowledge sharing. Engage with our community. Boston Consulting Group Global Wealth Report 2010 Pdf' title='Boston Consulting Group Global Wealth Report 2010 Pdf' />Surging Steel Imports Put Up To Half a Million U. S. Jobs at Risk. Executive summary. The U. S. steel industry is facing its worst import crisis in more than a decade. In the aftermath of the Great Recession, steelmakers in other countries, backed by aggressive government support, continued to add production capacity as demand stagnated. The open and large U. Welcome to Bain Companys fourth annual Global Healthcare Private Equity Report. Here, we review the significant trends of the past year and look at some of the. SBA. Wealth management in a period of change. November 2015 2 Global wealth management In 2014, global private financial assets rose by 11. USD. S. market became the prime target for the massive excess supply stemming from this excess capacity, and, since 2. U. S. steel imports have surged and import unit values have plummeted. Global excess steel capacity is now over half a billion metric tons, more than twice the volume of excess capacity in the last steel import crisis that followed the Asian financial crisis more than a decade ago. While China accounts for more than a third of global excess capacity, there is also significant overcapacity in South Korea, India, and elsewhere. With more additions planned overseas and a continued slow recovery in demand, the excess capacity problem is not projected to be resolved any time soon. Excess capacity means that steel production facilities have the capacity to produce much more steel than the market demands. High fixed costs, capital intensity, and the large scale of steelmaking encourages state backed producers with excess capacity to maintain production in excess of domestic demand, and export the surplus at below market rates. Learn More Close. GE builds, moves, powers and cures the world. We are the global leader in infrastructure, developing and changing markets. For example, GE Aviation. McKinsey Global Institute Our mission is to help leaders in multiple sectors develop a deeper understanding of the. Background The question of whether neighborhood environment contributes directly to the development of obesity and diabetes remains unresolved. The study reported on. The glut of exports from global excess steel supply is targeted in particular at the U. S. market. U. S. steel imports increased from 2. Imports have increased not only in absolute terms, but also relative to domestic production and consumption, seizing more of the U. S. market and thwarting the domestic industrys efforts to recover from the Great Recession. U. S. steel imports surged even more sharply in the first two months of 2. Domestic shipments declined 0. Consequently, the import share of the domestic market increased 4. JanuaryFebruary 2. Evidence that imported steel prices are falling, and falling unfairly, can be found in the declining sales price of imports now underselling comparable domestic products and the rapid growth in the number of unfair trade complaints filed in the past year. The average unit value of imported steel declined 2. Gerber Guardian 2 Serial Numbers. JanuaryFebruary 2. U. S. steel producers filed 4. Surging imports of unfairly traded steel are threatening U. S. steel production, which supports more than a half million U. S. jobs across every state of the nation. The import surge has depressed domestic steel production and revenues, leading to sharp declines in net income in the U. Boston Consulting Group Global Wealth Report 2010 Pdf' title='Boston Consulting Group Global Wealth Report 2010 Pdf' />S. While U. S. steel output has begun to recover from the depths of the Great Recession, domestic producers have experienced declining shipments since 2. As a result, the U. S. steel industry had net losses of 3. A large, capital intensive industry cannot long survive in its present form when subject to such chronic financial losses. As the domestic industry has struggled with growing unfair import competition, thousands of steel workers have lost their jobs. Since the beginning of 2. Trade Adjustment Assistance because imports or shifts in production contributed to their job loss. More layoffs have been announced in recent months. Nearly 1,0. 00 steel jobs have been lost due to surging imports in the first three months of 2. U. S. steel production supported 5. These jobs are at risk if surging imports of unfairly traded steel are allowed to displace domestic steel production. The top 1. 0 states, ranked by total number of jobs at risk from displaced domestic steel production, are Texas 5. California 5. 2,3. Pennsylvania 3. 5,3. Ohio 3. 3,9. 00 jobs, Illinois 2. Indiana 2. 6,0. 00 jobs, New York 2. Florida 2. 3,2. 00 jobs, Michigan 2. Wisconsin 1. 5,7. These 5. 83,6. 00 steel related jobs are at risk if the U. S. does not fully and effectively enforce its trade remedy laws, which have historically been vital to the survival of the U. S. steel industry. Trade remedies enabled the U. S. steel industry to survive the last import crisis, and their effective enforcement is equally critical today. The excess capacity plaguing the steel industry stems largely from massive government support for, and direct government involvement in, the steel industry in other countries. In 2. 01. 1, half of the worlds 4. These governments view their steel industries as strategic i. These factors lead to uneconomic additions to capacityincreases in capacity that dont make economic sense because they are not driven by demand. U. S. imports of unfairly traded steel products are increasing as countries such as China and others sell dumped and subsidized upstream basic steel products to other countries, which use these inputs in the downstream finished products, like pipes, that they sell to the U. S. China and Korea accounted for more than three fourths 7. Imports of Chinese steel by South Korea and Japan rose sharply between 2. Korea and Japan, in turn, are themselves major exporters to the U. S. Aggressive government support, coupled with the industrys capital intensive nature i. U. S. market. The last time this happened, in the early 2. Asian financial crisis, trade remedies served as a vital line of defense. Trade remedies have provided significant benefits for the domestic industry and its workers, including resurgent shipments and sales revenue, improved operating performance, retained jobs, and the ability to make needed capital investments. In cases where relief is denied, the costs have been just as great, in some cases forcing the industry to endure additional years of injury before finally obtaining needed relief, or, worse, going out of business. Trade remedies are once again critical to the industrys survival. U. S. steel producers filed 4. Determinations in these cases will be made later this year and in early 2. Over 1. 4,0. 00 workers, producing the affected steel products in 9. In short, trade remedies have been critical to the survival of the steel industry and the more than half million workers who depend on that industry, particularly when the industry faces the kind of crisis that threatens it today. Policymakers should ensure that trade remedies are effectively enforced, that enforcement discretion is exercised consistent with the remedial goals of the statute the Tariff Act of 1. U. S. market. This requires that policymakers review areas in which changes in practice, methodologies, regulations, and the law may be needed to ensure that the steel industry and its workers can continue to rely on these vital tools. I. Steels import crisis. The U. S. steel industry is in the midst of an import crisis resulting from a confluence of forces including the rapidly growing surplus in global steel capacity and a surge in unfair import competition. This section examines the dimensions of steels import crisis. Later sections examine the importance of steel production to the U. S. economy, review root causes of the crisis, present policy recommendations, and asses the importance of effective enforcement and enhancement of trade remedy laws. A. Global overcapacity threatens U. S. steel industry viability. For decades, the global steel industry has been plagued by uneconomic production capacity additions which lead to market distorting surges of exports by other countries in times of economic distress. Global overcapacity is growing by any measure.