The process to make steel was first discovered in the 1800s. And it's no coincidence that numerous cities and nations experienced quick economic growth in the years that followed. Known as the material that built economies around the world, both physically and monetarily, steel made it possible to build large buildings, railroads, ships and many other components that are vital to a thriving economy. Once the infrastructure was built, wealth followed.
Today, many economies are just as dependent on steel production as they were hundreds of years ago. Following are a few ways our economy is dependent on steel production.
Industry Depends on It
In Canada, steel is used in 75 percent of industrial products, such as automobiles and construction equipment. This means that without steel, a staggering three-fourths of products that come off an assembly line for domestic consumption or export would disappear. As you can imagine, this would have a dramatic impact on the economy and may lead to a complete economic collapse.
Commerce Relies on It
Commercial buildings, plants, factories, manufacturing equipment, trucks, roads, bridges, warehouses and retail stores are all built using steel. If steel were unavailable, the key components that sustain and create economic growth would fall into disrepair. What's more, construction on new projects would grind to a halt, resulting in catastrophic job loss.
Steel Consumption Follows GDP
In a growing economy, both GDP and steel consumption are high. In a recession, however, they are both low. They are, in essence, irrevocably linked. When people stopped building and buying homes in the housing recession, the steel industry suffered. People were laid off, which led to loss of income and economic stimulation. People just weren't buying anything, so manufacturers stopped producing in high numbers, which led to less need for steel.
Steel Accounts for A Large Portion of Imports and Exports
In 2013, Canada produced 13.5 million tons of steel. Over 16 million tons were consumed domestically while nearly 7 million tons were exported. Canada also imported approximately 10 tons of steel from other countries. All in all, steel makes up a hefty chunk of Canada's imports and exports. When you take into account products made with steel, such as automobiles and planes, the chunk is even larger.
As you can see, Canada's economy is dependent upon steel production. Without this essential product, infrastructure would crumble, manufacturing would slow, exports would drop and the entire economy would suffer because of it.
For information on a steel distributor in your area, do an online search.