Metals

The steel industry faced a threat from imported steel in the late 1990s and early 2000s. This international dumping of steel in the United States was the result of a worldwide oversupply. These imports, along with other domestic factors, caused the bankruptcies of over 42 U.S. steel companies beginning in 1998, according to the United Steelworkers of America. In 2002, the Bush administration imposed tariffs on steel imported into the United States from other countries in an attempt to improve the health of the industry. However, these tariffs were lifted in 2003, in a move that many in the steel industry considered to be premature, citing that U.S. steel producers did not have enough time to effectively confront the glut of foreign imports.

In 2018, President Donald Trump issued a proclamation imposing a 25 percent tariff on steel imports from most countries. This resulted in the prices of steel products in the United States rising by about 10 percent. The Biden administration maintained many of the tariffs imposed by the Trump administration, though it replaced some on the European Union with a quota system in October 2021. In mid-2024, the United States implemented a new policy, subjecting any steel from Mexico to the higher 25 percent tax unless it was both melted and poured in Mexico, the United States, or Canada. The change aimed to prevent countries like China from using Mexico as a “back door” to move steel into the United States duty-free, via the North American trade pact.

According to IBISWorld, the U.S. iron and steel manufacturing industry generated revenues of $139.6 billion in 2024. This reflected an increase of 4.9 percent over the previous five years and represented a significant recovery from four years earlier, when the firm valued the industry at $76 billion. The industry employed approximately 80,713 people in late 2024, up significantly from 66,000 in 2020. The firm indicated that the market had experienced significant volatility during the first half of the decade, due to factors such as pandemic-related supply chain disruptions, an uptick in demand from developing countries, geopolitical unrest, and rising interest rates that caused a slowdown in demand from the housing and commercial construction sectors. IBISWorld forecast continued growth for the industry through 2029.

The American Iron and Steel Institute reported that labor productivity tripled through the 20th century. By the beginning of the 21st century, productivity had reduced the number of man hours required to produce one ton of steel by as much as 90 percent in some instances. This is due to the industry's investment in new plants and equipment, which streamlined every step of the steel-making process. This streamlining, although good for industry production and profits, has resulted in a drastically reduced workforce. Iron and steel mills and other ferroalloy manufacturing directly employed a total of 83,950 workers in 2023, which was a decline from the 90,000 employed in 2015, according to the Bureau of Labor Statistics (BLS).

The BLS predicts that overall employment will decline in the steel industry, with a 6 percent decline predicted through 2033 for metal and plastics workers. There will continue to be good opportunities, however, for the following professions: engineers (including mechanical, materials, industrial, electrical, and civil), computer scientists, and skilled production workers. Those with knowledge and experience working with computer numerically controlled machine programming will also have an edge in the job market. Computerized and automated manufacturing methods and global competition will contribute to lackluster employment. Technological improvements will also continue to be made, further leading to a decline in demand for low-skilled workers and increased demand for workers with advanced education and skills.

Employment is also affected by the health of other industries that depend on steel production, such as automakers, manufacturers of household appliances, and the construction industry. In the event of an economic slowdown, employment in those industries, as well as jobs for steel production workers, will be more at risk. Foreign competition is another factor contributing to low employment prospects.

There is an ongoing search for new applications for nonferrous metals. Lightweight aluminum is increasingly being used in vehicle manufacturing, and aluminum producers expect to see an increase in shipments as a result. They have saturated the beverage market but are experiencing increased demand from aerospace companies.

U.S. copper production declined 11 percent from 2022 to 2023, while copper consumption had remained relatively steady. Copper and copper alloys are most often used in construction, electronics, transportation equipment, and consumer products. Since copper usage is associated with industrialization and economic development, demand for copper from developing countries has been promising.

Statista estimated that, after reaching $82.4 billion in 2024, the U.S. basic metals market was forecast to increase at a compound annual rate of 1.26 percent through 2029. During the same timeframe, the employment rate was expected to increase by just 0.10 percent. Separately, the firm estimated that the domestic market for fabricated metals, valued at $211.3 billion in 2024, would increase at the same compound annual rate through 2029. A small employment increase (0.41 percent) was expected in this sector as well.

Many metals companies are joining in partnerships with other companies, with partnerships between domestic and foreign producers becoming more common. The industry as a whole is expected to undergo many changes, and companies will need to make the most of technological trends in order to survive.