There is no doubt that the entire manufacturing industry, including steel, has taken a beating the past few years. However, like the strong and tough metal itself, the steel industry is long lasting and is reinventing itself. It is poised to continue the comeback that has already been gaining ground. As the country that is third in the world in steel production, the output of the United States is expected to continue to grow in 2015.
China, the world leader in steel consumption, is forecast to be a major reason for the projected 2% increase in steel production for 2015. India and Japan are also expected to increase their demand for steel during the fiscal year of 2015. As India continues to modernize its urban centers, and the demand for resources and infrastructure grows to meet the demands of its burgeoning population, the country’s construction and manufacturing sectors will show growth and an increased need for steel. The two percent increase worldwide equates to a demand of about 3.4 million pounds of steel for this year.
Not only is the United States expected to see a greater output of steel production based on world needs for 2015, the country itself is also projected to increase its demands for more steel for projects as well. As the economy continues to show improvements, the United States will show a stronger need for steel. Increased momentum within the automotive sector, a robust turnaround of the construction industry and expansions within the energy sector are the incentives behind this growth and will spark an increase in the need for greater quantities of steel within the country.
In fact, Zacks Investment Research speculates that the steel industry within the United States has a positive outlook; it currently ranks number 69 of over 260 industries in the country, which is within the top third.
Figures presented by Dodge Data & Analytics further give weight to the implication that the outlook for the steel industry during 2015 is solid. New construction starts in the country, for example, could see an increase as great as 9% with a resulting price tag of upwards of $612 billion for the year. This is largely driven by the educational, commercial and institutional sectors as they make increased demands and push construction projects to their planning phases and beyond to meet the demands within their respective industries.
The outlook for the steel industry in the United States is positive and Ritner Steel is encouraged by the speculations and predictions outlined above. If you’re looking for a supplier for your next project, contact us today.