The United States and Mexico have agreed on changes to the rule of origin for NAFTA automobiles during bilateral discussions. The percentage of North American content for NAFTA autos will be increased from 62.5 percent to 75 percent. In addition, 70 percent of steel, aluminum and glass used in production of autos must be sourced […]
United Steelworkers called the latest contract proposal from U.S. Steel an “insult.” The proposed seven-year labor agreement ties any future wage increases or economic adjustments to profit-sharing and bonus schemes, said the USW. “After our many sacrifices and diligent work to keep this company in operation through tough times, and the misery our members have […]
Durable goods orders fell more than expected in July, dipping 1.7 percent, according to data from the Commerce Department. The decrease was primarily due to a 34 percent plunge in commercial aircraft orders. Excluding transportation, durable goods orders were up 0.2 percent. Core capital goods, orders minus defense and aircraft, gained 1.4 percent last month […]
Sales of both new and existing homes declined in July as higher prices impacted affordability for buyers. Existing home sales fell for the fourth consecutive month in July, dipping 0.7 percent to a seasonally adjusted annual rate of 5.34 million. Sales are 1.5 percent below a year ago, said the National Association of Realtors. Sales […]
Metalforming companies are struggling with higher steel prices and longer lead times as a result of Section 232 tariffs, but are still expecting business conditions to improve during the next three months. The Precision Metalforming Association’s August Business Conditions Report showed 29 percent of participants expect an increase in economic activity, 62 percent expect no […]
Architecture billings growth slowed in July, according to the American Institute of Architects. The AIA Architecture Billings Index slipped to 50.7 from 51.3 in June. A score over 50 indicates billing growth, but on a regional basis only the South registered growing demand with an index reading of 55.2. Regional averages in the remainder of […]
The United Steelworkers (USW) has rejected a proposal by U.S. Steel that would provide variable bonuses instead of pay raises. “We made it clear to the company that wage increases must be part of our new agreement and that we aren’t interested in the types of variable bonuses schemes that the company has been proposing […]
A group representing the United States’ leading auto manufacturers, parts suppliers, auto dealers, parts distributors, retailers and vehicle service providers have formed the Driving American Jobs Coalition to oppose potential new Trump administration tariffs on imports of autos and auto parts. The coalition argues that imposing new auto tariffs will cause “massive job losses and […]
A new report by the American Trucking Association highlights America’s dependence on the trucking industry, revealing that 70.2 percent of all domestic freight tonnage is moved by trucks. “Information, when presented properly and accurately, tells a story,” said ATA President and CEO Chris Spear. “The information in these pages highlights exactly what I tell elected officials, […]
Commerce announced today an affirmative preliminary determination in the antidumping investigation of large-diameter welded pipe from Canada, China, Greece, India, Korea and Turkey. The merchandise covered by investigations is welded carbon and alloy steel pipe (including stainless steel pipe), more than 406.4 mm (16 inches) in nominal outside diameter (large-diameter welded pipe), regardless of wall […]
A letter last week from Tennessee manufacturers to Washington asks President Trump to consider the unintended consequences of Section 232 tariffs on steel-consuming companies. The group of six Dickinson Country manufacturers said they employ over 1,000 workers and depend on competitively priced steel to fabricate products that compete in a global marketplace. “We respectfully ask […]
U.S. Steel announced on Thursday that it will invest a minimum of $750 million for asset revitalization at its Gary Works facility in Indiana. “We are pleased to be making this significant investment at Gary Works, which will improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come,” […]
Forty-five states and the District of Columbia added construction jobs between July 2017 and July 2018, while 29 states and D.C. added construction jobs between June and July, according to an analysis by the Associated General Contractors of America of Labor Department data. Association officials cautioned that continued job gains may depend on swiftly implementing […]
Zekelman Industries, Inc., a manufacturer of steel pipe and tube, has filed for an initial public offering with the U.S. Securities and Exchange Commission. The company listed an offering of $100 million and hopes to complete its IPO this year, according to Bloomberg. Zekelman posted net income of $161 million on net sales of $2.1 […]
Zekelman Industries, Inc., a manufacturer of steel pipe and tube, has filed for an initial public offering with the U.S. Securities and Exchange Commission. The company listed an offering of $100 million and hopes to complete its IPO this year, according to Bloomberg. Zekelman posted net income of $161 million on net sales of $2.1 […]
Canada is considering provisional safeguard measures on seven classes of steel imports to prevent foreign steel shipments from being diverted into Canada as a result of U.S. trade actions. “We know that because of the unfair tariffs imposed by the United States, other countries will be seeking alternative markets for their steel products,” said Canadian […]
Labor agreements for United Steelworkers at ArcelorMittal and U.S. Steel are set to expire on Sept. 1, but union officials say there has been “little progress on core issues.” In its Aug. 17 update to members, the USW wrote: “Negotiations continued with ArcelorMittal this week in Pittsburgh, and as has been the case since our […]
The U.S. trade situation is causing some consternation, according to analysts at CRU. During a webinar on Tuesday, which was made available to SMU member companies, analysts discussed the trade measures that have been instituted by the Trump administration and the potential impact on the U.S. and global economies. Steel and aluminum tariffs were imposed […]
Housing data was mostly flat in July with housing starts up just 0.9 percent to a seasonally adjusted annual rate of 1,168,000 units. Data from HUD and Commerce show single-family housing starts increasing 0.9 percent and multifamily housing 3.1 percent. Regionally, housing starts fared better in the Midwest and South, increasing 11.6 percent and 10.4 […]
Manufacturers in New York State reported growing business activity in August, according to the latest Empire State Manufacturing Survey. The Federal Reserve Bank of New York says the general business index of the survey climbed three points to 25.6 as new orders and shipments remained strong. The new orders index slipped about a point to […]
North Star BlueScope may receive funding for an expansion that will add 600,000 to 900,000 metric tons of annual capacity to the Delta, Ohio, facility. Australian parent company BlueScope has initiated a comprehensive study to determine the feasibility of a $500 million to $700 million investment that would include a possible third electric arc furnace […]
United Steelworkers labor negotiations with ArcelorMittal are yielding little progress, said an update from the USW to members on Friday. “From local issues to major economics, ArcelorMittal has resisted engaging in meaningful dialogue,” said the communication. USW officials complained that the delays could be a “tactic to undermine the bargaining process” as the Sept. 1 […]
An incident at the D4 blast furnace at Great Lakes Works on Friday, Aug. 10, sent 15 Songer Services contract employees to the hospital. Spokesperson Amanda Malkowski says the incident “was not an ‘explosion,’ as many have been reporting.” The furnace was down for scheduled maintenance at the time, so there is no impact to […]
Two of the nation’s busiest cargo ports reported record months in July. The South Carolina Ports Authority handled 200,594 twenty-foot equivalent container units (TEUs) during the first month of fiscal year 2019, marking the strongest July on record and second-highest monthly container volume in the port’s history. The Georgia Ports Authority recorded its second busiest […]
Orders for Class 8 trucks set a record in July. FTR Transportation Intelligence reports orders jumped 25 percent to over 52,250 units last month in what is normally the weakest month of the year for order intake. Five of the highest order months ever occurred in 2018, said FTR. Tight capacity in the face of […]
Construction costs have squeezed contractor profits as prices for construction material and services have climbed steeply during the past year. The producer price index for the construction industry was relatively steady in July, but jumped 8.1 percent from July 2017, said the Associated General Contractors of America in an analysis of new Labor Department data. […]
The numbers 201, 232 and 301 are getting a lot of headlines recently. They are sections under three U.S. laws that President Trump has used to impose tariffs on a variety of goods and countries. Section 201 of the Trade Act of 1974 was used to place tariffs on imports of washing machines and solar […]
Emission standards set by the Obama administration in 2012 are now on the chopping block by the Trump administration. Last week the Environmental Protection Agency and Department of Transportation submitted a proposal to roll-back emission standards that are set to take effect after 2020 and freeze them at the pre-2020 levels. “We are delivering on […]
Caterpillar says it will raise prices due to U.S. tariff measures despite expecting a stronger profit outlook for the year. The major exporter of construction, mining and energy-related equipment estimates recently imposed tariffs will cost the company $100 million to $200 million in the second half of 2018—about 3 percent of its full-year profits. Strong […]
NAFTA talks are continuing this week with the contentious sunset clause under discussion. The topic has not been revisited in recent discussions as negotiators from the U.S. and Mexico tried to close less volatile chapters of the agreement. The sunset clause that would put a termination date on the agreement has been rebuffed by […]