THE RESTRUCTURING OF THE UNITED-STATES STEEL-INDUSTRY - CHANGES IN THE LOCATION OF PRODUCTION AND EMPLOYMENT

Recent reorganization of the US iron and steel industry provides a use ful setting for an analysis of the relationship between industrial loc ation and institutional forms. Regression analysis shows that institut ional shifts in the organization of production dominated geographical shifts in employment and product value as integrated maxi-mills sought to raise productivity. The reorganization of production includes mill abandonment, increased subcontracting by maxi-mills in the initial st ages of production, horizontal penetration by mini-mills in the sheet- steel market, and the growing integration of steel finishing and autom obile assembly as firms that belong to Japanese corporate groups expan d their operations in the USA. Maxi-mills are concentrating investment and production in the Midwest states as their joint ventures with Jap anese steel firms specialize in the mass production of galvanized shee ts for the automobile industry. Locational shifts also include the nat ional spread of scrap-processing mini-mills and the rapid decline of r aw-steel production in Pittsburgh as maxi-mills close furnaces and mil ls producing construction-grade bars and rods.