Bo. Huallachain, THE RESTRUCTURING OF THE UNITED-STATES STEEL-INDUSTRY - CHANGES IN THE LOCATION OF PRODUCTION AND EMPLOYMENT, Environment & planning A, 25(9), 1993, pp. 1339-1359
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.