The decline of the US and UK Steel Industries and Efforts made in reviving them
Every day new firms are being started which offer cheap services leading to the collapse and decline of the existing firms. The improved technology and over-population are key factors causing declining of major firms. For instance, in the United Kingdom, together with the United States of America, their steel industries have deteriorated. The presence of the improved know-how and over-capacity of people has led to the introduction of firms producing cheap materials. This is evident from China, where it has introduced its business globally in which its materials are cheaper than the already established industries. In this connection, this paper focuses on elaborating on the major causes of the US and UK decline of Steel firms and efforts made in reviving them.
In both states, there are new inventions due to the presence of new and improved technology. Here, the new inventors have come up with smart, durable, and cheap steel materials compared to the old steel firms. Their cheap and large production of steel materials has silenced the existing organizations, thus pushing to the wall and even making them shut their businesses. Also, the increased demand due to over-population and the need to fill the gap left has resulted in the need to come up with new ideas mainly to solve the incurring problems of insufficient steel provisions. If it were not for the improved technology, the old firms could have made millions from their services, and fewer developments could be made. Therefore, the cheap steel tools had helped in enhancing many developments as compared to ancient times when steel production firms were only countable. Don't use plagiarised sources.Get your custom essay just from $11/page
Further, reduced making cost and favorable tax policies on steel production firms have encouraged the introduction of new firms into the two countries. These two factors have participated in the decline of the mention companies. These have reduced the purchasing cost subjecting the sellers into losses leading to closure or complete termination of their businesses. Even the idea of reducing the two aspects is good, the firms have caused major drifts and adverse life changes, which was not the expectation.
In the United Kingdom, there has been a revitalization of exports to global markets. This is helping not only the declined steel industries but also the entire gross domestic products (GDP). Also, new steel industries have been restricted from starting without meeting the set standards. The two ways are the criteria for reviving the steel industries in the country.
Consequently, in the US, importation of the steel materials have been limited for the sake of improving the homeland steel firms. Besides, it has imposed barriers to not only the mentioned industries but also to the entire trading activities. In summary, both countries need to have other favorable strategic plans to restore their economic shutdown coming from steel organizations and other trading activities. For instance, imposing further barriers in the United States will not solve the problems but adding more to the organizations. For this reason, there is a need for the two nations to come up with beneficial plans in curbing the increasing challenges to the steel manufacturers.
References
https://money.cnn.com/2018/03/09/news/companies/american-steel-history/index.html (Links to an external site.)
https://www.bloomberg.com/opinion/articles/2018-03-05/steel-history-shows-how-america-lost-ground-to-europe (Links to an external site.)
https://www.marketplace.org/2016/08/09/world/steels-decline-was-about-technology-not-trade-0 (Links to an external site.)
https://www.bbc.com/news/business-34581945 (Links to an external site.)
https://commonslibrary.parliament.uk/economy-business/economy-economy/uk-steel-decades-of-decline/ (Links to an external site.)
https://www.ft.com/content/05c2f8b2-f7e4-11e5-96db-fc683b5e52db