It is common knowledge that iron, steel, and aluminum can provide numerous solutions to diverse sectors. But still, it is interesting which will give you the most value, especially if we think of investment. Are you interested in knowing which iron, steel, or aluminum industry is better? Here are some facts to ponder on each one.
The Iron industry
The US iron industry is notable because it is integral to the global steel supply chain. Its production accounts for approximately 10 percent of worldwide crude steel output. Here are some more facts about the iron industry:
- Raw Materials: One reason the iron industry is lucrative is that it supplies essential raw materials for the automotive, construction, and manufacturing sectors. And there are various areas where people can mine iron ore for steel production—e.g., Minnesota, Michigan, and Pennsylvania.
- Technology: US iron enterprises boast advanced technologies to produce the highest quality finished products. Some use computerized control systems and robots.
- Energy: The industry is highly dependent on energy sources, such as natural gas and electricity, to power its operations.
- Trade: US steel producers export their products around the world.
The Steel Industry
The US is also a significant producer and exporter of steel products worldwide. It can produce large amounts of materials for construction, industrial applications, infrastructure projects, and more quickly. Typically, enterprises have an average production period of about 20 days.
To achieve success, the steel industry also is composed of critical elements such as:
- Primary production involves mining raw materials such as iron ore, coal, and other metals. Then change these into rough materials, such as steel and pig iron.
- Secondary production focuses on reshaping the raw material into finished products.
- Distribution and processing centers take in raw materials and turn them into processed pieces of steel ready for use. In the US, many steel companies have large-scale production facilities.
The Environmental Protection Agency (EPA) also strictly regulated the US steel industry. Thus, steel companies comply with safety and environmental standards.
Tip: Learn where steel comes from.
The Aluminum Industry
Currently, the US aluminum industry is one of the world’s top aluminum producers. It is also a leading exporter to various countries like Canada and Mexico. Some critical factors in the success of the US aluminum industry are:
- Production and processing of aluminum require enormous amounts of energy, typically from hydroelectric or nuclear power plants. And these and other resources help to process aluminum into different forms, such as sheets and tubes.
- The end-use markets of the US aluminum industry have a broad scope. Among them, aerospace is the largest in the US, with military aircraft being the most significant consumer. Meanwhile, the automotive and construction sectors use aluminum products for production and applications.
- Recycling aluminum is something the US aluminum industry invests in, primarily because it takes 95% less energy and reduces greenhouse gas emissions.
- Research and Development: The US aluminum industry invests laboriously in research and development to produce new materials for end-user customers. Additionally, companies keep innovating methods to improve production processes and develop new alloys.
In conclusion, the three industries are essential to a country’s economy. Each one has many advantages and remains competitive in the global market. Considering all these, choosing the better industry can also depend on an individual standpoint. Iron, for example, is good if you target to be a supplier of raw materials for those manufacturing steels. And go for steel if you target plenty of sectors that direly need it for their projects like real estate and construction.
