How U.S. squandered its steel superiority

On Thursday, March 8, 2018 at 2:34:01 PM UTC-5, snipped-for-privacy@gmail.com wr ote:

uperiority-1.17209252

The history of Nucor is not completely accurate. Nucor was Nuclear Corp of America. And almost went bust. Their biggest asset was tax losses and at the time when Iverson took over the only division making a profit made bar joists. Iverson put in a system where workers were paid a bonus based on their unit s production. Then he decided to produce the rebar to use in making bar jo ists and bought a electric arc furnace and began making rebar from scrap. S o it was not a steel company until well after Iverson became CEO.

Dan

-superiority-1.17209252

of America. And almost went bust. Their biggest asset was tax losses and at the time when Iverson took over the only division making a profit made b ar joists.

its production. Then he decided to produce the rebar to use in making bar joists and bought a electric arc furnace and began making rebar from scrap. So it was not a steel company until well after Iverson became CEO.

Iverson sold off all their other divisions. This annotated wiki article is pretty much in line with the newsday article

Ah, the classic story of American industry. Be initially successful, get complacent/lazy assuming nobody would ever dare challenge you, lie about still being the best when it's apparent someone has done so, fail, blame taxes/regulation/government/environmentalists, demand government bail you out

I am going to respond to the main topic but I will hit this first. There is a joke that goes about like :

You are the new CEO of a company. The profits are slumping. You find three envelopes left you by the last CEO.

First one says, blame your predecessors, make some changes.

Next time, profits are slipping again, in the second envelope it says to reorganize, fire a few of middle management and "restructure".

Then again profit is down, the third envelope tells you to prepare three envelopes.

I probably told it poorly but it kinda fits.

The Six Project Phases:

1. Enthusiasm
2. Disillusionment
3. Panic
4. Hunt for the guilty
5. Punishment of the innocent
6. Reward for the uninvolved.

On Thursday, March 8, 2018 at 4:55:47 PM UTC-5, snipped-for-privacy@gmail.com wr ote:

s pretty much in line with the newsday article

Not entirely true. Nucor had a rare earth chemical division which was only sold off about two years ago. In addition Nucor had a division that made diodes and another one that made power supplies. Not sure when those were sold, but it was some years after Nucor was melting scrap with a electric arc furnace.

I can not provide links to substantiate that, but I did buy Nuclear Corp of America stock back in around 1960. And still own those shares along with other stock acquired by stock splits and dividend reinvestments.

You can find a book about Nucor " American Steel ". It includes some of t he history, but is mostly about Nucor installing the first thin slab castin g machine in Crawfordsville, In.

Dan

Prediction: the Suuuure, Mexico-Will-Pay-For-It-Wall will go through all these stages, but in a novel time-saving twist they will all occur simultaneously

is pretty much in line with the newsday article

ly sold off about two years ago. In addition Nucor had a division that mad e diodes and another one that made power supplies. Not sure when those we re sold, but it was some years after Nucor was melting scrap with a electri c arc furnace.

of America stock back in around 1960. And still own those shares along wit h other stock acquired by stock splits and dividend reinvestments.

the history, but is mostly about Nucor installing the first thin slab cast ing machine in Crawfordsville, In.

The main thing is they not only survived but are now the largest steel prod ucer in the U.S. with $16B in annual revenue across all their divisions. Th ey wouldn't be there if it wasn't for Iverson adopting new technology and n ew markets.

On Thursday, March 8, 2018 at 9:18:34 PM UTC-5, snipped-for-privacy@gmail.com wr ote:

oducer in the U.S. with $16B in annual revenue across all their divisions. They wouldn't be there if it wasn't for Iverson adopting new technology and new markets.

Very true. Ivorson also adopted very different personnel policies from the old steel companies. No layoffs instead reduction of hours worked. Weekl y bonuses based on unit production. All employees listed on Annual report cover. College expensive s for employee's children paid for by Nucor. Only 4 layers of management. facilities designed by employees who than operate d the facility. Management flew coach. Head quarters on second floor of a restaurant, management flew coach, not first class or business class. F ewer people at head quarters than the number of plants.

Dan

Your version of #6 is a bit flat. The one I've seen has

1. Search for the guilty
2. Punishment of the innocent
3. Praise and honours for the non-participants.

Cheers

Phil Hobbs

producer in the U.S. with $16B in annual revenue across all their divisions . They wouldn't be there if it wasn't for Iverson adopting new technology a nd new markets.

he old steel companies. No layoffs instead reduction of hours worked. Wee kly bonuses based on unit production. All employees listed on Annual repor t cover. College expensive s for employee's children paid for by Nucor. On ly 4 layers of management. facilities designed by employees who than opera ted the facility. Management flew coach. Head quarters on second floor of a restaurant, management flew coach, not first class or business class. Fewer people at head quarters than the number of plants.

Iverson published a book entitled " Plain Talk " Easy reading

Dan