The Obama Administration is hard at work to stimulate the economy and add more jobs. As many as 2 million Americans could benefit, but they’re not the only ones. The U.S. steel industry and exchange traded funds (ETFs) could be getting a boost, too.
President Barack Obama’s National Export Initiative (NEI), a federal program designed to double U.S. exports over the next five years to support 2 million American jobs, is highly regarded by The North American Steel Industry. Steel Works says the U.S. steel industry has been a rough one for years, and has been dependent upon the strength of the U.S. dollar. [China’s Role in the U.S. Steel Industry.]
Global demand has dipped, but watchers expect the declines to reverse as economies rebuild. The North American industry typically exports about 8 million tons of steel per year, according to Thomas A. Danjczek, president of the Steel Manufacturers Association. This figure could grow by 20% or more by the time the recovery is in full swing. [Coal and Steel ETFs in 2010.]
The NEI is targeting three main points to ensure growth:
- Improving access to credit, with a focus on small= and medium-sized businesses that want to export.
- Expand trade advocacy for all business sizes, which includes educating U.S. companies about opportunities overseas, directly connecting them with new customers and advocating more forcefully for their interests.
- Keep international trade markets regulated so all U.S. businesses can get free and fair access to foreign markets.
[For more stories about steel, visit our steel category.
- Market Vectors Steel (NYSEArca: SLX)
- PowerShares Global Steel (NYSEArca: PSTL)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.