History of Steel Industry From 1875-1920 in Great Lakes Region

¶ … steel industry from 1875-1920 in the Great Lakes region

Foundation Course

Steel Production

The Great Lakes Region

THE HISTORY and the DEVELOPMENT of the STEEL INDUSTRY FROM 1875-1920 in the GREAT LAKES REGION

The Steel Industry from 1875 to 1920

Expansion of Trade through Canals

Contribution of the Great Lakes Region to the Iron and Steel Industry of the United States of America

The history and the development of the steel industry from 1875-1920 in the Great Lakes region.

The Iron and Steel sector of the United States of America is associated with the manufacturing and molding of steel into basic shapes and forms. These forms and shapes of steel can further be used to create other products. The iron and steel sector of the United States of America is divided into two major production units. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)These units contribute equally to the domestic production of steel.

1.2. Problem Statement

For the past 200 years, steel has been the most essential element of an industrial society which greatly shaped the economic power of the world. Since the early 20th century, USA has become the world's strongest economic power in the world and the resources and geographical features of the Great Lake regions played a remarkable role. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The steel industry of the U.S.A. is so crucial that it can be strongly associated with the globalization of a superpower. I would like to know more about the environment and the geographical features of the Great Lakes region and its influence on the history and the development of the steel industry from 1850-1920. (Beeton and Stephen Schneider 495 -- 517) Therefore, it truly would be a great opportunity to delve deeper into a region that is so "close" to us and how an environment can change the world.

1.3. Research Question

This study aims at addressing the following question:

What is the history of the Iron and Steel industry of the Great Lakes region since 1875 to 1920?

How did Great Lakes region contributed to the development of the Iron and Steel industry of the United States of America?

1.4. Steel Production

Steel can be defined as an alloy of iron and carbon, usually, which is generally hard, strong, durable, and malleable. It consists of about 0.2 to 1.5% carbon. It generally has other constituents as well. These constituents may include manganese, chromium, nickel, molybdenum, copper, tungsten, cobalt, or silicon. The nature of these constituents depend on the properties of alloy, which are required by the producer. Steel is widely used as a structural material. Steel is generally produced in the following two units:

Integrated steel mills: These mills use a process, which consists of three steps, for the production of steel from coal. The three steps involved in this process including coke making, iron making, trough the deployment of a blast furnace, and Basic Oxygen Furnace technology. (Diamond 50-400)

Mini-mills: These production units are involved in the production of steel from metal scraps. For this purpose these units deploy Electric Arc Furnace technology. These production units are not involved in iron making and coke making. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

Coke, which can be defined as a fuel and an important source of carbon at the integrated mills, is produced from coal. In order to produce coke, the integrated mills heat coal at high temperature, in the absence of oxygen, in the coke ovens. The mills then produced pig iron. The process for the production of pig iron involves the heating of coke, iron ore, and limestone in a blast furnace. (Staff of Environmental Protection Agency, United States of America 1-3)

The Basic Oxygen Furnace technology involves the combination of molten iron, which comes directly from the furnace, with flux and scrap steel. In addition to that, it also includes the injection of high purity oxygen into the above combination. The process of Basic Oxygen Furnace technology, with the processes of coke making, iron making, steelmaking, subsequent forming and finishing operations, is often referred to as fully integrated production. In an Electric Arc Furnace the basic input material is scrap steel. The scrap steel is melted and refined when an electric current from the electrodes is passed through the scrap. (Staff of Environmental Protection Agency, United States of America 1-3)

There has been a significant increase in the percentage of steel that is produced through process of Electric Arc Furnace. In the year 2001, about 47.5% of the total steel produced at domestic level was contributed by 125 mini mills. These mini mills consumed about 75 million tons of ferrous scrap to produce the above mentioned percentage of steel. (Staff of Environmental Protection Agency, United States of America 1-3)

Nearly 200 mini mills are included in the iron and steel sector. These mini mills employ more than 150,000 people. Most of these mills are geographically concentrated in the region in Great Lakes states. Even though South also has a large number of mini mills but most of them are present in the Great Lakes region. Auto manufacturers and the construction industry are the primary consumers of the steel that is produced by the mini mills. (Staff of Environmental Protection Agency, United States of America 1-3)

1.5. The Great Lakes Region

The largest system of fresh surface water is constituted by North American Great Lakes on the face of the earth. This system of fresh surface water is linked to the Atlantic Ocean through the St. Lawrence River. Around 244,000 km2 of surface water is covered by North American Great Lakes. In addition to that, North American Great Lakes also cover around 520,000 km2 of drainage area. Furthermore the five great lakes of the North American region have a combined volume of around 23,000 km3. (Macdonagh-Dumler and Pebbles et al. 1-14)

When taken or considered individually, the five great lakes of North American region are placed among the fifteen largest fresh water lakes of the world. This ecosystem has a shoreline of more than 17,000 km. In addition to that, it includes thousands of islands as well. Furthermore, it has also been indicated by the professional that the ecosystem of North American Great Lakes extends about 3500 km to the Atlantic Ocean westernmost shores of Lake Superior. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The Great Lakes region is regarded as a vital source for drinking water. About 23 million depend on the Great Lake for the purpose of accessing drinking water. In addition to that, the Great Lakes has also been the industrial heart land for the United States of America and Canada, for the last century. (Staff of Environmental Protection Agency, United States of America 1-3)

In addition to that, the great lakes of the North American region provide around two thirds of the 40 million residents of the basins with sufficient drinking water. Around four trillion liters of water, from the great lakes, is consumed daily by the commercial and domestic users of water. (Macdonagh-Dumler and Pebbles et al. 1-14)

The industries that depend heavily on the water of the great lakes of the North American region, including the agricultural industry, recreation and tourism industry, heavy manufacturing industry and sport and commercial ?shing industry, generate multi-billion dollars of revenue each year and depend heavily of the great lakes water. (Macdonagh-Dumler and Pebbles et al. 1-14)

2. The HISTORY and the DEVELOPMENT of the STEEL INDUSTRY FROM 1875-1920 in the GREAT LAKES REGION

2.1. The Steel Industry from 1875 to 1920

The American steel industry grew evidently from 1875 -- 1920. The steel production of the industry grew from 380,000 tons of steel production to 60 million tons annually. This growth in steel production made the Unite States of America a dominant world leader. (Macdonagh-Dumler and Pebbles et al. 1-14)

The growth rates in the steel production at an annual level for1870-1913 were 7.0% for the United States of America; 1.0% for Great Britain; 6.0% for Germany; and 4.3% for France, Belgium and Russia, who were the other major producers of steel during that era. (Macdonagh-Dumler and Pebbles et al. 1-14)

This explosive growth of the steel industry of the United States of America was based on strong technological infrastructure, protective tariffs, enhanced infrastructure, urbanization and development of office buildings that led towards an increase in the demand of steel. The deployment of steel in the development of automobiles and household appliances was initiated in the 20th century. (Macdonagh-Dumler and Pebbles et al. 1-14)

A key element that led towards the massive development of the steel industry was the fact that iron ore, coal, and manpower were easily available. The eastern states had abundance of fair quality iron ore, but heavy deposits of exceedingly rich iron ore were present in the region of Lake Superior. (Macdonagh-Dumler and Pebbles et al. 1-14)

The Marquette Range, which consisted of huge deposits of high quality iron ore, was discovered in the year 1844, the operations were initiated in the year 1846. Other ranges that were opened by the year 1910, included the Menominee, Gogebic, Vermilion, Cuyuna, and, the Mesabi range in Minnesota, in the year 1892. (Macdonagh-Dumler and Pebbles et al. 1-14)

In the year 1844 the first great deposits of united iron ore were discovered in the region of great lakes by the surveyors of the government of America. By the era of 1850s these deposits were exploited in an aggressive manner by the government. (Macdonagh-Dumler and Pebbles et al. 1-14)

It was established that the Great Lakes region would become the center of the American iron and steel industry because of the following factors; availability of high quality iron ore in abundance in the Great Lakes region, availability of anthracite in Pennsylvania, and the availability of cheap and inexpensive transport on the Great Lakes. (Macdonagh-Dumler and Pebbles et al. 1-14)

The iron ore that was extracted from the region of Great Lakes was exported through the lakes, in an inexpensive manner, to a number of ports including Chicago, Detroit, Cleveland, Erie and Buffalo. This iron ore was then shipped by rail to the steel mills. In addition to that, coal was available in abundance in the regions of Pennsylvania and Ohio. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

Even through the domestic man power was short as very few Native Americans wanted to work in the steel mills but immigrants from Germany and Britain and later from the Eastern side of Europe came in great numbers to work in the mills. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The Bessemer process for making steel was invented by a British engineer named Henry Bessemer, who was later referred to as Sir Henry, in the year 1856. Two years after the invention of the Bessemer process, the Siemens-Martin open-hearth method was formulated. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

As these processes were perfected by various authorities and industries, they led towards a considerable reduction in the costs that were associated with the production of steel. In addition to that, these processes also allowed the steel to be lavishly used in railroads, construction, and other industrial purposes. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

In the year 1864, the first Bessemer convertor was developed in the United States of America. The first open-hearth furnace was developed by Abram S. Hewitt, four-year after the development pf the Bessemer convertor. The open-hearth furnace was more suitable for the iron ore of the United States of America and as a result there was a rapid increase in the steel production and growth of iron and steel industry. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

Iron became a major industry in the year 1869. It accounted for about 6.6% of manufacturing employment and 7.8% of manufacturing output. At that time Andrew Carnegie was the central figure under consideration. He was responsible for making Pittsburgh the center of the iron industry. In the year 1901, Andrew Carnegie sold his operation to U.S. steel. The corporation then became one of the largest steel corporations of the world for decades. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

In the year 1873 the United States of America, produced about 115,000 tons of steel rails, which is equal to one eighth of the entire rail production of America. It shall, however, be kept under consideration that United States of America has not produced any steel rails before. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

In the 1880s, there was a massive increase in the levels of worker productivity, because of the enhancement of technology. There was a decline in the average level of required skills but highly skilled workers remained essential. During this era steel workers earn much more than the iron workers, despite the fact that they used lower level of skills. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

As the industrialists sought to have economies of scales, stable supply of raw materials and favorable market conditions, therefore, the iron and steel industry began to consolidate in this era. Andrew Carnegie, Henry Clay Frick, Charles Schwab, and others are important personalities who shaped and molded the iron and steel industry of United States of America in this era. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The growth of the iron and steel industry was often hindered by severe labor disputes during this era, an example of which would be the Homestead strike in 1892. The industry, however, was not fully unionized till the era of 1930s. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The United States Steel Corporation, which is regarded as the largest industrial corporation throughout the globe, was established under the leadership of J. Pierpont Morgan and Elbert H. Gary, in the year 1901. The capital at the initiation of the organization was 1.4 billion dollars. In addition to that, more than 60% of the market of the United States of America was controlled by this corporation. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

After the World War II, the steel industries of various nations continued to be the measure of the size as well as the economic strength of these countries. The steel industry of the United States of America reached the highest levels of production in the year 1969. In this year the steel industry of the country produced around 141,262,000 tons of steel. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

In this era, however, new and enhanced technologies were being adapted by the nations abroad as well. This as a result, led towards a massive decrease in the cost of production and transportation expenses of these nations. Hence, the American iron and steel industry was presented with new and enhanced levels of competition. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

Significant industrial growth in began in the Great Lakes region in the era of 1850s. This industrial development relied heavily on the resource extraction, the resources in this case were extracted through mining, harvesting of timber and shipping at low cost on the lakes. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

For example, iron ore was obtained from northern Minnesota by the huge steel mills of Gary (Indiana), Pittsburgh (Pennsylvania), and Cleveland (Ohio). This iron ore was shipped through the lakes at low cost. Steel products were shipped to Detroit and Chicago by the same commercial route. These steel products are then further processed into ?nished consumer goods. These consumer goods include automobiles and farm equipment etcetera. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

The Tribal Nations were first encountered by the discoverers and traders of the European Union. The routes of the Great Lakes region were used by the discoverers and traders of the European Union to discover the interiors of a location which later became the United States great Lakes of America. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

As the Great Lakes region began to further on the path of growth, the natural resources of the nation played an important role in the development and growth of the nation. The expanding demand iron ore for the steel forged in the furnaces that are fueled by the coal of Pennsylvania was fulfilled from the Iron ore that was shipped from Michigan, Wisconsin, and Minnesota to Indiana and Ohio. In addition to that, millions of board feet of timber was also shipped from the Great Lakes region to a number of growing nations and economies. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

In addition to that, new immigrants from the European Union came to the Great Lakes region in order to farm the lands of the region and to open businesses so that they may benefit from the growth of the region. The fisheries of the Great Lakes region, which were boundless in nature, helped the nation in feeding a rapidly growing nation in an easy manner. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

As the growth furthered in the nation, the commercial activities and operations exceled and the lakes became an important transportation route for the transfer of goods from one region to another. In addition to that, with further development, the canals were established and this enables the lakes to become a commercial transportation route that linked the Great Lakes region with the Atlantic coastline. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

An automobile industry was launched and operated in the area of Michigan by Henry Ford. Other manufacturing industries that were developed in the region included the paper industry, chemical industry, heavy manufacturing industry and steel industry. All these activities were supported by the Great Lakes shipping. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

By the era of 1900s, the Great Lakes region became the industrial back bone of the United States of America. The industrial development of the United States of America was supported by the manufacturing and shipping strength of the Great Lakes region and its economic might as well. (Morreale 2-35)

After the completion of the St. Lawrence Seaway in the year 1959 the last barrier that separated the Great Lakes region from the international shipping industry and global commerce was also removed. As a result, the scope and promise for the long-term stability and vitality of the Great Lakes region was established. (Bowlus 25-230)

Lackawanna, N.Y., which is a part of Greater Buffalo and consists of 17000 people, was created as a literal steel town in the month of March in the year 1909. It was indicated by Mayor Norman Polanski, in a film which was produced by a wind energy developer, named First Wind, who was based in Michigan, that at one time the town of Lackawanna employed around 25000 people. The town grew around the steel plant and plunder the resources of the Great Lakes region. (Staff of Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency 10-25)

2.2. Expansion of Trade through Canals

In the year 1959, St. Lawrence Seaway was opened to navigation. The stretch of the Seaway is about 189-mile or 306-kilometer between the region of Montreal and Lake Ontario. The construction of such a huge stretch at that time is regarded as one of the most challenging feats of engineering in the history. (Staff of the Great Lakes Regional Collaboration 1-47)

The Montreal-Lake Ontario section of the Seaway consists of a total of seven locks. Five of these locks are Canadian, whereas, the other two are America. The reason behind the development of these locks was to lift up the vessels 246 feet or 75 meters above the sea level. (Staff of the Great Lakes Regional Collaboration 1-47)

The Welland Canal, 28-mile (44-kilometer), is regarded as the fourth version of the sea way link that was established between Lake Ontario and Lake Erie. This canal was first built in the year 1829. It was then again competed in the year 1932. As a part of the Seaway project, the canal was further deepened in the era of 1950s, whereas, in the year 1973, the canal was straightened further. Today, the canal consists of eight locks, all of which are Canadian. These locks lift the vessels 326 feet or 100 meters above the Niagara Escarpment. (Staff of the Great Lakes Regional Collaboration 1-47)

2.3. Contribution of the Great Lakes Region to the Iron and Steel Industry of the United States of America

Great Lakes is regarded as one of the largest fresh water systems of the world. About one quarter of the entire iron and steel industry of the United States of America is situated in this region. In addition to that, about 70% of the steel production of the United States of America and 60% of the Steel production of Canada is concentrated in the region of the Great Lakes. (Staff of Environmental Protection Agency, United States of America 1-3)

The regional economy of the Great Lakes is quite large and diversi-ed in nature. It consists of the manufacturing sector, services sector, which includes tourism and recreation activities, agricultural sector, forestry, and government sectors. The industrial heartland of North America id formed by the binational region of Great Lakes. The total production of the binational region of the Great lakes was observed to be around 2 trillion U.S. dollars. This gross domestic production of the United States and Japan. (Macdonagh-Dumler and Pebbles et al. 1-14)

In the year 2000, more than 50% value added shipments were derived from Ontario by Canada. In addition to that, the six Great Lakes contributed more than 25% of manufacturing value added of the United States of America. This indicates the importance of the geographical location of the Great Lakes to the manufacturing value added of Canada and United States of America. (Macdonagh-Dumler and Pebbles et al. 1-14)

The Great Lakes region has played an important role in the development and progress of the Iron and Steel industry pf the United States of America. The people living in the Great Lakes Basin exceeds the amount of 40 million people. The overall population of the Great Lakes region includes 20% of the total population of the United States of America and 50% of the total population of Canada. (Staff of Environmental Protection Agency, United States of America 1-3)