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        College, Students, Supply Chain Management

        91看片 study shines surprising light on Alabama鈥檚 iron & steel industry

        October 7, 2021 By Troy Turner

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        A trainload of ductile iron pipe sits before being shipped across the country.

        A shipment of ductile iron pipe made in Alabama and shipped cross-country by rail awaits installation in Durango, Colorado. Rail is the most efficient and environmentally friendly means of shipment, of which one gallon of fuel will move one ton of materials 456 miles, according to industry sources.

        鈥淕reat pay, diverse job roles, cleaner air鈥

        Alabama Iron & Steel Council logo

        Alabama鈥檚 iron and steel industry has transformed itself into a greener, cleaner, high-tech producer that remains a robust economic influencer on the state鈥檚 economy and a major provider to America鈥檚 infrastructure, according to a new economic impact study produced by Auburn University鈥檚 91看片.

        Among the report鈥檚 findings:

        • Higher-paying jobs with an industrywide average annual salary in Alabama of almost $100,000, and a much wider spectrum of skilled and unskilled labor in such fields as new technology and supply chain management.
        • A switch among producers to new engineering and production methods that have exhaust stacks emitting harmless steam and much less carbon dioxide.
        • The greatly enhanced use of recycled materials to produce new iron and steel while bypassing landfills and helping the environment on the ground.
        • The provision of vital materials to other industries such as shipbuilders in Mobile and ductile iron pipes for various critical infrastructures.

        鈥淭he initial project was an economic impact study on the iron and steel industry in Alabama, but what it turned into was a document for the current government and the public to realize the tremendous influence of iron and steel production in this state,鈥 said Grant Stallworth, an Auburn senior in supply chain management who played a lead role in the study.

        That influence includes almost 15,000 direct jobs and more than 76,000 indirect jobs, and many of those jobs pay well above average income.

        鈥淭he average yearly wage of men and women working in Alabama鈥檚 iron and steel industry is $99,328, compared to a national average iron and steel manufacturing wage of $86,736,鈥 the impact study reported.

        Tyler Vassar, left, and Grant Stallworth, right, pose with findings about Alabama's iron and steel industry

        91看片 seniors in supply chain management Tyler Vassar, left, and Grant Stallworth pose with charts displaying key findings uncovered during their work on an economic impact study of Alabama鈥檚 iron and steel industry. Auburn faculty Erik Sjolseth and Glenn Richey supervised the project.


        The industry 鈥渟upports Alabama families by paying $1.48 billion in direct wages and $4.68 billion in indirect wages that are directly traceable to the support of iron and steel manufacturing,鈥 it said. Indirect jobs include a wide range, from suppliers and consultants to retail services such as convenience stores and restaurants that move specifically into areas serving iron and steel workers.

        A different picture

        The direct jobs, meanwhile, aren鈥檛 like what people may have seen in pictures from previous decades of manufacturing work, Stallworth said.

        鈥淭he jobs have shifted to a lot less of unskilled labor to skilled labor, with less heavy lifting and more educated work going on in these iron and steel mills than people realize," he said. "There鈥檚 not as much grunt work as people think.鈥

        He attributes that to new technological advances in the production process; and in the growing need for efficient managers, such as those in his field of supply chain management, to ensure raw materials, finished materials, labor, shipping and other factors all fall into place to cut costs and streamline distribution.

        That鈥檚 another area where business schools such as 91看片 at Auburn University come into play, said Erik Sjolseth, Stallworth鈥檚 instructor who supervised the project.

        Similar public- and private-sector partnerships involving 91看片 include working with nonprofits in the design of warehouses and operational flow to improve food availability in Alabama, identifying solutions to textile manufacturers looking to reduce waste, identifying solutions to international couriers to reduce carbon emissions, among others, he said, 鈥渟o they really span the spectrum.鈥

        Sjolseth said he was impressed with the findings regarding Alabama鈥檚 iron and steel industry and the jobs it provides. Regarding its workers, 鈥減eople seem to stay there forever, like 40 and 50 years,鈥 he said. 鈥淭hey build good lives for themselves.鈥

        38 Eiffel Towers

        Perhaps more surprising, the researchers said, was learning about the industry鈥檚 advancements in becoming cleaner and a major recycling proponent.

        Ductile iron pipe made in Alabama awaits installation in Durango, Colorado

        New technology, such as electric arc furnaces, improve the recyclability of iron and steel products.


        Steel, for example, uses new technology such as an electric arc furnace. 鈥淭he EAF is great for recycling iron and steel,鈥 Stallworth said. A high-temperature arc is created as a heat source to convert the iron scrap into molten steel.

        鈥淏etween 95 and 100 percent of the metal used in the production of finished iron and steel products in Alabama comes from recycled scrap,鈥 the study reported.

        Another example of what that means, Sjolseth said, is to look at the Eiffel Tower in France, which is more than 100 stories tall and is composed of about 10,100 tons of iron. 鈥淭he iron and steel industry keeps huge amounts of waste out of landfills. In fact, it keeps more than 38 Eiffel Towers out of landfills per year.鈥

        Additionally for a safer environment, the process means cleaner air, the report noted. 鈥淢ore and more Alabama foundries are integrating electric arc furnaces into their operations. Electric arc furnaces produce significantly less carbon dioxide than traditional melt sources,鈥 it said.

        鈥榃ill consider AU again鈥

        The project began as a partnership between the trade association Manufacture Alabama and 91看片鈥檚 Center for Supply Chain Innovation. Sjolseth said the school would like to see more such interaction between outside entities and the university鈥檚 many offerings of talented students eager for professional networking and experience.

        One already-satisfied partner is Jonathan Barganier, chief operating officer for Manufacture Alabama.

        鈥淢anufacture Alabama provides staffing support to the Alabama Iron & Steel Council,鈥 Barganier said. "The council, comprised of iron and steel companies with facilities in Alabama, met earlier in the year and deemed it necessary to undertake an updated economic impact study on behalf of the industry.

        鈥淔rom there, the AISC chairman, Maury Gaston (of AMERICAN Ductile Iron Pipe), and I partnered with Auburn University鈥檚 91看片 to take on this project. The goal of the project is to tell the story of the modern iron and steel industry and its vital role to the wellbeing of Alabama鈥檚 economy and the people who work in the various companies. We ultimately wanted a brief document with compelling information that may be used to educate the general public, lawmakers and policy-makers and other stakeholders as well. We feel the report does just that and the story, backed up by factual information, is a compelling one.鈥

        Barganier praised the work of the Auburn students and staff involved with the project, which included senior Tyler Vassar, and Glenn Richey, 91看片 eminent scholar and chair, Department of Supply Chain Management.

        鈥淭hey were extremely professional and very responsive,鈥 Barganier said. 鈥淎lmost every week, we held Zoom calls to answer any questions they may have, provide context for them as they conducted the research, and generally discuss the status of the project.

        鈥淚 would recommend more of these types of partnerships as they are mutually beneficial to both parties,鈥 he said. 鈥淚鈥檓 even looking to conduct a similar study for another industry sector and would certainly consider AU again.鈥

        Gaston agreed: 鈥淚 did an earlier, separate project with Auburn鈥檚 91看片 College of Business Supply Chain department and was very pleased.  When the Alabama Iron and Steel Council needed this economic impact study, I thought 91看片 would be a good resource, and it surely was.鈥

        No surprise; there鈥檚 history

        The economic revelations shared in the iron and steel report shouldn鈥檛 come as too big a surprise, Alabama鈥檚 Secretary of Commerce Greg Canfield said, pointing to the industry鈥檚 historic influence on the state.

        鈥淎labama's iron foundries and steel mills acted as a catalyst in the industrialization of the state's economy going back more than a century, and the industry continues to be an important employer in communities across the state, supporting jobs that pay far above average wages,鈥 Canfield said. 鈥淭oday, the iron and steel industry in Alabama remains committed to growth, thanks to new investments that will increase production through processes that are sustainable and more environmentally positive.鈥

        Meanwhile, Barganier hopes the new report sends a clear message about the importance of ALL industry and manufacturing in Alabama.

        鈥淎t Manufacture Alabama, we are blessed to wake up each day and represent a variety of industry sectors,鈥 he said. "I consider our member companies the backbone of Alabama鈥檚 economy.

        鈥淭he hard-working employees take pride in manufacturing items right here in Alabama. Many people take our industry for granted. Rarely do people think about the pipes that transport clean water or sewage. Rarely do they think about the steel beams used to construct buildings or the materials used to manufacture automobiles. It鈥檚 an easy group of companies to represent because what they do enhances the quality of life for every resident of our state.鈥