GARY – Everyone's seen the statistics and big losses steelmakers have suffered, but there's reason to feel positive about the Region's steel industry, U.S. Rep. Pete Visclosky told the Gary Chamber of Commerce on Monday.
"Last year, 2015, we enjoyed one of the better legislative sessions we've had for steel and domestic manufacturing generally than we've had for some great period of time," Visclosky said.
He said laws are now in place to help the International Trade Commission.
"Steel has three significant trade cases coming up between now and July this year — with their investigative processes."
The U.S. government agency can now crack down on trading partners that violate standards and don't share information, Visclosky said. It can use economic data like historical precedents and market conditions to determine whether domestic steelmakers have been injured, which will lead to more timely tariffs.
Under the current system, steelmakers typically prove economic injury after high levels of imports force them to idle mills and layoff workers. The United Steelworkers union calls the process backwards.
Steel imports captured a record 29 percent of the market share in the United States last year, when more than 12,000 steelworkers were laid off nationwide. The global steel crisis led ArcelorMittal and U.S. Steel to lose a combined $9.4 billion last year.
Under pending legislation, the U.S. Customs Department would be able to initiate investigations into illegal dumping as it's happening at the ports, Visclosky said. There would also be a time limit, so the cases don't get drawn out.
"Everyone in this room understands we have trading partners who will circumvent our laws," Visclosky said.
Visclosky plans to lobby for tariffs against South Korea, China and other countries at upcoming trade case hearings. He and other members of the U.S. Congressional Steel Caucus also plan to urge Customs to more aggressively enforce trade laws.
Northwest Indiana however must look at other ways to grow, Visclosky said.
"Steel and manufacturing will continue to be a fight," he said. "Steel is so efficient. Twenty years ago, it was 10.1 hours of labor for a ton of steel. Today, it's 1.9 hours. It's not a job growth industry. We have to make transformation investments. We are past the tipping point of the decline in industry and jobs we have seen in Northwest Indiana."
Lake County has lost 10 percent of its population since 1970, while the country has grown 52 percent during that time period. Median household income declined 19.9 percent in Lake County over that period of time.
"We have to make transformational investments just as people like John Rockerfeller and J.P. Morgan made in this Region over 100 years ago," he said.
Northwest Indiana is making progress, such as by expanding the runway at the Gary/Chicago International Airport, speeding up South Shore Line service and opening up more of the lakefront for public use.
"No matter who you are or what your station in life is, you should be able to get to the largest freshwater body on Earth and not have to pay someone for it," Visclosky said.
Gary also has been making progress, such as by razing blighted buildings, revamping Marquette Park, and expanding its bus service to serve seven other communities, he said. Indiana University finally freed up a few dollars for Gary to invest in the new Arts & Science building at Indiana University Northwest.
"Gary's a steel city, a tough city," Visclosky said. "It's had some hard times. Nothing's going to be perfect tomorrow. But it's going to get better, except for bad weather during the winter."