71–80 of 207 posts
After being coddled up by the govt for so many years (NatSec tariffs, tax breaks, bailouts, import restrictions, etc), ultimately it still failed.
I have no comment on this specific case, but in general: all of those things—all government interventions that ostensibly protect an industry or company—make it more brittle, less efficient, and more likely to fail. That is precisely the point. You can’t build a successful business by ignoring reality.
> US Steel has agreed to be bought by Nippon Steel, Japan’s largest steelmaker, in a $14.1 billion deal. > Earlier this summer the United Steelworkers union vowed to only support a proposed offer by another unionized American steel company, Cleveland Cliffs, to buy US Steel, in a cash and stock deal then valued at $32.53 a share, or 40% less than Nippon’s all cash offer. The US Steel board rejected that offer and sta…
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I'm interested in how the United Steelworkers thinks about the generally better track record of Japanese companies with labor relations vs. American management. This makes it seem like it was purely an "American First" kind of sentiment, whereas I could imagine this being better for the workers themselves. This then makes me wonder if the Steelworkers is more company union (ie their leaders are bought off / cushy wit…
I don't think that applies as much to line workers in the overseas subsidiaries of Japanese companies as it does in the central company. Like, Square Enix's former European divisions, Sony of America, all run much more like companies in their home countries than like their parent company.
Notably, this plant was considered a failure before because the of the antagonism between labor/mgmt led to really toxic behavior.
GM blamed the union labor, but Toyota ended up firing the managers and got buy in from labor because of their long-term / labor-centric culture, including more empowerment, respect, high quality training, etc.
https://www.lean.org/the-lean-post/articles/how-nummi-change...
Earlier quoted context omitted.
Shrinking and laying off workers is rarely seen as successful. You can play games and look/stay profitable all the while the real story is far from it. Success is typically seen as something that is improving, whether profit or market share. Shrinking while still remaining profitable sits in a more gray zone. I think most don't see this as successful, but I wouldn't call it a complete failure either, unless you consi…
is the reason for the sale mostly due to corp management profit min/maxing then?
I've heard Japanese steel is pretty great, or at least a common sentiment
There is a 25% tariff on steel imports and American steel companies are still failing. What did the tariffs do other than raise prices of steel for Americans?
Earlier quoted context omitted.
I don't think that applies as much to line workers in the overseas subsidiaries of Japanese companies as it does in the central company. Like, Square Enix's former European divisions, Sony of America, all run much more like companies in their home countries than like their parent company.
I believe Toyota @ NUMMI actually showed that they could win over the union and get everyone bought into their lean culture, but it took time / patience. Notably, this plant was considered a failure before because the of the antagonism between labor/mgmt led to really toxic behavior. GM blamed the union labor, but Toyota ended up firing the managers and got buy in from labor because of their long-term / labor-centric…
https://www.popularmechanics.com/cars/a5514/4350856/
Then the building became Solyndra, which also failed.
GM, of course, is one of the stupidest companies on Earth, so they'd have trouble selling free beer to college football fans. If you want to blame them you won't get any argument from me.
For perspective, the vast majority of global steel capacity is in China, which made over half of global steel output in 2020 (its almost a trillion dollar market), while the United States accounted for approximately 4%.
I mean Nippon is a great company, but this is a critical piece of infrastructure at a time when things aren’t going exactly perfectly in the world.
Earlier quoted context omitted.
on why it failed: > US Steel and other steelmakers eventually followed those foreign competitors to upgrade factories and equipment, but they still largely used the older methods to make steel by melting raw materials such as iron ore in giant blast furnaces. > Those “integrated” steelmakers soon lagged behind so-called “mini-mills,” nonunion competitors that use more efficient electric arc furnaces to turn old steel…
The glaring issue I see is that if "integrated" mills start shutting down, where will the old steel scrap for the mini-mills eventually come from? Someone somewhere has to be making new steel.
Earlier quoted context omitted.
is the reason for the sale mostly due to corp management profit min/maxing then?
Their fiduciary duty is to the investors first afaiui, perhaps they saw that selling to someone who can run the company better as a net benefit overall? I've heard Japanese steel is pretty great, or at least a common sentiment
Aluminum, copper and steel. Something to think about next time you get anywhere near a car, train, airplane, skyscraper, or bridge.
https://money.cnn.com/2017/10/16/news/companies/kobe-steel-s...