U.S. Steel has released an economic impact report on its 2022 operations in Arkansas, which includes Big River Steel in Osceola and Wheeling Machine Products in Pine Bluff. Since the release of the report, U.S. Steel has also held a ribbon-cutting for its new non-grain oriented (“NGO”) electrical steel line for advanced, low carbon, electric steels, and is continuing construction on a second mini mill steelmaking facility dedicated to the transition to sustainable steel production.
According to the report, U.S. Steel facilities in Arkansas generated $383.2 million in economic impact in fiscal year 2022 alone, as well as directly and indirectly supporting and sustaining 1,747 jobs. The competitive wages of these jobs attract talent to these areas and present an opportunity to raise the standard of living.
“These jobs with these kinds of pay levels create the opportunity for wealth-building in families that literally changes the arc of affordability generation to generation,” Randy Zook, CEO of the Arkansas State Chamber of Commerce and the Associated Industries of Arkansas, said.
Similarly, as a result of operations and capital spending, U.S. Steel contributed $16.3 million in state and local taxes to the Arkansas economy. The company also made $1.8 million in donations and volunteerism to the community and worked with 187 different Arkansas-based suppliers.
“At U. S. Steel, our ‘Best for All’ strategy means delivering stockholder value and being the best partner to our customers, our suppliers, our planet and the communities in which we operate,” CEO David B. Burritt said. “That certainly includes Arkansas. We are thrilled that U.S. Steel’s operations have had such a transformative effect in northeast Arkansas. And we’ve only just begun; Big River Steel 2, currently under construction, will create another 900 jobs.”
Big River Steel 2, currently under construction near Osceola, is planned to be U.S. Steel’s most technologically advanced flat-rolled steel-making facility to date. The project is expected to generate $5.2 billion in direct impact over four or more years and support more than 35,000 short-term construction jobs in addition to hundreds of long-term jobs once it is completed.
“As a community partner, our goal is to bring value to Osceola, northeast Arkansas, and the state, over the long haul. With the ongoing success of our first plant and construction of our second one well underway, we look forward to continuing our profitable and productive relationship with the people of Arkansas and adding even greater economic benefits to the regional community,” Daniel Brown, SVP of Advanced Technology Steelmaking and COO of Big River Steel Works, said.
The study was commissioned by U.S. Steel and conducted by Parker Philips, a nationally recognized consulting firm specializing in economic impact analysis. The study considered the direct spending on operations, pay, benefits and capital projects by U.S. Steel and the estimated increase in demand for goods and services in industry sectors that supply or support the company, as well as measuring the impact of charitable giving by U.S. Steel and its employees.
“An economic impact analysis is an objective way to measure the impact of an organization in the regional economy. It is a tool that policy makers and local businesses can use to inform their decisions,” Nichole Parker, a principal partner at Parker Philips, said. “Through its operations, as well as philanthropic giving and community engagement, U. S. Steel is making a major contribution to the local, state and regional economies.”
To view the full report and learn more about U. S. Steel’s community engagement in Arkansas, click here.
Photo Credit: AEDC
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