New U.S. Steel report shows economic impact on Indiana – Chicago Tribune

U.S. Steel’s Economic and Sustainable Development Impact in Indiana

Executive Summary: Economic Contribution and Decent Work (SDG 8)

• An economic report for the 2024 fiscal year, conducted by Parker Strategy Group, details U.S. Steel’s significant contribution to Indiana’s economy, aligning with Sustainable Development Goal 8 (Decent Work and Economic Growth).
• The company generates a total economic impact of $1.8 billion within the state.
• U.S. Steel’s operations support a total of 8,402 jobs statewide. This figure is composed of:
  1. 4,341 direct employees across its facilities in East Chicago, Gary, and Portage.
  2. An additional 4,061 jobs created indirectly through supply chain activities and employee household spending.
• The company strengthens local economies by engaging with 401 Indiana-based vendors and suppliers.
• Total tax revenue generated amounts to $245.6 million, with $67.4 million contributed directly to state and local tax funds.

Infrastructure Modernization and Industrial Innovation (SDG 9)

• A strategic partnership with Nippon Steel aims to modernize facilities and advance steelmaking technology, directly supporting SDG 9 (Industry, Innovation, and Infrastructure).
• The partnership includes a committed investment of $3.1 billion for the Gary Works facility, scheduled from 2025 to 2028.
• Initial investments target the optimization of production capabilities, including a $200 million upgrade to the hot strip mill and a reline of a blast furnace.
• The goal is to leverage world-class technology to expand into premium automotive steel production, fostering sustainable industrialization and innovation.

Commitment to Sustainable Cities and Communities (SDG 11)

• U.S. Steel’s tax contributions are identified as critical for funding essential municipal services, schools, and infrastructure improvements, which is a core target of SDG 11 (Sustainable Cities and Communities).
• The Gary Works facility is noted as the city of Gary’s largest economic engine, providing a substantial tax base and employment.
• The company directly invested approximately $154,000 in Indiana community programs during 2024.
• Supported initiatives include environmental conservation through Save the Dunes and community engagement via sponsorships for the Gary Air Show and Portage Festival of Lights.

Global Partnerships for Sustainable Goals (SDG 17)

• The acquisition of U.S. Steel by Nippon Steel, a deal valued at $14.9 billion, exemplifies a global partnership for sustainable development as outlined in SDG 17.
• This collaboration combines U.S. Steel’s established workforce and industrial presence with Nippon Steel’s technological expertise and financial investment.
• The partnership’s stated objective is to unite economic growth, community investment, and workforce opportunity to ensure a sustainable future for steel production and local economies in Indiana.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth

   • The article extensively discusses U.S. Steel’s economic contributions, job creation, and overall impact on Indiana’s economy. It highlights the generation of “$1.8 billion in economic impact,” the support for “8,402 jobs statewide,” and the creation of “good-paying jobs,” which are central themes of SDG 8.

2. SDG 9: Industry, Innovation, and Infrastructure

   • The focus on the steel industry, particularly the modernization of the Gary Works facility through a major investment from Nippon Steel, directly relates to this goal. The article mentions plans to “accelerate transformation,” invest in “world class technology,” and “reline of Gary Works’ blast furnace,” all of which point to upgrading industrial infrastructure and promoting innovation.

3. SDG 11: Sustainable Cities and Communities

   • The article connects the company’s operations to the well-being of the local community, specifically the city of Gary. It states that the tax revenue generated is “critical for funding our essential municipal services, schools, and infrastructure improvements.” Furthermore, direct community contributions, such as the “$154,000 to Indiana community programs,” support the development of sustainable communities.

4. SDG 17: Partnerships for the Goals

   • A significant portion of the article is dedicated to the “historic partnership” between the U.S. Steel and the Japanese company Nippon Steel. This international collaboration, involving a multi-billion dollar investment to share technology and resources, exemplifies the kind of global partnership that SDG 17 aims to foster for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth. The article’s central claim of generating a “$1.8 billion in economic impact” for Indiana directly relates to sustaining economic growth.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The partnership with Nippon Steel aims to “modernize the American company” and introduce “world class technology” to optimize production, which aligns with this target.
   • Target 8.5: Achieve full and productive employment and decent work for all. The report’s finding that U.S. Steel “supports 8,402 jobs statewide” and provides “good-paying jobs” is a direct contribution to this target.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization. The article describes how the Gary Works facility is the “city’s largest economic engine,” demonstrating the significant role of industry in the local economy and employment.
   • Target 9.3: Increase the access of small-scale industrial and other enterprises to value chains and markets. The report notes that U.S. Steel “partnered with 401 Indiana-based vendors,” indicating the integration of local suppliers into its supply chain.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable. The planned “$3.1 billion in the Gary Works facility from 2025 to 2028” for modernization, including a blast furnace reline and optimizing the hot strip mill, is a clear example of retrofitting industry.

3. SDG 11: Sustainable Cities and Communities

   • Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas. The company’s contribution of “$67.4 million in state and local tax revenue” which funds “essential municipal services, schools, and infrastructure improvements” strengthens the economic and social fabric of the city of Gary and the surrounding region.

4. SDG 17: Partnerships for the Goals

   • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. The acquisition and investment deal between U.S. Steel and Nippon Steel is a major private-private partnership aimed at mobilizing financial resources (“$14.9 billion”), technology, and expertise to achieve shared goals of modernization and economic growth.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 8

   • Economic Impact Value: The “$1.8 billion in economic impact” serves as a direct monetary indicator of the company’s contribution to the state’s economy (relevant to Target 8.1).
   • Number of Jobs Supported: The figure of “8,402 jobs statewide” (comprising 4,341 direct employees and 4,061 additional positions) is a quantifiable indicator for measuring progress on employment (relevant to Target 8.5).

2. Indicators for SDG 9

   • Investment in Industrial Upgrades: The planned investment of “$3.1 billion in the Gary Works facility from 2025 to 2028” is a specific financial indicator for industrial modernization (relevant to Target 9.4).
   • Number of Local Suppliers: The “401 Indiana-based vendors” is a clear indicator of the integration of local enterprises into the industrial supply chain (relevant to Target 9.3).

3. Indicators for SDG 11

   • Tax Revenue Contribution: The “$67.4 million in state and local tax revenue” is a direct financial indicator of the company’s contribution to public funds for community services and infrastructure (relevant to Target 11.a).
   • Community Investment Amount: The “$154,000 to Indiana community programs” is a specific monetary indicator of direct corporate investment in community well-being.

4. Indicators for SDG 17

   • Value of Partnership Investment: The total value of the deal, cited as “$14.9 billion,” and the specific investment of “$11 billion” are financial indicators measuring the scale of the private-private partnership (relevant to Target 17.17).

4. Summary Table of SDGs, Targets, and Indicators

Source: chicagotribune.com