C+S October 2023 Vol. 9 Issue 10 (web)

Structures

The Importance of Sourcing Safe Building Materials

When it comes to quality, it matters where your steel is sourced According to the US Census Bureau, 77 percent of improperly labeled, imported Mexican steel conduit was commingled with American- made steel in 2021. The infiltration of lower quality steel could put US infrastructure–including electrical conduit systems, buildings, and bridges–at high risk for degradation, corrosion, and even collapse, endangering lives. American safety standards are in place to ensure a solid infrastructure. The consequences of allowing construction with unregulated steel imports can be dire. Chinese-produced steel presents another set of problems. Unlike American steel produced using electric arc furnaces (EAFs, discussed later in this article), China’s steel is primarily produced using a process called blast furnace-basic oxygen furnace (BF-BOF). BF- BOF emits significantly higher amounts of CO2 when compared to the EAF process, causing extreme negative environmental effects. Yet, these products continue to be imported into the US, in direct violation of The White House’s Buy Clean policy, which encourages low-carbon manufacturing of construction materials while protecting American jobs. American steel supports American jobs The US steel industry is a vital component of the American economy, bringing in $21.065B in 2022 alone. Prior to the implementation of the USMCA Free Trade Agreement, the US steel industry supported nearly two million jobs that paid, on average, 27 percent more than the median earnings for men and 58 percent more than the median for women, but if the US continues to knowingly import off-shore products, steel mill capacity utilization will continue to drop and US manufacturers will face the threat of plant closures. Enforcing import and tariff laws is the only way to support US steel mills and the American jobs they provide. This includes implementing a strict screening process of materials with specified attributes to raise red flags, forbidding products from specific offshore companies who are known to misrepresent their products or ignore the anti-surge clause and implement incentives for buying confirmed American-made steel products. Without this support, US manufacturers will continue to be at a huge disadvantage, ultimately affecting the future of manufacturers, NOTE Under the Infrastructure Investment and Jobs Act (IIJA), federally funded projects must use American- made iron, steel and other construction materials. To remain in compliance, it is imperative that imported steel be properly labeled.

By Dale Crawford

The rising cost of building materials has many contractors shopping around for lower prices, but opting for cheaper materials may cost builders and property owners more in the long run, particularly when it comes to steel and steel conduit. While American-made steel products are held to strict standards with regards to strength, safety, durability, and environmental impact, the same rules may not apply to steel imports. The vast majority of American-made steel and steel conduit is manufactured using processes that are more environmentally friendly than methods used in other countries, particularly China. Furthermore, many American steel manufacturers hold themselves to even higher standards than those required by law. Despite tariff agreements to the contrary, steel suppliers from Mexico and Asia continue to import unregulated steel and steel conduit to use in construction of new buildings in the US Because steel conduit is used in electrical raceways to protect wires from physical damage due to impact, chemical vapors, and fire, the use of unregulated or subpar steel puts buildings at risk. Lastly, American-made steel supports the US steel economy and American jobs across manufacturing, construction, transportation, and other industries. Steel imports thus impact American steel manufacturers and their employees. Organizations like the Steel Tube Institute are working to uphold the integrity of American infrastructure, keep jobs in the US and promote sustainable manufacturing processes. History of North American steel regulations In 2019, the United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs, lifting retaliatory fees and opening up trade between the US, Canada, and Mexico. In this action, the three countries pledged to prevent steel import surges beyond historical levels. The agreement states that if surges in imports of specific steel products occur, the US may re-impose tariffs on those products or create another remedy agreed upon by both countries. Nevertheless, Mexican steel suppliers have continued to import steel products in larger than historical quantities, without any repercussions from the US Trade Ambassador’s office. During the July 2023 annual meeting of the US-Mexico-Canada Free Trade Commission (USMCA), US Trade Representative Katherine Tai pushed for steel monitoring. Unfortunately, monitoring is not enough and must be coupled with penalties to those who violate the trade agreement.

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October 2023

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