Papers - Offsetting Increased Labor Cost in Southern Blast-furnace Operation (With Discussion)

Nowhere can there be found a more misleading statement than the old one that "Iron can be manufactured cheaper in the South." During the past decade ironmakers and users of iron have heard varied and sundry stories of the wonderful resources of the Birmingham district, including abundant ore and coal fields, cheap labor, a wonderful climate and similar industrial Utopian statements. Birmingham represents the major portion of the iron business in the South, and as Birmingham fares so goes the iron business of the South. The intent of this paper is to shed some light on the actual conditions surrounding ironmaking in the South, especially in the Birmingham, or North Alabama, district. By a presentation of facts it is desired to point out that the "cheap iron" of the industrial South is a thing of the past, primarily because of increased labor cost and because labor is radically different in performance to what it was years ago. Also, because most of the raw materials needed in ironmaking that would be classed better than inferior are gone. Important Factors The several important factors that have been responsible for this change are : 1. Shrinkage of the iron business in the South. 2. Increased labor cost. 3. The development of the South, with an industrial trend, without a substantial increase of its own iron-consuming market. 4. Increased freight rates, which has narrowed the market that might be reached from this district. 5. Depletion of the better grades of raw materials, both ore and coal. Shrinkage of Iron Business in South.—Table 1 was prepared in early 1936 and revised in 1937, of blast-furnace units in the North Alabama district, considering the year 1936 compared with a maximum number of furnace units of previous years, the peak point being very near the year