United States Steel Corporation’s (“U. S. Steel”) Minnesota Ore Operations in the Mesabi Iron Range of northern Minnesota contributed $1.8 billion to the local and state economy in Fiscal Year 2022 (FY22), according to an economic impact report released today. The report further concludes that U. S. Steel’s economic activity supported or sustained 5,284 jobs. Facilities in this region include Minntac in Mt. Iron and Keetac in Keewatin.
‘’We are thrilled that U. S. Steel makes such tremendous contributions throughout the iron range of Minnesota,” said David B. Burritt, President and Chief Executive Officer, U. S. Steel. “Our operations support more than 5,000 family-sustaining jobs and allow us to support the community as one of the region’s largest employers.”
“U. S. Steel and iron mining have a massive impact on the state. The industry continues to reinvent itself and its product for the better,” said Kristen Vake, Executive Director, Iron Mining Association of Minnesota. “U. S. Steel’s sustainability plan is ahead of the times as they continue to push for a cleaner environment.”
In the 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. The study also measured the impact of charitable giving by U. S. Steel and its employees.
Among the highlights in the report:
- The $1.8 billion total economic impact of U. S. Steel’s operations in Minnesota in FY22 included $911.9 million from direct impact and $865.4 million in indirect/induced impact.
- In FY22, the value added impact generated by U. S. Steel’s operations in Minnesota is $1 billion ($570.2 million direct and $458 million indirect/induced).
- U. S. Steel’s operations in Minnesota supported an estimated 5,284 jobs (1,865 direct and 3,419 indirect/induced in FY22).
- Through its operations and capital spending in FY22, U. S. Steel generated $141 million in state and local taxes in Minnesota.
- Minnesota Ore Operations contributes annually to Minnesota public schools through the Minnesota Permanent School Fund. U. S. Steel has contributed more than $154 million since 2018 and is the largest contributor to this fund.
- In FY22, U. S. Steel employees contributed an estimated $1.8 million in value to local charities through philanthropic giving and volunteering in the local community.
The study, commissioned by U. S. Steel, was conducted by Parker Philips, a nationally recognized consulting firm that specializes in economic impact analysis.
“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,” said Nichole Parker, a principal partner at Parker Philips. “U. S. Steel’s operations in Minnesota’s Iron Range have an outsized impact in the region and its impacts ripple throughout the entire state with significant dollars flowing to the public school system and the University of Minnesota System.”
Source : United States Steel