Iron Range Economy Still on the Decline
For many, 2015 was a year when the economy truly started to recover giving hope to many areas. For others like those that live in the Iron Range in the Midwest, the economy went from bad to worse. With a series of massive layoffs, the shutting down of the Northshore Mining Facility in Babbitt and Silver Bay and an attempt to diversify the economy, it does not look like things are going to start getting better any time soon.
The economy is struggling for a few different reasons but the main reason is the changes in the requirements of the EPA and similar organizations. On top of that, the iron industry itself is starting to slow down marking less of a need for the factories that populate the Iron Range. Many mines and plants are shutting down, albeit temporarily, to offset the downturn in the market but this still means a large number of layoffs.
There is still a demand for taconite which is a product of iron mining but there is no longer the need for an excess as many companies used to keep on hand. A recent ruling by the U.S. Department of Commerce has backed the steel industry in their complaint that foreign companies in China and other countries are working to dump cheap product in the United States and undercut the industry looks hopeful.
If steel producers are able to push out these foreign competitors that are selling steel for less than the cost of production, it may signal the beginning of the recovery of the Iron Range and the mining industry in general. Generally, when the US market is flourishing, so does the mining industry but this recent slump has lasted far longer than many would have ever predicted.
Only time will tell when recovery will start but for now the outlook is still somewhat grim. With illegal dumping still on the rise, it will take time to recover the market and bring back the booming domestic steel industry that was once part of the Iron Range.