World Steel Tube News Congressional Steel Caucus leaders sent a letter to Defense Secretary Leon Panetta asking for clarity on the Navy's shipbuilding plans because to help the domestic steel industry prepare for its long-term needs.
U.S. Reps. Pete Visclosky and Tim Murphy sent a letter Dec. 10 and urged Panetta to maintain stability with future shipbuilding acquisition proposals.
World Steel Tube News report Visclosky, D-Ind. and Murphy, R-Pa., are vice chairman and chairman of the Congressional Steel Caucus, respectively. The Congressional Steel Caucus is a bipartisan bloc of legislators interested in the health of the industry or represent a district that has a steel industry presence.
World Steel Tube News report "The defense industrial base relies on a steel industry capable of rapid production of millions of metric tons used in building and maintaining America’s Navy," the letter read. "Since the production of steel is both labor and capital intensive, steelmakers must have certainty and predictability."
World Steel Tube News report According to a Congressional Research Service report, the Department of Defense submitted a 30-year shipbuilding plan to Congress March 28 that included a goal to maintain a fleet of between 310 and 316 ships. The March proposal was the latest among eight proposals since 2001 the Navy has made. In those proposals, the fleet number was as low as 260 and high as 375.
World Steel Tube News report Producing one aircraft carrier generates more than $3 billion of economic activity and requires $265 million worth of American steel, according to the letter. Murphy and Visclosky said maintaining the health of the steel sector is important because more than 930,000 U.S. jobs and contributes $17.5 billion to the gross domestic product.
World Steel Tube News report "As our economy continues to emerge from recession, America’s steelworkers and their families deserve to have the certainty that they are trusted to build the finest warships in the world,” Visclosky said in a news release. "I urge Secretary Panetta to remember the crucial relationship between the steel industry and the United States Navy as he develops our long-term shipbuilding strategy.”World Steel Tube News report