MSCI Issues Letter To New York Times On State Of Industrial Metals Supply Chain

On January 20, New York Times columnist Binyamin Applebaum quoted the Metals Service Center Institute’s press release regarding the inauguration of President Donald Trump. 

In the release, MSCI President and CEO M. Robert Weidner argued, “[T]he industrial metals sector needs action now. On the campaign trail, President Trump made it clear that he understands that, despite a declining federal unemployment rate and a rising stock market, there are certain industries and communities that are still struggling.” Applebaum’s column offered a more positive view of the economy over the last ten years—a view that MSCI believes neglected to mention struggles throughout the industrial metals supply chain. For example, as MSCI noted in its press release, service center aluminum shipments are still about 20 percent below their pre-Great Recession peak and carbon steel shipments from service centers are still down approximately 30 percent. 

Applebaum also argued that technology was the main reason for job loss in the broader manufacturing industry and MSCI also believes that statement only tells part of the story. 

To correct the record, MSCI has sent a letter to the editor at The New York Times outlining the elements that were missing from Applebaum’s report. The letter said:

“Binyamin Applebaum is correct — technological progress has contributed to the U.S. decline in manufacturing jobs. But in defending the Obama economy, he ignores many other significant factors that have contributed to that decline, most notably along the industrial metals supply chain. Namely, he ignores the very real—and negative—impact federal policy has had over the last few decades. Unnecessary regulations, a tax system that penalizes small business owners, and lax enforcement to stop Chinese dumping and flaunting of global trade law all have contributed significantly to the erosion of manufacturing jobs and incomes. Applebaum quoted me, but neglected to cite Metals Service Center Institute (MSCI) data, which clearly shows the industrial metals supply chain is struggling. Service center aluminum shipments are still 20 percent below their pre-Great Recession peak while carbon steel shipments are down 30 percent. These numbers are our reality. And they demand attention and action by our leaders in Washington.”