https://www.alainguillot.com/how-the-u-s-is-losing-ground/

Japanese steelmaker Nippon Steel attempted to acquire U.S. Steel in December 2023. Investors were optimistic, but politicians and union members were less enthusiastic.

Politicians voiced concerns about keeping U.S. Steel under American ownership, while union members expressed unease, fearing that a foreign acquisition might impose stricter labor requirements on them.

There’s a great deal of nostalgia associated with U.S. Steel. Founded by J.P. Morgan in 1898, it was once the largest IPO in history and the first company to reach $1 billion in revenue. At its peak, it employed over 300,000 people.

Today, U.S. Steel is a shadow of its former self. The workforce has shrunk from 300,000 employees to 20,000, and its relevance within the corporate world has diminished. Once the seventh-largest company in the U.S., it now ranks 648th and is no longer part of the S&P 500.

After World War II, the U.S. was the largest steel producer in the world. Now, China leads the industry with a 54% market share, followed by India (6-7%) and Japan (5-6%). The U.S., meanwhile, accounts for just 4-5% of global steel production.

It’s safe to say that the U.S. is no longer the global leader in steel.

Last week, I wrote about how the U.S. has taken a dominant role in global communications and technology. However, it’s also losing ground in various other industries, and that’s okay.

Consider this analogy: Imagine you’re good at both accounting and cleaning floors. Despite being competent in both, you would likely focus on the one that offers greater rewards.

While the technology and communication sector continues to grow, several industries are declining due to technological advancements, shifts in consumer behavior, and globalization. But this is a natural progression. According to the principles of David Ricardo’s comparative advantage, the U.S. should focus on sectors where it excels and allow other nations to expand in areas where they hold a competitive edge.

Here are some industries in the U.S. that are either “dying” or facing long-term decline: