Customer Reviews

Crisis In Bethlehem

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This was a fascinating page-turner, written by someone who was intimately familiar with Bethlehem Steel because he lived in its home town for decades, serving as the editor of the local paper. One of the best non-fiction (I almost didn't qualify this statement with that word) books I've read in a long time. Now that The Steel is gone forever, I'd love to be able to persuade Mr. Strohmeyer to write a companion volume to this one telling us just how the end came, in the same detailed analytic manner. We might be able to learn from others' mistakes. The failure of this once great company is a tragedy and is a sad example of what happens when American labor, management, and government all become too arrogant and complacent. Bye-bye profits. Bye-bye jobs. What's next? Bye-bye national defense? If steel was The Basic Industry, then everyone working in industrial America needs to read this book. Sooner or later, you'll probably deal with some of the issues raised here.

I worked for Bethlehem Steel during the latter time period that this book covers and I knew some of the players Strohmeyer mentioned. No one could have better described the times and circumstances that brought down this mammoth company as well this book did. Unfortunately, Strohmeyer died before the bitter end of Bethlehem Steel and so was not able to chronicle it's dying moments. At 99 years old, Bethlehem ceased to exist on December 31, 2003. The company's plants and other assets were either donated to a historical society or purchased at pennnies on the dollar by International Steel Group, a newly formed steel company which successfully revived several bankrupt steel companies and merged them together into a cohesive business. International Steel Group was subsequently purchased by Mittal Steel of the Netherlands and designated Mittal Steel USA. The old Bethlehem plants continue to operate under the new owner. This book is a fascinating, easy to read chronicle of corporate blundering so profound that one wonders how the company lasted for nearly a century. Sadly, even in its last days, Bethlehem managers simply couldn't fathom the drastic changes that were needed to save the company.

Bethlehem Steel is a huge part of my family history. My mother, father and both of their fathers all were employed for many years by this once-great company. Complacency seems too mild a word for what ailed this company. This book documents the fall of Bethlehem Steel [inventor of the H-beam... predecessor to the I-beam necessary for many of the tall buildings and skyscrapers we have today]. I really like this book but I am probably biased as I grew up in Baltimore, MD and Bethelehem, PA. Billy Joel even wrote a song about the influence of this company [not a pretty picture] in his song "Allentown". There's a lot of history here and a lot of explanation for why I had to leave all my childhood friends behind when the company started falling apart.

My grandfather, 3 uncles and my father worked at the Bethlehem Steel. My father has interesting personal stories that make it seem like it all happened yesterday. He can also tell you about the union and management issues. I am trying to get him to write them down because this is a piece of American history that is lost. I bought this book and 3 others as a surprise for him. Thank you.

Excellent read.

U.S. steel industry was dominant in world market when steel mills in Europe and Japan were destroyed in World War 2, U.S. steel industry virtually can increase price whatever they liked. In 1980s, big steels in U.S. struggled for survival. Crisis in Bethlehem was a fascinating story about this dramatic change for U.S. steel industry from complacency to humiliation.

To counteract world communism movement, U.S. offered Marshal Plan to rebuild Europe; Korea and Vietnam wars triggered an economic boom in Japan. West Germany and Japan underwent a dramatic postwar national construction. A national wide civil movement was in full swing in U.S., labor union successfully fought the major big steel to increase steel worker's wages, which made them the best paid manufacturing jobs in U.S. In 1960s, 1970s these wages increase still was absorbed by passing the cost to domestic customers.

A 1960s prolonged strike forced domestic customers imported steel abroad. A war against imported steel started. By 1980s, it was clear that not only imported steel was superior to domestic steel in quality but also they were more competitive in price. There was little chance to reduce steel workers wages, in desperation, Bethlehem organized a powerful lobby group to seek government protection against imported steel, and president Regan approved the proposed imported quota system.

The import quota system was ineffective to contain the torrent of imported steel, firstly domestic customers started to import semi-finished steel products which had a bigger impact on domestic market-it shrank domestic steel market dramatically; secondly, abroad steels were shipped to countries not listed on quota system, as a result imported steel actually continuously increased their market share in U.S.

When government protection failed to shield big steel from global competition, Bethlehem went through a self rectification; huge layoff to reduce cost. Some steel towns were totally devastated after Bethlehem shut down mills.

Bethlehem went to bankruptcy in 1990s.