American Steel

The overarching theme of Richard Preston's book, American Steel, is that of leading strategic change, a concept central to the discipline of managerial science. Another important theme of the book restates a concept central to the discipline of finance: the greater the risk, the greater the potential reward.From the moment Ken Iverson took the helm of the Nuclear Corporation of America in 1965, he was charged with leading strategic change. He "became president by default...no one else wanted the job...His job description was merely to stave off bankruptcy." Taking the path of least resistance, Iverson focused on the company's only profitable unit, the Vulcraft joist division.Instead of purchasing bar steel from other companies, Iverson decided to build a steel mill himself. This was a tremendous risk; as he put it, "We played 'Bet-the-Company'." This gets directly to the point mentioned above -- the greater the risk, the greater the potential reward. By employing untrained, unskilled workers at this new plant in South Carolina, Iverson increased the risk profile of the company even further. This move, however, combined with a generous bonus plan, engendered a sense of trust and responsibility in the workers after some time. Trust, as it turns out, is the currency of change -- and change is just what Iverson was trying to accomplish.

I had just recently started working at a steel plant when I discovered this book. I learned alot about the steel industry, from experiences that the author had first hand, to the politics. I couldn't put it down. What I enjoyed most about it was that it's all real. The things that are described, from the EAF, to the rolling mill, I relate to it every day. At any perspective, from the office to the grunt work, it keeps your mind going.

American Steel is a comeback story of the American Steel Industry. A little less than half a million american steel workers lost their jobs in the 70's and 80's to imported steel. This book is about their story of how they put their heads together and purchased and created a machine which would make them the most competitive steel workers in the world. This book takes the reader into the minds of the hot metal men and through every step of their ambishes story of resurrection.

I bought this book only because I like Richard Preston's work. Frankly, my interest in steel and the steel industry (metal in general, for that matter) is nil -- but I just had to see what Preston was going to do with this subject. I now know more than I ever wanted to know about steel and the men who make it -- and the learning process was funny, suspenseful and gut-wrenching. This was a DELIGHTFUL book and I'm glad I didn't let my lack of interest in the subject turn me away from it. I give this book my highest compliment: I'm glad I read it.

Richard Preston presents a rather thorough documentary of the start of a small steel mill in Indiana. His writing style results in a description of the company and mill that are informative to a general reader yet provide accurate details for people familiar with steel mills and casting. Preston goes beyond the technical details of the mill, discussing the thoughts and motivations of the businessmen, engineers, and workers that made the startup possible. Worthwhile reading for engineers, businessmen, and anyone interested in the steel industry.