Skip to main content

American Steel by Richard Preston

"A failure is a particularly dangerous time for a company, and must be handled with great skill. If people at higher levels come down on an employee and say, 'You goofed up,' it can kill all initiative at a company."

"So how do you handle someone who does goof?" I asked.

Aycock [a senior officer of Nucor] put his hands flat on his desk and eyed me in a way that suggested he thought I was an idiot. "You give him something new to do!" he said in a flaring voice. "Because they're the only damn people in the company who dare take any risks! I'm talkin' personal risks!"

An inspiring book about Nucor, an unusual steel company that managed to thrive at the very time the steel industry in the USA was dying. Burdened by high labor costs, high overhead and sclerotic bureaucracy, most of the major steel companies in the United States died off or washed through bankruptcy in the 1980s and 1990s. Nucor was a stark exception: non-union, flexible, lean, and almost no layers of management.

This book follows Nucor's seat-of-the-pants startup of a new, technologically superior kind of steel plant, chronicling all the hiccups, industrial accidents and even accidental deaths that occur in this dangerous but critical industry. 

One of the key themes in this book is the risk of not taking enough risk, the primary sin of the establishment steel industry in the USA, the very industry that Nucor obliterated with its aggressive (some would say reckless) initiative and risk taking.

Up there with Tom Wolfe's "The Right Stuff" in terms of quality: this book is well paced, well-written and really brings to life all the various characters who make up Nucor, from the CEO right down to the hard-drinking hot metal men (and women) working in the mill. 

American Steel also left this reader feeling mournful for the lively, aggressive, can-do manufacturing culture that the USA seems to have largely lost, perhaps permanently. Today we'd call a lot of the anecdotes in this book toxic masculinity, and we'd shake our heads at the personalities in this book--while enjoying our soy lattes in buildings constructed from steel imported from other countries.

More Posts

Before the Dawn by Shimazaki Toson

A fascinating, stately novel about idealists who get chewed up and spit out by the very social changes they seek. Before the Dawn takes place in the decades following Japan's 1853 "Black Ships" event, when the USA's Commodore Perry arrived, unannounced and uninvited, to force Japan to open itself to world trade. Perry's arrival, one of history's more blatant examples of gunboat diplomacy , sent shock waves throughout the island nation, resulting in a complex political and social revolution, civil war, and, eventually, a radically changed Japanese state. [A quick  affiliate link to readers to the book here . You can support my work here by buying all your Amazon products via any affiliate link from this site, or my sister site  Casual Kitchen . Thank you!] The main character, Hanzo, is the son of a village leader on the highway between Edo and Kyoto. He is sensitive, idealistic, and he dreams of a restoration of traditional Japanese values, both intellectual a...

The Gorilla Game by Geoffrey A. Moore

I have a bizarre passion for reading investment books that were written for past market cycles. I suppose I like the humiliation of it--it keeps me humble and helps me remember the fundamental truth that investment styles that look brilliant at one time can quickly destroy your wealth at other times. It also helps me maintain an attitude of contrarianism and cynicism in my investing. I almost always avoid or trade counter to strategies that I consider trendy, overly popular, or too widely embraced by other investors. Ironically, this has turned out to be one of my most dependable strategies for staying alive in the stock market over the past 15 years. Thus it is with a deep sense of irony that I say this: The Gorilla Game is exactly the kind of book that would have crushed you if you read when it was published, but it might be a perfect time to apply the strategies in this book right now. The thing is, books on investment strategies tend to come into the marketplace exactly when...

Peter the Great: His Life and World by Robert K. Massie

Thorough albeit endless biography of Peter the Great, with bonus extensive background on 16th and 17th century geopolitics across Europe and Asia Minor. Extremely useful despite its length.  If you can make it through this 900-page book you'll become a minor expert on Peter, but more importantly you'll have good context on the major European leaders of Peter's era: Charles XII of Sweden, Louis XIV of France, William of Orange, Augustus II of Poland and Saxony, Leopold I of the Holy Roman Empire, Frederick I of Prussia and more. These were the giants (and runts, depending) who shaped European history--and because history rhymes, their actions can help explain and even predict what's happening in Europe today. For a blatant example: we all know that Hitler would have done well to better note Napoleon's catastrophic war with Russia. But Napoleon would have done well to better note Charles II of Sweden's similarly catastrophic war with Russia a century earlier. Swe...