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

The Gift of Fear by Gavin de Becker

A book about heeding the miraculous cognitive process we call intuition, "a brilliant internal guardian" that enables us to perceive things before they happen. This book give you a tremendous set of tools for assessing risks, making predictions, and understanding which things you should (and shouldn't!) be afraid of. This book is a wonderful navigational tool for modernity. I'll add that aside from being an insightful guy, author Gavin de Becker is quite an interesting guy. I recommend digging into any of the podcasts or long-form interviews he's done. See for example  this interview with Tucker Carlson , striking in part because Carlson (for once) hardly talks--he simply lets de Becker talk. [Again, please skip or skim these notes below, they are too long and life is short!] Notes:   Chapter 1: In the Presence of Danger 1) "Like every creature, you can know when you are in the presence of danger. You have the gift of a brilliant internal guardian that stand...

A Technique for Producing Ideas by James Webb Young

It's a rare pleasure to find so many insights in such a short book. A modern reader can't help but notice the stark contrast between A Technique for Producing Ideas  and most modern books, which might have a few paragraphs' worth of insights, but yet always seem to be fluffed and padded out to at least 200-300 pages. The author gives away a formula for creativity and idea generation that is simple, but not easy. And as a result almost no one will follow it. In the author's own one-paragraph summary, his process is: * First, the gathering of raw materials--both the materials of your immediate problem and the materials which come from a constant enrichment of your store of general knowledge.  * Second, the working over of these materials in your mind.  * Third, the incubating stage, where you let something beside the conscious mind do the work of synthesis.  * Fourth, the actual birth of the Idea--the 'Eureka! I have it!' stage. * And fifth, the final shaping and ...

Merchants of Grain by Dan Norman

[Recommended for investing geeks and students of power structures. Everyone else can take a pass.] Certain industries or companies need to be "visible" and in the public eye. See, for example, story stocks like Nvidia, or branded consumer products companies (which require name recognition and habit formation in order to sell product), or any company run by a celebrity CEO. Think of this as one level of visibility. Note also: any publicly traded company--even if it has a name or a CEO nobody's ever heard of--must file financial reports and other filings. To have access to public equity markets and have your stock trade on an exchange, your company has to "come in and register" (to borrow the phrase from incompetent SEC Commissioner Gary Gensler), and this means putting a lot of information about your business out in the open. Now anybody can look at your filings, see your profitability metrics, see who your managers and directors and large shareholders are, and s...