CH-2 ECONOMIC ACTIVITY
IRON AND STEEL SECTOR
The Iron and Steel sector is one of the most prominent sectors of the economy. It lays the
foundation for other sectors as steel is essential in many different segments all the way from
automobiles to construction. This sector involves extracting iron ore, refining it and turning it
into steel. Steel is then used in construction, cars, defense, energy, railways, ships, electronics,
pipelines, and more. Taking the example of the in United States the steel and iron sector adds
about 2% of it’s GDP (source EXOS). According to a recent study done by the American Iron and
Steel Institute this sector supported nearly 2 million jobs.
Case Study: Indiana – The Steel Capital of the U.S.
Overview
Indiana is the largest steel-producing state in the United States, accounting for over 25 percent of
national steel output.
Key Features
Location advantage: Access to the Great Lakes and proximity to raw materials and major
automobile plants
Major steel cities: Gary, Burns Harbor, and East Chicago
Key companies:
o U.S. Steel (Gary Works)
o Cleveland-Cliffs
o ArcelorMittal USA (now part of Cleveland-Cliffs)
Economic Impact
Central to Indiana’s manufacturing and export economy
Supplies steel to auto, construction, and machinery sectors across the Midwest
Drives infrastructure and economic development in Lake and Porter counties
Modern Shift
Plants are transitioning to electric arc furnaces for cleaner production
Increased focus on recycling scrap steel and lowering carbon emissions
Summary
Indiana’s strategic location, industrial base, and infrastructure make it the heart of American
steel production, contributing significantly to regional and national economic development.
By – AAVYAAN GUPTA VII-CI
CH-2 ECONOMIC ACTIVITY
AUTOMOBILE SECTOR
The automobile sector is one of the most vital pillars of industrial growth, innovation, and
employment. It spans vehicle manufacturing, design, engineering, assembly, and after-sales
services. Automobiles are not just modes of transport; they drive development in logistics,
mobility infrastructure, fuel innovation, and even digital technology integration. The sector
includes a vast supply chain involving steel, electronics, rubber, plastics, and more. In the United
States, the automobile industry contributes nearly 3% to the GDP (source: Bureau of Economic
Analysis).
Case Study: Michigan – The Automotive Capital of the U.S.
Overview
Michigan, often referred to as the "Motor State," is home to Detroit – the historical center of the
American automobile industry.
Key Features
Detroit: Headquarters of General Motors, Ford, and Stellantis (Chrysler)
Research Hubs: Significant automotive R&D in Ann Arbor and Lansing
Skilled Workforce: One of the largest concentrations of automotive engineers and
skilled labor in the U.S.
Economic Impact
The sector employs over 1 million people across direct and indirect jobs in Michigan.
Drives economic activity through demand in steel, tires, paint, electronics, and AI-based
automotive technology.
Strong export industry, with vehicles and parts shipped globally.
Modern Shift
Focus on electric vehicles (EVs), autonomous driving, and AI-driven logistics
Government incentives promoting clean transport
Rise of EV manufacturing hubs (e.g., Ford’s BlueOval™ City)
Summary
Michigan's long-standing legacy, combined with its innovation ecosystem and skilled workforce,
secures its position as a powerhouse in automotive manufacturing, R&D, and economic
contribution.
By – AAVYAAN GUPTA VII-CI
CH-2 ECONOMIC ACTIVITY
TOURISM SECTOR
Tourism is a dynamic and service-driven sector contributing significantly to both local and
national economies. It includes domestic and international travel, hospitality, cultural
exploration, eco-tourism, and event tourism. It creates ripple effects across industries like
transport, food and beverage, construction, entertainment, and retail. In the United States, the
tourism sector contributes about 2.9% to GDP (source: U.S. Travel Association).
Case Study: Florida – The Tourism Giant of the U.S.
Overview
Florida is one of the most visited states in the U.S., known for its beaches, amusement parks, and
vibrant cultural scenes.
Key Features
Major Attractions: Walt Disney World, Universal Studios, Everglades, Miami Beach
Cruise Hub: Ports like Miami and Fort Lauderdale serve millions of cruise passengers
annually
Climate Advantage: Warm weather year-round boosts travel numbers
Economic Impact
Over 1.5 million tourism-related jobs statewide
Tourism generates nearly $100 billion annually
Supports local economies from Miami to Orlando to the Florida Keys
Modern Shift
Growth in eco-tourism and heritage tourism
Digital tourism promotion through apps and AI-based travel tools
Strong rebound post-pandemic through domestic and international marketing
Summary
Florida’s appeal lies in its unique mix of natural beauty, world-class entertainment, and
hospitality infrastructure. Tourism here acts as a backbone for regional development and sustains
hundreds of thousands of livelihoods.
By – AAVYAAN GUPTA VII-CI
CH-2 ECONOMIC ACTIVITY
By – AAVYAAN GUPTA VII-CI
CH-2 ECONOMIC ACTIVITY
By – AAVYAAN GUPTA VII-CI
