1. THE FIVE-YEAR ECONOMIC OUTLOOK AND REMARKS ON U.S. STIMULUS PROGRAMS REBALANCING THE ECONOMY SO MORE GROWTH COMES FROM INVESTMENT AND EXPORTS Presented by Thomas J. Duesterberg President and Chief North American Steel Trade Committee Executive Officer November 19, 2010 Manufacturers Alliance/MAPI

2. Consumers Have A Balance Sheet Problem That Only Repaying Debt Will Resolve U.S. Consumer Credit Outstanding and Housing Prices Source(s): Federal Reserve Bank of St. Louis and Federal Housing Administration and Manufacturers Alliance/MAPI

3. Credit Loosens For Small Commercial Borrowers Credit Conditions for Commercial and Industrial Borrowers Source(s): Federal Reserve Board, Senior Loan Officer Survey, October 2010

4. Commercial Loan Demand Source(s): Federal Reserve, Senior Loan Officer Survey, October 2010 Even the Loan Demand Picture Appears to Stabilize

5. Future Consumer Spending Depends on Wage and Job Growth Wage and Job Growth Source(s): U.S. Bureau of Labor Statistics Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast

6. Rebalancing Growth With More Investment and Exports and Unwinding Federal Stimulus GDP Expenditure Categories Inflation-Adjusted Percent Change 2010(F)2011(F)2012(F)2013(F)2014(F)2015(F) Gross Domestic Product 2.82.53.22.93.23.1 Total Consumption 1.72.52.11.52.12.7 Durables 6.98.57.83.73.16.0 Nondurables 2.61.91.41.01.52.0 Services 0.61.81.51.32.12.4 Nonresidential Fixed Investment 5.67.67.7 7.35.8 Equipment & Software 15.211.78.26.35.93.7 Information Processing Equip. 12.97.24.84.15.27.3 Industrial Equipment 6.920.28.73.04.41.7 Transportation equipment 60.322.723.117.97.5-9.3 Structures -13.8-3.56.412.111.611.4 Residential Fixed Investment -4.26.133.413.79.25.2 Exports 11.57.88.710.09.77.6 Imports 13.26.14.54.25.05.1 Federal Government 4.70.0-3.5-2.8-1.3-0.5 State & Local Government -1.30.20.11.21.31.5 Source: Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast Manufacturers Alliance/MAPI Economic Forecast

7. The Pace of Recovery Is Expected to Be Below Average Inflation-Adjusted GDP Source(s): U.S. Bureau of Economic Analysis and Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast

8. Maximum Fiscal and Monetary Policy Stimulus Now; Exit Strategy to Be Determined Federal Budget and Policy Interest Rate Source(s): U.S. Bureau of Labor Statistics and Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast

9. Low, but Accelerating, Inflation; High Unemployment; Massive Public Debt; and Moderate Manufacturing Rebound Economic Indicators Percent Change or Level as Specified 2010(F)2011(F)2012(F)2013(F)2014(F)2015(F) Prices (% chg.) Consumer Prices 1.7 1.92.12.4 Excl. Food & Energy 1.01.21.72.02.4 Producer Prices, Finished Goods 4.42.31.61.72.01.9 Energy ($) Imported Crude Oil ($ per barrel) $76.0$83.0$88.5$91.8$93.8$95.9 Natural Gas Wellhead Price ($ mmbtu) $4.2$4.0$4.5$4.9$5.0$5.4 Other Key Measures Nonfarm Inventory Change (Billion 2005$) $66$52$53$47$54$45 Light Vehicle Sales (Million units) 11.512.914.816.016.717.1 Housing Starts (Million units) 0.6040.7961.2161.4101.5881.671 Federal Surplus (NIPA, Billion $) -$1,339-$1,132-$904-$691-$714-$725 Current Account Balance (Billion $) -$496-$548-$558-$562-$521-$511 Labor Unemployment Rate (%) 9.79.58.98.27.56.8 Payroll employment (% chg.) -0.51.12.12.0 1.8 Production (% chg.) Manufacturing - SIC Basis 5.84.04.9 5.03.9 Computers & Electronic Products 13.612.314.716.417.915.4 Non-High Tech Manufacturing 5.12.84.03.83.32.2 Source: Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast Manufacturers Alliance/MAPI Economic Forecast

10. Manufacturing Recovery Complete in First Quarter 2013; High Tech Recovers in Fourth Quarter 2010, Traditional Manufacturing in Second Quarter 2014 Manufacturing Industrial Production Source(s): Federal Reserve Board and Manufacturers Alliance/MAPI simulation of the IHS Global Insight model, November, 2010 F=Forecast

11. Moderate Manufacturing Growth Industry Inflation-Adjusted Percent Change 2010(F)2011(F)2012(F)2013(F)2014(F)2015(F) Manufacturing - SIC Basis5.84.04.9 5.03.9 Food5.72.81.91.5 1.6 Textile Mills11.8-1.9-2.5-2.9-4.0-4.5 Textile Product Mills1.80.91.5-2.1-2.8 Apparel0.3-6.6-5.7-4.4-5.2-5.7 Wood Products0.94.321.810.23.21.2 Furniture & Related Products-1.63.76.03.31.81.3 Paper & Products4.21.44.03.11.30.8 Printing Support Activities-3.4-1.3-1.2-1.3-1.4 Petroleum & Coal Products2.52.41.10.80.0-0.4 Chemicals2.91.53.33.13.63.8 Rubber & Plastics Products8.22.43.33.22.41.9 Nonmetallic Mineral Products1.12.78.17.44.22.7 Primary Metals23.90.23.94.74.40.9 Fabricated Metal Products6.63.22.43.73.62.4 Machinery8.57.06.14.13.11.7 Computers & Electronic Products13.612.314.716.417.915.4 Elec. Eq., Appliances, & Components4.42.84.45.73.21.9 Aerospace Products & Parts-4.86.112.615.613.35.8 Motor Vehicles & Parts25.48.59.66.52.40.0 Miscellaneous2.42.85.75.05.24.1 Non-High Tech Manufacturing5.12.84.03.83.32.2 Source: Manufacturers Alliance/MAPI simulation of the HIS Global Insight model, November, 2010 F=Forecast Manufacturers Alliance/MAPI Manufacturing Production Forecast