Reports the research effort by Chicago’s Task Force on Steel and Southeast Chicago (1984-86) done under the direction of Prof. Ann Markusen. The report describes the evolving structure of the U.S. and Chicago steel industry characterized by increasing differentiation as functions are transferred to smaller, independent units like steel service centers taking on part of the processing and wholesaling to consumers like fabricators, the automobile, farm equipment and fabricators generally. It finds basic steel production challenged by technological changes but fundamentally viable, and essential to the health of the sector overall. Facing other options like “bowing out” of steel production; or “bidding down” costs, the authors argue that “building on the basics” is the better course.