Santorum visited the Burnham industry as part of his day-long tour throughout the state meeting with Pennsylvanians about the energy situation and how it affects them. Before the tour, Santorum listened intently as Standard officials described the current poor market conditions and the soaring cost of energy. The market is off 40 percent in demand, and 20 percent in pricing.
Prices are lower than the cost of production.
Spendiff explained the company is in its fifth quarter of decline and probably won't recover until next year. He cited rail mergers and the general decline in the economy as two of the reasons for that decline. Adding to Standard Steel's problems is a 20 percent increase in gas prices in each of the last two years, and a 15-20 percent increase in electric costs this year. Santorum sympathized with the executives and said he favors using more coal for electric generation and less natural gas. In addition to Burnham, Santorum also spoke with constituents in Pittsburgh, Huntingdon and State College on Tuesday.