Shine on: Continued globalization and rising demand from automakers will drive demand

The Aluminum Manufacturing industry has endured significant volatility over the five years to 2017 due to fluctuations in aluminum prices, which reflect global supply and demand. The appreciating dollar constrained export growth while boosting imports from Canada and China, further increasing pressure on domestic operators. Primary aluminum manufacturers were particularly challenged by these developments, forcing several smelters to temporarily idle production capacity, permanently close underperforming facilities or otherwise exit the industry. The industry is expected to continue globalizing over the five years to 2022 as domestic and foreign manufacturing markets gain strength...purchase to read more.

Industry Statistics & Market Size
Revenue
$41bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
61,831
Businesses
412

Industry Threats & Opportunities

  • The appreciating dollar constrained export growth while boosting imports, increasing pressure on domestic operators
  • Domestic aluminum producers have attempted to stay afloat by closing or idling underperforming plants
  • Domestic nonresidential construction activity is expected to increase steadily
  • Industry Report - Industry Investment Chapter

    The Aluminum Manufacturing industry's use of large-scale machinery and equipment for functions such as smelting, extruding, rolling and drawing, makes it capital intensive. For every dollar spent on wages, manufacturers in this industry spend $0.43 on machinery, equipment and other capital expenses. The refining of alumina and the smelting and reprocessing of primary aluminum are the industry's most capital-intensive operations. Production of secondary aluminum from scrap and rolling are also capital-intensive processes, though to a lesser extent than primary smelting and alumina processing. Ongoing capital investment is required to satisfy customer specifications, compete effectively on the basis of price and turnaround time and minimize operating costs. Dep...purchase to read more.

    Additional Insights for the Aluminum Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aluminum Manufacturing Industry are

  • Access to high quality inputs
  • Supply contracts in place for key inputs
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as World price of aluminum and Industrial production index in the Aluminum Manufacturing industry impact industry performance..

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    What's in this report

    What is the Aluminum Manufacturing Industry?

    Companies in this industry refine aluminum-bearing bauxite into alumina, smelt alumina to produce aluminum and manufacture aluminum products, such as alloys, plate, sheet, foil and extrusions. The industry also includes companies that recover aluminum from scrap.

    Industry Products
  • Alumina
  • Primary aluminum
  • Secondary aluminum
  • Aluminum sheet
  • Aluminum plate
  • Aluminum foil
  • Aluminum extrusions
  • Industry Activities
  • Refining bauxite into alumina
  • Smelting alumina to produce aluminum
  • Recovering aluminum from scrap (secondary smelting)
  • Flat rolling or continuous casting aluminum sheet, plate, foil and welded tube
  • Manufacturing aluminum alloys, powders, pastes and flake
  • Rolling, drawing or extruding aluminum shapes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of aluminum
  • Industrial production index
  • Demand from car and automobile manufacturing
  • Trade-weighted index
  • Price of electric power

  • Current Performance
  • Corroding prices
  • Industry structure
  • Increasing globalization
  • Chart: Revenue Growth

  • Industry Outlook
  • Brighter picture emerges downstream
  • Shifting markets and industry structure
  • Table: Aluminum Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aluminum Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Nonferrous Metal Foundry Products Manufacturing
  • Metal Can & Container Manufacturing
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Space Vehicle & Missile Manufacturing
  • Train, Subway & Transit Car Manufacturing
  • Ship Building
  • Boat Building

  • Key Selling Industries
  • Coal & Natural Gas Power
  • Coal & Ore Wholesaling
  • Electric Power Transmission
  • Hydroelectric Power
  • Inorganic Chemical Manufacturing
  • Nuclear Power

  • Products & Services
  • Aluminum sheet
  • Aluminum extrusions
  • Secondary aluminum
  • Other
  • Primary aluminum
  • Aluminum plate
  • Aluminum foil
  • Alumina
  • Chart: Aluminum Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Transportation equipment, including defense
  • Exports
  • Packaging and containers
  • Construction
  • Electrical applications
  • Industrial manufacturing
  • Consumer durables
  • Other
  • Chart: Major Market Segmentation for the Aluminum Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Aluminum Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aluminum Manufacturing Industry

  • Industry Globalization
    Arconic Inc., Novelis Inc., Constellium, Alcoa Corp,
  • Table: Arconic Inc. - financial performance
  • Table: Novelis Inc. - financial performance
  • Table: Constellium - financial performance
  • Table: Alcoa Corp - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aluminum Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aluminum Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World Price of Aluminum (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Alumina
  • A semi-processed form of aluminum obtained when bauxite, an aluminum-bearing ore, is refined.
  • Body-In-White
  • The structural components of a vehicle.
  • Drawing
  • A process for producing wire, bar or tube by pulling metal, increasing its length and reducing its diameter. Wire is typically pulled through a series of dies (holes) of decreasing size.
  • Extruding
  • The process of forcing a solid and usually heated metal through an opening with the shape as the desired end-product. A hydraulically operated ram is used to push the metal through the opening.
  • Ingot
  • Semi-processed metal shapes that usually require further shaping, such as cold and hot working, cutting or milling to produce a useful final product.
  • Primary Manufacturing
  • Production of metals from ore.
  • Rolling
  • A process that reduces the thickness of a piece of metal by passing it through successive rotating mills that compress the metal.
  • Secondary Manufacturing
  • Smelting, refining and blending metal recovered from primary metal production or from recycled metal.
  • Semi-Fabrication
  • Includes several industrial processes for the production of rolled products, extrusions, wire, tubes, forgings and castings.
  • Unwrought
  • The output of primary and secondary aluminum production prior to further processing and fabrication
  • What Our Customers Say

    Why buy this report?

    The Aluminum Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Aluminum Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aluminum Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aluminum Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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