Aluminum Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

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The industry is expected to continue to globalize as US and global construction and manufacturing markets gain strength and, in particular, rising demand from automakers will be a major driver of industry growth. For these reasons, industry research firm IBISWorld has updated a report on the Aluminum Manufacturing industry in its growing industry report collection.

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Despite overall revenue growth, volatility in aluminum prices contributed to a more competitive environment

The Aluminum Manufacturing industry has endured significant volatility over the past five years due to fluctuations in aluminum prices, which reflect global supply and demand trends. While higher prices raise the cost of refining purchased aluminum, cost increases are generally passed on to customers and usually result in higher industry revenue. Aluminum prices surged after the recession in response to rapidly rising demand from manufacturers, especially in emerging economies. Higher prices for aluminum products and rebounding demand from major markets, namely the automotive industry, bolstered revenue over 2010 and 2011.

“Industry revenue declined in 2012 as persisting debt issues in developed economies and slowing growth in emerging markets delayed large-scale construction projects and limited demand for aluminum,” IBISWorld Economic Analyst Leah Goddard says in the updated report. Industry inventory went unsold and overproduction led to an excess supply of aluminum, alleviating upward pressure on prices. For these reasons, aluminum prices dropped in 2012 and 2013. However, strengthening demand helped propel aluminum prices up in 2014, modestly boosting revenue. Over the past five years, industry revenue is forecast to grow.

Despite overall revenue growth, weakened demand from major markets and volatility in aluminum prices contributed to a more competitive environment over the past five years. Many operators exited the industry or were acquired by larger manufacturers. “Furthermore, companies continued to expand operations overseas and merge with foreign manufacturers to take advantage of stronger demand and lower labor costs in developing economies,” Goddard says in the updated report. However, the sharp appreciation of the US dollar has hurt demand for exports in recent years, while simultaneously boosting the competitiveness of imports.

The industry is expected to continue to globalize as US and global construction and manufacturing markets gain strength. In particular, rising demand from automakers will be a major driver of industry growth. Since aluminum is a lighter alternative to other metals, car manufacturers are increasingly using it for building motor vehicle bodies and parts to meet growing fuel-efficiency standards. As automakers expand production of lightweight vehicles, this growing market will support higher demand and prices for aluminum. Over the five years to 2020, industry revenue is forecast to increase.

For more information, visit IBISWorld’s Aluminum Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the Aluminum Manufacturing 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 Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com

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Gavin Smith
IBISWorld
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