Driving the Modern Manufacturing Renaissance: The U.S. Aluminum - - PowerPoint PPT Presentation

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Driving the Modern Manufacturing Renaissance: The U.S. Aluminum - - PowerPoint PPT Presentation

Driving the Modern Manufacturing Renaissance: The U.S. Aluminum Industry Today Heidi Brock, The Aluminum Association June 4, 2014 1 Emerging U.S. Manufacturing Renaissance Is Real Low LNG prices in the U.S. Growth in Chinese wages


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Driving the Modern Manufacturing Renaissance: The U.S. Aluminum Industry Today

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Heidi Brock, The Aluminum Association June 4, 2014

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Emerging U.S. Manufacturing Renaissance Is Real

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  • Low LNG prices in the U.S.
  • Growth in Chinese wages & energy prices
  • Increase in U.S. labor productivity
  • Rise in high-skilled, advanced manufacturing
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Industrial Production Reaching Pre- Recession Levels

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U.S. Manufacturing: Industrial Production and Capacity,

  • Jan. 1988 – Feb. 2014

Source: US Federal Reserve; (Seasonally Adjusted Index; Base Year = 2007)

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U.S. Industry Driving Jobs/Economic Activity

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Aluminum Investing Big in U.S. Manufacturing

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  • $1 billion in capital investment in the U.S.

announced since Fall 2013

  • 1,000+ full and part-time jobs created
  • Alcoa: Davenport, IA & Alcoa, TN
  • Novelis: Oswego, NY
  • Tri-Arrows & Constellium: Bowling Green, KY
  • One macro-trend driving this growth…
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The Lightweighting Revolution

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Societal Pressures Driving Vehicle Weight Reduction Trend

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  • Private

 Corporate Sustainability Efforts  Consumer Demand

  • Public

 Corporate Average Fuel Economy  Truck Fleet Standards

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North America Ranks Second in Global Primary Production

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Global Primary Aluminum Production, 2013

*Preliminary

Source: International Aluminium Institute; The Aluminum Association

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Secondary Production is Increasingly Important in the U.S.

9 Source: The Aluminum Association

20% growth since 2009

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U.S. Economic Indicators Positive for Aluminum

10 Source: Bureau of Economic Analysis; U.S. Census Bureau; Wards Automotive

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Demand Is Trending to Pre- Recession Levels

11 Source: The Aluminum Association

32% growth since 2009

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Demand Growth Driven by Transportation/B&C Markets…

12 Source: The Aluminum Association

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But Especially the Transportation Market

13 Source: The Aluminum Association

75% growth since 2009*

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And this Growth is Expected to Continue

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100 200 300 400 500 600 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Blocks Heads Wheels

DOORS & BODY-IN- WHITE HOODS Average increase of 7 lbs per year for 35 years The trend line continues to be supported by new aluminum applications Source: Ducker Worldwide

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Sustainability: The Key Industry Differentiator

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Industry Innovation Driving Decline But More Work Remains

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The Association’s Role: Promoting the Metal

17 Critical Business Information & Statistics Developing the Standards that Enable Commerce Game-Changing Sustainability Research Revamped Association Bookstore

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The Association’s Role: Telling Our Story in Washington

18 Launched Congressional Aluminum Caucus Released Aluminum Economic Impact Study Dynamic Digital Platform Industry/Association News Resonating

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On the Horizon…

19 The President’s Climate Action Plan Federal Air Quality Regulations 2014 Midterm Elections State-Level Action on Recycling

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Thank You and Questions

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