It's quite refreshing to have a firm grasp on the material that will literally be paving the future. A global industry that affects many facets of our daily lives, aluminium shines bright in everything from consumer packaging to aircraft bodies, and it helps hundreds of companies in a variety of industries to compete and dominate their markets. We've focused a lot lately on the environmental benefits of aluminium, but today we're looking at the bigger picture of it's economic impact, and why cheaper production processes could make it even more valuable.
Feeling the Global Economic Effect
By simply looking at America's aluminium industry, we can see a vast array of pretty impressive numbers. Contributing more than $150 billion to the U.S. economy (that's nearly 1% of their GDP), it's impossible to separate aluminium from the working lives of nearly everyone in the country. Directly employing more than 155,000 workers, the aluminium industry also has a knock on effect elsewhere with a further 3.3 employment positions created for every aluminium-related job. Even from a public funds standpoint, their industry contributes $16 billion a year in federal, state and local taxes, making it an ideal model by which other industrial nations can learn from.
In looking at the industries of other countries, we can see a confident pattern of rapid growth. Earlier this month, all the major production companies of the Gulf Coperation Council (GCC) announced that their aluminium output of 4,928,143 tonnes from last year - already constituting 10% of the total world production - could rise to 5 million for 2015. For a smaller scale example, Ontario announced last week it aims to help Nemak of Canada Corporation create 80 new jobs by increasing production capacity of aluminium engine bocks to export to their new global partner: Shanghai General Motors.
How Aluminium Itself Can Benefit Businesses
Aluminium is the only metal that can pay for the cost of its own collection, and this has a dramatic on the cost of countless projects and business operations. We touched upon this a little bit in our article about how aluminium's environmental potential can benefit architecture
, but there are some startling facts that paint a much broader picture. Since the inception of the industry, more than 70% of the aluminium produced has been recycled, with much of the same metal still in use today.
Retaining 90% of the energy costs required in primary production, the ever growing recycling infrastructure is well suited to promoting the growth of aluminium industry by keeping costs down in many of its industrial uses. This is why we at Austen Knapman put a great deal of emphasis into our range of aluminium products, with box sections to aluminium angles regularly ordered for use primarily in transportation and construction.
The Future Going Forward
One of the big news stories in the metal industry last year
was the creation of Ford Motor Co.'s new F-150 pickup truck; the first high-volume vehicle to be built with an all aluminium body. Analogous with the switch from steel beer cans to the ones we drink from today, this quickly prompted India's Hindalco Industries (one of the world's largest aluminium rolling companies) to invest $55m to make plants in Germany and China capable of producing aluminium for cars. Alcoa, who are making a similar $575m investment, have also come up with a new method for developing aluminium sheets that makes the final product 30% stronger and 40% more formable, as we covered in our last blog on recent metal advancement
For all future blogs and news relating to the aluminium industry, as well as other metals, keep an eye on the Austen Knapman Facebook page, Twitter and Google+.