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 & energy prices • Increase in U.S. labor productivity • Rise in high-skilled, advanced manufacturing 2

Industrial Production Reaching Pre- Recession Levels U.S. Manufacturing: Industrial Production and Capacity, Jan. 1988 – Feb. 2014 Source: US Federal Reserve; (Seasonally Adjusted Index; Base Year = 2007) 3

U.S. Industry Driving Jobs/Economic Activity 4

Aluminum Investing Big in U.S. Manufacturing • $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… 5

The Lightweighting Revolution 6

Societal Pressures Driving Vehicle Weight Reduction Trend  Public  Private  Corporate  Corporate Average Fuel Sustainability Economy Efforts  Truck Fleet  Consumer Standards Demand 7

North America Ranks Second in Global Primary Production Global Primary Aluminum Production, 2013 *Preliminary Source: International Aluminium Institute; The Aluminum Association 8

Secondary Production is Increasingly Important in the U.S. 20% growth since 2009 Source: The Aluminum Association 9

U.S. Economic Indicators Positive for Aluminum Source: Bureau of Economic Analysis; U.S. Census Bureau; Wards Automotive 10

Demand Is Trending to Pre- Recession Levels 32% growth since 2009 Source: The Aluminum Association 11

Demand Growth Driven by Transportation/B&C Markets… Source: The Aluminum Association 12

But Especially the Transportation Market 75% growth since 2009* Source: The Aluminum Association 13

And this Growth is Expected to Continue The trend line continues to be supported by new aluminum applications 600 DOORS & Average increase of 7 lbs per BODY-IN- year for 35 years 500 WHITE HOODS 400 Blocks Heads 300 Wheels 200 100 0 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: Ducker Worldwide 14

Sustainability: The Key Industry Differentiator 15

Industry Innovation Driving Decline But More Work Remains 16

The Association’s Role: Promoting the Metal Game-Changing Sustainability Research Critical Business Information & Statistics Developing the Standards that Enable Commerce Revamped Association Bookstore 17

The Association’s Role: Telling Our Story in Washington Launched Congressional Aluminum Caucus Dynamic Digital Platform Released Aluminum Economic Impact Study Industry/Association News Resonating 18

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

Thank You and Questions 20