Secondary aluminum industry sees job growth

The Aluminum Association, Arlington, Virginia, has released the results of its 2022 Economic Impact of the Aluminum Industry report. The study, which was completed by the economic research firm John Dunham & Associates, Longboat Key, Florida, in March 2022 (with the impact data finalized in January 2022), shows that certain segments of the industry grew, while others were challenged amidst COVID-19 driven disruptions over the past two years.

Jobs in secondary aluminum production (recycling) grew 7.3 percent, while those in aluminum coatings grew by 6.2 percent and sheet and plate grew by 5.8 percent between 2020 and 2022.

After showing signs of improvement in the 2020 study, jobs in primary aluminum production decreased by 9.6 percent, with some plant closures and curtailments occurring during the period. Jobs in aluminum forging also dropped by more than 10 percent, which likely was the result of COVID-driven declines in major markets such as aerospace. Taking the long view, U.S. aluminum jobs have stayed essentially flat over the past decade despite the loss of more than 8,000 jobs in primary aluminum production, a 65 percent decline, the association says.

For the purposes of the report, the aluminum industry is defined to include alumina refining; primary aluminum smelting; secondary aluminum production; manufacturing of aluminum sheet, plate, foil, extrusions, forgings, coatings and powder; aluminum foundries; metals service centers; and wholesalers. The study measures the number of jobs in this industry, the wages paid to employees, total economic output and federal and state business taxes generated.

Estimated aluminum demand in North America increased 7.7 percent year over year in 2021, significantly outpacing growth in U.S. GDP. In the past year, the industry has collectively committed or invested nearly $1 billion in U.S. manufacturing, adding to the more than $4 billion invested over the past decade. The international picture also is positive. The International Aluminum Institute, London, recently released a report projecting that aluminum demand will grow by nearly 40 percent globally by 2030—with significant growth occurring in North America.

“We’re incredibly encouraged by the position of the U.S. aluminum industry today,” says Charles Johnson, president and CEO of the Aluminum Association. “Like all manufacturers, we face some headwinds during these uncertain times, but our underlying demand and investment picture remains quite robust. This is a resilient sector of the American manufacturing economy.

“These trendlines are an indication of U.S. aluminum’s ability to adapt and innovate. Even as we’ve seen declines in some areas, we’ve seen notable growth and investment in others,” Johnson adds. “At the end of the day, America remains one of the best places in the world to invest in aluminum.”

The 2022 report is an update of studies completed in 2013, 2016, 2018 and 2020. Data from prior years’ studies have been reviewed and updated for accuracy, providing the most up-to-date and comprehensive information on the U.S. aluminum industry’s economic impact, the association says.

The complete study, including an interactive map with economic contribution breakdowns by state and congressional district, is available at www.aluminum.org/economy.