Over the last thee decades, the growth in the consumption of aluminum has outstripped that of all other metals. All indications are that this trend is likely to continue well into the future – which is good for aluminum suppliers.
As with many other commodities, the country behind the steady increase in demand for aluminum is China, which currently accounts for 40% of global consumption of the metal – most of which is used by its construction and transport industries.
Aluminum and the Auto Industry
The U.S., however, is not standing still when it comes to finding new ways to apply the benefits of aluminum. The brand new, 2015 Ford F-150 truck was recently unveiled in Detroit, sporting an aluminum alloy body and bed that reduces the overall weight by up to 700 lbs.
Ford says the alloy is the same military grade that is used in Humvees, and has been used in the engine block as well as the frame to help improve “dent and ding resistance.” However, the weight savings offered by aluminum are the main reason behind the move. This translates into reduced fuel consumption, helping to bring the vehicle in line with the recently expanded regulations on fuel efficiency.
The F-150 has been Ford’s top-selling vehicle in the US for the last 37 years, so the impact these additions will have on the demand for aluminum may well be significant. Toyota and Jaguar have also made highly public switches to using aluminum in their new vehicles, and some experts are now predicting that demand for the metal from the auto industry will have doubled by 2025.
Good News for Suppliers
This bodes well for all aluminum suppliers such as Howard Precision Metals, and the aluminum industry as a whole. When high profile companies begin changing out traditional metals like steel, and replacing them with aluminum, it draws public attention to the many benefits of the metal. This serves to stimulate demand across the board.
In developing countries, the demand for aluminum is also growing, although mainly from the construction sector. Towns and cities are rushing to expand their infrastructures to cope with the needs of an increasingly urbanized population.
Contact the Experts
Howard Precision Metals represents some of the best aluminum producers in the world, and deals exclusively with this amazing metal. This makes them aluminum experts. Visit howardprecision.com to find out more.
