Heavy metal: Continued consolidation will increase the size and clout of industry operators

The Aluminum Manufacturing industry in Canada produces a variety of aluminum products, ranging from alumina to finished aluminum sheet and foil. Aluminum is lightweight, ductile, corrosion-resistant, highly conductive and recyclable, making it useful in an array of applications. Although global aluminum prices dropped significantly in 2015 and 2016, the depreciation of the Canadian dollar supported the industry. Moreover, strong gains during the latter half of the five-year period have helped drive revenue growth. Moving forward, the industry is poised for organic growth over the next five years, although at a slower pace...read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 14-19
5.7%
Forecast Growth 19-24
Profit
Employment
12,851
Businesses
111

Industry Threats & Opportunities

  • Domestic operators are highly dependent on international trade activity
  • The industry is vulnerable to trends in manufacturing and construction industries
  • Rising building activity will fuel demand for structural aluminum
  • Industry Report - Industry Key Buyers Chapter

    The Aluminum Manufacturing industry in Canada has a high level of market share concentration, with the industry’s top four largest players expected to account for 83.6% in 2019. This is largely due to the dominance of industry leader Rio Tinto Alcan Inc. (Rio Tinto), which has an estimated market share of 54.5% in 2019. Over the past five years, market share concentration has slightly increased due to exceptionally volatile operating conditions, which forced numerous smaller companies within the fabricated aluminum segment out of business, keeping enterprise growth marginal.While large-scale manufacturers dominate the industry as a whole, most operators serving the secondary aluminum and flat-rolled products segments are small-scale producers serving local and regional markets. Thi...purchase to read more.

    Additional Insights for the Aluminum Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aluminum Manufacturing Industry are

  • Access to high quality inputs
  • Supply contracts in place for key inputs
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as World price of aluminum and Canadian effective exchange rate index in the Aluminum Manufacturing industry impact industry performance..

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    What's in this report

    What is the Aluminum Manufacturing Industry?

    This industry converts or aids in the conversion of the aluminum-bearing ore bauxite into products such as alumina, primary aluminum ingots and rolled or drawn aluminum products, including plate, sheet, foil and extrusions. The industry also includes operators that recover aluminum from scrap, which is more commonly known as secondary aluminum manufacturers.

    Industry Products
  • Primary aluminum
  • Alumina
  • Secondary aluminum
  • Flat rolled products
  • Extruded products
  • Industry Activities
  • Refining bauxite into alumina
  • Smelting alumina to produce aluminum
  • Producing aluminum powders and pastes
  • Recovering aluminum from scrap
  • Producing aluminum plate, sheet, foil, extrusions or other rolled and drawn aluminum shapes
  • Producing primary aluminum
  • Semi-fabrication of aluminum
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of aluminum
  • Canadian effective exchange rate index
  • Price of electric power
  • Aggregate private investment
  • Demand from car and automobile manufacturing

  • Current Performance
  • Aluminum market dynamics in North America
  • Domestic demand determinants
  • Consolidation and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Environmental trends and lightweighting
  • Industry structure
  • Table: Aluminum Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aluminum Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Nonferrous Metal Foundry Product Manufacturing in Canada
  • Car & Automobile Manufacturing in Canada
  • SUV & Light Truck Manufacturing in Canada
  • Aircraft, Engine & Parts Manufacturing in Canada
  • Space Vehicle & Missile Manufacturing in Canada

  • Key Selling Industries
  • Electric Power Transmission in Canada
  • Inorganic Chemical Manufacturing in Canada
  • Renewable Power in Canada

  • Products & Services
  • Primary aluminum
  • Secondary aluminum
  • Flat rolled products
  • Extruded products
  • Other
  • Alumina
  • Chart: Aluminum Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the United States
  • Exports to other countries
  • Transportation equipment
  • Containers and packaging
  • Machinery and electrical equipment
  • Construction and building markets
  • Consumer durables
  • Other
  • Chart: Major Market Segmentation for the Aluminum Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Aluminum Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aluminum Manufacturing Industry

  • Industry Globalization
    Rio Tinto Alcan Inc., Alcoa Corporation, Aluminerie Alouette Inc.,
  • Table: Rio Tinto Alcan Inc. - financial performance
  • Table: Alcoa Corporation - financial performance
  • Table: Aluminerie Alouette Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aluminum Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aluminum Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • World price of aluminum (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alumina
  • A semi-processed form of aluminum obtained when bauxite is refined.
  • Bauxite
  • An aluminum-bearing ore.
  • Drawing
  • A process for producing wire, bar or tube by pulling metal, increasing its length and reducing its diameter. Wire is typically pulled through a series of dies, or holes, of decreasing size.
  • Extruding
  • The process of forcing a solid and usually heated metal through an opening with the shape as the desired end product. A hydraulically operated ram is used to push the metal through the opening.
  • Ingot
  • Semiprocessed metal shapes that usually require further shaping, such as cold and hot working, cutting or milling to produce a useful final product.
  • Nonferrous Metals
  • Metals other than iron and steel.
  • Primary Manufacture
  • Production of metals in its most basic form, usually done through a smelting process
  • Rolling
  • A process that reduces the thickness of a piece of metal by passing it through successive rotating mills that compress the metal.
  • Secondary Manufacture
  • Refining and blending metal recovered from primary metal production or from recycled metal.
  • Semi-Fabrication
  • Includes several industrial processes for the production of rolled products, extrusions, wire, tubes, forgings and castings.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aluminum Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Aluminum Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aluminum Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aluminum Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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