SIC 3354 Aluminum Extruded Products

SIC 3354

This classification covers establishments primarily engaged in extruding aluminum and aluminum-based alloy basic shapes, such as rod and bar, pipe and tube, and tube blooms, including establishments producing tube by drawing.

NAICS CODE(S)

331316

Aluminum Extruded Product Manufacturing

INDUSTRY SNAPSHOT

The process of extruding aluminum has been compared to squeezing toothpaste from a tube, with the metal (initially in the form of extrusion billet) taking the shape of the die through which it has been pressed. While commercially pure aluminum is used in some extrusion applications, more often the aluminum is mixed with other metals—particularly magnesium and silicon—to form alloys. Aluminum extrusions are used to make windows, doors, and gates; as components in cars, trucks, and jet aircraft; in the manufacture of major appliances, furniture, and electrical equipment; and in a host of other applications, ranging from cranes to athletic goods.

The aluminum extrusion industry exhibited strong growth during the late 1990s when U.S. aluminum industry shipments of extruded aluminum shapes and tubes increased 15.2 million pounds to reach nearly 4.06 billion pounds. The value of industry shipments grew to $6.05 billion in 2000. The construction industry is the largest consumer of extruded aluminum products. However, in the late 1990s and early 2000s, the aluminum extrusion industry made substantial gains in the automotive sector—which offers the greatest potential for the industry's expansion. Extruded aluminum is classified in one of three key markets by the Aluminum Association—the shapes market, pipe and tube, and extruded rod and bar.

ORGANIZATION AND STRUCTURE

To some extent, the extrusion segment may be divided between the commodity-like output of large producers, which may be said to be sold by the pound, and specialty production of smaller makers, sold by the part. As in other industries, extruders have their areas of specialization. Some work primarily in certain alloy series, while others specialize in close tolerances, miniature shapes, or extremely large shapes.

The aluminum extrusion industry consolidated substantially during the 1980s and 1990s. Between the mid-1980s and mid-1990s, about 40 aluminum extruders went out of business, and a number of independent aluminum extruders were swallowed up by the biggest players. According to the U.S. Census Bureau, 160 companies were involved in the aluminum extruding business in 1997. Of this total number, 151 had 20 or more employees. California, Ohio, and Indiana were home to the greatest number of aluminum extruders.

The trend toward consolidation was furthered in 1996, when Alumax Inc. bought the largest privately owned extruder, Cressona Aluminum. Two years later, Alcoa Inc. acquired Alumax for $3.8 billion. In early 1997, Reynolds Metals announced that it would sell its aluminum extrusion plant in El Campo, Texas, to Tredegar Industries, which had highly profitable extruding operations. In 1999, Alcoa made...

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