Noranda Aluminum Holding Competition
Now Viewing Noranda Aluminum Holding's competition in: Primary Metals Manufacturing (primary)
Recent Developments
Exports Rose in 2007 - US primary metal exports rose 20.3 percent in 2007 compared to 2006, and rose to 14 of the 15 top importers of US-made primary metals. Industry experts say that growth in US exports of primary metals should remain strong while the value of the US dollar remains low relative to other currencies.<strong></strong>
US Auto Sales Expected to Decline in 2008 - US auto sales, a driver of demand for primary metals, will fall about 2.5 percent in 2008 compared to 2007, according to NADA, due to weakening economic conditions. NADA predicts that the US won't slip into recession in 2008, however, and expects the economy to improve in the second half of the year.
US Steel Shipments Rising - </strong>US steel shipments rose 7.3 percent in January 2008 compared to January 2007, according to the American Iron and Steel Institute. Shipments to service centers and distributors rose 9.3 percent, and 1.3 percent to automakers. Shipments of construction and contractor products rose 8.5 percent; oil and gas product shipments rose 3.2 percent.
Competitive Landscape
Demand comes largely from the manufacturers of durable goods like motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely on efficient operations, because most products are commodities sold based on price. Big companies have large economies of scale in production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by operating efficient local mini-mills or producing specialty products. The industry is highly automated: average annual revenue per worker is close to $300,000.
Primary Metals Manufacturing Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US primary ferrous and non-ferrous metals manufacturing is forecast to increase at an annual compounded rate of 2.3 percent between 2007 and 2012.
Primary Metals Production Growth Recovers
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to industrial activity
- Requires efficient energy use
- Risk: Slowing economy cuts manufacturing
Industries Where Noranda Aluminum Holding Competes
- Metals & Mining
- Aluminum Production (primary)
