Embed Size (px)
Citation preview
ASSOCIATION OF WOMEN IN THE METAL INDUSTRIES
May 2015 Volume 2, Issue 5
AWMI METALLICMISSIVES
Inside this issue: Alliance for American Manufacturing 3
2015 NY Chapter Calendar 3
2015 Corporate Members 3
NY Chapter Companies 4
Contact Addresses 4
2015 NY Chapter Board 4
Scott Stewart of Black Hawk Resources spoke to the NY Chapter in March about the future use of aluminum in automobiles. Aluminum has been used in cast aluminum applications in autos for the past 20 years including engine blocks and wheels. The new potential market penetration now is in wrought alloys which can be formed, extruded and flat rolled.
Primarily, the product under discussion is body sheet that is used as the outside skin of a car, which can be made from extruded aluminum. If the current
market penetration of aluminum is 2-3% with the Ford F-150, what could it be in the next decade? The short answer is that it will very likely be higher than the steel people think, and lower than the aluminum people think. Aluminum’s gains might be limited to 3-6% of the market, or could expand to as much as 11-15% of the total weight of the “body-in-white” applications; it depends on whether the steel industry continues to be unwilling or unable to develop tools to manage price risk. If steel develops a volatility management tool and breaks apart the vertically integrated structure of its industry separating steel production from steel processing, much like the aluminum industry did in the 2004/2005 time period, then the gains of aluminum will be
The Future Use of Aluminum in Automobiles
By Becky E. Hites Join us—May 11, 2015—
as Brian Lombardozzi, the VP of State Governmental Affairs for the Alliance for American Manufacturing, updates us on
the current trends in manufacturing.
Connect with us
on LinkedIn
Page 2 AWMI METALLIC MISSIVES
mitigated. Aluminum prices have actually been more volatile than steel prices during the time period of 2007 to 2014. The difference is that there is
a mechanism in place to hedge away the aluminum price risk, while with steel, you can’t even accurately predict what the prices will be. Using a metal has to make sense, and cents.
Today you have producer controlled prices rather that producer price controls. Aluminum didn’t have these price controls in place either 35 years ago and just like the steel industry today, the aluminum producers resisted putting them in place. What’s needed is for the consumers to demand price transparency; opting for strong complexity rather than randomness. Hope is not a strategy, and the steel industry is not going to stand idly by, consciously or subconsciously, and let the market move to aluminum. Thus, the blue sky future of aluminum won’t happen. By sheer momentum, aluminum will be in more automotive units, but logic and physics will win out. Doing “napkin math” on the energy savings, it would take 9.2 years to breakeven on the energy cost savings of a truck compared to a 10 year useful life of the F-150. It’s better to be approximately right rather than absolutely wrong. The “green” option of using aluminum “feels good” but the facts don’t support the purported energy savings. As so many times with politics, it’s like a game of “Whack A Mole” to tie all of the pieces together and achieve accountability. Ignorance can often be ambidextrous, and sometimes self serving. To accurately judge, one
must consider the energy it takes to make aluminum versus steel, how recyclable each metal is, the energy to recycle each, and the recycle value of each final product. There’s no question that developing futures products in steel is complex, but all of the complexity is solvable. Ultimately, if steel wants to defend its market applications, steps will need to be taken down this scary and challenging path. The laws of physics work. A butterfly flutters its wings in the Brazilian Amazon, and impacts the weather in mid-America.
Page 3 VOLUME 2, ISSUE 5
2015 NY Chapter Calendar
May 11 (Monday) – Industry Dinner, Brian Lombardozzi, VP of State Governmental Affairs, Alliance for American Manufacturing, Redd’s, Carlstadt, NJ August 20 (Thursday) – Golf Outing, Galloping Hill Golf Club, Kenilworth, NJ October 5 (Monday) – Joint meeting with MSCI, Eddie Lehner, CFO, Ryerson, Redd’s, Carlstadt, NJ
2015 Platinum Corporate Members
2015 Silver Corporate Members
2015 Gold Corporate Members
2015 Bronze Corporate Members
The Alliance for American Manufacturing (AAM) was founded in 2007 by leading domestic manufacturers and the United Steelworkers, North America’s largest industrial union, with a simple mission: strengthen American manufacturing through smart public policies.
The President's Goal: 1 million manufacturing jobs created by 2017
GROWTH ~ EDUCATION ~ NETWORKING ~ MENTORING
CONTACT ADDRESSES
Mailing Address PO Box 133 Union, NJ 07083 Meeting Locations Galloping Hill Golf Club 3 Golf Drive Kenilworth, NJ 07033 Phone: 908-686-1556 www.gallopinghillgolfcourse.com Redd’s Restaurant & Bar 317 Washington Avenue Carlstadt, NJ 07072 Phone: 201-933-0015 www.reddsrestaurant.com
2015 NY Chapter Board
President Becky E. Hites [email protected] Vice President Position Open Secretary Renee DeGrote [email protected] Treasurer Dianne Kaltenbach [email protected] Membership Marianne Steiner [email protected] Fundraising Cheryl Coelho [email protected] Member at Large Jo Isenberg O’Loughlin [email protected] Attorney Rita M. Jennings [email protected]
NY Chapter Companies
A big shout-out of thanks to the companies of members in our chapter!
Alumet Supply
American Metal Market
Arco Steel Company
Byram Steel Trading
C&K Scrap
Delaware Steel Co of Pa
Diamond Brite Metal Processing
Dynasty Metals
Julius Blum & Co.
Metal Cutting Corp
Olympic Steel
Optima Specialty Metals
Rotor Clip
Samuel, Son & Co.
Sancap Abrasives
Shale-Inland Holdings
Steel-Insights
Steiner Industrial
Swepco Tube
Uttam Galva North America
Yarde Metals
