Building downturn may persist: analyst

Mar 20, 2014 | 04:47 PM | Michael Cowden

Tags  aluminum extrusions, automotive, billet, Lynn Brown, Long Point Associates, Aluminum Extruders Council, AEC, Nanshan America Advanced Aluminum Technologies aluminum shapes

CORAL GABLES, Fla. — The North American aluminum extrusion industry is being reshaped by a possible structural downturn in the construction market, increased automotive demand and Chinese ownership of billet producers and extruders, one industry analyst said.

North American extrusion consumption last year was roughly 1 billion pounds below its 2006 peak, with about two-thirds of the shortfall coming from the building and construction sector, Lynn Brown, principal at Long Point Associates and a consultant to the Aluminum Extruders Council (AEC), said.

“We have to question whether we will ever see a construction market the way we did in the past,” he said at the AEC’s 2014 annual meeting and leadership conference in Coral Gables. “This may not be just cyclicality. There may be some fundamental structural changes that are going to challenge us on the construction side—and it’s not just a question of waiting for it to come back.”....

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