Foiled: Aggressive discounting and import penetration have constrained profitability

The Aluminium Rolling, Drawing and Extruding industry has faced significant challenges over the past five years. Industry revenue is expected to decline at an annualised 6.1% over the five years through 2017-18, to $832.4 million. Import penetration has intensified over the period, placing pressure on industry operators as manufacturers with lower operating costs from China and other Asian countries have increasingly dominated the market. Chinese firms hold a significant competitive advantage over Australian firms as they have lower wage costs and greater access to cheap raw materials. These factors typically enable Chinese firms to sell extruded aluminium products at discounted prices, putting pressure on local firms' profit margins...read more.

Industry Statistics & Market Size
Revenue
$832m
Annual Growth 13-18
-6.1%
Forecast Growth 18-23
Profit
Employment
1,593
Businesses
87

Industry Threats & Opportunities

  • The closure of several Australian smelters has affected the aluminium supply chain
  • Industry profitability has slightly risen due to the exit of underperforming enterprises
  • Competition from overseas manufacturers remains a crucial challenge for industry operators
  • Industry Report - Starting a New Business Chapter

    The industry has high barriers to entry and this has remained steady over the past five years. Substantial capital expenditure is initially required to enter the industry. Given the nature of production, firms require large facilities that can accommodate bulky equipment such as blast furnaces, rolling and forging mills, and other expensive machinery. This initial cost can be prohibitive for many prospective entrants. Favourable electricity and gas supply contracts also pose a significant barrier to entry, as new entrants may have difficulty negotiating with energy suppliers.The presence of well-entrenched major players may also discourage firms from entering the industry. Mos...purchase to read more.

    Additional Insights for the Aluminium Rolling, Drawing and Extruding Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aluminium Rolling, Drawing and Extruding Industry are

  • Effective quality control
  • Supply contracts in place for key inputs
  • Ability to pass on cost increases
  • IBISWorld analysts also discuss how external factors such as Demand from construction and Electricity service price in the Aluminium Rolling, Drawing and Extruding industry impact industry performance..

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    What's in this report

    What is the Aluminium Rolling, Drawing and Extruding Industry?

    Industry firms primarily roll, draw and extrude hot or cold aluminium. The industry also includes companies that manufacture aluminium powders or flakes.

    Industry Products
  • Aluminium plates and sheets
  • Aluminium extrusions
  • Aluminium rods, bars and wire
  • Aluminium foil
  • Aluminium powders and flakes
  • Industry Activities
  • Aluminium rods and extruded section
  • Aluminium plate, sheet and foil
  • Aluminium bar and wire
  • Aluminium powders and flakes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from construction
  • Electricity service price
  • Trade-weighted index
  • Demand from motor vehicle and motor vehicle part manufacturing
  • World price of aluminum

  • Current Performance
  • Import competition and export growth
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand
  • Import competition and profit
  • Environmental benefits
  • Table: Aluminium Rolling, Drawing and Extruding Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aluminium Rolling, Drawing and Extruding Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aluminium Door and Window Manufacturing
  • Motor Vehicle Body and Trailer Manufacturing
  • Shipbuilding and Repair Services
  • Aircraft Manufacturing and Repair Services

  • Key Selling Industries
  • Aluminium Smelting
  • Fossil Fuel Electricity Generation

  • Products & Services
  • Aluminium powders and flakes
  • Aluminium plates and sheets
  • Aluminium extrusions
  • Aluminium rods, bars and wire
  • Aluminium foil
  • Chart: Aluminium Rolling, Drawing and Extruding Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Asian export markets
  • Construction firms
  • Other export markets
  • Transport equipment manufacturers
  • Packaging firms
  • Other markets
  • Chart: Major Market Segmentation for the Aluminium Rolling, Drawing and Extruding Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Utilities
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Aluminium Rolling, Drawing and Extruding

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aluminium Rolling, Drawing and Extruding Industry

  • Industry Globalization
    Capral Limited, Ullrich Aluminium Pty Ltd, G James Australia Pty Ltd,
  • Table: Capral Limited - financial performance
  • Table: Ullrich Aluminium Pty Ltd - financial performance
  • Table: G James Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aluminium Rolling, Drawing and Extruding 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 Aluminium Rolling, Drawing and Extruding Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Billet
  • A billet is a solid block of aluminium.
  • Dumping
  • This occurs when manufacturers export a product to a foreign country at a price below the cost of production.
  • Extrusion
  • This is the process used to create complex objects from metals by pushing or drawing it through a die or mould of the desired shape or form.
  • Ingot
  • An ingot is a material, usually a metal, which is cast into a shape suitable for further processing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aluminium Rolling, Drawing and Extruding market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aluminium Rolling, Drawing and Extruding:
    • 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 Aluminium Rolling, Drawing and Extruding 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 Aluminium Rolling, Drawing and Extruding, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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