The Aluminum Association Inc.

08/14/2024 | Press release | Distributed by Public on 08/14/2024 09:51

Commercial Applications, Clean Energy Shift to Drive Aluminum Building Material Growth Through 2027

Commercial Applications, Clean Energy Shift to Drive Aluminum Building Material Growth Through 2027

August 14, 2024

New Study by Ducker Carlisle Anticipates 9% Demand Increase from 2022 to 2027

A new survey conducted by Ducker Carlisle concludes that aluminum use in the building and construction market will likely increase around 9% by 2027 over 2022 volumes. The report, "Building the Future: Trend of Aluminum Use in the U.S. Construction Market," released today by the Aluminum Association indicates an annual shipment increase of more than 200 million pounds by 2027. The report found that increased use in commercial buildings as well as in clean energy applications like solar installations will drive much of the growth in the coming years. Federal infrastructure spending, including emissions reductions programs supported by the Inflation Reduction Act, should also increase aluminum's use in building.

Every $100,000 in residential and nonresidential spending will drive up to 126 pounds and 183 pounds of aluminum usage in construction in these market sectors, respectively. Meanwhile, 62% of building and construction professionals surveyed (including 79% of architects) expect their use of aluminum to grow in the coming years. This group also anticipates that aluminum is the material most likely to grow in use in the coming years among a dozen building materials.

"Aluminum's use in buildings is growing thanks in part to the essential role that it plays in the clean energy transition," said Paul Walker, chair of the Aluminum Association's Building & Construction committee and Business Development Manager - Commercial Building & Construction, Drawn Tubing, Fabricated Components at Norsk Hydro. "The exciting news for us is that aluminum building products made in the United States and Canada already have an average recycled material content of more than 60% and a low carbon footprint compared to alternative materials."

Findings from the report, which reflects data collected over a six-month period through interviews with architects and builders, include:

  • Nonresidential construction made up more than 60% of the 2.5 billion pounds of aluminum used in building and construction applications in 2022.
  • Extruded aluminum profiles make up the highest share of aluminum building products due mainly to high demand for aluminum window frames.
  • The study identified non-residential (commercial) windows and cladding as the key drivers of market growth through 2027 followed by solar installations and non-residential doors.
  • Aluminum is taking market share away from wood in fencing and masonry in commercial building cladding due to aesthetic trends, longevity and ease of installation. Meanwhile, aluminum is losing market share from vinyl and composites in some residential applications like windows and siding, although the trend is likely to reverse.
  • Residential and non-residential aluminum markets are both expected to recover in the coming years thanks to a rebound in housing starts, recovery in commercial construction and remodeling activity. Anticipated interest rate cuts, disinflation and population growth should also drive up demand.
  • The majority of architects and builders favor aluminum for its light weight, durability and ability to meet compliance codes.
  • Building and construction professionals interviewed rated aluminum third among twelve materials (above vinyl, steel, wood and others) in terms of its growing popularity in the market.

"Ducker Carlisle surveyed 250 industry professionals-including 200 architects and builders- regarding their preferred construction materials," said Rhett Bender, Senior Engagement Manager: Global Building and Construction Practice Specialist at Ducker Carlisle. "We consistently heard that aluminum usage would increase over the next three years because aluminum is lightweight, durable, sustainable and corrosion resistant."

According to Aluminum Association data, the building and construction is the third largest market for North American aluminum producers, behind transportation and packaging. The segment represents around 13% of overall shipments in the region. Non-residential (commercial) applications represent nearly two-thirds of all building and construction aluminum used. Major sub-markets include aluminum extruded profiles used in residential and non-residential windows and fencing; entry and patio doors; and aluminum sheet used in building cladding and gutters. Aluminum is also increasingly used as part of solar installation systems on buildings.

Governments are prioritizing energy efficiency through regulation, incentives, updated building codes and enforcement. The built environment is responsible for 42% of global carbon emissions, of which 27% are attributable to building operations such as heating and lighting. Building with aluminum materials helps building projects qualify for green building status under the Leadership in Energy and Environmental Design (LEED) standards by providing insulation; allowing more daylight and airflow; and reflecting up to 95% of the solar energy that strikes them, dramatically improving energy efficiency.

Aluminum is playing a key role in sustainable construction as companies look to strong, durable, recyclable, and health and environmentally friendly options. Domestically produced aluminum and aluminum products are about half as carbon intensive as aluminum products made in the rest of the world. And aluminum products made in China are 2.5X more carbon intensive than North American aluminum, on average. Assuming the global aluminum industry commits to dramatic emission reductions efforts, it would still take 8 to 10 years for the rest of the world to produce semi-fabricated aluminum at the same carbon intensity as North America does today.

The Aluminum Association has several resources to support stakeholders' use of aluminum as a sustainable construction material. To learn more, visit https://www.aluminum.org/GreenBuilding.