Political support will help the revival of manufacturing to endure

September 2015 - In a Washington where bipartisan consensus is rare, one thing is for certain—politicians of all stripes love U.S. manufacturing. President Obama touts gains in the sector under his watch as a key economic achievement. A Republican presidential hopeful announces his 2016 campaign with a precision products plant as a backdrop. And members of Congress from both parties join together to sponsor legislation supporting manufacturing workforce education. What will this support amount to for those working in manufacturing? Will firms continue to expand and reshore jobs back to the U.S.? Will the manufacturing renaissance we hear so much about prove durable?

For the aluminum industry, the answer appears to be a resounding yes. The Aluminum Association represents 107 member companies across the value chain—from producers of primary metal to recyclers to industry suppliers. In the U.S. alone, aluminum supports more than $150 billion in direct and indirect economic activity and more than 670,000 jobs. 

In 2014, demand for aluminum in North America jumped 5 percent year-over-year and is up 40 percent since 2009. A survey of automakers found that by 2025, more than 75 percent of pickup trucks and 20 percent of SUVs and large sedans produced in North America will be aluminum-bodied.

That’s why over the past two years the industry has announced nearly $2.5 billion in planned domestic plant expansions, adding 2 billion pounds of capacity.

The association supports this growth trajectory by promoting sound policies. Through vehicles like the bipartisan Congressional Aluminum Caucus; AluminumPAC; AluminumNation, a grassroots online advocacy tool; and direct engagement with legislators and regulators inside and outside the Beltway by the association and its members. Here’s what we’re asking of Washington…

Advance U.S. manufacturing.

Support Trade Promotion Authority and the Ex-Im Bank: The industry supports the president’s June 29 signature on TPA and seeks reauthorization of the Export-Import Bank. Both of these common-sense programs have long enjoyed strong bipartisan support. Their extension will enable the aluminum industry to open foreign markets, grow exports and create U.S. jobs.

Ensure a level playing field for trade: Trade should be open, fair and transparent. Members are concerned by the recent removal of a long-standing Chinese export tax on aluminum alloy and non-alloyed rod and bar. This duty was enacted in 2007 to discourage exports of energy-intensive and polluting products. The policy made sense, as it responded to evidence that products were being exported and improperly re-melted as primary aluminum. Appropriate metal classification is essential to a fair global trading system. 

Avoid regulations that hurt global competitiveness: Since 1995, the aluminum industry has reduced its carbon footprint for primary aluminum production by nearly 40 percent. The association hopes regulators refrain from pushing overreaching environmental regulations like 111-d and new ozone requirements.  Overly burdensome regulations can needlessly increase energy costs, hurt the industry’s global competitiveness and ultimately put companies out of business.  

Then, help us continue to grow.

Reform TSCA to ensure fair treatment of aluminum: The 40-year-old Toxic Substance Control Act is long overdue for modernization and reform. The aluminum industry supports the spirit of TSCA to ensure product safety and consumer confidence, but the Act today is burdened by chemical reporting requirements that are duplicative, irrational and result in erroneous information being supplied to the American public. We ask that Congress provide the EPA with the guidance needed to improve TSCA for metals producers, recyclers and the public.

Repair U.S. infrastructure: The aluminum industry is aligned with thousands of other manufacturing industries calling on Congress to move a well-funded, multi-year surface transportation authorization this year. Domestic manufacturers can’t compete globally while relying on a substandard transportation system.

Support common-sense energy efficiency programs: Aluminum is well suited to help builders minimize weight, reduce emissions and otherwise meet efficiency targets. The association supports public and private efforts to improve building efficiency, including the recently passed Energy Savings and Industrial Competitiveness Act. 

The aluminum industry has acted as responsible stewards of the planet while continuing to grow. Now’s the time for Washington to do its job to help, not hinder, this vital part of the nation’s manufacturing sector.

Heidi Brock joined the Aluminum Association as president in October 2011 and became CEO in October 2013. Before joining the association, she was vice president of federal and international affairs leading the Washington, D.C., office of Weyerhaeuser.