|AEC Past Chairman Duncan Crowdis|
- In total our industry directly employs more than 20,000 Americans
- When taking into consideration the supplier base, this number likely doubles to more than 40,000 employees
- These 40,000 employees support over 100,000 children, spouses and aging parents.
- The domestic industry in the U.S. is currently operating at about 3.5 billion pounds per year with an estimated total annual revenue of close to $8 billion
- In 2009/2010, prior to the Department of Commerce applying the preliminary duties, imports from China reached a running rate of close to 20% of the total U.S. market, which would translate into an annualized reduction in domestic production of about 700,000 lb. today.
- This level of production represents approximately 45 full presses and revenues of about $1.5 billion
- And, unless a supplier to this industry has a business model that can easily shift their marketing efforts and production to China, the impact would be just as dramatic. Consider these products that are purchased by our industry:
- Billet – Billet producers would see a reduction in domestic billet demand of about 900,000 lb. or $1 billion in revenue
- Paint – assuming 15% of the domestic extrusion production is painted, paint suppliers would experience a reduction in revenue of over $25 million
- Anodizing Chemicals – based on similar assumptions, this industry could anticipate a reduction in revenue of about $25 million
- Dies – Die makers would see a reduction of about 40,000 dies per year or about $40 million of revenue
- And then there are all of the other supplies (packaging, maintenance, etc.)
This post was written by AEC Past Chairman Duncan Crowdis