24 07, 2014

CNBC: Invest In Aluminum!

2015-06-18T15:33:04+00:00July 24th, 2014|

Investors take note: the experts are saying that aluminum is the way to go. More specifically, that’s Dennis Gartman, Editor and Publisher of The Gartman Letter and CNBC correspondent. On a recent broadcast, Gartman told the channel that aluminum is the foundation of the global economic recovery. From CNBC.com:

“Buy aluminum first,” Gartman said. “That’s the best commodity trade out there.”

In an interview with “Futures Now” on Tuesday, the Commodities King said aluminum is not only the best way to play the record run in stocks, but could also be the best proxy for investing in the global recovery.

“Everyone laughed at me when I started buying aluminum nine months ago,” joked Gartman. “You are going to see a larger off take of aluminum going into automobile production. It’s the easiest way to meet EPA requirements for mileage is to make the automobiles and trucks lighter, and aluminum does that relative to steel and you’re going to be selling, we’re going to be selling, everybody’s going to be selling a lot of automobiles for the Chinese.”

Aluminum futures are on a tear this year, up nearly 11 percent, outpacing gold, silver, copper and stocks.

And according to Gartman, aluminum may have even replaced copper as the best commodity to measure economic growth.

So there you have it. If you’ve been wondering how to manage your investments, the experts have spoken: aluminum is the best investment and the best way to measure the status of the global economy. Don’t say we didn’t warn you.

18 07, 2014

Auto Industry Sees F-150 As Aluminum Catalyst

2015-06-18T15:33:04+00:00July 18th, 2014|

The launch of the new Ford F-150 (AKA our favorite topic over the past year or so) was the biggest step towards mainstream usage of aluminum in by auto manufacturers. While the unveiling was met with a mix of excitement, curiosity, and skepticism, the reviews wound up showing that Ford made the right choice. Now, the popular opinion has changed — rather than the F-150 being Ford’s giant gamble, automakers around the world see it as a critical choice that will change the industry. From the Detroit Free Press:

 

By 2025, 18% of all vehicles will have all-aluminum bodies, up from less than 1% now, according to a recent report from Ducker Worldwide.

 

The industry is now engaged in a conversation about the pratfalls and possible solutions of using aluminum on a high-volume vehicle. The challenges are being solved with new ways of joining aluminum and steel, manufacturing with speed and efficiency, crashworthiness and repairability, cost and consumer acceptance.

 

Ducker forecasts that next-decade aluminum will be used for 75% of the panels and parts on pickups, 24% of large cars, 22% of SUVs and 18% of minivans.

 

The F-150 is an industry catalyst, said Gary Silberg, national auto industry leader at KPMG. “They’re figuring it out. People are studying it and making it a reality.”

 

From questionable decision to industry catalyst — the F-150 has come a long way since its unveiling at the Detroit Auto Show, and it hasn’t even gone on public sale yet. But in the coming months, people will be able to find out for themselves. Chances are, they’ll be just as impressed as the rest of the industry.

11 07, 2014

Alcoa’s Strong Earnings Bode Well For Industry

2015-06-18T15:33:04+00:00July 11th, 2014|

The aluminum industry feels like it’s gathering momentum from a range of sources. Mainstream media doesn’t always pick up on this, despite the huge spotlight created by the automotive industry. That’s why it was refreshing to see the impact of the earnings report from aluminum stalwart Alcoa.  From Marketwatch:

Stock reaction : Alcoa’s stock has rallied 15% since the end of the first quarter through Monday, and is up 39% so far this year, versus gains of 5.6% and 7%, respectively, for the S&P 500. Since Sept. 23, 2013, when the stock was booted out of the Dow Jones Industrial Average, the shares have soared 78%, while the Dow has advanced 11% over the same period. However, the stock hasn’t had a great track record of rising after results. Looking back at the day after the company’s last 10 quarterly reports were revealed, the stock closed lower five times, according to FactSet.

Key points : Investors will keep an eye on Alcoa’s outlook for the global aerospace sector, given that the company announced last month that it acquired Firth Rixson for $2.85 billion to bolster its aerospace business. Analyst Anthony Rizzuto at Cowen & Co. believes the acquisition of Firth Rixson is part of the company’s transition away from being an aluminum producer to a specialty materials company.

Notice how Alcoa’s fortunes are tied more into the aerospace industry rather than automotive. That means that manufacturing teams across a range of industries see the benefits of going aluminum. Perhaps in the near future, seeing mainstream accolades will be the norm rather than a surprising find.

6 07, 2014

Jeep To Introduce Aluminum-Based Wrangler

2017-01-26T23:37:29+00:00July 6th, 2014|

It’s in high-end luxury colors (see: Tesla’s Model S). And it’s in heavy-duty trucks (see: Ford’s upcoming F-150). Now, aluminum is getting even more rugged. In a few years, we’ll see the introduction of the aluminum-body Jeep Wrangler. Based on a recent presentation by Fiat-Chrysler, it looks like the 2018 model (arriving late 2017) will be the big kick-off for this leap forward. From Auto Evolution:

At the Fiat-Chrysler Automobiles Investor Day in May, Jeep’s presentation included a PowerPoint slide that confirmed an all-new Wrangler is in the pipeline. It will come sometime in 2017 as a 2018 model year, but the big news is that it will be a far cry in terms of chassis and powertrain technology and a whole lot lighter than the Wrangler we’ve tested a while back.

Mike Manley, the American manufacturer’s CEO, has recently divulged to Edmunds that the upcoming Jeep Wrangler will focus greatly on fuel economy, weight reduction and off-road prowess. “You will see continued improvements in powertrains… We are the benchmark, so I want to push the benchmark even further,” Mr. Manley declared about the redesigned Wrangler.

As the automotive industry plans years in advance, it wouldn’t be surprising to see more of these announcements start to trickle out. That leads to the question: what’s next? Perhaps soon we’ll hear about the first aluminum-based SUV.

27 06, 2014

Ford Squashes Rumors About Delivery & Manufacturing Delays

2015-06-18T15:33:04+00:00June 27th, 2014|

The Ford F-150 and its aluminum body have gotten plenty of attention in 2014. With the launch imminent, rumors have started to swirl regarding delays and manufacturing difficulties. Is there any truth to this? Not at all, says Ford President Joe Hinrichs. From Time Magazine:

“Everything is on schedule and everything is going as planned,” Ford Americas President Joe Hinrichs told reporters, speaking at Ford’s headquarters in Dearborn, Michigan (via Automotive News), adding that he was “very confident in this vehicle.” Morgan Stanley’s analyst Ravi Shanker had said earlier that Ford’s planned factory retooling, which it has to perform in order to produce the new pickup, would result in “slow changeover, with tight supply.”

Ford has noted the planned retooling would temporarily deplete its production by over 90,000 F-Series pickups, reducing company sales and profits. Furthermore, margins are expected to be lower on the new aluminum-bodied F-150. But Ford views all of that as necessary back-stepping to be first to market with a truck that uses a combination of “military-grade aluminum and high-strength steel,” and that’ll weigh roughly 700 pounds less than the version it’s replacing.

Of course, only time will tell whether or not Ford is putting on a brave face on top of manufacturing delays. But we’ll take it all at face value and assume things are full speed ahead for now.

20 06, 2014

Aluminum-Air Batteries May Lead New Generation Of Hybrid Cars

2015-06-18T15:33:05+00:00June 20th, 2014|

The typical hybrid car of 2014 switches between a lithium-ion battery and traditional gasoline combustion to maximize efficiency. But what if there was a way to swap out the gas part of the equation for something better? And what if that something was aluminum?

Well, not straight aluminum, but an aluminum-air battery. Isreali start-up Phinergy is currently road testing a hybrid that uses the standard lithium-ion system and a new aluminum-air system. The result is a drive range of a whopping 1,100 miles. From The Algemeiner:

Founded by CEO Aviv Tzidon, Phinergy‘s battery solution offers greater capacity than Tesla Motors Inc.’s Model S electric car, which can go for 300 miles between charges, and less expensive alternatives, with ranges of about 160 miles.

Phinergy’s prototype uses the lithium-ion battery for short trips and the aluminum-air battery for longer hauls.

Globes said: “The aluminum-air technology uses oxygen naturally occurring in the air to fill its cathode. Aluminum-air batteries discharge turns the metal into aluminum hydroxide, which can then be recycled to make new batteries. This makes it far lighter than liquid filled lithium-ion batteries to give the car a far greater range.”

The aluminum battery has to be replaced every few months, but its components are recyclable. Alcoa Canada partnered with Phinergy to produce the batteries, which were manufactured in Canada.

While Ford and other truck makers may be turning to aluminum to increase gas mileage due to mass properties, it’s good to see that our favorite metal is involved in other green initiatives. Perhaps even in a few years, aluminum-manufactured trucks will be powered by aluminum-air batteries!

13 06, 2014

Experts Foresee 70% Of Truck Market To Turn To Aluminum

2017-01-26T23:37:29+00:00June 13th, 2014|

The 2015 Ford F-150 isn’t even on sale yet but its impact is being felt around the automotive industry. It’s ground zero for an aluminum-based revolution, one that industry insiders see as picking up so much steam that every leading car manufacturer has an program for aluminum in place. In total, the industry experts at Ducker Worldwide foresee seven out of every ten trucks to have aluminum bodies by within a decade. From the Pittsburgh Business Times:

In the next decade, vehicles with complete aluminum body structures will reach 18 percent of North American production, up drastically from less than 1 percent today, and the number will be much higher for pickup trucks, according to a new report from Ducker Worldwide LLC.

Surveying automakers, the researchers found that every leading automaker will have an aluminum body program in place, with Ford, General Motors and Fiat Chrysler set to be the biggest users of aluminum sheet.

Within a decade, seven out of ten of all new pickup trucks sold in North America will be aluminum-bodied, according to the Ducker report.

Total North American light vehicle aluminum consumption will increase by 28 percent in 2015 over 2012. Aluminum sheet for light vehicle body and closure parts will grow from less than 200 million pounds in 2012 to nearly 4 billion pounds by 2025, according to the report.

As light vehicle aluminum content will approach 35 billion pounds globally, light vehicles are poised to be the most important global market for aluminum.

We’ll have to see how the F-150 does when it goes on sale this fall but with glowing early reviews and a shifting marketplace, there’s little doubt that its release will mark a true paradigm shift in the market. Stay tuned.

5 06, 2014

How Ford Made Aluminum Stronger Than Steel

2017-01-26T23:37:29+00:00June 5th, 2014|

Can aluminum truly be stronger than steel? Not just over the course of a truck’s life cycle, but through all of the immediate dings, dents, and rigor that a pickup truck needs to go through as it works from job to job?

Ford knew that these would be major questions going into the aluminum-based F-150.  Chief Engineer Pete Reyes came loaded with research and answers when it came time to face these types of questions and more…and as it turns out, the biggest problem with aluminum isn’t a material property. It’s perception. From Forbes:

The majority of the truck body is 6,000-series alloy aluminum, which is a heat-treatable alloy aluminum. Depending on the mix that you put in the alloy, but certainly more a function of how long you heat-treat it, you can get all manner of properties out of this aluminum. Some of our structural elements and our extruded pieces are heat-treated, and we end up with stronger pieces than the steel we’re replacing.

… You can just choose to heat-treat it to a strength and replace a steel part that just happened to not be as strong. But you can also just add gauge

[i.e. make it thicker]. Aluminum being a third as dense as steel, you can have three times the thickness before you have the same weight as steel. So in a lot of cases, we tailored it to the strength we needed.

People are asking, “How do you have more dent and ding resistance?” Well, aluminum actually has better properties for dent and ding resistance, but we can also just up-guage it another tenth of a millimeter and still save 40 percent of the weight.

Reyes has plenty more to say regarding the expectations of the truck and the engineering that went into, so be sure to check out the full article.

29 05, 2014

Where Can We Find Pure Aluminum?

2017-01-26T23:37:29+00:00May 29th, 2014|

We often discuss aluminum in the manufacturing process on this blog, whether that process is for something as big Ford’s flagship pick-up truck or the latest smartphone from Samsung or Apple. But what about out in nature?

While aluminum is a natural element usually found in the earth’s crust, it’s a very reactive elemnt and is usually found as a compound (combined with other minerals). So can pure aluminum actually be found? From American Minerologist via i09:

Several papers reporting exotic native elements have been published within the last few decades. The “native” occurrences described are rather dubious in view of the lack of solid proof of their relationships with the host-rock minerals. Consequently, the genetic models proposed ranging from bio-reduction to the influence of deep-mantle, strongly reduced fluids, are somewhat speculative. Here we present data for a unique Al0 flake protruding from the phlogopite matrix of a rock specimen collected from a desilicated pegmatite vein. The geologic setting suggests two processes that might have played a key role in the Al0 formation: (1) desilication of pegmatite, resulting in its Al residual enrichment; and (2) serpentinization of an ultramafic body, providing a strongly reduced front (H2 and hydrocarbons) toward the serpentinite/pegmatite contact. These processes have presumably led to the reduction of Al to Al0 at discrete sites of alumina-rich minerals.

If you understand what that means, then you’re a better scientist than we are. But for the laymen that just like to work with aluminum as a material, here’s the short version: the answer is yes, but only in extremely rare circumstances.

22 05, 2014

Make Aluminum Sculptures At The Fine Line Arts Festival

2017-01-26T23:37:29+00:00May 22nd, 2014|

Have you ever wanted to make cool things out of molten aluminum?

Okay, that sounds like an odd question, and chances are, you’ve probably never even thought of that situation. So let’s re-phrase that: given the opportunity, would you like to make cool things out of molten aluminum?

If the answer is yes, then you might want to fly out to Chicago in early June. At the Fine Line Arts Festival on June 6, you’ll be able to partake in the festival’s first aluminum sand casting event. From the Chicago Tribune:

Fine Line’s first aluminum sand casting event starts things off on Friday evening. Opening Night includes a catered dinner from BBQ on Wheels and live music performed by “Fight With Monsters.” Tickets are required for Opening Night only, and can be purchased online: fineline.org/fine-line-arts-festival, or in person at Fine Line.

Artist and Fine Line blacksmithing instructor Dan Caldwell, will be leading the aluminum pour. “We’re going to take a molding sand mixture, put tile forms on a board, and pack the sand around them,” he said. “After the pour, the mold is destroyed and (participants) will get to take the parts out, clean them off, apply a patina, and buff and polish their pieces.”

Those who attend Friday night will get to watch while the melted aluminum is poured into the molds, and will take their own finished pieces home that evening.

The festival also includes pottery making, copper etching, basket making, and other craft-related activities. However, we get the feeling that nothing will quite beat out playing with molten aluminum!

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