Aluminium usage projected to bloom by 34%-51% in the residential building and construction sector by 2024: JBREC

As per the market research by John Burns Real Estate Consulting (JBREC), which furnishes independent research and consulting services related to the US housing industry, projects that the usage of aluminium will augment by 34% - 51% in the residential building and construction sector by 2024.

However, this would excel record shipment levels last seen in the early-to-mid 2000s. As per the analysis, the growth will be chauffeured by strong demand in the United States housing market along with a growing trend of builders and consumers alike choosing aluminium as a premium material in building construction.

The study by JBREC, which was finalized in 2021, made three significant conclusions:

• Building aluminium market expected to grow at 8% Compound Annual Growth Rate (CAGR): Demand in residential building and construction is expected to surpass mid-2000s record levels by 2024.
• Design shifts to add 154 million pounds of new aluminium usage by mid-decade: A shift toward modern design in SURBAN living environments (redeveloped suburban areas with urban amenities) will drive additional demand growth.
• Significant further upside for building aluminium possible: The study projected an additional 300 million pounds of aluminium used in the market by 2025 in its upside case, driven partially by increased use of aluminium gutters and downspouts.

Laura Lanza, the Sales Director of Building and Construction Products for Novelis, and chair of the Aluminum Association’s Building & Construction Committee said, “Aluminum is the smart choice for home builders and owners. Lightweight and durable, aluminium can reduce building and maintenance costs over the lifetime of a home. As the post-COVID economic recovery continues, aluminium has an incredible runway in this market and we look forward to being a part of it.”

The four widespread trends in the building and construction sector that are navigating the shift toward higher usage of aluminium:

• The shift toward SURBAN living and contemporary commercial projects: The shift toward higher density living and low-maintenance modern design will drive demand for aluminium cladding, windows and doors.
• Modular construction and increased use of accessory dwelling units: The move toward modular construction techniques will drive the use of the metal.
• Aluminium substitution for vinyl: The value proposition of aluminium’s durability and consumer preference for premium, environmentally friendly products will support a shift away from vinyl options.
• The wave of ageing roofing by 2025: Aluminum roofing is projected to grow faster than asphalt as a wave of roof replacements from the early 2000s housing boom crests.

Charles Johnson, the President & CEO of the Aluminum Association said, “Beyond these consumer trends, the recently passed bipartisan Infrastructure Investment & Jobs Act will act as a demand well for aluminium in the building and construction market well into the 2020s.”

“According to our analysis, approximately $400 billion of the spending in the bill has the potential to directly impact aluminium usage in the United States.”

The usage of aluminium in the building and construction market was initiated less than a century ago with the construction of the Empire State Building in New York City. Since then, the metal has become omnipresent in building for both residential and commercial applications thanks to its lightweight durability and recyclability. Aluminium can be used in a building for upward of 75 years before being recycled and repurposed for future applications. The metal aluminium utilized in building and construction enjoys high levels of recycled content, 95%+ end of life recycling rates and consequently a low carbon footprint compared to many competitor materials.

The Aluminum Association is the body that stands as the industry’s leading voice, representing companies that make 70% of the aluminium and aluminium products shipped in North America, is committed to supporting the growth of the building and construction market through credible data and information. The Aluminum Association’s Environmental Product Declarations (EPDs) and Aluminum Green Building Guides provide technical data to help builders to achieve Leadership in Energy & Environmental Design (LEED) and similar certifications.