Aluminum Industry in Kentucky - Think Kentucky | Cabinet for

Transcription

The Aluminum Industry
in Kentucky
September 2002
Prepared by Brent Lackey
Division of Research
Kentucky Cabinet for Economic Development
Capital Plaza Tower l 500 Mero Street Frankfort, Kentucky 40601 l Phone 502-564-7140 l FAX 502-564-3256 l www.thinkkentucky.com
The Aluminum Industry in Kentucky
I.
Executive Summary
3
II.
Aluminum Industry in Kentucky
4
III.
Profile of Kentucky Aluminum Companies
6
IV.
Economic Impact of Aluminum Industry
8
V.
Business Cost Comparison
9
VI.
The Aluminum-Automobile Relationship
13
VII. Location and Transportation System
16
VIII. Resources
21
IX.
23
Aluminum Facilities in Kentucky
I.
Executive Summary
Kentucky is one of the top aluminum producing states. In fact, as measured by the value of
shipments, Kentucky ranks as the number one state in the Primary Aluminum industry. A recent
report sponsored by the Kentucky Science and Technology Corporation identified the aluminum
industry as 1 of the 4 growing value chain clusters in the state1. Kentucky offers several
advantages to firms in the aluminum industry, including: low utility cost, central location, quality
workforce, ports along the Ohio and Mississippi rivers, and the automotive industry’s significant
presence.
Table 1: Kentucky Aluminum Industry
Employees
17,639
*
Average Annual Salary
$ 44,876
*
Value of Shipments
$ 2,661,248,000
*
Value Added
$ 741,362,000
Number of Facilities
142
Number of Auto Suppliers
31
* Refers only to the Primary Aluminum industry.
Sources: Kentucky Cabinet for Economic Development; Geographic Area Statistics 2000: Annual Survey of
Manufactures. U.S. Census Bureau; Department for Employment Services, Kentucky Workforce Cabinet.
Highlights of the Kentucky aluminum industry include:
· There are 142 aluminum-related facilities with 17,639 employees located in Kentucky.
· Primary Aluminum shipments totaled over $2.6 billion in 2000.
· The average salary for Primary Aluminum industry employees in Kentucky is $44,876/year.
· Ingots, extrusions, billets, rolled sheet stock, tubing, die-castings, foil, and die-cast
automotive parts are common products of Kentucky aluminum companies.
· The Transportation and Containers & Packaging industries are the largest markets for
Kentucky aluminum establishments.
· 31 of the aluminum facilities in Kentucky are considered automobile-related.
· 23 automotive assembly plants in North America receive shipments from aluminum plants
located in Kentucky.
· Logan Aluminum is the largest aluminum employer in Kentucky with 1,100 employees.
· Logan Aluminum in Russellville produces around one-third of the aluminum sheet for all
beverage cans manufactured in the U.S.
· Alcan Ingot in Henderson and Century Aluminum of Kentucky in Hawesville are 2 of only
13 active aluminum smelters in the U.S.
· Alcan Ingot and Century Aluminum combined have a production capacity of 423,000 metric
tons, which represents over 16 percent of active smelter production capacity in the U.S.
· The Owensboro Riverport is 1 of only 2 licensed warehouses approved by the New York
Mercantile Exchange to serve as the delivery point of primary aluminum traded on its
COMEX Division aluminum futures contract.
3
II.
Aluminum Industry in Kentucky
The aluminum industry is one of the largest industries in Kentucky with 142 manufacturing
establishments and 17,639 employees. Kentucky has a strong presence in both the Primary and
Fabricated Aluminum sectors. There are 77 Primary Aluminum establishments with over 13,000
employees in Kentucky. These facilities produce aluminum as their primary product. Kentucky
is home to 65 companies in the Fabricated Aluminum sector. These companies have over 4,500
employees, and they fabricate aluminum into a finished or secondary product.
As measured by value of shipments, Kentucky ranks as the number one state in the Primary
Aluminum industry. In 2000, the value of shipments for the Primary Aluminum industry in
Kentucky totaled over $2.6 billion.2 Of the 23 aluminum smelters (where aluminum is produced
from alumina) in the United States, 2 of them are located in Kentucky, and they have almost 10
percent of aluminum production capacity. However, 10 of the smelters located in the Pacific
Northwest have shut down operations and started selling their electricity to California, and thus,
over 16 percent of active production capacity is located in Kentucky.3
Table 2: Primary Aluminum Shipments
State
Value of Shipments
Kentucky
$ 2,661,248,000
Indiana
$ 2,465,731,000
New York
$ 2,392,277,000
Tennessee
$ 2,340,065,000
Washington
$ 2,291,967,000
Source: Geographic Area Statistics 2000: Annual Survey of Manufactures. U.S. Census Bureau.
Aluminum Companies
Kentucky is home to several industry-leading aluminum facilities, including:
· Logan Aluminum in Russellville is the largest aluminum employer in Kentucky with 1,100
employees. Logan Aluminum manufactures rolled sheet for use in beverage cans. Logan
Aluminum produces around one-third of the aluminum sheet for all beverage cans made in
the U.S., and its ships out 35,000 truckloads annually.4
· Alcan Ingot located in Sebree is 1 of 2 aluminum smelters in Kentucky. Alcan Ingot has
670 employees, and it produces over 185,000 metric tons of aluminum each year. In 2000,
Alcan Ingot began a $22 million capital project to expand extrusion billet production by
65,000 metric tons a year.5
· Commonwealth Aluminum operates a rolling mill in Lewisport that employs over 800
people, and coils, tubing and conduit are the primary products manufactured at this facility.
Commonwealth Aluminum’s headquarters are located in the Louisville area.
· Hydro Aluminum Metal Products located in Henderson is a revolutionary, new remelt
plant. The plant opened in the fall of 2000. Hydro recycles aluminum scrap into primary
aluminum extrusion billets, and it has a production capacity of around 90,000 metric tons a
year. Because of its advanced technology, Hydro uses just 5 percent of the energy that a
smelter uses, which translates into significant cost savings.6
4
Other large aluminum employers in Kentucky include: Century Aluminum of Kentucky,
Louisville Scrap Metal, Gibbs Die-Casting, Reynolds Metal Company, Alcoa Automotive
Castings, Cardinal Aluminum Company, and Aisin Automotive Casting.
Table 3: Major Aluminum Employers in Kentucky
Company
Employment
Logan Aluminum, Inc
1,100
Louisville Scrap Metal Co.
1,000
Century Aluminum of Kentucky, LLC
836
Commonwealth Aluminum Corp.
806
Alcan Ingot
670
Gibbs Die-Casting Corp.
650
Alcoa Automotive Castings, Inc
650
Cardinal Aluminum Co.
525
Reynolds Metal Co.
500
Aisin Automotive Casting, LLC
480
Source: Kentucky Cabinet for Economic Development
Common products of Kentucky aluminum establishments include ingots, extrusions, billets,
rolled sheet stock, tubing, die-castings, foil, and die-cast automotive parts. The automotive and
beverage can industries constitute over 50 percent of the market for Kentucky aluminum
companies. The trend of increased use of aluminum applications in automobiles has resulted in
the auto industry being the largest and fastest growing market for aluminum products.7
Kentucky Advantages
Aluminum companies are attracted to Kentucky for several reasons, including:
· Ports along the Ohio and Mississippi Rivers: Access to these river ports provides low cost
transportation of bauxite (mineral in which aluminum is made) and aluminum products to
national and global markets.
· Low Cost of Electricity: Thanks in large part to its abundant coal reserves, Kentucky ranks
as the lowest cost state for the provision of industrial power.8 Because the aluminum
industry is so energy intensive, the cost of electricity is a significant cost factor.
· Central Location: Kentucky is centrally located within the Eastern United States, where
aluminum consumption is centered. Two-thirds of the nation’s population, personal income,
and manufacturing establishments are located within 600 miles of Kentucky’s borders.
· Auto Industry: Aluminum usage in automobiles has increased dramatically in recent years,
and it is now only behind iron and steel in average vehicle content.9 Kentucky ranks 4th
among the states in light vehicle production,10 and it is the location for more than 430 motor
vehicle related suppliers. As more motor vehicle-related firms move to Kentucky and
automobile manufacturers increase their use of aluminum, Kentucky becomes a natural home
for aluminum-related companies.
· Quality Workforce: Kentucky has an abundant labor base with manufacturing experience,
and its workforce produces over 6 percent more output per dollar in wage than the national
average.11
5
III.
Profile of Kentucky Aluminum Companies
The aluminum industry in Kentucky consists of companies that produce aluminum as their
primary product and those that fabricate aluminum into other products, such as cans or
automotive parts. Of the 142 aluminum-related facilities in Kentucky, 77 of them are in the
Primary Aluminum sector, and these firms employ 13,075 people. There are 65 companies in
the Fabricated Aluminum sector, and they employ 4,564 people.
Kentucky aluminum-related companies represent over 20 different industry classifications, but
they are primarily concentrated in 11 industries. Table 3 shows the number of facilities and
employees for the 4-digit SIC industries with a significant presence in the Kentucky economy.
Aluminum Extruded Products (SIC 3354) has the largest presence in Kentucky with 29
establishments and over 4,500 employees. Secondary Smelting (SIC 3341) and Aluminum DieCastings (SIC 3363) also compose a large share of Kentucky’s aluminum industry with 17 and
11 facilities and 1,892 and 2,447 employees, respectively.
Kentucky aluminum facilities manufacture several products. Common products of Kentucky
aluminum establishments include rolled sheet stock, tubing, die-castings, ingots, extrusions,
billets, foil, die cast automotive parts, coils, containers, gutters, windows, and several products
for automobiles. The Transportation and Containers & Packaging industries are the biggest
markets for aluminum companies in Kentucky. Companies in the Primary Aluminum sector sell
over 50 percent of its products to these industries.
Table 4: SIC Composition of Kentucky Aluminum Facilities
SIC Code Description
3334
Primary Production of Aluminum
3341
Secondary Smelting and Refining of Nonferrous Metals
3353
Aluminum Sheet, Plate, and Foil
3354
Aluminum Extruded Products
3355
Aluminum Rolling and Drawing
3363
Aluminum Die-Castings
3365
Aluminum Foundries
3411
Metal Cans
3441
Fabricated Structural Metal
3444
Sheet Metal Work
3479
Coating, Engraving, and Allied Services, Not
Elsewhere Classified
Facilities
7
17
7
29
5
11
4
4
11
7
14
Employees
537
1,892
1,528
4,513
676
2,447
718
295
510
434
532
Note: Since many facilities are classified into more than one SIC code and not all SIC codes are mentioned, the sum
of the 11 industries does not equal the total of all aluminum-related facilities.
The Kentucky aluminum industry has a very international flavor. Of the 142 aluminum-related
facilities in Kentucky, 20 are foreign-owned, and these establishments have over 5,100
employees. Companies from 8 countries have an ownership stake in the aluminum facilities in
Kentucky. Canada and France account for much of the foreign investment in the Kentucky
aluminum industry with the number of facilities totaling 6 and 5, respectively and over 2,000
6
employees for both. A significant number of the aluminum facilities are active in the global
market with 58 facilities exporting products and 34 importing raw materials and parts.
Table 5: Foreign-owned Aluminum Facilities in Kentucky
Country
Total
Canada
France
Germany
Japan
United Kingdom
Mexico
Norway
Luxembourg
Facilities
20
6
5
4
4
3
1
1
1
Employment
5,195
2,253
2,142
1,250
954
311
200
50
75
Note: The sum of all the countries is greater than the total because in many cases companies from different countries
have an investment in the same facility.
7
IV.
Economic Impact of the Aluminum Industry
Due to its significant presence and recent growth, the aluminum industry is one of the key
industries in Kentucky. Aluminum-related companies have over 17,500 employees, which is 5.7
percent of all manufacturing employees. In Kentucky, employment in the Primary Aluminum
industry has grown by over 30 percent since 1995 compared to growth rates of just under 11
percent for all industries and negative 2 percent for all manufacturing industries. In 2000, the
value of shipments for the Primary Aluminum industry in Kentucky was over $2.6 billion, and
the value of shipments grew by over 11 percent from 1997 to 2000.12
Table 6: Economic Impact of the Primary Aluminum Industry
All Industries
Manufacturing
Employees
1,816,900
307,200
Employee Growth (1995-2001)
10.8 %
-2.1 %
Average Weekly Wages
$571
$732
Total Wages
$50,572,039,000 $11,152,886,000
Value Added
N/A $32,795,063,000
Capital Expenditures
N/A
$2,964,124,000
Primary Aluminum
13,075
30.8 %
$863
$551,645,640
$741,362,000
$207,955,000
Sources: Kentucky Cabinet for Economic Development; Department for Employment Services, Kentucky
Workforce Cabinet; Geographic Area Statistics 2000: Annual Survey of Manufactures, U.S. Census Bureau.
The aluminum industry has and continues to impact the economy and people of the
Commonwealth in a very positive manner. The aluminum industry provides thousands of well
paying jobs to the people of Kentucky. The average weekly wage for the Primary Aluminum
industry in Kentucky is $863 compared to $732 for manufacturing industries and $570 for all
industries.13
In 2000, the Primary Aluminum industry added over $741 million of value to the Kentucky
economy, and the value added by the Kentucky aluminum industry grew by over 10 percent from
1997 to 2000.14 The capital expenditures for the Primary Aluminum sector in 2000 totaled over
$207 million. In 2001, employers in the aluminum industry are estimated to have paid over $700
million in wages to employees and over $20 million in sales and use taxes to the Commonwealth
of Kentucky.15
8
V.
Business Cost Comparison
Kentucky has the lowest overall cost of doing business in the Eastern United States according to
Regional Financial Associates (Economy.com). Regional Financial Associates publishes the
North American Business Cost Review, which determines the cost of doing business within a
state by measuring unit labor costs, energy costs, and state and local taxes. Kentucky ranks as
the 8th lowest state for the overall cost of doing business, and it ranks as the lowest among the
top aluminum states. According to this index, the overall cost of doing business is 10.5 percent
below the U.S. average, and with respect to the cost of energy Kentucky is significantly below
the national average.16
Table 7: Cost of Doing Business for Top Aluminum States
Overall Cost of Doing
Business
Unit Labor Cost
Index
Rank
Index
Rank
U.S.
100.0
100.0
Alabama
93.6
13
96.7
23
Illinois
102.5
39
103.5
43
Indiana
96
23
99.3
34
Kentucky
89.5
8
92.3
10
New York
108.7
44
101.7
39
Ohio
99.1
31
97.4
26
Oregon
92.5
10
95.5
18
Pennsylvania
100.6
38
100.8
37
Texas
94.8
19
96.7
24
Washington
98.6
30
103.6
44
West Virginia
94.3
17
94.6
17
Tennessee
93.8
14
98.4
28
Energy Cost State & Local Taxes
Index Rank
Index
Rank
100.0
100.0
87.2
19
79.7
1
103.1
37
93.7
14
82.4
11
91.6
8
69.9
2
97.8
26
132.4
40
125.8
49
102
34
107.4
41
70.5
3
102.9
29
102.5
36
96.1
20
91.7
26
85.4
4
66.3
1
109.9
42
79.4
7
114.8
44
79.5
8
80.6
2
Note: A ranking of one represents the lowest cost.
Source: North American Business Cost Review, 8th Edition, Prepared by Economy.com, Inc., November 2001;
Aluminum Association; Geographic Area Statistics 2000: Annual Survey of Manufactures, U.S. Census Bureau.
The major costs for companies in the aluminum industry are energy, labor, and raw materials.
Compared to other industries, the aluminum industry spends a much larger portion of its
production costs on energy.17 Labor is a significant cost factor for the aluminum industry as with
all manufacturing industries. Though it is not considered one of the major costs for aluminum
companies, state and local taxes are an important cost factor for these businesses. The following
section details how Kentucky compares to the other top aluminum industry states with respect to
these business costs.
9
Utility Cost
A globally, competitive business environment compels companies to examine the long-term
costs of production and distribution, and to focus on regional differences in the net costs of doing
business. Among the most significant factors having a direct influence on bottom-line costs is
the annual capital that must be committed to utility consumption, which is especially true for the
aluminum industry. For the aluminum industry, energy cost as a percent of sales is almost 4
times higher than the private industry average. 18
Kentucky occupies the premier position in the provision of low cost electric power among the
top aluminum producing states – enjoying from a 9 to 47 percent cost savings over these
competitors. In fact, data from the U.S. Department of Energy shows that Kentucky can lay
claim to the position of lowest cost state among all 50 states for the provision of industrial
power.19
INDUSTRIAL SECTOR COSTS
AVERAGE REVENUE PER KILOWATTHOUR
KENTUCKY
3.01
LEADING STATES
ALUMINUM PRODUCTION
Alabama
3.87
Indiana
3.81
Illinois
4.99
New York
5.37
Ohio
4.37
Oregon
3.56
Pennsylvania
5.63
4.09
Tennessee
Texas
4.42
Washington
3.30
West Virginia
3.76
0
1
2
3
4
5
6
CENTS PER KWH (2000)
Source: U.S. Department of Energy, Energy Information Administration; Aluminum Association;
Geographic Area Statistics 2000: Annual Survey of Manufactures, U.S. Census Bureau.
Approximately, 97 percent of Kentucky's electric power is produced by coal-fired power plants,
with the balance generated by hydroelectric dams, fuel oil, and natural gas. Kentucky's large
coal reserves ensure abundant supplies of electric power for the foreseeable future. In turn, a
large number of utility providers and oversight by the Kentucky Public Service Commission
continue to ensure competitive rates for industrial users. These power distributors are allowed to
negotiate lower economic incentive rate contracts. Significant discount rates can be granted
expanding operations.
10
Labor Cost
The cost of labor for Kentucky employers compares very favorably to other top aluminum
producing states. According to the Unit Labor Cost Index constructed by Regional Financial
Associates, the unit labor cost for Kentucky is 7 percent lower than the U.S. average, and it is the
lowest among the top aluminum states.20 The average weekly wages for employees in all private
industries and manufacturing in Kentucky are below the U.S. average and 3rd lowest among the
top aluminum states. With respect to the Primary Metals and Fabricated Metals industry sectors,
average weekly wages in Kentucky are also below the U.S. average and rank 3rd and 4th lowest,
respectively, among the top aluminum producing states. A recent study on the costs of workers
compensation by Actuarial & Technical Solutions finds that the cost of providing workers
compensation insurance in Kentucky is below the U.S. average.21
Table 8: Labor Cost Comparison among Top Aluminum Producing States
Average Weekly Wages: 2000
State
United States
Alabama
Illinois
Indiana
Kentucky
New York
Ohio
Oregon
Pennsylvania
Tennessee
Texas
Washington
West Virginia
Private
Industry
$679
548
736
597
570
879
619
625
646
587
686
716
506
Manufacturing
$861
646
880
816
723
990
846
882
819
693
867
905
721
Primary
Metals
$868
822
831
975
824
890
950
897
941
810
784
897
936
Fabricated
Metals
$727
623
799
689
656
752
780
675
723
672
687
649
704
Workers
Compensation
Cost Index
1.00
1.392
1.029
0.657
0.896
1.291
N/A
0.511
0.903
1.126
1.524
N/A
N/A
Sources: Employment and Wages Annual Averages, 2000, U.S. Bureau of Labor Statistics, October 2001; “Workers
Compensation State Rankings: Manufacturing Industry Costs and Statutory Benefit Provisions”, Actuarial &
Technical Solutions, Inc, 2001; Aluminum Association; Geographic Area Statistics 2000: Annual Survey of
Manufactures, U.S. Census Bureau.
Kentucky’s workforce offers the rare combination of low cost and high quality. As measured by
gross state product per dollar in wages, Kentucky’s workforce is the most productive among the
top aluminum states, and it ranks 13th among all 50 states. In fact, the workforce in Kentucky
produces over 6 percent more output per dollar in wages than the national average.22
11
Table 9: Workforce Productivity
Gross State Product
State
per Wage
United States
$2.06
Alabama
$2.08
Illinois
$1.98
Indiana
$2.02
Kentucky
$2.18
New York
$1.99
Ohio
$2.00
Oregon
$2.17
Pennsylvania
$2.04
Tennessee
$2.09
Texas
$2.17
Washington
$2.00
West Virginia
$2.18
Percentage Above
US Average
State Rank
1.07 %
-3.93 %
-1.57 %
6.08 %
-3.35 %
-2.85 %
5.32 %
-0.80 %
1.65 %
5.52 %
-2.74 %
5.96 %
29
45
37
13
42
41
19
36
27
17
40
16
Source: Calculations are made from Gross State Product and Wage & Salary Disbursement data from U.S. Bureau
of Economic Analysis (www.bea.doc.gov); Aluminum Association; Geographic Area Statistics 2000: Annual
Survey of Manufactures, U.S. Census Bureau.
.
12
VI.
The Aluminum - Automobile Relationship
Automobile Industry in Kentucky
Kentucky has a strong presence in the automobile industry. Kentucky ranks 4th among the 50
states in total light vehicle production. In 2001, 1,144,586 cars and light trucks were produced in
Kentucky, which is 10 percent of all cars and trucks manufactured in the United States.23 The
gross state product for the Kentucky automotive industry was over $9.6 billion in 2000.
According to a University of Michigan study entitled, Contribution of the Automobile Industry to
the U.S. Economy, Kentucky has the nation’s 3rd highest level of auto industry related
employment as a percent of total state employment.
There are four automobile assembly plants located in Kentucky that employ over 18,000 people.
Ford has two plants in Louisville that produce the Ford Explorer and Mercury Mountaineer in
one plant and the Ford Super Duty F-Series trucks and Excursion SUV models in the other plant.
GM has a plant in Bowling Green that manufactures the Corvette, and Toyota has a plant in
Georgetown that makes the Camry. In addition to the 4 assembly plants, Toyota’s North
American Manufacturing Headquarters are located in Erlanger, and there are 434 auto-related
suppliers located in Kentucky that have over 88,000 employees.
Table 10: Total Light Vehicle Production in 2001
Total Light Vehicle
State
Production
Michigan
2,687,243
Ohio
1,739,087
Missouri
1,175,152
Kentucky
1,144,586
Illinois
708,288
Tennessee
501,418
Indiana
494,380
Georgia
441,557
California
351,681
New Jersey
283,087
Source: Automotive News, http://www.autonews.com/
Aluminum Usage in Automobiles
The Transportation industry is the largest and fastest growing market for aluminum producers.
Shipments of aluminum to the U.S. Auto industry totaled over 3.6 million tonnes in 2000. In the
last decade, aluminum usage has doubled in cars and tripled in SUVs, and the current aluminum
usage in automobiles is estimated at 274 pounds per vehicle. In fact, aluminum recently
surpassed plastic and only trails iron and steel in average vehicle content. Much of aluminum’s
growth in motor vehicles can be attributed to a large increase in aluminum engine blocks (38
percent in 2002 compared to 22 percent in 1999) and cylinder heads (86 percent in 2002
compared to 69 percent in 1999).24
13
Aluminum Content in Automobiles
1991
1996
1999
2002
0
50
100
150
200
250
300
Pounds per Vehicle
Source: Ducker Research; Aluminum Association.
Automakers are increasing the use of aluminum to solve design, engineering, and marketing
challenges. Substituting aluminum for steel and iron allows auto manufacturers to decrease
vehicle weight and improve fuel economy. Aluminum also offers increased safety performance
since it can be 2.5 times stronger than steel and can absorb twice as much crash energy.
Increasing the use of aluminum in automobiles also offers environmental benefits. Substituting
aluminum for iron and steel can significantly decrease greenhouse emissions. Approximately, 60
percent of all aluminum used in cars is recycled aluminum, and 90 percent of aluminum in autos
currently is recovered and recycled.25
The following all-aluminum cars illustrate the environmental, safety, and performance benefits
associated with aluminum-intensive automobiles:
· Audi A8 received a perfect 5-star government crash rating;
· Honda Insight is the most fuel-efficient car in the U.S.;
· Ferrari 360 Modena is considered to be the one of the world’s top performance vehicles, and
Ferrari recently announced all of their future cars will be aluminum intensive.26
New automotive applications of aluminum can be found in automobiles manufactured in
Kentucky. The 2002 models of the Ford Explorer and Mercury Mountaineer feature aluminum
front fenders that were designed to increase handling. The Explorer and Mountaineer have the
highest content of aluminum sheet components of all new vehicles in 2002. Toyota will add an
aluminum-intensive engine to the products of its Georgetown plant by the end of the 2002.27
Auto-related Aluminum Facilities
The migration of the automobile industry southward and the increasing use of aluminum in
motor vehicles have resulted in a number of aluminum facilities in Kentucky being auto
suppliers. There are 31 aluminum facilities that are considered auto-related, and these
establishments have over 7,100 employees. Aluminum wheels, aluminum heat exchanger
tubing, aluminum ingots and castings, alloys, and aluminum die-cast automotive parts are some
of the common products of Kentucky aluminum-related facilities sold to automotive assembly
plants and automotive parts manufacturers.
14
Table 11: Automotive Assembly Plants Supplied by Kentucky Aluminum Facilities
Manufacturer
Plant Name
Plant Location
Honda
Maryville
Maryville, OH
Honda
East Liberty
East Liberty, OH
Honda
Alliston
Alliston, Canada
Honda
Lincoln
Lincoln, AL
Toyota
Georgetown
Georgetown, KY
Toyota
Princeton
Princeton, IN
Toyota
Cambridge
Cambridge, Canada
Mitsubishi
Normal
Normal, IL
NUMMI
Fremont
Fremont, CA
CAMI
Ingersoll Truck
Ingersoll, Canada
General Motors
Bowling Green
Bowling Green, KY
General Motors
Lansing Craft Centre
Lansing, MI
General Motors
Silao
Silao, Mexico
General Motors
Spring Hill
Spring Hill, TN
Ford
Edison
Edison, NJ
Ford
Louisville
Louisville, KY
Ford
Detroit Chassis Plant
Detroit, MI
Ford
Twin Cities
St. Paul, MN
Ford
Oakville
Oakville, Canada
Ford
St. Louis
St. Louis, MO
Ford
Dearborn
Dearborn, MI
Nissan
Smyrna
Smyrna, TN
BMW
Spartanburg
Spartanburg, SC
Aluminum-related facilities sell products to 23 automotive assembly plants in North America.
Of the 31 automobile-related aluminum firms in Kentucky, 12 of them have indicated that they
ship products directly to automobile assembly plants. 3 of the 4 assembly plants located in
Kentucky receive shipments from an aluminum company in Kentucky.
15
VII. Location and Transportation System
Kentucky’s location in the geographical center of the Eastern United States and its extensive
highway, air, rail, and waterways transportation systems place the Commonwealth of Kentucky
in a strong position to compete in the global marketplace. Two-thirds of the nation’s population,
personal income, and manufacturing business establishments are located within 600 miles of
Kentucky’s borders. Kentucky’s intermodal freight and passenger transportation systems have
reached out to provide safe, efficient, and cost-effective access to all points of the globe.
Kentucky is located at the heart of both the aluminum and automobile producing regions in the
United States. The Pacific Northwest and the Ohio Valley regions contain over 70 percent of the
aluminum smelting capacity in the United States, but in recent years 10 aluminum smelters in the
Pacific Northwest have sold their electricity to California instead of producing aluminum.28
Over 1,600 aluminum plants, which accounts for 73 percent of the aluminum plants in the United
States, are located within 600 miles of Kentucky.29
Over the last 30 years, manufacturers in the auto industry have steadily moved southward, and as
a result a new auto corridor has been created that runs southward from Michigan to Alabama, in
which Kentucky is located in the center. Within 500 miles of Central Kentucky, there are 3,876
motor vehicle-related manufacturers, including 62 auto assembly plants.30
Transportation
A freight distribution network that is efficient, safe, and technologically competitive makes
Kentucky an ideal location for businesses needing just-in-time delivery and reliable access to
markets and suppliers. Geographically located within a day or two highway travel of two-third's
of the nation's buying power, Kentucky maintains a continuing six year highway construction
and improvement plan that ensures necessary structured growth and regular maintenance.
In an analysis of the comparative performance of state highway systems conducted at the
University of North Carolina-Charlotte, only Kentucky and Oregon achieved a top ten rating
among the leading aluminum states.31
Further evidence of the superior quality of Kentucky’s transportation system lies in the high
rankings awarded to it by Expansion Management and Transportation & Distribution magazines
in their joint analysis of state and metropolitan area logistics factors. Kentucky achieved the
following rankings among the 50 states:
· Rail Freight Utilization – 4th best
· Logistics (Overall Ranking) – 6th highest
· Lowest State Fuel Taxes and Fees – 5th best32
Kentucky's railroads – the CSX, Norfolk Southern, and Canadian National Railroads - ensure
direct service from Kentucky to the major rail centers of the Great Lakes, Gulf of Mexico, and
Atlantic Seaboard.
16
Kentucky is at the center of a port and waterways system that offers globally competitive,
inexpensive transport for bulk materials and containerized freight. With its access to the junction
of the Upper and Lower Mississippi, Ohio, and Tennessee-Tombigbee navigation corridors,
Kentucky has a waterway link to the Great Lakes and Canada, to Mexican and South American
markets, and to the deep-draft ports of New Orleans and Mobile for overseas shipments.
The Owensboro Riverport is one of the leading ports in the handling and storage of primary and
secondary aluminum. The New York Mercantile Exchange has approved the Owensboro
Riverport as 1 of only 2 licensed warehouses to serve as the delivery point of primary aluminum
traded on its COMEX Division aluminum futures contract.33
Accessibility to major airport services, and safe, efficient air travel for business purposes are well
addressed by Kentucky's statewide system of commercial and general aviation airports. Non-stop
international flights depart from the Cincinnati/Northern Kentucky International Airport and
from the Louisville International Airport.
The Cincinnati/Northern Kentucky International Airport is the home to Delta Air Lines’ 2nd
largest hub in the U.S., and it ranked as the best airport in North America and seventh worldwide
for passenger service and convenience in 2001.34 A Federal Aviation Administration (FAA)
report named the airport as the second fastest growing U.S. hub airport, based on total passenger
boardings or enplanements.35 The airport is also home to the primary North American hub of
DHL, which is the world’s largest air courier.
The Louisville International Airport is home to the international air sorting hub of United Parcel
Service (UPS), whose operations have helped make the Louisville International Airport the
seventh largest cargo airport in the nation, and the eleventh largest cargo airport in the world.
17
Aluminum Companies Located within 600 Miles of Kentucky
#
#
#
#
#
#
#
#
#
#
#
##
##
##
##
#
##
# ###
# ##
#
#
#
#
##
#
#
#
#
#
60
0M
ile
s
#
#
#
##
#
##
#
##
#
##
#
###
#
####
# #
###
#
## #
#
#
#
#
#
##
##
#
#
#
#
# ##
#
#
# ##
#
# ##
#
#
#
# ## ##
#
#
# #
####
#
##
###
#
#
#
#
#
#
#
#
#
#
#
#####
##
#
##
# #
#
#
#
#####
### #
##
#
#
# # #
#
# # # #####
# # #
##
#
#
## # #
##
## #
#
#
#
#
#
##
# ##
# #
##
#
##
#
#
#
##
#
##
###
##
#
#
#
##### #
###
#
#
# # ###
##
#
####
#
#
#
##
#
##
#
#
# #####
### ##
#
#
# ##
###
# # #
#
## ##
##
######
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
## ##
# #
## # ###
## ##
##
#
#
##
# #
# # ###
#
#
#
#
#
##
# # # # #######
#
#
#
#
#
#### #
#
###
#
# #
#
#
###
## ###
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
####
##
# #
# ###
##
# ## #
## ## # #
##
#
#####
#
#
# #
#
#
#
#
##
#
###
##
#
#
#
#
#
## ##
#
#
##
#
#
#### #
#
#
#
###
#
##
#
#
##
##
#
##
#
#
#
#
#
##
#
##
#
#
#
#
#
## ### ## #
#
#
#
#
# ####
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
###
#
#
#
#
####
#
# # #
# ### #
#
# #
###
# ##
#
##
## ###
#
#
##
##
#
#
##
##
## # ###
#
#
## ##
#
### # #
#
#
#
#
###
#
##
#
### ##
# # ##
#
#
###
# #
#
#
#
#########
####
##
#
#
#
#
#
##
#
#
###
#
#
# ## #
# ##
####
#####
#
#
#
# ### #
##
##
# #####
#
##
###
## #
# #
#
#
#
#
##
###
# # ## ##
##
##
# #
## ##
## #
##
##
##
########
###
# ##
##
##
#
## ##
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
## #
#
# #
##
### # #
#
## #
##
# ####
#
###
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
### #####
#
##
##
#
### #
### #### #
## #
#
# #
#
#
#
### ## ##
#
#
#
###
## ##### ####
#
#####
# # ###
#
#
#
##
# #
#
#
## # #
# #
# #
#
#
#
#####
#
#
#### # #
#
##
#
#
# #
### #
##
##
#
##
#
#
##
#
#
#
#
#
#
#
#
#
##
##
## ##
# # # ###
#
#
#
##
###
#
# ###
#
###
#
##
#
#
#
# #
# #
#
#
## #
#
#
#
#
#
####
#
#
## #
#
#
# #
#
##
##
#
##
#
#
##
#
#
#
#
#
# ##
#
## # ##
#
#
# #
# #
#
#
##
# #
#
## #
#
#### #
#
## # #
# #
#
#
#
##
#
#
#
#
#
#
## # # #
# #
##
#
#
#
#
##
#
#
#
#
# #
#
# #
#
#
#
#
#
###
# #
#
# #
#
##
##
# ##
##
## #
#
#
#
#
#
#
#
# #
#
#
#
# # #
## #
#
#
###
## #
###
#
###
#
#
# #
# # #
# ## # # # # #
##
##
#
# #
# ####
#
#
#
#
#
#
# #
##
# ## #
# #
#
# ######
#
# # #
#
#
#
#
#
#
#
## #
##
##
#
#
#
#
#
#
#
##
##
##
#
# # #
###
#
#
# # ##
#
#
#
#
# # #
## #
# #
#
# ##
# #
## #
#
#
#
#
#
#
#
# #
##
#
##
# # ## # #
##
## # #
#
#
#
# #
# #
#
##
##
#
#
#
#
#
#
#
#
###
#
## ### # #
##
#
#
#
#########
##
# # ##
#
###
#
#
## ##
#
#
# #
#
#
#
##
#
#
#
#
#
##
#
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
# #
#
##
#
#
#
# #
#
#
#
#
#
####
###
##
#
##
#
##
# ## #
##
###
#
##
#
##
#
#
#
#
#
#
#
#
#
#
#
Within 600
Miles
1,663
aluminum
facilities
#
#
#
#
#
#
#
#
#
#
#
#
#
73% of the
aluminum
facilities in the
United States
#
#
#
#
# #
# ##
#
##
#
#
## #
#
#### ## # # #
#
# ##
##
#
#
#
#
#
##
#
#
#
#
#
#
## ##
##
#
##
#####
### #
##
###
#
##
#
#
Note: For the purposes of this map, aluminum companies are establishments from the following NAICS codes:
3313, 331521, 331524, 332112, and 33243.
Source: County Business Patterns, U.S. Census Bureau.
18
Automobile and Truck Assembly Plants within 500 Miles of Central Kentucky (62 Plants)
Maine
Minnesota
Vermont
Wisconsin
m
il e
s
38
36 35
34
41
42
Missouri
m
ile
s
39
40
Indiana
7
1
12 13
11
10
3
New
Jersey
Maryland
Virginia
52
5 Tennessee
50
51
48
44
45
47
46
Mississippi
43
Delaware
West
Virginia
4
6
Arkansas
Rhode Island
Pennsylvania
Kentucky
2
Massachusetts
Connecticut
Ohio 14
8
25
0
Illinois
New York
33 27 23 20
32 28 24 21
29 25 22
31 30 26
16
9
19
18 17 15
37
50
0
Iowa
New Hampshire
Michigan
Alabama
North Carolina
49
South Carolina
Georgia
Louisiana
Florida
1 Ford (2 plants)
2 General Motors
3 Toyota
4 Nissan (2 plants)
5 Saturn
6 Peterbilt
7 Toyota
8 Subaru
9 General Motors
10 Kenworth
11 Honda
12 General Motors
13 Navistar
14 Honda
15 Volvo-General Motors
16 General Motors
17 Ford (2 plants)
18 Ford
19 DaimlerChrysler
20 DaimlerChrysler (2 plants)
21 General Motors (2 plants
22 DaimlerChrysler
23 Ford (2 plants)
24 Ford
25 General Motors (2 plants)
26 General Motors
27 General Motors (2 plants)
19
28 Ford
29 Autoalliance
30 General Motors
31 DaimlerChrysler
32 General Motors
33 General Motors
34 Mitsubishi
35 Ford
36 DaimlerChrysler
37 General Motors
38 Oshkosh Truck Corp.
39 Ford
40 DaimlerChrysler (2 plants)
41 Ford (2 plants)
42 General Motors
43 Nissan
44 Mercedes-Benz
45 Honda
46 Ford
47 DaimlerChrysler
48 BMW
49 Mack
50 Freightliner
51 Freightliner
52 Volvo
Motor Vehicle-Related Manufacturers within 500 Miles of Central Kentucky
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
# #
#
#
#
#
#
#
#
##
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
# ## # #
#
#
#
#
#
#
#
#
##
#
# #
###
#
#
#
#
#
#
#
#
# #
#
#
#
500 miles
#
## #
#
# #
#
#
#
#
#
#
#
#
#
#
# #
#
S
Detroit
Chicago
#
S
Cleveland
#
S
Columbus
#
S
#
S
#
S
#
S
Cincinnati
#
S
#
S St. Louis
#
Evansville
Louisville
#
S
#
#
#
S
Lexington
#
S
#
S
Charleston
#
S
Richmond
#
S
Roanoke
#
#
#
#
Nashville
#
S
3,876 motor
vehicle-related
manufacturers
(including the
62 assembly
plants)
Huntington
#
S
##
#
##
#
# #
##
#
Within 500
Miles
#
#
S
#
Knoxville
Raleigh
#
S
#
S
Charlotte
#
S Memphis
#
S
55 % of motor
vehicle related
manufacturers
in the U.S.
Huntsville
#
S
Columbia
#
S
Atlanta
#
#
S
#
#
#
# #
##
#
## #
Jackson
#
S
#
Montgomery
#
S
1 Dot = 1 Motor Vehicle Parts Manufacturer
##
# #
###
# #
#
#
#
#
#
#
#
S
#
#
#
#
#
#
#
##
##
#
#
#
#
#
#
# # ##
# #
# #
##
##
# ##
#
##
#
#
##
#
### ## ##
#
####
#
#
#
#
### #
#
#
#
#
#
##
# #
#
#
##
#
### #
#
#
##
# # # ##
# # ## #
# ##
#
# #
##
# # ##
##
# #
### ##
#
#
#
#
#
#
#
#
###
#
###
###
#
##
##
#
#
# # # ####
#
# #
#
#
#
# #
#
#
##
##
#
#
##
#
## #
#
#
#
#
#
####
#
#
####
#
#
##
##
#
#
##
##
####
#
###
# ###
#
#
#
###
## #
#####
#
###
# ###
#
#####
#
#
###
##
###
##
##
#
#
###
# #
#
#
#
#
#
###
## #
#
#
# #
#
#
#
Indianapolis
#
#
#
Pittsburgh
#
#
#
#
#
#
##
#
#
## #
#
#
#
#
# #
##
# ##
##
# #
#
#
#
#
#
##
#
#
#
##
#
# #
#
#
# #
##
#
#
#
# ## #
#
#
#
#
#
### #
# #
##
#
#
## #
# ##
#
#
#
##
#
#
##
#
#
#
# ##
#
#
#
## # ##
#
#
#
# # ##
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
# #
#
###
#
## #
###
#
## ######
# # #
# ##
# #
## #### ##
#
##
###
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
# ## #
#
##
# ##
#
# # # ###
# ###
#
### # #
## #
## ##
# ##
##
#
#
#
#
# ## #
#
#
#
#
#
#
#
#
#
#
# ##
#
##
#
#
###
# #
##
# ###
#
###
##
#
#
#
#
##
#
#
# ###
##
###
#
##
#
#
# #
#
##
##
# ###
# ## # # #
###
#
##
##
#
# #
##
#
# ##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#####
#
#
#
##### #
###
##
##
## ## #
##
##
#
#
#
#
#
#
#
###
# ##
#
## # #
# #
#
#
#
#
## #
#
##
#
##
####
###
#
#
##
##
#
##
#
# ##
##
#
#
#
####
###
#
#
#
##
#
##
#
# ##
## # #
#
##
#
# # # ##
#
####
# # ###
#
#
#
##
##
#
# ###
##
# ## #
##
###
#
###
#
#
# ## #
##
#
##
##
#
#
#
#
## # ##
##
#
#
# #
#
##
#
#
#
####
###
#
###
#
#
#
#
# ### # #
#
#
#
#
#
#
#
####
##
#
#######
# # ###
#
##
#
#
#
###
#
### ##
#
##
#
#
###
#
#
##
##
#
#
#
#
#
#
#
#
# #
#
##
# # ##
##
##
###
## # ### # # ###
##
#
#
#
#
#
##
#
#
#
##
#
#
#
######
#
#
#
##
#
#
##
#
#
## #
# # ##### ## # ####
##
#
####
#
## #
#
#
#
### #
#
###
##
#
#
#
#
#
#
#
#
#
#
#
##
#
##
##
#
#
#
### ##
#
#
## ## # #
##
#
#
#
# #
##
#
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
#
# # # # ## #
#####
## ## ##
#
#
#
##
#
#
#
#
# #
#
###
#
##
#
#
#
## #
#
##
# # ##
## # #
##
#
##
# #
#
#
#
## #
#
# #
# ##
#
#
### #
#
# ## # # ###
#
#
###
##### ## #
#####
##
#
#
# ##
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
# ##
#
#
##
#
# ##
#
#
#
##
#
#
####
#
## # #
#
#
## # #
## ##
#
#
##
# #
#
##
##
###
## # #
#
#
#
#### #
##
# #### #
#
#
###
#
#
# # # ###
#
#
#
# ####
##
#
####
###
#
#
###
### #
#
#
# ###
# ##### ##
##
#
# ## #
#
## ##
##
#
#
#
#
###
##
#
##
## #
# # ##
#
##
#
## ###
#
##
##
####
#
#
###
#
#####
#
##
###
#
#
#
##
#
#
#
#
# ##
### ##
##
# # # ##
#
#
#
###
#
#####
#
##
#
# # # # ##
#
# ## # ## ## ###
###
#
##
### # #
#
#
#
#
#
# #
#
#
# # # ###
####
# # # #### #
###
#
#
#
#
#
#
##
#
#
#
# #
#
#
# ##
##
#
#
###
##
##
##
# ### ### ##
#
#
#
#
#
#
#
# # #
# #
## #
#
##
#
# #
#
#
#
##
#
#
#
#
## # ### ##
#
##
#
#
## #
#
#### ####
#
#
#
#
#
# # ##
#
# ##
##
#####
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
# # # #
#
#
# ## ####
#
#
# #
## #
###
#
##
##
#####
#
#
#
#
#
#
#
#
###
###
## #
#
#
#### # #
#
#
#
# #
#
#### ####
##
#
##
# # ###
# ## ## #
###
#
# #
#
##
#
#
##
# #
#
# ## ##
### #
## ###
##
# ## #
# # #
# #
#
#
# # #### #
#
#
#
#
# ## #
#
##
#
## # #
#
## #
#
#
# #
## # ## ## #
#
#
# ##
##
#
#
#
#
#
#
#
## # #
#
# ### # # #
#
#
#
# #
#
#
#
## #
#### ## # #
#
# ###
#
#
# #
#
##
#
#
# #
##
# # #
#
#
##
#
## # #
##
# # ##
##
#
## #### ###
##
# ##
# ##
## #
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#### #
#
#
##
# # #
#
#
## # #
#
#
#
#
# ###
#
#
# ## # # #
#
#
#
#
# ##
## #
# #
#
#
# #
#
##
#
# #
# ##
## #
#
#
####
# # ## ##
##
##
#
#
# ##
# # # ## #
# #
#
# ## ##### ###
#
# #
#
# # ## # #
# ###
#
###
#
##
#
#
#
#
#
##
#### # #
#
#
# # #
##
##
# # # ## #
#
## # # ##
#
# ## #
#
#
##
## #
# #
#
##
##
#
#
#
##
#
##
#
##
## #
#
##
#
##
#
###
#
# ## ### # #
#
#
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
### #
#
#
# # ###
# #
#
#
# #
#
## ##
#
#
# #
##
#
#
#
#
#
##
#
#
# ## ##### ##
# ###
#
#
#
##
##
##
##
#
# ##
#
#
#
# #
#
# ##
# ##### # # # # # # #
#
#
# #
#
# ## ##
#
#
# ###
##
#
##
#
#
#
#
#
## #
########
#
#
#
# ##
#
#
#
#
#
#
# ##
#
#
### ##
##
##
# ##
#
#
#
#
#
#
#
##
##
#
# ###
#
#
##
#
#
##
#
# #
#
#
#
# #
#
# #### #
# ###
#
# ##
#
#
#
#
#
#
#
# #
##
##
#
#### #
#
#
#
##
#
#
#
#
#
#
#
##
#
#
## #
#
#
##
#
# ### #
#
## #
#
#
#
#
#
#
#
#
#
#
### #
#
#
#
##
##
##
# ## ##
## #
### #
#
##
#
##
# # #
#
#
# #
#
## #
##
# #
# #
#
# ##
#
#
#
#
#
#
#
#
# #
#
#
#
#
#
#
#
#
####
# #
## #
### #
#
##
#
#
#
#
## #
# ## # ###
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
#
#
#
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
##
## ##
#
#
##
#
##
# #
#
#
#
##
#
## ####
# # #
###
#
# ##
#
# # #### #
#
# #
#
##
#
#
# ## #
#
#
## #
#
#
# #
#
# #
#
#
#
#
#
#
##
# #
#
#
#
# ##
#
# # ## #
##
##
#
#
#
#
#
#
#
#
#
#
#
#
#
##
#
###
#
##
#
#
# #
#
#
#
#
#
#
#
###
#
#
#
#
# ##
#
#
# #
#
#
#
#
#
# #
# #
#
# #
#
#
## #
#
##
##
#
#
##
#
#
#
#
#
#
#
# #
## #
#
###
##
##
#
#
# ##
#
#
#
#
#
# ##
#
# #
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#
# #
##### # ##
# ##
#
##
### # #
# ##
#
#
#
#
#
#
#
#
#
#
#
#
#
# #
##
#
#
#
#
## #
#
#
#
#
#
#
# #
#
#
### #
## #
# ##
#
#
#
#
#
#
#
#
##
# #
#
#
##
#
#
#
#
# #
# # #
#
#
# ##
###
#
# #
#
# ##
##
# ###
#
# ##
## # ## #
#
# #
#
#
# #
#
#
##
#
#
#
#
# #
## #
# ####
#
#
#
#
#
#
#
#
#
# ## #
#
#
#
#
##
#
#
#
#
##
#
#
#
## #
## # #
##
#
##
#
#
#
#
## #
#
#
## #
#
##
# # #
#
##
# #
# ## #
# #
##
#
#
#
#
#
##
#
# #
#
# #
#
#
#
#
###
#
# # #
#
# #
# # #
#
#
#
#
#
##
##
#
# ##
#
#
#
#
#
#
#
#
# ######## #
#
# #
#
# #
#
#
# ##
##
#
#
#
##
#
# # #
# ##
#
#
#
#
#
###
#
## ### ##
#
##
#
## #
#
#
#
#
#
#
# # #
## # ##
#
#
#
#
#
#
#
#
## # #
# #
##
#
#
#
#
#
#
#
#
#
#
#
## ## #
#
##
#
#
# # ##
##
#
#
#
#
###
#
## #
#
###
#
# ## #
#
## #
# #
##
#
#
###
##
#
# ## # #
#
##
#
##
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
# # ##
##
#
##
#
#
#
# #
#
#
# #
#
#
# # # # ## #
#
#
#
#
#
#
## # #
#
#
#
#
#
#
#
#
#
#
#
#
## #
#
#
#
# #
#
#
# ## #
##
## #
#
# #
#
#
#
#
#
#
#
#
#
#
#
# #
#
#
#
#
#
##
#
##
#
#
#
# #
#
#
# ##
#
#
#
##
##
#
#
#
##
## #
#
#
#
#
#
##
# ####
##
#
# # #
#
#
# # #
#
### #
#
# #
#
#
#
##
# # #
#
# #
#
#
#
#
# #
#
#
##
#
#
#
#
#
#
#
#
#
#
#
#
#
# #
##
#
# #
#
#
#
#
# #
#
#
#
#
#
###
#
#
# ##
#
#
#
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
#
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
###
# #
#
#
#
#
# #
#
##
#
#
#
#
#
##
#
#
#
#
##
#
#
#
#
#
#
#
#
#
#
#
#
#
#
## #
#
#
#
#
#
##
#
#
#
#
#
#
#
# #
#
#
#
#
#
##
#
#
#
# # #
#
#
#
#
#
#
#
#
#
#
#
#
## #
## #
#
#
## #
#
### # #
#
#
###
#
# # ##
# ##
##
##
#
#
#
#
#
#
Source: County Business Patterns, U.S. Census Bureau.
20
#
#
VIII. Resources
Secat, Inc.
Secat, www.secat.net, is a cooperative effort involving the aluminum industry, University
of Kentucky, Kentucky Cabinet for Economic Development, and the U.S. Department of
Energy. Secat is a for-profit business dedicated to facilitating research and development
of innovative technology, processes, and products for the aluminum industry. Secat was
formed in response to the megatrend of the disappearance of company sponsored research
and development facilities in the aluminum industry. Secat offers an alternative to
companies who want to embark on research efforts but lack the necessary resources.
Secat is located at the University of Kentucky Coldstream Research Campus, where it
provides the space, hardware, and support services for individual companies and
university researchers to work together on collaborative projects.
Secat fulfills its mission by performing several functions. It performs proprietary and
general research for individual companies, joint efforts by two or more companies, and
industry-wide research projects. Secat acts as a broker for aluminum companies
identifying research needs, coordinating funding for projects, and allocating the funding
to the lowest cost research provider. By working with universities and the Department of
Energy, Secat is able to provide aluminum companies access to the intellectual resources
at National and university laboratories. Because Secat recognizes the importance of
attracting and training students for science and engineering occupations, it aids the
education of multidisciplinary undergraduate, graduate, and postgraduate programs to
develop future leadership in aluminum technology.36
Center for Aluminum Technology (CAT)
The Center for Aluminum Technology (CAT) was established in 1999 within the College
of Engineering at the University of Kentucky. CAT is a multidisciplinary center
providing research and educational services to the aluminum industry. Aluminum
industry leaders, local officials, University of Kentucky, and the Kentucky Cabinet for
Economic Development collaborated to form the nation’s only aluminum research
laboratory supported by such a partnership.37
Center for Robotics and Manufacturing Systems
The Center for Robotics and Manufacturing Systems (CRMS) at the University of
Kentucky,www.crms.uky.edu/crms/index.htm, is renowned worldwide for its research,
education, and technical assistance in manufacturing. CRMS provides engineering
assistance to approximately 15,000 people in North America and Europe with its staff of
professional engineers with extensive industrial experience. CRMS also conducts
research on manufacturing systems, and it provides a wide range educational
opportunities for students and industrial professionals. CRMS has earned praise from
organizations, such as the Society of Manufacturing Engineers, in recent years for its
strong emphasis on manufacturing research and education.
Because of CRMS’ capabilities, Toyota Motor Manufacturing selected CRMS to develop
a working model of the Toyota Production System. CRMS’ efforts with Toyota resulted
21
in the Lean Manufacturing program, which is an integrated research, education, and
technology transfer effort. The CRMS Lean Manufacturing program has trained
thousands of people from hundreds of companies throughout the world on the concepts of
lean manufacturing. The Lean Manufacturing program includes courses for operating
managers and first-line supervisors, customized in-plant training, the International Lean
Manufacturing Conference, Lean Manufacturing Network (users group for groups
practicing lean manufacturing principles), and a simulation that demonstrates the effect of
lean manufacturing implementation.38
Bluegrass State Skills Corporation
The Bluegrass State Skills Corporation (BSSC), www.edc.state.ky.us/bssc, was
established in 1984 by the General Assembly as an independent, de jure corporation to
stimulate economic development through programs of skills training. BSSC provides
training grants for the training of workers of Kentucky’s new and expanding companies
and for skills and occupational upgrade training of workers of Kentucky’s existing
companies. BSSC acts as a broker by coordinating the resources of providers of skills
training and employment services. BSSC also administers any special State
appropriation for industry specific training. BSSC is attached to the Cabinet for
Economic Development for administrative purposes and in recognition of the relationship
between economic development and skills training efforts.39
22
X.
Aluminum-related Facilities in Kentucky
Locations of Aluminum-related Facilities
Covington
Hebron
#
S
#
S
Edgewood
Florence
S
##
S
#
S
Plants & Facilites: 141
Employment: 17,513
Foster
#
S
Carrollton
Prospect #S
Buckner
#
S
#
S
Paris
Crestwood Frankfort
#
S
#
S
#
S
Louisville
Shelbyville
Lexington
#
S
#
S
Lewisport
#
S
Henderson
#
S
Hawesville
#
S
Robards Owensboro
#
S
Clay
Madisonville
#
S
Harrodsburg Richmond
#
S
Lebanon
#
S
#
S
#
S
#
S
Ivel #S
Berea
#
S
Danville
#
S
Pikeville
#
S
Campbellsville
#
S
Morgantown
Greenville
#
S
#
S
Paducah
Princeton
Bowling
#
S
Calvert
West #S #S
#
Green
S
City
Paducah
#
S
Hopkinsville Russellville
South
#
S
#
#
S
S
#
S
Union
#
S
Benton
#
S Franklin
Elkton
Hickman
#
S
Hodgenville
Island
#
S
#
S
Coxs
Creek
#
S
#
S
Greensburg
Russell
Springs
Somerset
#
S
#
S
#
S
Glasgow
Manchester
#
S
#
S
London
Monticello
Albany
#
S
#
S
#
S
Murray
Kentucky Economic Development Information System
Map Date: Aug. 23, 2002
Facility Name
Albany
Thoroughbred Cruisers
Benton
Alcan Composites USA, Inc
Berea
Alcan Sheet Products
Bowling Green
Capitol Window & Door
Trace Die Cast, Inc*
Buckner
Superior Container Corp
Calvert City
CC Metals & Alloys, Inc
Campbellsville
Campbellsville Industries, Inc
Product Description
Aluminum hull houseboats
Employment
25
Composite aluminum, plastic foam panels &
sheets
184
Ingots & recycled aluminum cans
113
Vinyl replacement windows; aluminum storm
windows & doors
Aluminum die castings & secondary specialty
machining
Aluminum containers
14
235
10
Ferro alloys
175
Ornamental metal & aluminum fabricating;
steeples, cupolas, crosses, cornices, awnings,
columns, louvers, shutters, railings & balusters
125
* indicates aluminum-related companies that supply automobile manufacturing facilities.
23
Facility Name
Tec-Fab, Inc
Carrollton
Ameriform Manufacturing, Inc
Clay
Pride Industries Inc
Covington
AFCO Manufacturing, Inc*
Todd Engraving, Inc
Coxs Creek
A-1 Screw Machine Products, Inc
Henderson Aluminum Products
Crestwood
Columbia Metals Co.
Danville
Davco Steel
Edgewood
Summit Fire Apparatus, Inc*
Elkton
Elkton Die Casting Co
Florence
A O Smith Corp
England Schuster Designer Art
Foster
Riverton Machinery & Foundry
Frankfort
Sorg Cooling-Heating, Inc.
Franklin
Franklin Precision Industry*
Product Description
Custom sheet metal fabricating: bell towers,
church steeples, cupolas, cornices, crosses &
columns
Aluminum & plastic fabricating
Employment
323
150
Steel & aluminum standing seam roofing
18
Steel & aluminum fabricating: containers,
hoppers, dumps, bins, racks, shelving, drums,
barrels, pipe, tubes, rods, tote boxes & pans
Brass & aluminum engraving service;
electrical, magnetic, metal, wood & painted
signs
24
4
Plastic, steel, brass & aluminum screw
machine products
Aluminum car ports & awnings
5
Nonferrous metal processing & metal
recycling
9
1
Steel fabricating, metal building insulation &
engineered wood trusses
25
Aluminum & steel fabricating; welding & fire
truck bodies
22
Saw components; drill components; boat
motor components
Frits & protective coatings
Wooden, glass, plastic picture frames & wall
decorations
Aluminum foundry & steel molds
Custom sheet metal, steel, copper & aluminum
fabricating; heating & air conditioning
products; filters & filtration systems &
equipment
Assembly of automotive throttle bodies &
charcoal canisters, injection molding
24
110
36
12
6
18
370
Facility Name
M & M Manufacturing, Inc
Glasgow
J L French Automotives Castings
Corp*
J L French Automotives Castings
Corp*
Greensburg
Aluminum Fabricators, Inc
Greenville
Tube Works
Harrodsburg
Troyboy's, Inc
Hawesville
Alcoa Automotive Casting, Inc*
Century Aluminum of Kentucky*
Roll Coater, Inc
Southwire Co
Hebron
Architectural Products, Inc
Ellison Surface Technologies
Wagstaff, Inc*
Henderson
Accuride Corp*
Alcan Ingot
Audubon Metals, LLC*
Gibbs Die Casting Corp*
Hydro Aluminum Metal Products
(Norsk Hydro)
Sonoco
Tri-State, Inc
Hickman
Bermag Corp
Hodgenville
Eagle Thermoplastics, Inc
Hopkinsville
City Salvage & Recycling, Inc
CoPar, Inc
Island
Smelter Service Corporation
Product Description
Custom metal, aluminum & stainless steel
fabricating for water & sewer industries
Employment
7
Die cast aluminum automotive parts
336
Aluminum die cast automotive parts
409
Aluminum steeples, cupolas & architectural
metal products
21
Aluminum & steel tube fabricating
1
Custom powder coating service
3
Aluminum foundries
Aluminum castings, ingots, sows & smelting
Steel & aluminum coil painting & coating
service
Aluminum wire strand & rod wire
Aluminum products & extrusions
Aircraft engine part coating service
Custom aluminum molds & castings
650
836
120
214
12
60
30
Truck wheels & rims
Aluminum extrusions, billets & ingots
Aluminum smelting
Aluminum & magnesium die castings
Aluminum remelting
57
670
180
650
50
Aluminum & steel can ends
Plastic injection molding; zinc & aluminum
die casting
100
4
Precision aluminum castings
18
Aluminum, metal & thermoplastic laboratory
pans & liners
10
Scrap metal processing
Industrial aluminum radiators and oil coolers
7
116
Aluminum secondary smelting & recycling
25
20
Facility Name
Ivel
R & S Truck Body Co*
Lebanon
Angell Manufacturing Co*
Montebello Packaging, Inc
Lewisport
Commonwealth Aluminum Corp
McElroy Metal, Inc
Lexington
Dalessio Enterprises Inc. dba
Lexington Trophy Co
Grayhawk, LLC
Kentucky Ornamental Iron
Rogers Aluminum, Inc
London
Aisin Automotive Casting, LLC*
Jasper Iron & Metal Co, Inc
Product Description
Employment
Steel & aluminum fabricating; dump truck
bodies & trailers
114
Metal nameplates & plaques & aluminum trim
Collapsible aluminum tubes
150
67
Coils, aluminum tubing & flexible conduits
Steel & aluminum fabricating
806
17
Trophy & plaque assembling & engraving;
plastic & metal signs, silver & jewelry
engraving
Prefabricated exterior wall panels & light
gauge metal roof trusses
Architectural metal, brass, aluminum &
ornamental iron products, entrance gates,
railings & spiral staircases
Aluminum storm windows, doors & prime
replacement windows
5
Automotive aluminum die cast components
Scrap metal & iron processing, aluminum
smelting
Louisville
A-Line Tool & Die, Inc
Tool & die: plastic injection molds &
aluminum stamping dies
Alcan Aluminum Corp
Converted aluminum foil
Alcoa Heat Exchanger Products*
Aluminum heat exchanger tubing
Allied Aluminum Products, Inc
Aluminum storm windows & doors; jalousie,
sliding patio doors; awnings, carports, porch
enclosures & aluminum siding
American Brass & Aluminum Works Brass & aluminum casting
Arco Aluminum, Inc
Aluminum rolled sheet products for can
manufacturing industry
Beneke Wire Co*
Aluminum rod, bar & wire for cold heading
Building Materials Manufacturing
Aluminum & plastic building products, vinyl
& wood grilles & weather strips
C & R Graphic
Offset plates, negatives, industrial engravings
& photoengraving
Cardinal Aluminum Co
Machined aluminum parts, aluminum
extrusions & moldings; anodizing & metal
finishing
26
129
12
25
480
20
12
119
150
12
7
29
49
6
12
525
Facility Name
Cardinal Aluminum Company
Cardinal Aluminum Company
Chalmers Products, Inc
Commonwealth Industries, Inc
Conco, Inc
Conner Manufacturing Co, Inc
Custom Home Improvement Co
Dant Clayton Corp
Eckart America LP*
Economy Aluminum Products, Inc
Fabricated Metals, LLC
Fold-A-Way Corp*
Frank W Schaefer, Inc
Green Bull, Inc
J T Nelson Co, Inc
Louisville Ladder
Louisville Scrap Material Co
Nelson B Boone Co, Inc
OBPH Manufacturing Co, Inc
Performance Powders, LLC
Pohl Iron & Wire Works, Inc
Portland Recycling, Inc
Premium Foil Products Co
Progress Rail Services*
Reynolds Metals Co
River City Machine & Tool, Inc
River Metals Recycling, LLC
Sheet Metal Engineering &
Manufacturing
Product Description
Picture frame molding & aluminum extruded
products
Picture frame molding & extruded aluminum
products
Aluminum hinges, coupler valves, pneumatic
retractor clamps
Rolled & bare coated aluminum
Metal fabricated ammunition containers &
boxes
Spiral pipe & aluminum gutters
Aluminum storm windows & doors
Aluminum stadium bleachers
Metallic aluminum paint pigments, powders &
granules
Aluminum windows, window screens, and
screened enclosures
Custom fabrication; railroad and mass transit
cabinets and houses
Aluminum sand castings; aluminum & nylon
fold-away bumper steps for vans & RV's
Aluminum melting furnaces
Industrial aluminum, fiberglass & wooden
ladders
Aluminum window sash & steel equipment for
railroad cars
Fiberglass, wood, aluminum & steel ladders,
scaffolds & parts
Scrap metal recycling
Aluminum & brass promotional products
Aluminum boat steps
Powder coatings
Steel, stainless steel & aluminum fabricating;
iron railings & fences
Scrap metal recycling & processing
Aluminum foil containers
Railroad freight car wheels
Aluminum foil
Steel & aluminum fabricating, general
machining, drilling, boring, cutting, honing,
arc & gas welding, surface grinding, lathe &
mill work
Scrap metal processing, recycle metal.
Dust collecting & air ventilation systems;
steel, stainless steel & aluminum fabricating
27
Employment
350
250
10
81
111
21
8
190
125
8
99
8
9
100
35
200
1000
70
10
15
8
9
19
50
500
15
156
9
Facility Name
Stiglitz Corp
Syltone Industries, Inc
Sypris Technologies, Inc*
Thermoflex, Inc
Truecast Precision Casting, LLC
Utility Metals
Madisonville
Electro Cycle, Inc
Gemtron Corporation
Manchester
Denny Beckner & Co
Mid-South Electronics, Inc
Monticello
Stardust Cruisers, Inc
Sunstar Houseboats, Inc
Morgantown
IMCO Recycling, Inc
Mt. Sterling
Snap-Lok, Inc
Murray
Southern Sheet Metal, Inc
Owensboro
Apollo Replacement Windows
Dahl & Groezinger, Inc
Lloyd's Mechanical & Engineering,
Inc
Sun Windows, Inc
West Irving Die Casting Co*
Paducah
Choice Products, Inc
JMS, Inc
Paris
CMC/CLA*
Pikeville
Benson Manufacturing
Product Description
Metal stampings; sheet metal fabricating &
powder coating service
Couplers and valves for dry materials.
Custom forgings
Industrial coatings & finishes
Alloy, aluminum, brass, stainless steel,
investment, steel, nonferrous & precision
castings & tooling molds
Steel & aluminum fabricating: lighting area
poles & mast arms
Employment
85
32
225
3
19
71
Aluminum recycling
Manufacturing of appliance components
41
15
Scrap metal processing & recycling
Powder coatings & mechanical assembly
11
90
110
35
Aluminum recycling
180
Aluminum wire ties
8
Aluminum & vinyl gutters, roof flashing, sheet
metal products
8
Wood aluminum clad windows and doors;
vinyl windows
Scrap iron, ferrous & nonferrous metal
processing
Steel, aluminum & stainless steel fabricating,
mechanical contractors
Aluminum & wooden windows
Aluminum die castings for appliance,
automotive & tool industries
95
15
22
50
100
Plastic & aluminum rakes & bag holders
Metal processing
2
20
Steel and aluminum wheels
90
Aluminum trailers
38
28
Facility Name
Princeton
Fontaine Trailer Co*
Special Metals Corp
Prospect
Pluckebaum Custom Boats, Inc
Richmond
National Metal Processing, Inc
Robards
K B Alloys, Inc*
Russell Springs
Star Tech Manufacturing, Inc
Russellville
Invensys Precision Die Casting*
Logan Aluminum, Inc
Shelbyville
Budd Co*
Industrial Powder Coatings, Inc*
Ohio Valley Aluminum Co, Inc
Revere Packaging, LLC
Reynolds Aluminum Supply Co
Somerset
Hayes Lemmerz International, Inc*
Sharpe Marine, Inc
Sumerset Custom Houseboats
South Union
Precision Strip, Inc
Totz
Cumberland Mine Service, Inc
West Paducah
Jones Steel, Inc
Product Description
Employment
Steel and aluminum flatbed trailers and drop
deck semi trailers
Metal powder & nickel base metal alloy billets
62
Yachts, aluminum houseboats & motorboats
20
Laser heat & vacuum treating, gas welding,
induction & flame processing, carburizing &
carbon nitriding. Commercial heat
treating/laser welding. Vacuum heat treat, ind
27
Aluminum base & metal alloys, aluminum
based master alloys
55
Steel & aluminum carports & utility buildings
75
5
Aluminum die castings & gas fitting regulators
Aluminum rolled sheet stock
250
1,100
Automobile parts stamping
Powder coating service for automotive parts
Aluminum billets, ingots & extrusions
Aluminum foil containers & plastic dome food
covers
Aluminum & stainless steel processing
935
74
75
65
Aluminum automobile wheels
Aluminum & luxury houseboats
174
85
172
52
Steel, aluminum & copper processing &
slitting service
92
Metal fabricating; custom ceramic & abrasion
resistant coating service; ceramic liners
20
Scrap metal processing
29
3
Endnotes
1
Feser, Edward J. and Jun Koo. “Kentucky Clusters: Industrial Interdependence and Economic Competitiveness.”
Kentucky Science and Technology Corporation.
2
3
U.S. Geological Survey Minerals Yearbook:2000.
4
Burns, Adam. “Shiny Happy People.” The Lane Report. August 2001:34-37.
5
6
Burns.
7
Aluminum Industry Vision: Sustainable Solutions for a Dynamic World. Aluminum Association, 2001.
8
U.S. Department of Energy, Energy Information Administration.
9
Ducker Research. 2002 North American Light Vehicle Aluminum Content Study. Report sponsored by the
Aluminum Association.
10
Automotive News, http://www.autonews.com/.
11
Calculations made from Gross State Product and Wage & Salary Disbursement data from U.S. Bureau of
Economic Analysis.
12
13
Workforce Development Cabinet, Department for Employment Services; U.S. Bureau of Labor Statistics.
14
15
Workforce Development Cabinet, Department for Employment Services; Kentucky Revenue Cabinet.
16
Regional Financial Associates. North American Business Cost Review. November 2001.
17
“Industries of the Future--Aluminum.” Office of Industrial Technologies, U.S. Department of Energy.
http://www.ornl.gov/ORNL/Energy_Eff/Aluminum-IOF.htm
18
Ibid.
19
U.S. Department of Energy, Energy Information Administration. http://www.eia.doe.gov.
20
Regional Financial Associates. North American Business Cost Review. November 2001.
21
“Workers Compensation State Rankings: Manufacturing Industry Costs and Statutory Benefit Provisions”,
Actuarial & Technical Solutions, Inc, 2001.
22
Calculations made from Gross State Product and Wage & Salary Disbursement data from U.S. Bureau of
Economic Analysis.
23
Automotive News, http://www.autonews.com/.
24
Ducker Research. 2002 North American Light Vehicle Aluminum Content Study. Report sponsored by the
25
Jackson, Les. “Aluminum’s Qualities Make for Safer, Lighter Vehicles of Future.” The Washington Times.
www.autoaluminum.org/washtime.htm; Aluminum Association.
26
27
Wrigley, Al. “Aluminum Revs Up for More Automotive Industry Gains.” American Metal Market. 2001.
28
29
County Business Patterns. U.S. Census Bureau.
30
County Business Patterns. U.S. Census Bureau.
31
Hartgen, David T., Ph.D., P.E., TEA-21 at Midpoint: Comparative Performance of State Highway Systems, 19842000, University of North Carolina at Charlotte, February 6, 2002.
32
Expansion Management. September 2001.
33
The Lane Report, August 2002.
34
International Air Transport Association.
35
Federal Aviation Administration, www.faa.gov.
36
Secat, Inc. www.secat.net.
37
Center for Aluminum Teachnology.
38
Center for Robotics and Manufacturing Systems, College of Engineering, University of Kentucky,
www.crms.uky.edu/crms/index.htm.
39
Bluegrass State Skills Corporation, Kentucky Cabinet for Economic Development. www.edc.state.ky.us/bssc.
30

Aluminum Industry in Kentucky - Think Kentucky | Cabinet for

Transcription

Similar documents

investors presentation – q2 2015

Diverge

Bending Brakes FAQ - Van Mark Products

classic service van for ford transit

Phoenix™ - Indiana Furniture

Snowmobile Trailers

Print Article

SNOPRO TRAILERS [BRAND CATALOG] 2013

Gage 78 Earth Metal™ Dimensional Surfacing

SureCrimp Compression Brochure