The UK aluminium industry plays a pivotal role in the nation’s manufacturing sector and broader
economy. As the UK shifts towards a more sustainable and circular economy, the strategic value of
aluminium is expected to grow, owing to its diverse applications and recyclability.
In this third instalment of our UK aluminium industry report, we offer an updated analysis of the
sector’s economic contribution, building on our previous reports from 2021 and 2022.
Throughout this report, we continue to use our definition of the wider aluminium industry and to include
separate estimates of the aluminium production sector (SIC24.42).
Modelled economic impact estimates
This report finds that:
■ The wider aluminium industry supports the employment of 108,000 FTE jobs across the UK
and the contribution of £9.4 billion in GVA to the UK economy.
■ The aluminium production sector supports the employment of 16,500 FTE jobs across the UK
and the contribution of £1.9 billion in GVA to the UK economy.
Manifesto analysis
This report features a novel section which combines publicly available data and findings from our
own ALFED members survey to provide the economic context to ALFED’s UK Aluminium Manifesto
2024.
Our analysis finds that:
■ The wider aluminium industry, including the aluminium production sector, supports
employment beyond high GVA areas, helping to distribute economic activity more evenly
across the UK. This is crucial for enhancing productivity and competitiveness across all UK
regions.
■ The aluminium production sector has seen an 88% reduction in GHG emissions since 2005
and an 8% reduction since 2015.
■ Members highlighted the delivery of long-term economic growth and stability as a critical
priority for the new government.
■ On a firm-by-firm basis, members emphasised the importance of teamwork, collaboration,
problem-solving, and critical thinking as key skills for applicants. Interestingly, when asked
about the skills needed for the industry in the future, technical skills were anticipated to be
the most in demand.
Although this survey provides only a snapshot of member sentiment, it serves as a strong foundation
for assessing the direction of the economy and industry in the coming years.
The report was produced in partnership with the Aluminium Federation (ALFED).
Authors
Joshua Spencer
Joshua worked with the Fraser of Allander Institute on the Aluminium Industry in the UK report as part of the Economic Futures summer placements 2024. Joshua received a First-Class Honours undergraduate degree from the University of Strathclyde in Economics.
Jack is an associate economist at the Fraser of Allander Institute.