I remember years ago, implementing a process control system at Reynolds's Aluminum back when we had about 5 Aluminum smelters along the Columbia River. The process control system helped save big costs in Electricity needed in the smelting process. But not long after, BPA raised the rates. Then did it again, no more smelters. Not at all sure what tariffs are going to do to fix that issue. But it will be interesting to see where we go. I bet it will be something else that actually gets fixed.
I never did understand why we gave that business away as a Nation. Aluminum I mean. Our own government ran them out of business. It was the rate hikes by the BPA under Clinton that drove the final nail. Rate hikes for shipping on the Columbia too were really painful. Wheat down the river, fertilizer up the river all took a huge hit. Fertilizer dang near doubled over in the inland area. All due rate hike to the shipping by our government.
Man it would be funny if we had a giant infrastructure project, which included massive amount of cheap power. So we could again have the lowest cost Aluminum and even Electric Steel! Like the foundry Portland had at one time that was the master at producing Nuclear power plant parts. Then we wouldn't need tariffs. But Trump isn't smart enough to do anything like on that nature.
Amazon, Apple, and Google have all located large server farms here because of low price electricity. I'm not sure if an increase in electricity rates is what hurt the aluminum industry.
Yeah, I suppose it is logical. The salient cost of production increasing should not be a factor. The previous projects to automate the process were just intellectual exorcises for giggles. Just to see if the massive electricity costs could be reduced. At one plant, can't remember which now, we reduce the power cost to just about half, But the BPA just ate it with rate increases. Well I suppose you have another reason. Other than productions costs plus a profit, exceeding sales revenue.
Nah, those were just more outdated jobs that we sent out of the country because we could. We had to if we had any chance of staffing all the Starbucks and Walmarts we have. Thanks to Clinton and the Bush "Republicans" as they called themselves. Good thing too because it was cool as shit seeing those Chinese built bridge pieces floated all the way to San Fran sicko. Haven't seen a story lately describing how bad that bridge is falling apart. I'll go look now.
https://www.google.com/amp/s/www.me...-but-questions-remain-about-subpar-steel/amp/ Didn't read yet, newest story I found.
To be more accurate, at least in Beautiful Central Oregon, they relocate here due to the average climate which provides enough natural cooling that they don't need as much electricity. They still burn a humongous amount of electricity, but they bribe local government to give them a "deal" which means residential users pay the bulk of the costs through their monthly electric bill. Same with the property tax breaks they all get, passed on to residential owners. As a Realtor, I am ethically required to inform clients wishing to live in Prineville for example, their electricity cost will become ridiculous over the next decade.
