Alcoa (NYSE:AA) is setting up to become one of the decent stocks when it comes to the aluminum industry. The company had a great year, returning to its orthodox best position after a couple of years of decline. This highlights the company’s ability to revitalize itself when the change is required. Having said that the company would have to face big obstacles in the coming years for sure. These obstacles can reduce the intensity of the company’s success march.

Ford (NYSE:F) will start producing the F-150 aluminum body trucks from next year. The total weight covered by the aluminum is 700 pounds out of the whole weight. The aluminum helps in fuel efficiency without disregarding performance. Since fuel efficiency standards are quite high these days, this could be the big ticket aluminum producers were waiting for. Alcoa (NYSE:AA) will be hoping that these trucks become an overnight market sensation because if that happens, Alcoa (NYSE:AA)’s future will start to brighten up.

Not only will aluminum be good for automakers but it will also help the aluminum providers for the long run. More than 225,000 potential customers will receive updates on these trucks so those who’re concerned whether the light weight of the truck would be a problem, they’ve got another thing coming. If these trucks become successful, the aluminum demand will increase. Auto makers will want consignments pouring in. In that case Alcoa (NYSE:AA) will face tough competition from the rivals.

It also might experience difficulty in meeting the demands of the customers, especially automakers. There is hope that the company will boost its sales by 25 percent in the next year but there’s still doubt over the fact whether Alcoa (NYSE:AA) is good for a big consignment; does it have the supplies? Will it fold under pressure? And even if it does manage to meet the expectations, how will it sustain the growth rate? Aluminum recycling is also a cumbersome task.

But the good thing about aluminum is that it can be recycled and reused. So perhaps Alcoa (NYSE:AA) can resell the recycled aluminum to companies like Pepsi and Coca Cola to make cans etc. Aluminum is replacing steel rapidly in the market; it is only a matter of time that customer preference will soon change because of light weightiness of aluminum and the efficiency it brings. Yes, people are still dubious and reluctant to use aluminum because the steel industry has been around for a long time and used in many things which have now become conventionally associated with steel for example automobiles etc.

If Ford (NYSE:F) gets good reviews on its aluminum trucks, it will mark the start of the aluminum era from which there will be no looking back. As far as Alcoa is concerned, it will be banking its hopes on the expected aluminum boom. Once that happens, business for Alcoa will flourish. Otherwise Alcoa will have to work harder than usual to sustain its sales and generate profits for the long run.

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