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Significant Savings in Aluminum Conduit
Summary

The rigid metal conduit market in North America represents a $320 million industry closely tied
to the non-residential market. Although rigid aluminum accounts for just 15 percent of the
current conduit market, recent studies speculate rigid aluminum conduit should grow
significantly to reach $160 million by 2020.

New research shows a cost-savings benefit for contractors who switch to rigid aluminum conduit
from rigid steel conduit. Not only can rigid aluminum conduit save contractors and engineering
firms up to 17 percent on usage costs, rigid aluminum conduit meets or exceeds all UL6 and
National Electrical Code standards, performing as well or better than steel.

These statistics are the result of a comprehensive study undertaken in 2012 to examine the North
American electrical conduit market, comparing steel and aluminum material systems. The study
was conducted by IBIS Associates, an independent strategic consulting company focused on
quantitative analyses of competitive economics and business development issues for the
materials and manufacturing technologies.

One of the main objectives of the study was to create a snapshot of the rigid metal conduit
market landscape in terms of product, materials, sizes, end-use industries and suppliers. The
results highlight some of the obstacles facing wider adoption of rigid aluminum conduit, and
help to explain part of the reason the industry has been slow to recognize the obvious benefits
associated with rigid aluminum conduit.

Among these obstacles includes a lack of incentive to change. Electrical conduit represents only
a small piece of construction supplies particularly compared to conductors themselves and
other electrical componentsand is therefore not a big-ticket item when contractors go to fill
specification orders, which doesn't give much reason for suppliers to stock large amounts.
Additionally, many designers and engineers have greater familiarity of, and more experience
with, galvanized steel electrical conduit, leading to a natural default to this material. Lastly, the
perception of rigid aluminum conduit as a more expensive material prevents greater use of rigid
aluminum conduit within the electrical conduit industry.

The study also highlights multiple market factors and identifies several market trends connected
to areas of opportunity. Because the growth of the electrical conduit market is tied so closely to
the non-residential industry, increased capital investment in this industry has sparked an increase
in conduit usage. And while certain types of conduit are surging ahead to take advantage of this
demand, others are losing ground.


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Accounting for these obstacles and market trends, this study proves there is a clear case for rigid
aluminum conduit as a more cost-effective and better quality material compared to rigid steel
conduit.


Advantages of Aluminum Conduit

Cost Savings

As part of this study, the costs for purchasing and installing various types, sizes and materials of
conduit were collected and compared. The IBIS investigators gathered data from conduit
manufacturers, suppliers, equipment representatives, distributors, engineers and contractors, as
well as government agencies, trade groups and publications.

Their results show that rigid aluminum conduit consistently ranked among the most cost-
effective materials in terms of raw material and total installation costs, especially when
compared to rigid steel conduit, as demonstrated in Figure 1.

Figure 1: Conduit & Install Total Cost


In a sense, the increase in savings seems to parallel the increase in size of the diameter tube
being used, with cost advantages more apparent on large projects and for conduit with large
diameters (greater than 3), as shown in Figure 2.

TotalcondGRCSteel IMCSteel
1/2" 0.50 $231.64 $224.36
3/4" 0.75 $268.44 $252.07
1" 1.00 $355.15 $338.09
11/4" 1.25 $486.33 $469.65
11/2" 1.50 $561.84 $536.62
2" 2.00 $710.30 $676.17
21/2" 2.50 $967.56 $932.68
3" 3.00 $1,224.82 $1,189.19
31/2" 3.50 $1,418.08 $1,381.95
4" 4.00 $1,643.34 $1,607.01
5" 5.00 $2,927.75
6" 6.00 $3,922.90
Aluminum PVCCoatedPVCcoatedAl PVCsch40 PVCsch80
$212.02 $415.84 $339.34 $114.19 $154.96
$249.86 $491.47 $404.49 $122.90 $174.18
$316.16 $632.41 $485.42 $138.14 $201.38
$420.18 $804.67 $593.44 $149.38 $249.87
$505.85 $979.93 $754.74 $156.33 $290.37
$647.62 $1,234.19 $955.51 $173.92 $346.83
$910.76 $1,719.45 $1,338.65 $282.39 $467.74
$1,158.60 $2,114.71 $1,616.49 $255.36 $582.72
$1,378.90 $2,519.97 $1,976.79 $268.09 $691.96
$1,613.48 $2,945.23 $2,321.37 $280.81 $801.20
$2,223.40 $4,785.75 $2,991.29 $364.78 $1,110.11
$2,876.15 $435.45 $1,495.19

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Figure 2: Cost Comparison by Conduit Diameter

The IBIS study points out there can be some confusion, in that all these products are rigid as
opposed to flexible; when the industry speaks of Rigid, it is usually referring to the thickest
category of GRC and Aluminum, providing the greatest level of protection for wiring and cable.
Within these specific projects, the use of rigid aluminum conduit is referred to as UL6 and
UL6-A.

Additionally, as part of the study, equipment representatives and distributors were interviewed
and questioned about the conduit sales by size for four projects that were conducted where rigid
aluminum conduit was used in place of GRC. These projects were analyzed by comparing the
costs of conduit purchase, installation, combined purchase and installation, and the amount saved
by aluminum usage. Not only do material costs weigh heavily in rigid aluminum conduit's favor,
but due to its light weight, rigid aluminum conduit is easier to transport and also faster to install,
representing cost savings in terms of shipping and labor.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
1/2 3/4 1 11/4 11/2 2 21/2 3 31/2 4 5 6
C
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P
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(
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)
ConduitDiameter(inches)
InstalledCostbyDiameter
Steel
Aluminum
Electrical contractors are required to take precautions when it comes to
lifting heavy materials. The weight of the (aluminum) conduit saves back
and arms during the installation phase of the project. What would normally
take two people with rigid steel conduit takes one with aluminum conduit.
Aaron Littlepage, Construction Services Consultant and former J ourneyman Electrician
Wylie Associates Inc., Houston TX

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The results indicate a clear cost-savings in each case, with rigid aluminum conduit saving an
average of $6,100 or 8.5 percent for the two mid-scale projects, and an average of $141,500 or
about 13 percent for the two large-scale projects.


Better Performance and Adaptability

Cost, however, is not the only advantage rigid aluminum conduit has over rigid steel conduit.
Rigid aluminum conduit also performs better in the field and has superior durability; it resists
corrosion and will not rust or discolor, even after extended outdoor exposure, minimizing the
dangerous conditions that arise when steel rusts out. This is particularly important in outdoor
installations, such as bridges, tunnels, parking garages and other outdoor construction areas
involving infrastructure.

Another proof point indicating better performance is that rigid aluminum conduit is nonmagnetic
and does not spark, eliminating the risk of explosion from a spark or fire, which is particularly
important in refineries, waste water treatment facilities, coal mines and grain elevators. While
some of the advantages of using rigid aluminum conduit can be quantified, the health and safety
of workers during the installation process is invaluable.


Furthermore, because rigid aluminum conduit is produced as a single pipe, there is no welded
seam as there is with rigid steel conduit, which can fail or snag wires during installation. Rigid
aluminum conduit can also be easily bended and threadedequal to, or more easily than rigid
steel conduitrepresenting an easier pull-through and faster installation. (See Figures 3 and 4.)

Figure 3: Bent Rigid Aluminum Conduit Figure 4: Installed Rigid Aluminum Conduit







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Finally, rigid aluminum conduit is a far more sustainable material than rigid steel conduit.
On projects where there is demolition or reconstruction, any existing rigid aluminum conduit can
be recycled, representing a true beginning-to-end cost savings advantage. In fact, a 2004 study
conducted by the Delft University of Technology found that 95 percent of aluminum used in
building and construction is recycled at the structures end-of-life. When aluminum is re-melted,
it doesnt omit toxins or poisonous gasses during the process. Not only is aluminum a more
green material, it can be used to earn LEED points.



Future of Aluminum Conduit

Because of its flexibility and sustainability, there are multiple uses for rigid aluminum conduit.
One area identified in the IBIS study that is quickly growing is the EMT market. While EMT is
used primarily in light weight commercial construction applications, it has been experiencing a
similar shift in the electrical conduit market, converting more contractors, designers and
engineers from rigid steel conduit.

Despite the many advantages of rigid aluminum conduit, it is currently not the material most
commonly sought after within the electrical conduit market. The results of this study are
optimistic, however, and suggest a surge toward rigid aluminum conduit as the preferred choice
among contractors, designers and engineers. Conclusively, the biggest source of competition
facing rigid aluminum conduit is perception, not fact.