This is a bit of confused remark. "Normalization" means applying some constant gain factor to the signal so that the loudest level is 0dBFS. Compression applies a varying gain factor to the signal to meet some parameters. Normalizing audio will generally make it louder (unless the loudest level is already at 0dBFS), but it does not change the dynamic range of the signal. The "loudness wars" were all about using compression, and this does change the dynamic range of the signal (you end up with less difference between the quietest and loudest parts of the signal - hence the term compression).
You can still "sound louder" by using compression, even if the peak volume is still 0dBFS.