Scrap heap: Competing materials and declining foreign manufacturing has plagued wholesalers

The Recyclable Material Wholesaling industry has struggled over the five years to 2017. During this period, industry operators have grappled with both waning demand from manufacturers and the plummeting prices of substitute goods. Specifically, the domestic manufacturing and construction sectors have increased purchases of new steel and plastic materials, thereby reducing demand for postconsumer and recyclable materials. Moving forward, the success of the industry will depend on both the strength of downstream manufacturing industries and the relative costs of competing input materials. China and other growing manufacturing economies are expected to remain vital markets for industry products, though concerns surround China's ability to maintain its recent trend of massive GDP growth...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Slower Chinese manufacturing growth will likely preclude the very high industry revenue growth rates
  • Rising competition from virgin metals has forced several larger players to reduce the scale of their operations
  • The rising price of steel will constitute a significant cost increase for global manufacturers
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2017, the Recyclable Material Wholesaling industry has suffered from declining demand for scrap materials from major manufacturing destinations, with slowing manufacturing growth abroad contributing to steady reductions in shipments of recyclable metals, paperboard, plastics and resin. Additionally, since the industry sells recyclable materials as cost-effective substitutes for virgin metal and oil-based inputs, the declining prices of competing products have placed significant downward pressure on industry wholesalers. Overall, industry revenue is estimated to decline at an annualized rate of 3.7% to $86.3 billion over the five years to 2017, including projected growth of 2.7% in 2017...purchase to read more.

    Additional Insights for the Recyclable Material Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Recyclable Material Wholesaling Industry are

  • Establishment of export markets
  • Effective quality control
  • Having an extensive distribution/collection network
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Price of plastic materials and resin in the Recyclable Material Wholesaling industry impact industry performance..

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    What's in this report

    What is the Recyclable Material Wholesaling Industry?

    This industry wholesales automotive scrap, industrial scrap and other recyclable materials, such as waste paper, glass and plastic. Industry establishments include auto wreckers that dismantle motor vehicles to wholesale salvaged scrap material. Also included are establishments that break up, sort and wholesale all forms of scrap iron and steel using power-processing equipment.

    Industry Products
  • Ferrous scrap metal
  • Nonferrous scrap metal
  • Recyclable paper and paperboard
  • Industry Activities
  • Waste bottle wholesaling
  • Waste box wholesaling
  • General line scrap wholesaling
  • Glass scrap wholesaling
  • Metal scrap wholesaling
  • Oil scrap wholesaling
  • Paper scrap wholesaling
  • Plastic scrap wholesaling
  • Textile waste wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Price of plastic materials and resin
  • World price of steel
  • World price of crude oil
  • Consumer spending

  • Current Performance
  • Declining demand
  • Growth strategies
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive pricing
  • Rising downstream demand
  • Uncertainty in China
  • Expanding use of EAF
  • Table: Recyclable Material Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Recyclable Material Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Paper Mills
  • Iron & Steel Manufacturing
  • Nonferrous Metal Refining
  • Nonferrous Metal Rolling & Alloying
  • Ferrous Metal Foundry Products
  • Nonferrous Metal Foundry Products Manufacturing

  • Key Selling Industries
  • Ferrous Metal Foundry Products
  • Nonferrous Metal Foundry Products Manufacturing
  • Recycling Facilities
  • Waste Collection Services
  • Wired Telecommunications Carriers

  • Products & Services
  • Ferrous scrap metal
  • Nonferrous scrap metal
  • Other
  • Recyclable paper and paperboard
  • Chart: Recyclable Material Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Manufacturers
  • Other wholesalers
  • Other markets
  • Chart: Major Market Segmentation for the Recyclable Material Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Recyclable Material Wholesaling

  • Basis of Competition
    Internal CompetitionExternal Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Recyclable Material Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Recyclable Material Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Recyclable Material Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Industrial Production Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Electric Arc Furnaces (Eaf)
  • Furnaces that harness intense electrical discharges to melt scrap metal and produce steel.
  • Ferrous Metal
  • Metal that contains iron, most commonly refers to steel.
  • Landfill Tipping Fee
  • A fee levied on a quantity of waste deposited at a landfill. Also known as a gate fee.
  • Metallurgical Coal
  • Coal that is used in blast furnaces to manufacture steel.
  • Nonferrous Metal
  • Metal that does not contain significant quantities of iron.
  • Scrap
  • Recyclable used materials such as vehicle parts, building materials and used packaging. Often confused with waste, scrap has monetary value and can be reprocessed into new material.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Recyclable Material Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

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