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 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
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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 - Starting a New Business Chapter

    Barriers to entry into the Recyclable Material Wholesaling industry are moderate. Start-up costs for wholesaling companies typically include purchasing trucks, constructing distribution facilities and hiring salespeople to work directly with clients. These initial expenses may deter some operators from entering the market. Industry operators also require access to substantial quantities of scrap metal and other recyclable materials, which requires setting up contracts with recycling facilities (IBISWorld report 56292) and other upstream material suppliers. Additionally, the cost of competing with companies that are significantly entrenched in downstream markets may deter some potential operators from entering the industry. Bui...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 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.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Recyclable Material Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Recyclable Material Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • 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

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Recyclable Material Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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