Scrap Metal Recycling in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS OD5391Revenue
$42.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
48,988
Businesses
591
Wages
$X.Xbn
Scrap Metal Recycling in the US industry analysis
Scrap metal recycling operators continue to endure high volatility amid uncertain economic conditions and uneven client demand. Weakened demand and oversupply in world markets have pushed metal prices down, while elevated inflation dampened many construction and manufacturing clients' fiscal flexibility. Supply chain industries like metal scrap recyclers have been forced to drop their selling prices, slashing revenue. Nonetheless, a sharp spike in commodity prices coupled with faster-than-expected economic recovery following the pandemic caused revenue to grow at a CAGR of 1.2% to an estimated $35.2 billion over the past few years. This includes an estimated 2.1% decrease in 2024, while profit is anticipated to slip to an estimated 2.7%.
Trends and Insights
- Scrap metal recycling facilities have faced notable losses in recent years due to high commodity price volatility and inflation. The cyclical nature of metal prices, particularly steel, aluminum and copper, has led to volatile values, devaluing inventory and harming revenue.
- Recycled scrap metal demand is heavily influenced by economic conditions. High inflation caused metal prices to fluctuate sharply, significantly reducing revenue for recycling facilities in recent years.
- Scrap metal recycling facilities position themselves near core clients to cut transportation costs and lead time. Urban regions in states like New York and California, driven by increased affluence and shifting consumption patterns, produce more waste per capita, boosting facilities' demand.
- Scrap metal recycling facilities compete on numerous customer and production factors, such as quality, reliability, technology and price. Servicers aim to gain an edge by producing quality products through cost-effective manufacturing strategies and prioritize excellent customer service for their clients.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 4.3 % over the past five years, to reach an estimated $42.3bn in 2024.
Trends and Insights
Economic volatility led to plummeting demand from the manufacturing sector
- With imposed lockdowns and restrictions on movement during the pandemic, many factories had to shut down or operate at reduced capacity. This disruption in production led to a dip in demand for raw materials and components.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Recycling will likely boom as the economy continues to stabilize
- As the economy continues to stabilize following a period of high inflation and volatile commodity prices, many companies in the US are likely to experience increased profitability and expansion of their operations. This will contribute to a higher demand for raw materials, including metals, in the nonresidential sector.
Biggest companies in the Scrap Metal Recycling in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Sims Metal Management Ltd | 3,025.6 | 156.2 | 5.2 | |
Commercial Metals Company | 1,103.1 | 117.3 | 10.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Iron and steel scrap recycling, Aluminum scrap recycling and Copper scrap recycling. Iron and steel scrap recycling is the largest segment of the Scrap Metal Recycling in the US.
Trends and Insights
Iron and steel scrap recycling takes the lead
- Steel scrap primary sources include cars, structural steel, appliances, reinforcement steel and steel cans.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Iron & Steel Manufacturing in the US
- Aluminum Manufacturing in the US
- Nonferrous Metal Refining in the US
- Nonferrous Metal Rolling & Alloying in the US
- Nonferrous Metal Foundry Products Manufacturing in the US
- Recyclable Material Wholesaling in the US
International industries
- Recycling Facilities in Canada
- Waste Remediation and Materials Recovery Services in Australia
- Waste Remediation and Materials Recovery Services in New Zealand
- Sorted Material Recovery in the UK
- Sorted Material Recovery in Ireland
Table of Contents
About this industry
Industry definition
Scrap metal recycling facilities collect, process and recycle ferrous metals like iron and steel and nonferrous metals, including aluminum, copper and nickel. Recycling involves sorting, shearing, shredding, torching and baling scrap metal before selling it to downstream metal smelters for further processing.
What's included in this industry?
Aluminum scrap recyclingIron and steel scrap recyclingCopper scrap recyclingLead scrap recyclingOther nonferrous metal scrap recyclingCompanies
Sims Metal Management LtdCommercial Metals CompanyPurchase this report to view all 2 major companies in this industry.
Related Terms
NONFERROUS METALFERROUS METALSMELTIndustry Code
NAICS 56292 - Scrap Metal Recycling in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Scrap metal recycling facilities have faced notable losses in recent years due to high commodity price volatility and inflation. The cyclical nature of metal prices, particul...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Recycled scrap metal demand is heavily influenced by economic conditions. High inflation caused metal prices to fluctuate sharply, significantly reducing revenue for recyclin...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Scrap metal recycling facilities position themselves near core clients to cut transportation costs and lead time. Urban regions in states like New York and California, driven...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Scrap metal recycling facilities compete on numerous customer and production factors, such as quality, reliability, technology and price. Servicers aim to gain an edge by pro...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No single scrap metal recycling company holds at least 5.0% market share. There is considerable fragmentation, with most servicers consisting of small-scale and independently...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Sims Metal Management Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Commercial Metals Company's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Sims Metal Management Ltd, and factors influencing its performance in the industry
- Description and key data for Commercial Metals Company, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Servicers must follow federal, state and local environmental laws to ensure they can function effectively. Scrap metal recycling firms are required to acquire necessary permi...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Most servicers rely on physical labor to ensure successful metal processing. However, post-collection processes continue to embrace automation, which helps lower wage costs a...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Scrap Metal Recycling in the US industry in United States in 2024?
The market size of the Scrap Metal Recycling in the US industry in United States is $42.3bn in 2024.
How many businesses are there in the Scrap Metal Recycling in the US industry in 2024?
There are 591 businesses in the Scrap Metal Recycling in the US industry in United States, which has grown at a CAGR of 1.8 % between 2019 and 2024.
Has the Scrap Metal Recycling in the US industry in United States grown or declined over the past 5 years?
The market size of the Scrap Metal Recycling in the US industry in United States has been growing at a CAGR of 4.3 % between 2019 and 2024.
What is the forecast growth of the Scrap Metal Recycling in the US industry in United States over the next 5 years?
Over the next five years, the Scrap Metal Recycling in the US industry in United States is expected to grow.
What are the biggest companies in the Scrap Metal Recycling in the US market in United States?
The biggest companies operating in the Scrap Metal Recycling market in United States are Sims Metal Management Ltd and Commercial Metals Company
What does the Scrap Metal Recycling in the US in United States include?
Aluminum scrap recycling and Iron and steel scrap recycling are part of the Scrap Metal Recycling in the US industry.
Which companies have the highest market share in the Scrap Metal Recycling in the US in United States?
The company holding the most market share in United States is Sims Metal Management Ltd.
How competitive is the Scrap Metal Recycling in the US industry in United States?
The level of competition is moderate and increasing in the Scrap Metal Recycling in the US industry in United States.
