Industry Analysis & Industry Trends
The Scrap Metal Recycling industry has faced a tumultuous past five years. Industry revenue has taken a beating, contracting at an annualised 2.6% in the five years through 2012-13. Upstream activities in the industry have been adversely affected by poor demand conditions. Consumers are keeping their purse strings tight, staying away from unnecessary purchases. As a result, demand for manufacturing industries has gone down, lowering the supply of scrap metal generated from manufacturing activities. A low consumption level has also meant a low waste volume, leading to a low supply of scrap metals.
Poor macroeconomic conditions have been detrimental to the industry's downstream markets, hindering growth in demand for industry products... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity in the industry is considered medium. IBISWorld determines capital intensity by calculating the ratio of depreciation costs and labour costs. The Scrap Metal Recycling industry spends approximately $4.71 on labour for every dollar spent on depreciation.
The industry uses large and expensive equipment and machineries in operations. Capital equipment in the industry include furnaces, shredders, scrap metal balers, shears and magnet generators. These equipment are expensive and have long life spans. The level of capital intensity within the industry is expected to increase, as operators invest in more time-saving and efficient equipment in place of labour force... purchase to read more