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 6.8% in the five years through 2014-15. Upstream activities in the industry have been adversely affected by poor demand conditions. While consumers are keeping their purse strings tight and staying away from unnecessary purchases, manufacturing output has declined. This has lowered the supply of scrap metal generated from manufacturing activities. Lower consumption levels have also contributed to reduced waste volumes, leading to low growth in scrap metal supplies.
Low steel and scrap metal prices have contributed to large price declines and industry revenue falls in the past five years... purchase to read more
Industry Report - Starting a New Business Chapter
The Scrap Metal Recycling industry has high entry barriers, with the initial capital costs and the well-entrenched position of the major players being the biggest entry impediments for new firms. The scale of investment required, particularly in relation to the construction of large-scale recycling facilities that require expensive and complicated machinery, such as shredders, cutters and furnaces, provides a significant barrier to potential entrants. However, the costs of automated technologies are declining as they become more widely produced, which is decreasing potential start-up costs for new companies.
Regulations boost the investment and time for a new company to establish compliance with such laws in order to legally operate within the industry... purchase to read more