Industry Analysis & Industry Trends
The Scrap Metal Recycling industry has been through a tumultuous period over the past five years. Industry revenue is expected to contract by an annualised 5.7% over this time. Upstream activities have been affected by mixed demand, with manufacturing output declining and construction output growing. Overall, this has lowered the amount of scrap metal generated from domestic activities, which has reduced scrap metal volumes for the industry to process.
Declines in metal prices and reduced output have contributed to industry revenue falls in the past five years. Furthermore, lower domestic manufacturing levels have been detrimental to the industry's downstream markets, hindering demand growth for industry services... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a high capital intensity level due to high capital expenses and relatively low labour costs. To calculate the industry's capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, while wages are used as a proxy for labour. In 2015-16, depreciation is estimated to account for 3.3% of industry revenue, with wages estimated to make up for 8.8%. These show that for each $1.00 required to be spent on labour inputs, approximately $0.38 will be invested in capital plant, equipment and vehicles during the year.
The industry uses large and expensive equipment and machinery in its operations. Capital equipment in the industry includes furnaces, shredders, scrap metal balers, shears and magnet generators... purchase to read more