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 - Industry SWOT Analysis Chapter
The Scrap Metal Recycling industry is currently in the decline stage of its life cycle. While industry volumes have increased in the past five years, lower steel and scrap metal prices have resulted in large industry revenue declines. The industry has been growing slower than the overall economy and consolidation activities are becoming more apparent. While some scrap metal recycling firms have downsized their operations in favour of efficiency and productivity rather than scale, others have become more vertically integrated in an attempt to ensure supply and reduce transport costs.
In the ten years through 2019-20, IBISWorld estimates industry value added to contract at an annualised rate of 0.3%. This is in contrast to estimated GDP growth during the same period of 2.9%... purchase to read more