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 - Starting a New Business Chapter
The Scrap Metal Recycling industry has high barriers to entry, with the initial capital costs and the well-entrenched position of the major players being the biggest impediments. 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