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 SWOT Analysis Chapter
The Scrap Metal Recycling industry is currently in the mature stage of its life cycle. The industry has been growing slower than the overall economy and consolidation activities are becoming more apparent. Many industry players have even downsized their operations in favour of efficiency and productivity rather than scale, in a bid to survive in the industry.
In the ten years through 2017-18, IBISWorld estimates industry value added to contract at an annualised rate of 1.5%. This figure is significantly lower compared with the estimated GDP growth during the same period, which is at 2.4%. This indicates that the industry's contribution to the overall economy is shrinking and that the industry is moving towards the declining stage of its life cycle... purchase to read more