On the scrap heap: The end of car manufacturing in Australia has hurt industry growth

The past five years have been difficult for operators in the Scrap Metal Recycling industry. Indirect demand from metal and metal product manufacturing has declined, while demand from construction has increased. This mixed demand, combined with Arrium Limited entering administration in April 2016, has lowered the amount of scrap metal generated from domestic activities. Industry revenue is expected to decline by an annualised 5.4% over the five years through 2017-18, to total $2.05 billion. This includes forecast growth of 0.9% in the current year.Increased domestic building and infrastructure construction has supported industry revenue growth over the past five years. In addition, growing electronic waste volumes have delivered rising revenue from precious metals such as gold...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
-5.4%
Forecast Growth 18-23
Profit
Employment
2,024
Businesses
177
Market Share of Companies

Industry Threats & Opportunities

  • Lower industry prices and excess global steel output have contributed to industry revenue declines
  • Lower steel prices have placed pressure on the industry’s already low profit margins
  • Demand for scrap metal recycling is expected to increase over the next five years
  • Industry Report - Industry Investment Chapter

    The Scrap Metal Recycling industry is moderately capital-intensive. IBISWorld expects that in 2017-18, for every dollar invested in capital, $3.58 will be spent on wages. 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. Although this equipment is costly to acquire, most items have a long life span. Depreciation expenses have increased as a share of revenue over the past five years, as players have invested in capital equipment such as automobile shredders and electronic-waste processing and extraction machinery. Industry employment numbers have fallen over the past five years as firms have sought to reduce costs to preserve profitability. Cap...purchase to read more.

    Additional Insights for the Scrap Metal Recycling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Scrap Metal Recycling Industry are

  • Establishing key export markets
  • Access to a multiskilled and flexible workforce
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and Base metals price index in the Scrap Metal Recycling industry impact industry performance..

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    What's in this report

    What is the Scrap Metal Recycling Industry?

    Firms in the industry are primarily engaged in the recovery of recycled scrap metal. Recovery involves the manufacture of scrap metal into new, usable material or products. Commonly recycled metals include steel, copper, aluminium, zinc, lead, nickel and titanium.

    Industry Products
  • Ferrous scrap metal recycling services
  • Non-ferrous metal recycling services
  • Precious and other metal recycling
  • Final metal products
  • Industry Activities
  • Ferrous metals recycling
  • Non-ferrous metals recycling
  • Precious metals recycling
  • Metal product
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • Base metals price index
  • World price of steel
  • Demand from primary metal and metal product manufacturing
  • Demand from building construction
  • Demand from transport equipment manufacturing

  • Current Performance
  • Price and profit changes
  • Mixed scrap metal supply
  • Ailing downstream markets
  • Export markets
  • Increasing consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Future market structure
  • Demand and cost changes
  • Future industry developments
  • Table: Scrap Metal Recycling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Scrap Metal Recycling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron Smelting and Steel Manufacturing
  • Aluminium Smelting
  • Non-Ferrous Metal Casting

  • Key Selling Industries
  • Consumers
  • Mining and Construction Machinery Manufacturing
  • Motor Vehicle Manufacturing

  • Products & Services
  • Ferrous scrap metal recycling services
  • Non-ferrous metal recycling services
  • Final metal products
  • Precious and other metal recycling
  • Chart: Scrap Metal Recycling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other export markets
  • Domestic metal smelting industries
  • China export markets
  • Other domestic industries
  • Chart: Major Market Segmentation for the Scrap Metal Recycling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Scrap Metal Recycling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Scrap Metal Recycling Industry

  • Industry Globalization
    Sims Metal Management Limited,
  • Table: Sims Metal Management Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Scrap Metal Recycling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Scrap Metal Recycling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Baler
  • Equipment used to compress scrap metal into compact bales.
  • Ferrous
  • A metal, such as steel, that contains an appreciable amount of iron.
  • Foundry
  • The buildings and works for casting metals.
  • Non-Ferrous
  • A metal, such as aluminium, that does not contain iron.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Scrap Metal Recycling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Scrap Metal Recycling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Scrap Metal Recycling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Scrap Metal Recycling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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