What is the Scrap Metal Recycling industry?
The industry has a medium capital intensity level due to moderate 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 2016-17, depreciation is estimated to account for 3.3% of industry revenue, with wages estimated to make up for 11.7%. These show that for each $1.00 required to be spent on labour inputs, approximately $0.28 will be invested in capital plant, equipment and vehicles during the year. Capital intensity has declined in the past five years as wages increased strongly as a proportion of industry revenue, and capital investment only increased at a slow rate... purchase to read more