 |
|
Scrap Metals-Recycling Industry Profile Excerpt
| SIC Codes: 5093 NAICS Codes: 42393, 56292 Page Length: 10-12 Last Quarterly Update: 11/10/2008 View Sample Industry Profile |
 |
The US scrap industry includes about 8,000 companies with combined annual revenue of $30 billion. Large national scrap processors include Metal Management, Schnitzer Steel, Alcan, and The David J Joseph Corporation. A typical local scrap processor has annual revenue under $5 million. The industry is fragmented and local, because the low value-to-weight ratio of most scrap discourages long-distance transportation. The top 50 companies hold only about 40 percent of the market.
COMPETITIVE LANDSCAPE
Demand from the steel, auto, and construction industries drive the recycling industry. The profitability of individual companies depends on cultivating relations with suppliers and buyers. Most companies are small and compete by specializing in one type of material in their local market. Large companies have economies of scale and have the financial ability to invest in new, faster machinery.
PRODUCTS, OPERATIONS & TECHNOLOGY
Scrap metal recycling companies collect, process, and resell materials like metals, glass, plastics, and paper. Recycling iron and steel scrap comprises about half of the industry’s revenue. One company, Alcan, recycles about 40 percent of all aluminum cans in the US.
The scrap recycling industry processes about 145 million tons of material annually, including 75 million tons of iron and steel (ferrous metals); 50 million tons of paper and paperboard (cardboard); 10 million tons of nonferrous metals like aluminum, copper, stainless steel, lead and zinc; 4 million tons of glass; and 300,000 tons of plastics (PET and HDPE bottles). Almost all old cars ...
Would you or your company benefit from having unlimited access to First Research’s industry intelligence tools? Click Here to find out more about Subscription options.