Recyclable Material Wholesalers NAICS 423930

        Recyclable Material Wholesalers

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Industry Summary

The 6,270 recyclable material wholesalers in the US distribute metal scrap, glass scrap, paper scrap, plastic scrap, and other recyclable materials for reuse in manufacturing, construction, and other applications. The industry includes auto wreckers who dismantle motor vehicles to resell scrap materials, rather than selling used auto parts.

Dependence On Economy

Demand for recyclable materials is dependent on economic conditions, particularly the strength of the manufacturing and construction sectors.

Volatile Scrap Prices

Prices for recycled materials can vary widely from year to year, affecting revenues and inventory valuations for wholesalers.


Recent Developments

May 11, 2026 - Study Identifies Gaps in Recycling Infrastructure Access
  • A new University at Buffalo study finds that people across the US generate similar amounts of plastic packaging waste regardless of income, education, or location. Still, recycling rates vary widely due to unequal access to infrastructure, according to Resource Recycling. Published in Nature Communications Sustainability, the research shows wealthier, more educated communities are typically closer to industrial recycling facilities, while lower-income areas often lack access. Most residents in high recycling regions live within 30 miles of such facilities. The US trails Europe, recycling 14% of plastic packaging compared to 42.1%, and regional gaps persist, especially in the South and rural states. The findings highlight how limited infrastructure shapes outcomes and underscore significant implications for the recycling industry, including opportunities to expand access and improve system equity.
  • Researchers with the circular-economy nonprofit Light House found that construction sites offer a major opportunity to divert plastic waste, according to Waste Dive. After a 14-month pilot across eight Vancouver construction sites, researchers collected about 38,000 kilograms of plastic, of which roughly 77% was deemed recyclable. The study, one of the first in North America to track construction plastics through the waste stream, identified films, wraps, and other LDPE materials as the most viable for recycling. Success depended on convenient, clearly labeled bins, crew participation, and supervision, while contamination averaged about 21%. Challenges include limited recycling infrastructure, market demand, and handling requirements for construction-derived plastics. Researchers recommend incentives such as landfill bans, variable tipping fees, and procurement standards to boost recovery and end markets, while highlighting the potential to recycle materials into new construction products.
  • North American waste and recycling facilities are seeing persistently high fire risks after a record 2025, with no relief so far this year, according to Fire Rover consultant Ryan Fogelman and reporting by Resource Recycling. Fogelman recorded 56 publicly reported fires in January and February across the US and Canada, including 31 in February, the highest for that month since 2016. His 2025 report counted 448 fires, surpassing 2024’s record and running nearly 25% above the annual average, with damage exceeding $2.5 billion. Fogelman attributes the rise to lithium-ion batteries in about 1.2 billion disposable vapes annually and the growing use of nitrous oxide containers. These items can ignite during processing. He said better waste separation, safer handling, consumer returns, education, and removable batteries could reduce risks, which have shifted from seasonal spikes to a year-round threat.
  • Waste industry insiders suggest the EPA’s move to roll back the endangerment finding will not directly change core emissions rules for the waste and recycling industry but will create other challenges, according to Waste Dive. EPA administrator Lee Zeldin framed the rollback as a major deregulatory step, while environmental groups warned it would raise long-term climate and public health risks. Waste industry organizations noted that a warming climate could worsen worker safety challenges and increase severe-weather impacts. Landfill air emissions rules remain unchanged because they are based on non-methane organic compounds rather than greenhouse gases. The decision adds uncertainty as the administration also seeks to dismantle the Greenhouse Gas Reporting Program, potentially forcing landfill operators to navigate a patchwork of state rules. Environmental groups plan to challenge the rollback of the endangerment finding in court.

Industry Revenue

Recyclable Material Wholesalers


Industry Structure

Industry size & Structure

The average recyclable material wholesaler has a single location, employs about 16 employees and generates $17.3 million in annual revenue.

    • The industry consists of about 6,000 companies that employ 102,100 workers and generate $108 billion in annual revenue.
    • The industry consists primarily of small family-owned businesses.
    • The industry is fragmented, as the top 50 companies account for only 47% of industry revenue.
    • Large companies include America Chung Nam (paper and plastic recycling), David J. Joseph Company (scrap metal and a subsidiary of Nucor Corp.), OmniSource (scrap metal and a subsidiary of Steel Dynamics, Inc.), Sims Metal Management (scrap metal and U.S. subsidiary of Sims Group Ltd. of Australia) and Radius Recycling (formerly Schnitzer Steel Industries).
    • Some firms act as brokers, selling recycled materials for owners of material recovery facilities (MRFs), while others operate their own MRFs.
    • Some large companies are vertically integrated and also process scrap material into finished products.
    • The industry also competes with the recycling operations of large waste management companies, such as Waste Management, Inc. and Republic Services, Inc.

                                Industry Forecast

                                Industry Forecast
                                Recyclable Material Wholesalers Industry Growth
                                Source: Vertical IQ and Inforum

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