Recyclable Material Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,260 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.
Industry size & Structure
The average recyclable material wholesaler has a single location, employs about 15-16 employees and generates $11-12 million in annual revenue.
- The industry consists of about 6,260 companies that employ 100,000 workers and generate $78 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
Recyclable Material Wholesalers Industry Growth
Recent Developments
Nov 12, 2024 - Major Waste Firms Post Steady Recycling Revenue
- Some of the largest waste-hauling firms saw their recycling-related third-quarter revenues rise amid higher commodity prices for several types of recyclable materials. Republic Service’s recycling revenue grew 41.6% in Q3 2024 compared to the same period in 2023, and Waste Connections’ recycling segment saw a rise of 93%. Waste Management’s recycling operations’ revenues increased by more than 41%.
- Packaging Corporation of America and International Paper – major consumers of recovered fiber – reported robust upticks in box demand in their third-quarter reporting. Packaging Corporation of America said its containerboard production in Q3 2024 hit an all-time high as its corrugated packaging shipments were up 11.1% over Q3 2023. International Paper also enjoyed more robust box demand, and its containerboard shipments in the third quarter increased 14% over the same period a year earlier. International Paper noted that while its input costs were higher in Q3 2023 year over year – partly due to higher costs for old corrugated containers (OCC) – recovered fiber prices have recently begun to soften.
- Goodwill is partnering with waste hauling firm Waste Management and textile recycling firm Reju to pilot the collection, sortation, reuse, and recycling of textiles, according to Resource Recycling. The proof-of-concept pilot includes Goodwill of the Finger Lakes and nine other Goodwills that geographically include about a third of the US population. The Goodwill locations will serve as the program's collection hubs. Goodwill will sort through textile donations and set aside items that are too threadbare for resale. Goodwill will then turn the collected textiles over to Waste Management and Reju, and the two firms will ensure the items are properly introduced to the recycling stream.
- Redemption rates for bottles declined in 2023 for most states that have bottle bills, according to a recent report by the Container Recycling Institute and reporting by Waste Dive. The beverage container redemption rate declined between 1% and 4% in seven of the ten states with bottle bills; Oregon posted a 1% increase in redemption, and Vermont’s rate improved by just under 1%. Hawaii notched the biggest decline in redemption rates with a drop of 4%, followed by Michigan (-3%), Massachusetts (-2%), and New York (-2%). Redemption rates have generally declined since 2017. The National Waste & Recycling Association opposes deposit-based bottle return laws, arguing they divert resources away from curbside recycling and reduce revenue for material recovery facilities (MRFs). However, the Solid Waste Association of North America (SWANA) supports deposit return programs because they improve collection rates and reduce litter.
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