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
Jul 12, 2024 - Industry Growth to Improve, Then Flatten
- The recyclable material wholesale industry is expected to post steady but flat sales growth after a slowdown in 2024. The industry’s year-over-year sales growth is expected to slow to 1.7% in 2024 after a gain of 6% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to rise to 3% in 2025, then notch average annual growth of about 3.4% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- In early July 2024, the EPA began enforcement after designating two types of per- and polyfluoroalkyl substances (PFAS) - more commonly known as “forever chemicals” - as hazardous substances under Superfund or CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) in April. The designation affects perfluorooctanoic acid (PFOA) and perfluorooctanesulfonic acid (PFOS) and ensures that spills, leaks, and other releases of the chemicals are reported and cleaned up. Forever chemicals - which are used in food packaging, textiles, and cookware – have been linked to health problems, including cancers and immune and developmental disorders. The EPA’s ruling aims to target PFOS and PFOA manufacturers to pay for clean-up but doesn’t specifically exempt private waste and recycling facilities that may handle materials that contain the chemicals. Concerns remain despite an EPA companion “enforcement discretion” document specifying that the agency wouldn’t seek enforcement on publicly owned and operated municipal solid waste (MSW) landfills. The document doesn’t mention private MSW facilities, and some recycling industry insiders worry that the costs of treating waste contaminated with PFOS and PFOA could pinch recyclers’ razor-thin margins.
- In July, US-based packaging firm Westrock and Smurfit Kappa of Ireland merged to form the world’s largest containerboard and box-making firm, according to Fastmarkets RISI. The combined Dublin-based company - Smurfit Westrock - operates 63 paper mills and 500 converting facilities in 40 countries and processes an estimated 15 million tons of recycled fiber per year. Smurfit Westrock is also a significant collector of recycled fiber, with more than two dozen recycling plants in the US and many more throughout the rest of the world.
- US waste and scrap exports increased 7.8% in May 2024 over April, according to the US International Trade Commission. May’s waste and scrap exports were up 10.2% compared to the same month in 2023. Year-to-date waste and scrap exports in May declined 0.9% compared to the same period in 2023. The largest US waste and scrap export markets include Canada, China, India, Mexico, and Malaysia.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.