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
Sep 11, 2024 - Bottle Redemption Rates Decline
- 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.
- Some waste haulers that specialize in collecting organic waste for composting are expanding their offerings to include the collection of hard-to-recycle materials, according to Waste Dive. Organic material waste hauling and composting firm Black Earth Compost has partnered with TerraCycle to collect two dozen types of materials that are not ordinarily allowed in traditional curbside recycling bins, including coffee capsules, expanded polystyrene foam, and toothpaste tubes. TerraCycle’s “Zero Waste Bags” are distributed to consumers who subscribe to Black Earth’s organic material collection services, and Black Earth collects the bags along with the customers' organic waste. TerraCycle has similar partnerships with about 20 organic waste haulers nationwide.
- 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.
- 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.
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