Waste & Scrap Wholesaling in the UK Industry Market Research Report Now Updated by IBISWorld
London, United Kingdom (PRWEB) July 19, 2013 -- Firms in the Waste & Scrap Wholesaling industry wholesale or resell metal and non-metal waste and scrap that has been recovered, processed and sorted into secondary raw materials. These products are exported or sold to downstream customers, who are usually manufacturers. Scrap metal, plastic and glass are the products most commonly sold by the industry.
Industry revenue is forecast to grow at a compound annual rate of 2.2% over the five years through 2013-14 and reach an estimated £3.9 billion. Revenue fluctuated dramatically at the start of the period because global raw metal prices were very volatile. The economic slowdown also caused unsteady demand conditions because production levels in downstream markets fell. Lower production levels also reduced the supply of scrap metal to wholesalers. Growth became steadier in the second half of the five-year period as metal prices levelled out and supply and demand conditions stabilised somewhat. Industry revenue is expected to grow by a further 3.5% in 2013-14.
According to IBISWorld industry analyst Lewis Sutton, “households and businesses have been increasing the amount they recycle over the past five years, which has resulted in larger volumes of treated and recycled waste and scrap being available”. However, greater supply volumes on the market have applied downward pressure on prices. Some wholesale bypass has occurred in the industry over the past five years because more recycling and processing companies have been selling directly to the firms that process metal and non-metal products further.
Over the five years through 2018-19, industry revenue is forecast to continue to rise. The industry is expected to benefit from less volatility in global metal prices, which will allow steadier growth and more stable profit margins. Demand and supply conditions are expected to be more favourable. Sutton adds, “higher recycling volumes across the United Kingdom could lead to more intense price competition and force prices down, but the increase in volumes is expected to outweigh this”.
The four largest firms operating in the Waste & Scrap Wholesaling industry are estimated to account for 31.2% of revenue in 2013-14, indicating that the industry has a low market share concentration level. There are several medium-size firms operating in the industry, but the majority are small, independently operated companies. Major companies include European Metal Recycling and Sims Metal Management. Although the concentration level is low, it has increased in the past five years. This is largely due to consolidation and this is expected to continue in the next five years as larger firms look for ways to increase their market share and build relationships with more suppliers and customers.
For more information on the Waste & Scrap Wholesaling industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Firms in this industry wholesale metal and non-metal waste and scrap for recycling. This involves collecting, sorting and separating waste, and stripping used goods, such as cars, to obtain reusable parts. Industry operators do not process the material the collect in any way.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 7222 9898.
Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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