New York, NY (PRWEB) May 26, 2014
The Recycling Facilities industry accepts unsorted waste and recyclable materials and sorts them into specific recyclable material streams. According to IBISWorld Industry Analyst Dmitry Diment, “Material recycling facilities (MRFs) range from small operators that use labour-intensive processes to large-scale MRFs that employ technological machinery to process recyclables.”
After a temporary but sharp decline in 2009, the industry has performed well over the five years to 2014, with revenue anticipated to grow at an annualized rate of 6.2% to $1.3 billion, including growth of 3.8% in 2014. Industry revenue growth has been spurred by a number of factors, but chief among them is the rise in environmental consciousness among Canadians. In line with changing attitudes, green policies promoted by the government at various levels have spurred industry growth. Under the Waste Diversion Act (WDA), the federal government has worked to divert waste from landfills and promote the concept of reducing, reusing, and recycling waste. As waste management is administered at the provincial level, individual provinces have worked to promote recycling by creating comprehensive recycling programs and passing even more stringent regulations. Ontario, Quebec and British Columbia, the country's three most populous provinces, all have comprehensive recycling programs. By requiring producers of materials that can be recycled to contribute to these programs, funding levels have risen over the five years to 2019, spurring demand for recycling services.
Rising recycling waste volumes and increased demand for recycled materials have aided the industry's strong performance. “With the price of commodities like plastic, glass and other materials rising over the past five years, demand for recycled goods has risen,” says Diment. Because the sale of recycled materials makes up about 25.0% of industry revenue, this factor has significantly contributed to the industry's expansion.
The five years to 2019 are expected to be similarly positive for the industry, with revenue expected to rise. Dominant trends of the past five years are expected to continue into this period, with revenue rising on account of higher recycling volumes, increased regulation and greater demand for recycled materials. Technology will continue to play a significant role in the industry, as operators increasingly employ technologically advanced automated machinery and the industry's largest players grab a greater share of industry revenue.
The Recycling Facilities industry has a low level of market share concentration. Although the industry has a number of large operators, small- and medium-size businesses make up a large proportion of the market. Many of these companies focus on niche operations and products. The industry's overall concentration has increased as larger operators have acquired smaller companies to gain access to their customers and technologies. However, as demands for recycled goods increase so will the number of operators; the number of establishments is forecast to increase over the five years to 2019.
For more information, visit IBISWorld’s Recycling Facilities in Canada industry report page.
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IBISWorld industry Report Key Topics
The Recycling Facilities industry operates material-recovery facilities that separate and sort recyclable materials from nonhazardous waste streams (i.e. garbage). Firms also sort commingled recyclable materials, such as paper, plastics, used beverage cans and metals into distinct categories. This industry does not include municipalities and other government bodies that directly provide these services to the public.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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