Government subsidies have propelled industry revenue in the past five years.
New York, NY (PRWEB) October 19, 2014
The United States generates hundreds of millions of scrap tires every year, representing the country's largest source of rubber waste. Scrap tire stockpiles pose a threat to both the environment and public health because they serve as breeding grounds for disease-carrying mosquitoes and release toxic chemicals into the air and ground if they catch on fire. “As a result, state and local governments have passed legislation regulating the proper disposal of tires since the late 1980s and early 1990s,” according to IBISWorld Industry Analyst Zachary Harris. These state and local government programs involve the funding, both direct (through subsidies) and indirect (through measures such as landfill tipping fees), of the tire and rubber recycling industry. Through the processing of scrap tires and other scrap rubber, the tire and rubber recycling industry both addresses the problem of rubber waste and, through the production of tire-derived fuel, crumb rubber and tire-derived aggregate, produces valuable materials for downstream businesses.
Over the past five years, the industry has grown strongly as growing concern over public health and the environment has spurred more widespread and strict regulations regarding waste tire and rubber disposal, which have provided increased direct and indirect funding for the industry. “Additionally, the industry has benefited from the economic growth over the past five years, which has resulted in increased demand for industry products for manufacturing, construction and energy purposes,” says Harris. As a result, industry revenue is forecast to grow at an annualized rate of 6.5% over the five years to 2014. In 2014, industry revenue is expected to grow 3.3% to $959.2 million.
As industrial production, the construction sector and government infrastructure investment increase over the five years to 2019, demand for the industry's recycled rubber products is expected to grow strongly. However, growth in government support for the industry's recycling activities is expected to slow somewhat as the market becomes more saturated. Currently, more than 95.0% of the scrap tires generated each year are recycled or otherwise managed in an environmentally sustainable manner. As this percentage nears 100.0%, state and local government funding of the industry is forecast to slow as the need for an expansion of industry services declines.
For more information, visit IBISWorld’s Tire and Rubber Recycling in the US industry report page.
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IBISWorld industry Report Key Topics
This industry operates facilities for separating, sorting and recycling used tires, rubber and rubber scrap. Due to the potentially harmful environmental impacts of improper tire and rubber disposal, states often directly or indirectly sponsor programs for the recycling of these materials.
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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