Recyclable Material Wholesaling in Canada Industry Market Research Report from IBISWorld Has Been Updated

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High demand from the industrial sector for inexpensive metal inputs has driven growth in recyclable material wholesaling. For this reason, industry research firm IBISWorld has updated a report on the Recyclable Material Wholesaling industry in its growing industry report collection.

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Global industrial operators have recently emerged as one of the strongest markets for recyclable products.

Demand for the Recyclable Material Wholesaling industry has grown impressively during the past five years. The recession decimated demand for recyclable materials prior to 2010, as declining consumer confidence led to lower consumption and manufacturing activity. In response, the federal government implemented stimulus initiatives partially dedicated to assisting the industry in its turnaround. By 2010, industry revenue sharply recovered and renewed construction spending, both in Canada and abroad, reinvigorated demand for the industry's wholesaling services. In addition, rising steel prices bolstered both total industry revenue and profit margins early on in the period, enabling material wholesalers to achieve annualized revenue growth of 5.1% to $13.4 billion during the five years to 2015.

According to IBISWorld Industry Analyst Nick Petrillo, “Global industrial operators have recently emerged as one of the strongest markets for recyclable products. A variety of factors have led to higher demand from this market; primarily, as a result of falling operating costs, wholesalers can offer lower prices for comparable construction inputs frequently used by international manufacturers.” As a result, recyclable materials have become a very attractive alternative to traditional metal inputs among major industrial buyers. The attractiveness of recyclable materials is only as strong as the value that construction operators gain from purchasing cheaper recycled inputs rather than new materials. With the world price of steel expected to increase in 2015, IBISWorld expects industry revenue will continue to improve.

Over the next five years, continued interest from the government and consumers in construction processes that use recyclable materials will benefit the industry. “Strengthening demand for recyclable materials among domestic and foreign construction industries will provide a much-needed hedge against volatile input prices over the five-year period,” says Petrillo. “Likewise, stronger sentiment toward green and sustainable products will further boost demand through increased consumer sentiment toward recycling and through federal, provincial and local recycling standards and ordinances.”

For more information, visit IBISWorld’s Recyclable Material Wholesaling in Canada industry report page.

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IBISWorld industry Report Key Topics

This industry wholesales automotive scrap, industrial scrap and other recyclable materials. Industry establishments include auto wreckers that dismantle motor vehicles for wholesale scrap material. Also included are establishments that break up, sort and wholesale all forms of scrap iron and steel using power-processing equipment, such as cranes, hydraulic shears, baling equipment and cable strippers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & 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 Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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