Global industrial operators have recently emerged as one of the strongest markets for recyclable products.
New York, NY (PRWEB) March 27, 2015
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.
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Globalization & Trade
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