Recyclable Material Wholesalers
Brief Excerpt from Industry Overview Chapter:
Companies in this industry engage in wholesale distribution of automotive scrap, industrial scrap, and other recyclable materials. Major scrap wholesalers include America Chung Nam, Commercial Metals Company, and The David J Joseph Company (all based in the US), as well as ELG Haniel and TSR Recycling (Germany), European Metal Recycling (the UK), and Sims Metals (Australia).
Demand from the steel, auto, and construction industries drives the scrap metal wholesaling industry. The profitability of individual companies depends on cultivating relationships with suppliers and buyers. Most companies are small and compete by specializing in one type of material in their local market. Large companies have economies of scale in purchasing equipment and transportation. The industry in the US is fragmented: the top 50 companies account for about 50% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major sources of revenue are ferrous metal scrap (recyclable and prepared), which accounts for about 60% of sales. Other sources include aluminum scrap, recyclable paper, nonferrous metal scrap, and plastics, wich account for about 10%, each.
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