Professional Documents
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Recycling Facilities in The US Industry Report
Recycling Facilities in The US Industry Report
WWW.IBISWORLD.COM
Dmitry Diment
17 International Trade
Industry Definition
18 Business Locations
Main Activities
Similar Industries
20 Competitive Landscape
33 Industry Data
Additional Resources
33 Annual Change
33 Key Ratios
3 Industry at a Glance
31 Industry Assistance
33 Key Statistics
4 Industry Performance
23 Barriers to Entry
Executive Summary
23 Industry Globalization
Current Performance
24 Major Companies
Industry Outlook
28 Operating Conditions
13 Supply Chains
28 Capital Intensity
15 Demand Determinants
30 Revenue Volatility
15 Major Markets
WWW.IBISWORLD.COM
Main Activities
Operating facilities for separating and sorting recyclable materials from nonhazardous waste streams
Operating facilities where commingled recyclable materials are sorted into distinct categories
Similar Industries
Additional Resources
WWW.IBISWORLD.COM
Industry at a Glance
Recycling Facilities in 2016
Key Statistics
Snapshot
Revenue
Profit
Wages
Businesses
-5.5%
4.5%
$192.8m $875.5m 1,155
$4.9bn
Market Share
Waste
Management Inc.
20.9%
40
16
8
Republic Services
Inc.
7.0%
% change
% change
20
0
-20
0
-8
-16
-40
Year 08
10
12
Revenue
14
16
18
20
-24
Year
22
08
10
12
14
16
18
20
Employment
SOURCE: WWW.IBISWORLD.COM
p. 24
5.2%
Recyclables collection
services
8.2%
Other
Population
Price of paper
47.3%
Price of plastic
materials and resin
Recyclable material
recovery and processing
39.3%
p. 4
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Industry Structure
Growth
High
Medium
Regulation Level
Medium
Barriers to Entry
Medium
Industry Assistance
High
Industry Globalization
Concentration Level
Low
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 33
Heavy
Technology Change
Low
Medium
WWW.IBISWORLD.COM
Industry Performance
State
WWW.IBISWORLD.COM
Industry Performance
1.0
0.9
% change
% change
-8
0.7
-16
-24
Year
0.8
08
10
12
14
16
18
20
0.6
Year
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Environmental
consciousness
generates growth
Industry revenue
40
20
% change
Current
Performance
0
-20
-40
Year 08
10
12
14
16
18
20
22
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Volatile recycled
material sales
Expansion of larger
companies
The
expansion of markets
for recycled materials has
caused rapid growth
WWW.IBISWORLD.COM
Industry Performance
Volatile profit
margins
More
efficient operating
processes have allowed
for lower costs and higher
profit margins
These operators also use high-tech
machinery, such as infrared scanners and
magnetic pulleys, which quickly mark
and sort various types of recyclable
materials. These technologies allow these
operators to sort more waste more
quickly, while simultaneously using less
labor than smaller operators. Their
more efficient operating processes
allow for lower costs and, therefore,
higher profit margins.
Conversely, smaller operators have
experienced profit margin decreases over
the five years to 2016. Volatile fuel costs
have negatively affected the Waste
Collection Services industry, which
provides recycling facilities that are not
vertically integrated with the unsorted
waste that they recycle. As these costs
have fluctuated, waste collection service
providers have charged operators in the
Recycling Facilities industry higher prices
to purchase this unsorted waste, raising
industry purchase costs and lowering
industry profitability.
WWW.IBISWORLD.COM
Industry Performance
Industry
Outlook
Increased waste
Expansion of
recycling programs
As
WWW.IBISWORLD.COM
Industry Performance
Expansion of
recycling programs
Sales of recycled
materials
Profit
Sales
of recycled materials
are expected to expand
over the next five years
WWW.IBISWORLD.COM
Industry Performance
Life Cycle Stage
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Recycling Facilities
0 Sewage Treatment Facilities
Decline
Paper Mills
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
WWW.IBISWORLD.COM
Industry Performance
industry
is G
rowing
WWW.IBISWORLD.COM
Supply Chain
32221
32521
32612
32616
32721
33243
42383
56211
56221
WWW.IBISWORLD.COM
5.2%
8.2%
Recyclables
collection services
Other
47.3%
Recyclable material
recovery and processing
39.3%
Total $4.9bn
most commonly recycled materials
include: paper and paperboard, metals,
glass and plastics. Paper and paperboard
is the most extensively recycled material,
accounting for about 70.0% of the total
weight of recycled materials.
This segment of industry revenue is
primarily driven by the publics desire to
preserve resources and reduce the
environmental and public health impacts
of landfills. As such, the primary buyers
of this industry service are state and local
governments, nonprofit organizations
and environmentally conscious
individuals who fund recycling facility
services in order to benefit the public
good. Demand for this service has
therefore grown as the public has become
more environmentally conscious, a trend
that is expected to continue.
Sale of recycled materials
The secondary source of income for this
industry involves the sale of recycled
materials that recycling facilities have
already collected, sorted and processed,
which accounts for an estimated 39.3% of
industry revenue. Demand for recycled
materials fluctuates considerably, causing
the prices of these goods to be very
unstable. This can affect revenue,
operating income and cash flows. In
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Demand
Determinants
Major Markets
WWW.IBISWORLD.COM
Major Markets
continued
1.7%
22.5%
Municipal governments
75.8%
Total $4.9bn
recycling services directly, they also often
pay private recycling facilities to meet
local community recycling needs.
Additionally, municipalities often enact
legislation that require businesses within
their jurisdictions to organize and pay for
the recycling of their waste, indirectly
providing the Recycling Facilities industry
with revenue.
The amount of funding that a
municipality provides to recycling centers
varies widely based on the size of a
municipalitys tax base, the level of
environmental consciousness within a
particular municipality and the health of
municipal budgets. For example, Chicago,
the third-largest city in the United States,
recycles less than 10.0% of its municipal
solid waste due to limited funding for
recycling programs. Conversely, San
Jose signed a 15-year contract with
industry major player Republic Services
in 2011 to conduct all recycling services
for the citys businesses. The San Jose
city council demands that Republic
Services divert at least 80.0% of waste
away from landfills (much of which will
be done via recycling) or face large
financial penalties. Republic Services
spent $55.0 million constructing the
worlds largest recycling facility in
order to fulfill this task.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
International Trade
WWW.IBISWORLD.COM
West
New
England
AK
0.1
Great
Lakes
WA
ND
MT
2.4
Rocky
Mountains
ID
OR
1.4
West NV
0.8
2.9
SD
0.2
WY
0.2
MN
0.4
0.5
Plains
CO
0.6
KY
0.6
OK
0.8
NC
2.6
TN
AZ
NM
1.9
0.4
Southwest
TX
6.7
HI
3.3
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.3
2.1
0.6
3.3
2.7
0.4
SC
Southeast
1.9
MS
AL
0.7
1.5
GA
1.9
0.2
LA
0.8
FL
4.2
Establishments (%)
0.2
1.8
AR
0.4
1.4
11.5
WV VA
2.1
1.5
1.3
CA
West
3.6
MO
KS
2.1
OH
2.8
3.3
3.4
IN
IL
0.3
UT
PA
4.2
2.4
1.7
1 2
3
NY
6.8
5 4
MI
2.5
IA
NE
0.2
WI
ME
MidAtlantic
9 DC
0.2
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
10
Southwest
Southeast
Plains
New England
Rocky Mountains
Establishments
Mid-Atlantic
Great Lakes
0
West
Business Locations
Population
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
Competitive Landscape
in
this industry is L ow
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Profit
Profit, measured as earnings before
interest and taxes, is expected to account
for 3.9% of industry revenue in 2016,
down from about 8.3% in 2012. Several
WWW.IBISWORLD.COM
21
Competitive Landscape
Industry Costs
(2016)
6.5
3.9
100
n Profit
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other
17.7
80
Percentage of revenue
Cost Structure
Benchmarks
continued
51.1
60
49.3
40
18.7
20
1.9
3.5
16.4
1.9
5.5
4.0
0.6
19.0
0
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
22
Competitive Landscape
Cost Structure
Benchmarks
continued
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Mediumand the
trend is S
teady
WWW.IBISWORLD.COM
23
Competitive Landscape
Basis of Competition
continued
Barriers to Entry
in this industry
are M
ediumand
Increasing
Industry
Globalization
Level & Trend
lobalization
G
in this
industry is L owand
the trend is S
teady
Medium
Low
Growth
Medium
Medium
Heavy
High
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Major Companies
Major players
(Market share)
72.1%
Other
Player Performance
Waste Management
Inc.
Market share: 20.9%
SOURCE: WWW.IBISWORLD.COM
Revenue
($ million)
(% change)
Operating Income
($ million)
2011
2012
1,485.5
N/C
168.8
N/C
1,276.6
-14.1
121.9
-27.8
2013
1,350.9
5.8
47.7
-60.9
2014
1,278.8
-5.3
160.2
235.8
2015
1,094.4
-14.4
89.5
-44.1
2016
1,072.7
-2.0
110.0
22.9
*Estimates
(% change)
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
Republic Services
Inc.
Market share: 7.0%
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Revenue
($ million)
(% change)
Operating Income
($ million)
2011
2012
438.6
N/C
83.1
N/C
349.0
-20.4
56.8
-31.6
2013
374.6
7.3
53.9
-5.1
(% change)
2014
405.8
8.3
56.8
5.4
2015
372.0
-8.3
63.6
12.0
2016
359.8
-3.3
60.8
-4.4
*Estimates
WWW.IBISWORLD.COM
Major Companies
Other Companies
WWW.IBISWORLD.COM
Operating Conditions
of capital
intensity is M
edium
Capital intensity
Economy
Administration,
Business Support &
Waste Management
Services
Recycling
Facilities
SOURCE: WWW.IBISWORLD.COM
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Recycling Facilities
Capital Intensive
Labor Intensive
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
of
Technology Change
is M
edium
WWW.IBISWORLD.COM
Operating Conditions
Revenue Volatility
of
Volatility is H
igh
Volatility vs Growth
1000
Level
The level
Hazardous
Rollercoaster
100
Recycling Facilities
10
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
WWW.IBISWORLD.COM
Operating Conditions
Revenue Volatility
continued
Regulation is H
eavy
and the trend
is I ncreasing
Industry Assistance
Level & Trend
he level of Industry
T
Assistance is H
igh
and the trend
is I ncreasing
WWW.IBISWORLD.COM
Operating Conditions
Industry Assistance
continued
WWW.IBISWORLD.COM
33
Key Statistics
Industry Data
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Industry
Revenue Value Added Establish($m)
($m)
ments
4,642.8
1,074.8
1,043
5,250.6
1,224.3
1,169
4,241.2
995.5
1,153
5,582.1
1,375.2
1,157
6,555.4
1,596.3
1,258
5,946.7
1,504.0
1,435
5,759.7
1,300.6
1,484
5,807.3
1,557.2
1,510
5,204.2
1,441.4
1,506
4,944.6
1,340.5
1,518
5,323.5
1,503.1
1,611
5,625.0
1,665.3
1,692
5,856.1
1,787.8
1,765
6,053.9
1,941.7
1,839
6,172.1
2,100.6
1,910
22/26
25/26
25/26
840/1370
857/1370
777/1370
Annual Change
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
Revenue
(%)
13.1
-19.2
31.6
17.4
-9.3
-3.1
0.8
-10.4
-5.0
7.7
5.7
4.1
3.4
2.0
2/26
270/1370
Key Ratios
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Sector Rank
Economy Rank
IVA/Revenue
(%)
23.15
23.32
23.47
24.64
24.35
25.29
22.58
26.81
27.70
27.11
28.24
29.61
30.53
32.07
34.03
25/26
835/1370
Industry
Value Added
(%)
13.9
-18.7
38.1
16.1
-5.8
-13.5
19.7
-7.4
-7.0
12.1
10.8
7.4
8.6
8.2
1/26
95/1370
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Establishments
(%)
12.1
-1.4
0.3
8.7
14.1
3.4
1.8
-0.3
0.8
6.1
5.0
4.3
4.2
3.9
4/26
224/1370
Enterprises Employment
884
15,803
937
16,215
920
16,137
920
16,429
921
18,291
1,079
21,268
1,117
22,020
1,141
23,895
1,143
23,741
1,155
23,308
1,223
24,877
1,283
26,199
1,338
27,305
1,394
28,325
1,447
29,134
24/26
24/26
771/1370
805/1370
Enterprises Employment
(%)
(%)
6.0
2.6
-1.8
-0.5
0.0
1.8
0.1
11.3
17.2
16.3
3.5
3.5
2.1
8.5
0.2
-0.6
1.0
-1.8
5.9
6.7
4.9
5.3
4.3
4.2
4.2
3.7
3.8
2.9
4/26
1/26
239/1370
185/1370
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exports
---------------N/A
N/A
Revenue per
Employee
($000)
293.79
323.81
262.82
339.77
358.39
279.61
261.57
243.03
219.21
212.14
213.99
214.70
214.47
213.73
211.85
4/26
741/1370
Imports
---------------N/A
N/A
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages/Revenue
(%)
14.03
12.69
14.69
11.70
11.19
13.85
14.61
15.21
17.34
17.71
17.71
17.76
17.84
17.95
18.11
26/26
783/1370
Wages
($m)
651.5
666.1
623.1
653.1
733.4
823.6
841.4
883.2
902.2
875.5
942.8
998.9
1,045.0
1,086.8
1,118
25/26
844/1370
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Employees
per Est.
15.15
13.87
14.00
14.20
14.54
14.82
14.84
15.82
15.76
15.35
15.44
15.48
15.47
15.40
15.25
10/26
629/1370
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
2.2
-6.5
4.8
12.3
12.3
2.2
5.0
2.2
-3.0
7.7
6.0
4.6
4.0
2.9
2/26
204/1370
World price
of crude oil
($ per barrel)
195.9
215.0
190.8
210.1
229.9
235.2
245.3
257.0
233.3
236.0
244.9
252.4
256.6
259.7
262.8
N/A
N/A
Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Average Wage
($)
41,226.35
41,079.25
38,613.13
39,752.88
40,096.22
38,724.84
38,210.72
36,961.71
38,001.77
37,562.21
37,898.46
38,127.41
38,271.38
38,368.93
38,374.41
15/26
931/1370
World price
of crude oil
(%)
9.7
-11.3
10.1
9.4
2.3
4.3
4.8
-9.2
1.2
3.8
3.1
1.7
1.2
1.2
N/A
N/A
Share of the
Economy
(%)
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.01
25/26
857/1370
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Jargon
IBISWorld Glossary
WWW.IBISWORLD.COM
IBISWorld Glossary
continued
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