United States – The US scrap recycling industry invested more than US$ 14 billion in equipment between 2006 and 2011, a new report from the Institute of Scrap Recycling Industries (ISRI) has revealed. The study was initiated in order to arrive at ‘a credible quantification’ of how much scrap processing, handling and related equipment is deployed in the country’s scrap sector. According to the Washington-based body, investment made per unit averaged US$ 200 000. Overall expenditure on equipment increased by 20%, or US$ 1.8 billion, between 2008 and 2011, partly due to the ‘accelerated depreciation’ credit that was put into law.
‘The financial windfall to the industry was a direct result of the RISE Act associated with the stimulus package developed in 2008,’ notes ISRI. As a result of the credit, companies invested in new and/or higher-value equipment – thus ‘by-passing loan considerations in tight credit markets’.
Meanwhile, ISRI says that approximately 15% of total scrap equipment revenues for US manufacturers is generally derived from export sales. It also estimates that scrap recycling players will invest some US$ 15 billion in equipment over the next five years.
The study was conducted by international business research firm Strategic Analysis Inc. (SAI).
For more information, visit: www.isri.org
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