Market research firm IBISWorld reported that amid growing green businesses, the recycling market seems to be the only one that has really been hit by the economic recession.
Compared to green industries such as natural products, biotechnology, environmental consulting, hydroelectric and renewable power generation, the recycling market this year is expected to decline after growing 6.3% for the past five years until 2008, IBISWorld said.
“Falling prices have put the recycling industry on the scrapheap this year,” explained George Van Horn, senior analyst with IBISWorld. “It is the thirteenth biggest revenue loser in 2009, and is expected to plummet a drastic 20 percent.”
Metal price declines combined with lower demand for recycled material are said to be major factors impacting sales.
Major players in the US market include Waste Management Inc., Covanta Holding, Allied Waste Industries, Casella Waste Systems, and Republic Services, Inc. Consolidation is expected within large players while smaller operators, more labor intensive, and without integrated waste collection and disposal activities, may be forced to exit the industry.
Check out some of my earlier posts on recycling woes for this year.
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