Survey finds e-scrap recycling industry passing through dark days
E-waste Recycling | 2015-09-15 08:40:18
Results of a recent survey conducted among e-scrap reclaimers were published during the recently held E-scrap conference in Orlando, Florida.
By Paul Ploumis
ORLANDO (Scrap Monster): The results of a recent survey conducted among e-scrap reclaimers indicate that the industry is passing through extremely difficult times. The response provided by around 200 firms involved in the business states that current business climatic conditions point to dark days of the industry.
The results of the survey were presented by Arcadian Solutions at the E-scrap Conference 2015 held in Orlando, Florida last week. The survey had focused on the prevailing business climate within the industry with a special focus to the effects of certifications and standards on the industry participants.
According to majority of survey participants, the industry has stayed at the same position or has declined over the past several years. The industry faces several challenges including plunging commodity prices and global market uncertainties. Nearly 41% of the respondents said that the number of companies in the e-scrap reclaiming industry is declining, whereas 35% believed that the industry count remained almost the same. Meantime, only 24% stated that the number of companies in the industry has grown.
Also, with respect to industry-wide profitability, only 12% reported increased profitability. A majority of 55% pointed to decreasing profitability, whereas the remaining 33% indicated that profitability remained almost flat.
The respondents noted that handling of CRT waste continues to remain as one of the most challenging issues faced by the sector. Refurbishment and resale market has witnessed growth momentum due to the fact that it is largely insulated from low commodity prices. The competition from higher-end businesses has grown considerably. The extremely challenging market conditions may lead to shutdown of operations by at least some players.
The survey indicated that 84% believe that certifications and standards add to their business value. Also 93% noted that it adds value to the industry as a whole. However, respondents noted that many companies find it harder to bear high certification costs in the wake of declining profit situation.
