The Impact Of Scrap Metal Recycling On The Economy

As the population grows, the country needs more metal to keep up with infrastructure and products. Metal recycling comes in handy to close the resources loop and ensure valuable resources aren't lost.

The metal recycling industry creates jobs, prevents wastage, saves money, and increases exports. This article explores how these factors contribute to economic recovery and growth.

Increases Employment Opportunities

The metal recycling industry grows larger as years go by, hence the need for an increased workforce. Metal recycling is labor-intensive and requires people to collect, sort, and process the scrap. Besides, other supporting roles such as logistics and sales come in handy during different recycling stages. The employment opportunities translate to a higher GDP and a better economy.

Reduces Unnecessary Waste

Whether you have a restaurant, hardware, or anything in between, your business probably generates a lot of scrap metal. Failure to recycle the materials turns your metal into lost profits and wasted products. But metal recycling allows you to get back money for excess materials you didn't use. You can also recycle metals you once used but no longer need.

Provides Cheaper Metal Prices for Manufacturers

Metal recycling allows manufacturers to buy raw materials at a lower price. As a result, the production cost for the buyer reduces and translates to higher profits. The reduced production cost also leads to cheaper goods and more disposable income. Ultimately, consumers pump back the extra money into the economy.

Generates Tax Revenues

The metal recycling industry generates much revenue for federal, state, and local governments. The industry and its employees generate $6.76 billion in federal taxes annually. Another $4.39 billion goes to state and local authorities. The revenue flows back into the economy to pay state employees and develop economic activities that create new jobs.

Saves Money and Energy

Metal recycling still needs money and energy to be carried out. Nonetheless, the power and finances are lesser than what would have been spent on extraction from virgin ores. The less money needed to meet the high resource demand creates savings for other economic sectors. In an ideal economy, the savings lead to tax reductions and higher minimum wages.

Allows for Increased Exports

Scrap metal recycling increases the number of metal products available. The extra metallic products can be exported to other countries with high demand for scrap commodities. The increased exports translate to economic growth for your country. 

Metal recycling is a great way to take part in economic growth. So, don't waste any scrap metal in your home or business. Instead, sell the metals to a reliable metal recycling company. That way, you take part in the collective responsibility of metal recycling for economic growth. Besides, you get the money that would otherwise lie as waste in landfills.

For more information, contact a company such as Fry's Metals.