Morningstar, a financial services and analysis firm, has suggested declining copper prices might portend a broader economic slowdown. | Flegere/Shutterstock
Prices for copper have been slipping to lows not seen since the May time frame. Continue Reading
Leaders in the ITAD realm expressed concerns about client layoffs and the overall business environment. | Sarawut Aiemsinsuk/Shutterstock
The second quarter brought generally worsening business conditions for the ITAD industry, but business leaders think they’ve hit the bottom of secondary market pricing.
A survey by E-Scrap News and consulting firm Compliance Standards asked ITAD industry leaders about IT refresh cycles, competition, used device pricing, competition, hiring and capital investments, and more for the second quarter of 2023.
“Q2 started off strong but was negatively impacted by continued variability in the reuse markets,” one participant wrote (all responses remain anonymous). “This volatility continues to be our biggest challenge although we believe it is largely driven by sentiment rather than the actual strength or weakness of the market,” according to a second-quarter survey report.
After the first-quarter survey, E-Scrap News published articles covering first-quarter assessments and generally optimistic outlooks in August.
Compliance Standards and E-Scrap News have opened their survey for the third quarter of 2023. Share your perspective to receive exclusive insights on the market.
Participate in our survey of the third quarter of 2023 to receive a free report and webinar presentation covering major takeaways. All responses remain confidential.
In the meantime, the following are some takeaways from the second-quarter report, which was provided exclusively to survey participants:
Business conditions were worse: Just over 63% said second-quarter business conditions were worse than the same quarter a year prior. During the first quarter, 56% had said they were worse year over year. The respondents also indicated things were worse than the prior quarter. Specifically, in the second quarter, 47% said business conditions were worse than in the prior quarter. During the first-quarter survey, 41% had said they were worse than the prior quarter. The same general takeaway came through from questions asking whether the number of IT refresh projects were up, down or flat year over year and sequentially.
Clients layoffs cited: A number of comments from survey takers indicated that their clients were experiencing layoffs, which was slowing business. “We are seeing more layoffs in the industry among the clients we represent with white glove services,” one respondent wrote. “Companies are being forced to take this action.” Another noted, “Many companies that initiated ITAD services RFPs, evaluations, etc., have let the individuals go who were leading the project.”
Device sales are hugely important: For the first time, the second-quarter survey asked participants about their sources of revenue. In aggregate, 40% of revenue came from the sale of used devices, 16% from sales of scrap and commodities, 14% from enterprise services such as premium data destruction, 12% from sales of harvested parts and components, and 19% from other sources (numbers total 101 due to rounding).
Big capital investments planned: Looking forward, poll takers said they’re looking to make big capital investments in their companies. During the second quarter, 33% said they plan to spend between $1 million and $5 million in capital investments over the next year, and the rest said they were looking at smaller expenditures or they didn’t know. That was way up from the first-quarter survey, when 11% pointed to $1 million to $5 million investments. Company leaders pointed to vehicle upgrades, additional facilities, equipment to remove chips, ERP software investments and other projects.
Secondary market pricing looks up: Knowing how important used device sales are to ITAD service providers, E-Scrap News and Compliance Standards asked about secondary market pricing. In these answers, there were bright spots. For example, in the second quarter, 33% of respondents said secondary market prices were flat or up year over year. That may not sound great, but in the first quarter, only 5% said they were stable or higher year over year. On a sequential basis, it was the same trend, with 54% saying second-quarter prices were stable or higher than the prior quarter. In the first quarter survey, only 20% said the same thing.
“Although we anticipate continued volatility in market pricing, we are hopeful that we’ve hit bottom and will gradually begin an upward trend,” one poll taker wrote.
Morningstar, a financial services and analysis firm, has suggested declining copper prices might portend a broader economic slowdown. | Flegere/Shutterstock
Prices for copper have been slipping to lows not seen since the May time frame. Continue Reading
Leaders in the ITAD realm expressed concerns about client layoffs and the overall business environment. | Sarawut Aiemsinsuk/Shutterstock
The second quarter brought generally worsening business conditions for the ITAD industry, but business leaders think they’ve hit the bottom of secondary market pricing.
A survey by E-Scrap News and consulting firm Compliance Standards asked ITAD industry leaders about IT refresh cycles, competition, used device pricing, competition, hiring and capital investments, and more for the second quarter of 2023.
“Q2 started off strong but was negatively impacted by continued variability in the reuse markets,” one participant wrote (all responses remain anonymous). “This volatility continues to be our biggest challenge although we believe it is largely driven by sentiment rather than the actual strength or weakness of the market,” according to a second-quarter survey report.
After the first-quarter survey, E-Scrap News published articles covering first-quarter assessments and generally optimistic outlooks in August.
Compliance Standards and E-Scrap News have opened their survey for the third quarter of 2023. Share your perspective to receive exclusive insights on the market.
Participate in our survey of the third quarter of 2023 to receive a free report and webinar presentation covering major takeaways. All responses remain confidential.
In the meantime, the following are some takeaways from the second-quarter report, which was provided exclusively to survey participants:
Business conditions were worse: Just over 63% said second-quarter business conditions were worse than the same quarter a year prior. During the first quarter, 56% had said they were worse year over year. The respondents also indicated things were worse than the prior quarter. Specifically, in the second quarter, 47% said business conditions were worse than in the prior quarter. During the first-quarter survey, 41% had said they were worse than the prior quarter. The same general takeaway came through from questions asking whether the number of IT refresh projects were up, down or flat year over year and sequentially.
Clients layoffs cited: A number of comments from survey takers indicated that their clients were experiencing layoffs, which was slowing business. “We are seeing more layoffs in the industry among the clients we represent with white glove services,” one respondent wrote. “Companies are being forced to take this action.” Another noted, “Many companies that initiated ITAD services RFPs, evaluations, etc., have let the individuals go who were leading the project.”
Device sales are hugely important: For the first time, the second-quarter survey asked participants about their sources of revenue. In aggregate, 40% of revenue came from the sale of used devices, 16% from sales of scrap and commodities, 14% from enterprise services such as premium data destruction, 12% from sales of harvested parts and components, and 19% from other sources (numbers total 101 due to rounding).
Big capital investments planned: Looking forward, poll takers said they’re looking to make big capital investments in their companies. During the second quarter, 33% said they plan to spend between $1 million and $5 million in capital investments over the next year, and the rest said they were looking at smaller expenditures or they didn’t know. That was way up from the first-quarter survey, when 11% pointed to $1 million to $5 million investments. Company leaders pointed to vehicle upgrades, additional facilities, equipment to remove chips, ERP software investments and other projects.
Secondary market pricing looks up: Knowing how important used device sales are to ITAD service providers, E-Scrap News and Compliance Standards asked about secondary market pricing. In these answers, there were bright spots. For example, in the second quarter, 33% of respondents said secondary market prices were flat or up year over year. That may not sound great, but in the first quarter, only 5% said they were stable or higher year over year. On a sequential basis, it was the same trend, with 54% saying second-quarter prices were stable or higher than the prior quarter. In the first quarter survey, only 20% said the same thing.
“Although we anticipate continued volatility in market pricing, we are hopeful that we’ve hit bottom and will gradually begin an upward trend,” one poll taker wrote.
In spite of depressed resale prices in China, Sims Lifecycle Services reported a large increase in electronics resold during the 2023 fiscal year. | Andrii Yalanskyi/Shutterstock
Low used electronics pricing in China, margin compression and inflation conspired to cut Sims Lifecycle Services’ profits in half during the 2023 fiscal year, executives said. Continue Reading
Iron Mountain and Envela Corporation recently released second-quarter earnings results, providing insight into electronics reuse and recycling markets. | iQoncept/Shutterstock
Low prices for electronic components continue to dampen Iron Mountain’s data center decommissioning business. Meanwhile, a group of ITAD and e-scrap companies boosted their profit margins even amid a slowdown in business. Continue Reading
Over half of respondents reported plans for investments of more than $500,000, indicating an uptick in market optimism among electronics recyclers. | Polarpx/Shutterstock
Likely hesitant due to difficult markets in the first quarter, ITAD industry players were fairly conservative in their capital expenditures early this year. But company leaders foresee bigger spending ahead, according to a new survey. Continue Reading
One of the survey’s most notable findings was that 70% of respondents reported that prices for used electronics have decreased “a lot” since the first quarter of 2022. | Sarawut Aiemsinsuk/Shutterstock
A number of market factors squeezed the ITAD industry earlier this year, including high costs of labor and lower secondary market prices, according to a first-of-its-kind survey. Continue Reading
Boliden estimates it lost about $19 million in second-quarter operating profits due to a fire at its flagship copper smelter. | Amy VonDe/Shutterstock
Global economic concerns and rising interest rates put a damper on metals prices during the second quarter, although gold and silver values were up because of investor interest, according to a major smelter operator. Continue Reading
Analysts point to inflationary pressure as a key driver of reduced demand for PCs. | KenSoftTH/Shutterstock
Around the globe, PC shipments dropped 16.6% in the second quarter of 2023, marking the seventh consecutive quarter of decline. However, analysts at Gartner say the trend may be shifting soon.
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The RGX grant is part of the Office of Economic Development and International Trade’s efforts to boost innovation in the state. | People Image Studio/Shutterstock
A Colorado business looking to make ITAD services more accessible and more efficient for both customer and provider was awarded a state grant to support its efforts. Continue Reading
Orbex aims to help companies purchase recycled metal and ensure supply chain integrity. | MAXSHOT.PL/Shutterstock
Marketplace operator Orbex has announced a trading platform for certified recycled metals. Continue Reading