I.
Project Background
The rate of production of basic metal in the Philippines has increased from 16.6% to
30.17% year-on-year in February 2023. This statistic indicates that metal produced is
exponentially higher than before.
Focusing on construction volume in the Philippines, which grew by 23.6%, either
means more metals are used or old buildings are demolished to start a new project.
In a life cycle assessment of construction and demolition waste management based
on waste generation projections of buildings in the Philippines, the results showed that the
recycling and reuse of CDW (Construction and demolition waste), especially steel,
contributes to reducing the environmental impact of recycling systems. Any metal scraps that
are not recycled are typically sent to a dump, where overcrowding and pollution have a real
impact on the environment. Waste metals leak toxins like lead, mercury, and arsenic into the
soil and water supply, harming plants, animals, and humans alike.
These being facts, metal scraps from demolished buildings should be handled
accordingly to be used in an efficient, economical and eco-friendly manner for a safer
environment and more effective innovation.
GOALS AND OBJECTIVES:
1. To have a large scale harvest for metal scraps around the Philippines
2. To create good service in processing metal scraps for reusing
3. To be consistently available in providing recycled metal scraps for future construction
II.
Mission & Vision
MISSION
The mission of the company is to provide greatest service for buying,
processing, and reselling metal scraps with the aim to help the environment and
contribute to innovation
VISION
To be an efficient, reliable and trusted company known for metal scrap trading
in the year 2025
III.
Keys to Success
● Focusing on providing a service that can truly help in metal scrap trading
economy and industry
● Solving encountered problems with great efficiency and timeliness
● Never ceasing to move forward in innovation and improvement of services in
alignment to the present and the future
IV.
Services Description
A scrap metal trading business involves the buying and selling of various types of scrap
metals for recycling purposes. The primary services offered by such a business include:
Scrap metal purchasing: The business acquires various types of scrap metal from
individuals and industries for the purpose of recycling.
Sorting and grading: The company sorts and separates different types of metals based on
their composition and quality to create pure and valuable end products that can be sold to
end users.
Recycling: The purchased scraps are then processed to create high-quality raw materials
that are used to manufacture new products.
Transportation: The business has a fleet of trucks and can arrange for the transportation of
bulk scrap metal from the supplier’s location to the company’s facility.
Sale of recycled products: The company sells recycled metals to end-users, like metal
manufacturers or construction companies, who require them to create new products.
Pricing: The business offers competitive prices to attract and retain customers and to
ensure profitability.
Regulatory compliance: The business ensures compliance with local, state, and national
environmental regulations that govern the handling of scrap metal waste.
In summary, a scrap metal trading business offers a range of services related to the buying,
processing, and selling of scrap metal for recycling purposes. By providing efficient, reliable
and cost-effective services, such businesses play a critical role in the sustainable
management of natural resources, while meeting the growing demand for recycled metals in
various industries.
V.
VI.
Organizational Chart
Market Analysis
Market analysis for scrap metal trading businesses is an essential component of any
business plan. It helps businesses understand the industry, potential customer base, and
competition. Here is a brief market analysis for a scrap metal trading business:
Industry Trends: The demand for scrap metal is anticipated to rise, as it is increasingly
being used in the manufacturing of new products, including consumer electronics,
automobiles, and construction materials. Furthermore, environmental regulations are now
stricter, incentivizing the usage of recycled materials.
Market Size: The scrap metal trading market is a global market, and it is expected to reach
approximately $434.5 billion by 2025, based on a report by Grand View Research. The
industry's size is determined by the volume of scrap generated, as well as the global
demand.
Customers: Scrap metal trading businesses cater to a broad range of customers, including
manufacturers, construction companies, and metal recyclers. These clients are searching for
high-quality, affordable scrap metal.
Competition: The scrap metal trading industry is highly competitive, with many established
businesses competing for market share. Small business owners can differentiate themselves
by focusing on niche markets, offering excellent customer service and competitive pricing.
Marketing and Advertising: Scrap metal trading companies typically market their services
through various channels, including online directories, social media posts, and paid ads on
Google or Facebook. Building strong long-term relationships with their customers is one of
the essential factors for a successful scrap metal trading business.
Conclusion: Scrap metal trading is an ever-evolving industry, and it offers many
opportunities for small businesses. Investing in a robust market analysis can help these
companies gain a better understanding of the industry and tailor their business strategies to
meet the current market demands
VII.
SWOT Analysis
a. STRENGTH
- Metals are fundamental materials found in many construction projects which
translates to high value of this material in terms of industrial development.
- Wasted metals are turned into scraps during construction as wasted materials
are unavoidable in this kind of work
- With that said, this kind of market is highly valuable as it utilizes valuable
resources and allows it to continuously flow in the market.
- With the integration of modern technology in this project, which is the internet,
wide access to information and trades in the market helps the project have a
successful edge compared to traditional scrap metal trading or junk shops.
b. WEAKNESSES
- Lack of experience
- Limited contact between contractors as the project is still new
- Most contractors already have their preferred metal scraps trading that are
near and efficient for them
c. OPPORTUNITIES
- Wide access and dissemination of information across the target market
- Faster mode of communication between sellers and buyers
- Act as the medium between the seller and buyers
Success of the project can expand to a larger target market
d. THREATS
- Due to advancement in technology, other people can opt to imitate the said
project with ease as long as they have the fundamentals
- Traditional competitors can also opt to use online platform in spreading their
market
VIII.
Target Customers and Scope
The services offered by our metal scrap trading is widely accessible using the
internet through its webpage. This project will focus mainly in the locality of Urdaneta
City which is a sufficient location for this project as there are various constructions
around this area and will be efficient enough for the owners in starting their project.
IX.
Marketing Strategy
Targeting Specific Audience
Identifying the target market for the buying and selling of scrap metals as they will be
the primary source of supply and income of the project
Social Media
Creating Facebook page in promoting the project in order to attract potential partners
followed by the webpage accessible in the internet where the market will be initiated
Pricing
Price rates will be evaluated accordingly depending on the benefit of both clients and the
owners
X.
Sales Strategy
Online platform
Using an online platform can reach a wider audience, investing time on social media
selling can help attract more customers.
Easy access site
With an easier access site, customers can easily pick and buy our products because
nobody likes complicated work. It is a win-win situation for us and the customers.
Script based selling
Using script based selling can easily find what the customers need by using detailed
script or dialogue. We will ask a few questions that can match some of our products and will
communicate with such professionalism so that they can trust us with their needs.
XI.
Competitive Edge
●
Quality Customer Service
●
Trouble-free webpage
●
Prestige pricing
●
Eccentric business name and tagline
●
Reliable products