SIC 3341 Secondary Smelting and Refining of Nonferrous Metals
SIC 3341
This classification comprises establishments primarily engaged in recovering nonferrous metals and alloys from new and used scrap and dross, or in producing alloys from purchased refined metals. This industry includes establishments engaged in both the recovery and alloying of precious metals. Also included in this industry are plants involved in the recovery of tin through secondary smelting and refining, as well as by chemical processes. Excluded from this classification are establishments primarily engaged in assembling, sorting, and breaking up scrap metal without smelting and refining the metal. These establishments are classified in SIC 5093: Scrap and Waste Materials.
331314
Secondary Smelting and Alloying of Aluminum
331423
Secondary Smelting, Refining, and Alloying of Copper
331492
Secondary Smelting, Refining, and Alloying of Nonferrous Metals (except Copper and Aluminum
Metal, utilized by nearly every manufacturing industry in the United States and abroad, is produced through two basic production methods: primary and secondary. Primary manufacturers produce metal by subjecting particular extracted ores to various metallurgical processes, creating metal in large block or bar form. Secondary manufacturers smelt, refine, and sometimes blend metal recovered from either the shaping and trimming of primary metal during production and fabrication, or from recycled metal. The secondary smelting and refining of nonferrous metals, as defined by SIC 3341, comprises the secondary production of metals that do not contain iron, such as aluminum, copper, gold, lead, nickel, silver, tin, and zinc. These metals are used in a wide variety of manufactured products, including ammunition, beverage cans, coins, automobiles, household appliances, and a wealth of other products that encompass the breadth of U.S. manufacturing activity.
Copper, possessing superior electrical conductivity, is a strong, durable metal used in a variety of structural applications, as well as for power, lighting, and communications transmissions. Domestically, the major markets for copper are construction, electrical and electronics, and industrial machinery and equipment.
Aluminum, the most widely used nonferrous metal, possesses several positive attributes, such as light weight, corrosion resistance, and high electrical and thermal conductivity that make the metal suitable for a variety of applications. Container and packaging manufacturers purchase a majority of the domestically produced aluminum, while other major end-use markets include the transportation sector, the buildings and construction sector, and the electrical sector.
Lead is primarily used for the manufacture of storage batteries, which in turn are incorporated into automobile ignition starters, uninterruptible power supplies for computer systems, and standby power supplies for emergency lighting systems and telephones. Other market sectors that purchase lead include paint and glass manufacturers and building products manufacturers.
Zinc is primarily used to galvanize products found in the automobile, steel, and construction industries, but a greater percentage of secondary zinc is used to produce brass and bronze, as well as assorted chemicals and dusts. Additional applications include the blending of zinc-based, die-cast alloys and brass alloys.
The industry recorded $7.4 billion in sales in 2001 for products included in this classification, an aggregate value of shipments primarily derived from the production of the industry's five key products: secondary aluminum, secondary precious metals (gold, silver, platinum), secondary copper, secondary lead, and secondary zinc. Although the secondary smelting and refining industry produces other metals, such as nickel and tin, these five metals accounted for the bulk of the industry's total shipments. The industry slumped during 2001, due to poor economic conditions and oversupply, and is not expected to see significant recovery until at least 2004.
In terms of the number of people employed per establishment, the secondary smelting and refining industry has been historically populated by relatively small manufacturing facilities. Of the 395 secondary smelting and refining establishments in operation in 1997, 173, or nearly 44 percent, employed less than 20 people, while the remaining 222 employed 20 people or more. These 395 establishments represented all of the individual production facilities operated by the approximately 354 companies engaged in smelting and refining secondary nonferrous metals in 1997. The average number of employees per establishment in the secondary smelting and refining industry in 1997 was 52.
Geographically, a majority of the secondary smelting and refining production facilities in the 1990s were located in a four-state area comprising Michigan, Illinois, Indiana, and Ohio. Together, these states contained 99 production facilities. The mid-Atlantic states of Pennsylvania, New York, and New Jersey formed the second largest regional concentration of facilities, with 65 establishments. The Pacific region was the third largest area of production solely by virtue of the 37 establishments located in California—the greatest number located in any one state and the only state within the region that contained any secondary smelting and refining facilities. When ranked according to the number of establishments per state, California was followed by Pennsylvania, with 34 production facilities, and Ohio, with 33 establishments. The 17 manufacturing facilities in Alabama and Georgia together accounted for a whopping $719.4 million in shipments in 1992, 77.5 percent more than the $405.4 million generated by the 37 establishments in California.
The expenses incurred from operating a secondary smelting and refining facility were substantially higher than the amount of money required to operate the average manufacturing facility in the United States. This disparity was most evident in the average cost per establishment, that is, the average amount of money paid for raw manufacturing materials. According to 1994 figures, the average cost per establishment in this industry was $12.8 million, more than three times greater than the $4.2 million averaged by all other manufacturing industries. At $399,225, the average investment per establishment in the secondary smelting and refining industry for production machinery and other equipment necessary in the recovery of primary metal, however, was 43 percent higher than the average investment per establishment in all other manufacturing industries, which required only $278,244.
In the historiography of secondary smelting and refining, one chronicler traces the origins of recovering scrap metal to the seventh descendent of Adam, back to the founder of the iron and steel industry, and by implication, the founder of the scrap metal industry—Tubal-Cain. The writer then proceeds to chart the...
To continue reading
Request your trial