Scrap Metal Business Feasibility Study

Chapter I

Introduction

Background of the Project

Throughout the ages man has been recycling metals by melting and reusing it. Metals especially precious metals have been used since then as commodity money way back at least 100,000 years ago. And as generation passed by, metals turned its use in industrial and economic purposes where scrap is generated. Therefore, Scrap Metal Business or Junkshop Business is not new in the ears since it is not only in the Philippines that such industry has been known but all over the world, where particular country is promoting environmental awareness among its citizens.

Scrap metal business focuses mainly on metals either ferrous or non-ferrous, unlike junkshop which has a broader scope of scrap items. This business arises from the needs of the environment to recycle scrap metals which help lessen pollution rather than producing virgin metals. Recycling scrap metals, in replacement of virgin iron ore can save energy and raw materials used, reduces pollution and mining waste.

Scrap metal business developed into small range industry but is proven to be lucrative business since it continues to exist regardless of its tight competition among its kind. At a glance, one cannot see the profitability of this but the rapid growth of this business in many cities attest to the stability of this small scale industry and always remember the local saying “may pera sa basura” (“there is money in junk”) which is true because of people who have been successful in this business and become rich because of this what they call junk.

Contextual Environment

Just like any other businesses, scrap metal business which is also referred to as junkshop, has products and its product came from those material left-over. This scrap can be found in different sources such as construction sites, airlines & railroad companies, auto mechanics, factories etc. This kind of business requires hard work, patience and resourcefulness in looking...