Materials Recovery Facilities — Business Survival Rate
An estimated 63% of materials recovery facilities businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 8.8%.
Is Materials Recovery Facilities a Good Business to Start?
With a 63% five-year survival rate, materials recovery facilities has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.
The annual exit rate of 8.8% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+2.0 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 168,416 workers across 9,946 firms.
Want to know how much materials recovery facilities businesses actually make?
See full revenue benchmarks for Materials Recovery Facilities →Frequently Asked Questions
- What percentage of materials recovery facilities businesses fail?
- Approximately 37% of materials recovery facilities businesses fail within their first 5 years. The annual closure rate is 8.8%, with 833 firms closing permanently in 2023.
- Is the materials recovery facilities industry growing or shrinking?
- The materials recovery facilities industry is currently growing with a net job creation rate of +3.2% per year. New businesses are entering at 10.9% while 8.8% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.