Third Quarter ITAD Industry Assessment and Outlook

Third-quarter data is here and so let us do some interpreting. Looking at the first two sets of data, namely employment and revenue growth, the ITAD industry sees both a positive revenue trend, but was more cautious judging by a more reduced hiring as the end of the...

As a key indicator of industry stakeholder sentiments, the answers to the question of business conditions in the third quarter suggest substantial improvements taking place on a year-over-year basis, with the top chart indicating that nearly 56% reported improvements...

The number of ITADs that committed capital investments during the third quarter of 2023 was about the same as in 2Q, with a positive response rate of more than 33% vs. nearly 37% in 2Q. The difference may not be statistically significant, unlike the 1Q2023 result that...

There have been no substantial changes in the general state of competition in the ITAD's 3Q2023 market environment versus the previous quarter.  Most companies reported experiencing moderate amount of competition, accounting for 56% of the base, or about the same...

An on going increase from 3Q2022 in IT refresh activity among ITAD clients has been reported by half of the survey takers, versus 20% as reported three months ago (2Q survey). While this figure bodes well in terms of stimulating ITAD activity, more than 37% reported...

Pricing pressure continues to affect the secondary market for used electronics, despite the potential for improved volume conditions. A strong 75% of ITAD vendors witnessed price decreases in the secondary market, slightly worse than 2Q but better than the first...

The general industry assessment on competition in the third quarter has been fairly steady over the months without big swings in the data. A majority of ITADs have been experiencing a moderate amount of competition (top chart), while one third says competition was...

From an outlook perspective, the business condition is the brightest spot in the third quarter survey. A strong 67% said they anticipate a better business climate in the next 12 months, up by more than 20 points compared to the previous two quarters. Those...

With greater visibility on this year's industry performance for ITAD executives, the likelihood of M&A activity has eased in 3Q, with just about 5.6% of the sector considering M&A activity in the next 12 months. The number of those confirming no M&A in the...

Capital investments commitments for over the next 12 months seem to be slowing a bit as ITAD companies go over their annual revenue analysis. We are not surprised that 3Q shows capital investment commitment droping to 44% of the ITADs vs.the 53% reported in 2Q and...

ITAD vendors remain optimistic as to the outlook for the next 12 months. While those with expectations of better revenue outlook remained about the same in 3Q as in previous quarters, accounting for more than 66% of the ITAD companies, the third quarter saw no vendor...