Maximizing Scrap Value in Demolition: What Every Contractor Needs to Know
June 09, 2025
At Demolition New Orleans in March, one education panel tackled a deceptively complex topic that can make or break your project’s bottom line: maximizing the value of scrap in demolition. From vendor selection to market timing, the discussion made it clear that when it comes to scrap, strategy matters.
Panelists included Brad MacAulay, associate editor for metals at Argus Media; Andrew DeBaise, executive manager at Rocky Mountain Recycling Inc.; and Bryan Cherkasky, vice president of ferrous metals at GLE Scrap Metal.
Why Vetting Your Scrap Vendor Is Critical
It might be tempting to go with the lowest bid when choosing a scrap vendor, but panelists warned that could cost you more in the long run. A thorough vetting process ensures you’re working with someone who understands the specific materials on your site — especially valuable or regulated ones like copper, lead or asbestos — and has the expertise and equipment to process them properly.
A good scrap partner will offer transparent pricing, reliable service and full compliance with safety and environmental regulations. Cutting corners here can lead to undervalued materials, unexpected fees or worse: liability for mishandled hazardous waste. You might pay a little more for the right vendor, but the long-term return is well worth it.
Navigating a Volatile Scrap Market
The scrap market isn’t what it used to be — and it's constantly changing. The panel shared that geopolitical tensions, shifting trade policies and global supply chain disruptions are all causing significant fluctuations in material prices.
Here in the U.S., increased infrastructure spending has boosted demand for raw materials like steel and aluminum, pushing up the value of scrap. But that demand also raises competition, while rising energy and transport costs can eat into your profits.
Sustainability is also playing a larger role. With pressure mounting to reduce carbon footprints and adopt circular economy practices, scrap recycling is becoming more than a nice-to-have; it’s a must-have. But stricter regulations around hazardous materials are increasing the complexity and cost of compliance.
Key Considerations for Demolition Contractors
To get the most value out of your project’s scrap, contractors need to think ahead:
- Identify and segregate materials early. Know what’s on-site, from steel and aluminum to concrete and copper, and make a plan to sort and separate. This reduces contamination and increases return.
- Watch the market. Scrap prices can change quickly. If timelines allow, schedule demolition to align with favorable pricing.
- Prioritize compliance and safety. Your team should be trained to handle hazardous materials, and your vendors must be properly certified to avoid environmental violations.
- Plan for logistics. Scrap is heavy and expensive to transport. Partnering with a local processor or creating an efficient transportation strategy can save big.
- Lean into sustainability. Clients are increasingly asking about green practices. Highlighting your ability to recycle and reduce waste can give you a competitive advantage, especially on projects with LEED or other sustainability targets.