NAICS 562920 Quarterly Industry Report
Materials Recovery Facilities
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 562920Sector: Administrative and Support and Waste Management and Remediation Services (56)Updated: Q1 2026
About This Report
This industry profile for Materials Recovery Facilities (NAICS 562920) draws on data from the Bureau of Labor Statistics[6], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, recycling industry analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the materials recovery facilities industry.
Share of Administrative and Support and Waste Management and Remediation Services
0.3%
By establishment count, 2022 Census[2]
NAICS Sector
56
Administrative and Support and Waste Management and Remediation Services
Industry Definition & Overview
Materials Recovery Facilities (NAICS 562920) encompasses establishments primarily engaged in operating facilities for separating and sorting recyclable materials from nonhazardous waste streams, or operating facilities where commingled recyclable materials such as paper, plastics, used beverage cans, and metals are sorted into distinct categories per the U.S. Census Bureau[5]. These MRFs receive mixed recyclables from curbside collection programs and commercial sources, then use a combination of mechanical screens, optical sorters, magnets, eddy current separators, and manual picking lines to separate materials into commodity-grade bales for sale to domestic and export markets.
About 313 establishments employ roughly 21,834 workers, generating approximately $850 million in annual payroll and $5.97 billion in total revenue per the Bureau of Labor Statistics[6]. Waste Management operates 95 MRF facilities nationwide, with Republic Services, Waste Connections, and several regional operators controlling additional capacity. Market economics depend heavily on commodity prices for recovered paper, cardboard, aluminum, and plastics, creating revenue volatility that distinguishes MRFs from disposal-based waste operations.
Per the SBA Table of Size Standards[7], the size standard is $25.0 million in average annual receipts. China's 2018 National Sword policy sharply restricted contaminated recyclable imports, forcing domestic MRFs to invest in processing upgrades and find alternative end markets. Contamination rates in single-stream recycling programs average 15 to 25 percent, requiring MRFs to landfill non-recyclable residuals that arrive mixed with target materials. Automation investment in robotic sorting arms and AI-powered optical recognition systems is accelerating as operators seek to reduce labor costs and improve material purity to meet buyer specifications.
What's Included in This Industry
- Single-stream recyclable material sorting
- Dual-stream paper and container separation
- Optical sorting and automated material recognition
- Magnetic and eddy current metal separation
- Baling and preparation of recovered commodities
- Contamination removal and residual management
- Paper and cardboard grade sorting
- Plastic resin identification and separation
- Glass crushing and color sorting
- Quality control and commodity marketing
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Administrative and Support and Waste Management and Remediation Services | 56 |
| Subsector | Waste Management and Remediation Services | 562 |
| Industry Group | Remediation and Other Waste Management Services | 5629 |
| NAICS Industry | Materials Recovery Facilities | 56292 |
| National Industry | Materials Recovery Facilities | 562920 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 562111 | Solid Waste Collection | Solid Waste Collection delivers commingled recyclables from curbside programs to MRFs for sorting, representing the primary feedstock supply chain for materials recovery operations |
| 562119 | Other Waste Collection | Other Waste Collection brings construction debris and specialty recyclable streams to MRFs for processing, with C&D materials requiring different sorting equipment than municipal recyclables |
| 423930 | Recyclable Material Merchant Wholesalers | Recyclable Material Merchant Wholesalers purchase sorted commodity bales from MRFs and market them to domestic mills and export buyers, serving as the downstream distribution channel for recovered materials |
| 562212 | Solid Waste Landfill | Solid Waste Landfills receive non-recyclable residuals that MRFs cannot recover from incoming waste streams, with contamination rates determining what percentage of received material goes to disposal |
| 562219 | Other Nonhazardous Waste Treatment and Disposal | Other Nonhazardous Waste Treatment includes composting facilities that process organic contaminants separated from recyclable streams, complementing MRF operations by handling non-recyclable organics |
| 562998 | All Other Miscellaneous Waste Management Services | All Other Miscellaneous Waste Management covers material separation activities that complement MRF operations, including specialized sorting of waste streams not processed through standard recycling lines |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 11.1% | 159 |
| 2 | New York | 8.7% | 124 |
| 3 | Texas | 7.8% | 111 |
| 4 | Pennsylvania | 4.3% | 62 |
| 5 | Florida | 4.3% | 62 |
| 6 | Ohio | 4.3% | 61 |
| 7 | Illinois | 3.9% | 55 |
| 8 | Michigan | 3.6% | 51 |
| 9 | New Jersey | 3.4% | 48 |
| 10 | North Carolina | 3.0% | 43 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
104
Total SBA Loans
$112.4M
Total Loan Volume
$1.1M
Average Loan Size
14 yrs
Average Loan Term
9.04%
Average Interest Rate
1,624
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Materials Recovery Facilities (NAICS 562920) has a size standard of $25.0 million in average annual receipts for federal contracting purposes. SBA 7(a) loans[8] support sorting equipment upgrades, facility expansion, and working capital for qualifying operators. Automation investment in robotic sorting and optical recognition technology represents a growing capital expenditure category for MRF operators. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Beach Cities Commercial Bank | 8 | $28.0M | $3.5M |
| 2 | Choice Financial Group | 8 | $24.0M | $3.0M |
| 3 | Enterprise Bank & Trust | 8 | $24.0M | $3.0M |
| 4 | US Metro Bank | 8 | $14.9M | $1.9M |
| 5 | U.S. Bank, National Association | 8 | $6.1M | $758K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate materials recovery facilities?
Waste Management operates 95 MRF facilities, with Republic Services, Waste Connections, and regional operators holding additional capacity. About 313 establishments employ roughly 21,834 workers per the U.S. Census Bureau[5]. Municipal governments also operate publicly owned MRFs under contract with private sorting operators.
How do MRFs generate revenue?
Revenue comes from processing fees charged to waste haulers for accepting recyclables and commodity sales of sorted materials per the Bureau of Labor Statistics[6]. Paper, cardboard, aluminum, and plastic bales are sold to domestic mills and export markets, with prices fluctuating based on global commodity demand.
What is the SBA size standard for Materials Recovery Facilities?
Per the SBA Table of Size Standards[7], NAICS 562920 has a size standard of $25.0 million in average annual receipts. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to materials recovery facilities?
Related codes include NAICS 562111 (Solid Waste Collection), NAICS 562119 (Other Collection), NAICS 423930 (Recyclable Wholesalers), NAICS 562212 (Landfills), and NAICS 562998 (Other Waste Management) per the U.S. Census Bureau[5].
How did China's National Sword policy affect MRFs?
China's 2018 import restrictions on contaminated recyclables forced MRFs to invest in processing upgrades and find alternative domestic end markets. Contamination standards tightened from 5 percent to 0.5 percent, requiring better sorting technology and increased quality control at facilities.
What activities are included in NAICS 562920?
Core activities include single-stream sorting, dual-stream separation, optical and magnetic sorting, baling recovered commodities, contamination removal, paper grading, plastic resin sorting, glass processing, and quality control per the U.S. Census Bureau[5].
Can MRF operators get SBA loans?
Yes, firms meeting the $25.0 million size standard qualify for SBA 7(a) loans[8] covering sorting equipment, facility expansion, and working capital. Automation upgrades for robotic sorting and optical recognition represent growing capital investment needs.
What is single-stream recycling?
Single-stream recycling collects all recyclable materials in one container, requiring MRFs to separate paper, plastics, metals, and glass mechanically per the Bureau of Labor Statistics[6]. While convenient for residents, single-stream programs produce higher contamination rates of 15 to 25 percent compared to source-separated collection.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504/CDC loans sba.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.