Appliance Repair and Maintenance
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,800 repair services in the US provide repair, installation, and maintenance services for household appliances, such as refrigerators, stoves, washing machines, dryers, water heaters, and room air conditioners. While the majority of revenue is derived from servicing household appliances, companies may provide service for other types of appliances or equipment or resell merchandise. Manufacturers, retailers, or dealers may outsource repair or warranty service to independent appliance service providers.
Competition from Retailers, Dealers, Handymen, DIY
Appliance service providers compete with dealers/retailers, handymen, and brave consumers willing to attempt repair jobs.
Warranty Work Less Attractive
Appliance manufacturers’ efforts to cut costs have resulted in warranty programs that are less profitable for service providers.
Industry size & Structure
The average appliance service provider operates out of a single location, employs 4 workers, and generates about $863,000 annually.
- The appliance repair and maintenance services industry consists of about 5,100 companies that employ about 21,700 workers and generate about $4.4 billion annually.
- The industry is somewhat fragmented; the top 50 firms account for just over 40% of industry sales.
- The majority of firms are small, independent companies.
Industry Forecast
Appliance Repair and Maintenance Industry Growth
Recent Developments
Nov 19, 2024 - Prices, Employment Down
- Prices for major appliances were 0.5% lower in October 2024 compared to the previous year and down 1.2% from the previous month, according to Consumer Price Index data. Employment by household goods repair and maintenance firms, which include appliance repair and maintenance, fell 3% in September 2024 compared to a year ago, according to the Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at household goods repair and maintenance firms grew 7.2% in September 2024 year over year, reaching $23.41 per hour. Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September.
- Appliance costs are expected to increase according to a new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals. The study looked at the effect of tariffs on prices of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. Trump has proposed a universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the NRF study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.8 billion to $14.2 billion more for toys, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Many of the latest models of kitchen appliances have a shorter lifespan and require maintenance sooner due to their complexity, according to a report in the Washington Post. The cost of repairs on newer appliance models can often rival the price of a new appliance, creating headaches for consumers. One of the issues, according to those who repair the appliances, is the switch from mechanical to electrical systems powering the appliances. The electronic components in appliances are more apt to fail and can be more difficult to replace due to the pace of change in the industry which may no longer produce the older components. Another issue contributing to breakage is the greater use of plastic in appliances due to competitive reasons to keep costs down. Items that are more vulnerable than they used to be include shelving, ice makers, and ice dispensers. While smart features in appliances may help a new appliance appeal to consumers, the report also noted that many consumers do not actually use the WiFi features that are part of many newer models of appliances. In addition, smart appliances may make households more vulnerable to cyberattacks due to the connected nature of the appliance.
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