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
Jan 28, 2025 - Labor Costs Rise, Employment Falls
- Average wages for nonsupervisory employees at household goods repair and maintenance firms, which include appliance repair and maintenance services, were 14.6% higher in November 2024 compared to a year ago, reaching $25.38 per hour. Employment by household goods repair and maintenance firms fell 5.5% in November 2024 compared to a year ago, per the BLS. Consumer spending, a leading indicator for the industry, increased nearly 3% in November 2024 compared to a year ago and was up 0.3% from the previous month, according to the Bureau of Economic Analysis. Prices for major appliances were 4.9% lower in December 2024 compared to the previous year and down 2.7% from the previous month, according to Consumer Price Index data.
- Appliance repair and maintenance services may want to monitor cost-cutting measures taken by appliance manufacturers resulting in fewer parts, according to a report by BNN Bloomberg. Whirlpool, for example, has made changes such as removing unnecessary parts and leaving internal parts unpainted to save as much as 8% on new washers. The appliance industry is looking for ways to remove unnecessary expenses in appliance design and manufacturing and lower prices in the face of lower consumer demand. Whirlpool’s revenue is likely to shrink by 14% in 2024, marking the third consecutive year of declines, according to projections. Whirlpool expected to deliver $300 million in cost savings in 2024.
- 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 declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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