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
Sep 25, 2024 - Employment Falls, Wages Up
- Employment by household goods repair and maintenance firms, which include appliance repair and maintenance, fell 4.2% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at household goods repair and maintenance firms grew 6.5% in July 2024 year over year, reaching $23.29 per hour. In addition, consumer spending levels increased 2.6% in June 2024 compared to a year ago and was up 0.2% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved 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.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
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