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
Jul 23, 2024 - Employment, Wages Up
- Employment by household goods repair and maintenance firms, which include appliance repair and maintenance, increased during the first five months of 2024, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at household goods repair and maintenance firms grew year to date through May 2024, reaching $22.51 per hour. In addition, consumer spending levels increased during the first five months of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings fell in June 2024, with a seasonally adjusted 37% of small business owners reporting jobs they could not fill. The reading is down five points from May 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from May. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- Homeowners are buying large appliances more often than 15 years ago, shortening the appliance upgrade cycle, according to an analysis by Zonda Media reported by CNBC. The analysis found that homeowners are now replacing their large appliances every eight to nine years, compared to replacing them every 12 or 13 years from 1995 to 2005. In addition, consumers are spending more than a third more on appliances than they did 15 years ago beyond inflation. Per the article, Todd Tomalak, Zonda’s principal of building products research, said that today’s appliances have more advanced technology and complex features but also become obsolete sooner and have more aspects to repair than appliances years ago.
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