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 4,500 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 $792,000 annually.

    • The appliance repair and maintenance services industry consists of about 4,500 companies that employ about 19,000 workers and generate about $3.5 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. Sears employs its own service technicians, both directly and through A & E Factory Services.
                            Industry Forecast
                            Appliance Repair and Maintenance Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Mar 22, 2023 - Sales Dip for Electronics Stores
                            • Sales for electronics and appliance stores fell by 2.2% unadjusted year over year but grew by 0.3% month over month seasonally adjusted in February 2023, according to data released by the National Retail Federation. Overall retail sales were up 5.4% in February 2023 over a year ago but down 0.4% from January 2023, according to the US Census Bureau. NRF’s retail sales calculation, which excludes car dealers, gas stations, and restaurants, showed an increase of 6.5% unadjusted year over year and 0.5% month over month in February 2023. According to NRF Chief Economist Jack Kleinhenz, “Sales growth has slowed in recent months, but consumers’ economic health still looks good. February is typically the slowest month of the year, so monthly fluctuations are expected. Sales are higher than last year and that’s due in large part to the strong labor market, which means more income and spending.”
                            • Nearly half of small business owners reported job openings they could not fill in February 2023, according to the monthly jobs report from the National Federation of Independent Businesses (NFIB). Of those companies hiring or trying to hire, 51% of owners reported few or no qualified applicants for the positions they were trying to fill. About 21% of owners reported labor quality as their top business operating problem, and 12% reported labor costs as a top concern. According to NFIB Chief Economist Bill Dunkelberg, “The small business labor demand remained strong in February. Small business owners are working to maintain competitive compensation and are raising compensation in the hopes of filling their open critical positions.” A seasonally adjusted net 17% of small business owners expect to create new jobs in the next three months.
                            • The US Department of Energy (DOE) has proposed new energy efficiency standards for refrigerators and clothes washers that are expected to save consumers more than $3 billion annually on energy and water bills, according to Utility Dive. The agency said the new guidelines would strengthen energy efficiency standards for refrigerators, refrigerator-freezers, clothes washers, and standalone freezers. The standards could come into effect as soon as 2027. The DOE has not updated the rules for refrigerators and clothes washers in more than a decade. According to the DOE, “Households using new refrigerators and clothes washers will save an estimated $425 on their utility bill over the average life of the appliance with these standards in place. Over the next 30 years, the proposed rules are expected to reduce carbon dioxide emissions by 233 million metric tons — an amount roughly equivalent to the combined annual emissions of 29 million homes.”
                            • A recent investigation has found that most appliance makers withhold full repair instructions, according to The analysis, conducted by US PIRG, iFixit, and, surveyed 50 appliance makers, 37 appliance technicians, and industry experts. Seven of the 50 appliance manufacturers surveyed made their service manuals available, and 86% did not provide full repair instructions. Appliance technicians also reported problems obtaining service manuals; 89% of technicians said they had trouble accessing service manuals. In addition, the investigation found that appliance makers sometimes required expensive subscriptions to software service tools to fix appliances. For example, according to the report, GE charges $919 annually for software tools, which limits “do-it-yourself” repair and increases repair costs.
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