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
Recent Developments
Nov 29, 2022 - Amid Weak Demand, Appliance Manufacturers Make Cuts
- Appliance maker Whirlpool said that it cut home appliance production by more than a third during its most recent quarter, according to The Wall Street Journal. The firm also reduced its profit outlook for 2022 by half amid rising costs and weakening consumer demand brought on by inflation. Whirlpool’s North American sales dipped 7.7% in Q3 compared to the same period in 2021. In response to weaker demand, Sweden-based appliance firm Electrolux recently announced it planned to eliminate between 3,500 to 4,000 jobs companywide. Electrolux posted a third-quarter operating loss of $35 million, which was primarily driven by a softening of the North American market as consumers pull back on big-ticket spending. Tighter consumer finances could lead consumers to have their appliances repaired instead of replacing them.
- Appliances are among a group of items for which inflation tends to be “sticky,” and prices for such products could remain high even after overall inflation begins to abate, according to The Wall Street Journal. The Atlanta Fed designates an item “flexible” when its price changes more often than about every four months, while products labeled “sticky” take more than four months to see prices move. Appliances, furniture, and home furnishings are among products deemed sticky by the Atlanta Fed, while flexible categories include fresh fruits and vegetables, shoes, and clothing. Amid persistently high prices, consumers may postpone purchases of sticky, big-ticket items, including appliances, for more extended periods of time.
- In August, President Biden signed the Inflation Reduction Act spending package, which includes $400 billion for efforts to slow climate change, including tax incentives for homeowners to make their homes more energy efficient. Over the next 10 years, homeowners get up to $14,000 in tax credits and rebates for making green home improvements, that’s on top of renewed tax credits for adding solar. Many homeowners are expected to use the incentives to swap their fossil-fuel-burning appliances for electric ones, such as electric heat pump water heaters and electric ranges and ovens. The new law could reduce demand for appliance repair services if the tax credits make it more economical to replace equipment than to have it repaired.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.