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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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.

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

                            Coronavirus Update

                            May 19, 2022 - Appliance Shortage Drives Repair Demand
                            • After an initial run on appliances in the early days of the pandemic, manufacturers cut back on production amid factory shutdowns and an anticipated reduction in consumer spending. Appliance production has also been affected by a scarcity of key components such as wiring harnesses, compressors, steel, and semiconductors, which also saw production disruption earlier in the pandemic. Supply constraints in the semiconductor market are beginning to ease for some products, according to a recent report by Gartner. Slower growth in the PC, smartphone, and server markets should help bring chip supplies in better balance with demand throughout 2022, but supplies of some products are expected to remain tight. Shortages are projected to stretch into 2023 for semiconductors with wide use in automotive applications, including microcontrollers, power management integrated circuits, and voltage regulators.
                            • Some repair firms have used Zoom video services to communicate with customers and remotely diagnose appliance issues, walk owners through troubleshooting steps, and determine what parts may be needed if an onsite visit is required. Repair and maintenance firms have also created safety protocols to protect technicians and property owners. Repair firms are outfitting service personnel with masks, gloves, and hand sanitizer. Technicians request the shortest route through the home to reach the appliance and offer touchless payment options (phone or online).
                            • Strong demand for housing and persistent scarcity of key inputs, including steel and computer chips, continue to drive an appliance shortage. The value of manufacturers’ unfilled orders for household appliances increased 11.9% in March 2022 compared to March 2021, according to the US Census Bureau. Scarcity is contributing to higher appliance prices; US consumer prices for major appliances were up 14.1% in April 2022 compared to a year earlier, according to the Bureau of Labor Statistics. Tight appliance retail supplies, long delivery wait times, and rising prices may prompt consumers to have existing appliances repaired to tide them over until supply constraints and pricing ease.
                            • The appliance repair industry is attracting new entrants as people who lost their jobs or seek a career change are attracted by the uptick in demand and the potential for good wages. Before the pandemic, appliance repair jobs were expected to decline nearly 7% between 2019 and 2029, according to the Bureau of Labor Statistics (BLS). However, the industry’s main US trade group – the United Appliance Servicers Association – says demand for technicians is strong, primarily because there are only two major appliance repair schools in the US where new technicians can receive training.
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